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MALM Day 18, July 14, 2016

    Thursday, July 14, 2016

  1. Ikea still sells chests in Korea despite tip-over hazard

    Jul 14, 2016 | The Dong-a Ilbo

  2. IKEA recalls deadly dressers in China. GZ: still on sale

    Jul 14, 2016 | News GD

  3. Ikea refuses to recall dangerous dressers here

    Jul 14, 2016 | The Korea Herald

    By Won Ho-jung

  4. Brand Triage - Rescuing Your Brand When You Become “The Bad Guy.”

    Jul 14, 2016 | The Huffington Post

    By Ken Carbone

  5. Ikea to extend product recall to China

    Jul 14, 2016 | Inside Retail Asia

  6. On China recall drawers IKEA: dangerous goods without problems arouse awareness

    Jul 14, 2016 | Netease International News

  7. Philadelphia Products Liability Lawyers: Ikea Recall

    Jul 14, 2016 | Bradley Smith Products Liability Law Blog on Lawyers.com

    By Bradley Smith

  8. Wednesday, July 13, 2016

  9. Deconstructing the IKEA Dresser Recall

    Jul 13, 2016 | The Wall Street Journal

    By ABBY W. SCHACHTER

    Syndicated coverage: Konservative Kartel - http://konservativekartel.com/deconstructing-the-ikea-dresser-recall/ Truth or Not - http://truthornot.info/EN/getnews?id=5787174b0266b37f09202fe3 Dispute Press - http://dispute.press/news/1369952 Best Retirement Solution - http://bestretirementsolution.net/2016/07/14/deconstructing-the-ikea-dresser-recall-14/ 50 Crime - http://50crime.com/id/16335993146 Global Headlines - http://www.globalheadlines.uk/news/14476115/Deconstructing-the-IKEA-Dresser-Recall.html#.V4fz5vkrLq4 Financial Road - http://financialroad.top/deconstructing-ikea-dresser-recall/ iStackr - http://www.istackr.com/page/1770536/Deconstructing-the-IKEA-Dresser-Recall/ Stock House - http://stockhouse.top/ikea-dresser-remember-deconstruct/

    Thursday, July 14, 2016

  1. Ikea still sells chests in Korea despite tip-over hazard

    Jul 14, 2016 | The Dong-a Ilbo

    Ikea, a multinational furniture supplier, has announced that it will make refund for chests that have caused child deaths overseas, but it is still selling the products in question in Korea, earning criticism that the recall is an incomplete one.

    According to Ikea Korea on Wednesday, Ikea is making voluntary recall of a total of 33 chest products including the "Malm" chest when and if the buyer wants. These chests were so popular in Korea that more than 100,000 units have been sold from December 2014 to date.

    The products should be used by fixing them on the wall, but most consumers do not follow this instruction. As a result, the chests could collapse forward due to force applied when pulling a drawer, frequently causing injury or even death. In the U.S., six children including infants were placed under the chest to death. “The products are not problematic at all if they are used as fixed on the wall, but we are making refund when buyers want, or sending tools for fixing the chest to the buyers for free,” an Ikea Korea source said.

    It is problematic that the company continues selling the products, but it will also likely be somewhat controversial because the company makes refund with prepaid gift cards that can only be used at Ikea shops. “As I gave a call to the company upon learning that Ikea is making refund, I found that they just give prepared gift-cards issued by Ikea,” said Kwon, a 35-year-old man. “We know that the product has safety risks, and do they want me to buy other products at Ikea again?” in expressing anger.

    Watchers say that Ikea’s moves result from the company’s arrogance and act despising Korean consumers. Ikea is not only making refund for, but also has completely halted sale of, the chests in question in the U.S. and Canada, where deaths and injuries were reported. “Do they think products that they stopped selling for safety concern in the U.S. are safe in Korea?” said Yoon Kyung-cheon, head of the safety monitoring team at the Korea Consumer Agency. “They should not use discriminatory policy for different countries when it comes to safety issue.”

    The government is belatedly preparing measures to address the issue. The Korea Agency for Technology and Standards under the Trade, Industry and Energy Ministry received sales and other data from Ikea Korea on July 4, and is investigating whether its recall plan is appropriate or not. “We will complete investigation as soon as possible, and take the necessary measures for our consumers,” a source at the agency said.

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  2. IKEA recalls deadly dressers in China. GZ: still on sale

    Jul 14, 2016 | News GD

    After 13 days, Chinese consumers finally got the same rights as those in North America.

    Following pressure from Chinese quality officials, on July 12th, IKEA China has published announcement to recall more than 1.66 million of chests of dressers, including the popular Malm line series, in China’s mainland.

    The dresser units were sold between 1999 and 2016 and involve a variety of types. IKEA said on Tuesday it would help Chinese customers anchor the product to the wall. They can also return the furniture to IKEA for a full refund.

    On June 29th, IKEA launched its first recall in North America after six children in the United States and Canada lost their lives in tipping and entrapment incidents associated with the dressers. More than 3560 chests of drawers were recalled across North America.

    Guangzhou: still on sale, with warning signs

    Reporters from Southern Metropolis Daily went to IKEA store in Guangzhou yesterday afternoon and found that Malm chests and dressers were still on sale. Some of the dressers were anchored to walls, with warning signs “Secure it!” on them to remind customers of the potential risks.

    It is also notified on the warning signs that:

    • Secure it! Furniture must be securely attached to the wall. Use the tip-over restraint provided with the product and the right hardware for your wall type. Consult our wall anchoring guide for help.

    • Never put a TV or other heavy objects on top of a chest of drawers or any furniture not intended for use with a TV.

    • Never let children climb or hang on drawers, doors or shelves. (source: www.ikea.com)

    Installation instructions on how to anchor chests of drawers and dressers to the walls can be seen in the store.

    A staff from the marketing department of IKEA’s Guangzhou store told Southern Metropolis Daily that quality problem is not the reason for this recall. The compromise was reached after the negotiation between IKEA and China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). IKEA hoped more customers would fully recognize the importance of securing furniture to the wall in the future.

    The staff also said IKEA would provide free screw sets for attaching the furniture items to the wall, with free home installation service on request. Furthermore, if consumers were unable to safely affix their furniture to the wall, they were able to return the items for a full refund with receipt. “Without the receipt, customer can offer the time they bought the product and got an equivalent gift card.”

    Up to now, IKEA’s Guangzhou store did not receive any recalling calls but only two consultations from customers.

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  3. Ikea refuses to recall dangerous dressers here

    Jul 14, 2016 | The Korea Herald

    By Won Ho-jung

    Furniture-maker Ikea is facing public outcry over its refusal to recall dressers that have been linked to six deaths in North America from its Korean stores, despite recalling the line from its stores in the U.S. and Canada.

    The problematic Malm dressers are still available for purchase in Korean Ikea stores. Roughly 40,000 of them have been sold in Korea since they were first released in December 2014.

    The dressers must be firmly attached to the wall before being used to prevent them from tipping over and potentially harming children standing in front of them. 

    However, many consumers use the dressers without anchoring them because it is difficult to drill into certain types of walls.

    When the Korean Consumer Agency began an investigation into concerns over the dressers, Ikea offered to refund all dressers that were brought back to its stores, but stopped short of recalling them. 

    The company is also facing backlash because it did not alert consumers here on the danger of using the dressers without securing them. Instructions for securing the dressers to walls, as well as instructions on how to seek help installing the furniture or receiving refunds, are posted on the company’s Korean website only through a small banner at the bottom of the page.

    This response from Ikea stands in contrast to the policies of its Korean rival Hanssem, which automatically refunds dressers similar to the Malm dressers if they cannot be anchored to walls in consumers’ homes. Unlike Ikea, whose furniture is assembled and installed by consumers themselves, Hanssem sends employees to consumers’ homes to assemble and install their products.

    Ikea is currently fielding similar complaints about recall in China, where local media have raised questions about why the dressers were only recalled in North America. In China, Ikea has also offered free anchoring kits and refunds to consumers who voluntarily return the product to its stores. 

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  4. Brand Triage - Rescuing Your Brand When You Become “The Bad Guy.”

    Jul 14, 2016 | The Huffington Post

    By Ken Carbone

    Fifteen billion dollars! Ouch! That’s a painful penalty for even a global automotive giant like Volkswagen. The news of the US government’s suit against the car company, brought for deliberately misleading customers about fuel efficiencies on their diesel-powered vehicles, was a chilling wake up call for companies in any regulated industry. There are forces in the world of business that no brand is completely insulated from: tragic accidents, human error, environmental ambush, regulatory change, biological or digital bugs. But when a corporation engages in premeditative corporate malfeasance, you’re gambling with your brand big time.

    Obviously, there is no denying the damage wrought on brand reputation after incidents such as the 1989 Exxon Valdez spill all over Prince William Sound, Alaska, or, more recently, the BP’s Deepwater Horizon explosion in the Gulf of Mexico. The impact was clear and significant.

    However, Chipotle didn’t deliberately add E.coli to their menus to sicken sixty people in over a dozen states. Nor was Ikea intending for six buyers of its MALM furniture to lose their lives after negligent installation, despite the company’s extensive safety instructions. The recent auto fatality involving Tesla Model S Autopilot self-driving feature was the unfortunate result of adolescent technology and an unanticipated confluence of roadway events, not purposeful impropriety. These unintentional mishaps cause great crisis, though nevertheless still force a company to absorb the financial pains incurred through lost revenue and penalties, not to mention the tarnishing of their brands.

    Here are three ways to “triage” a damaged brand:

    Speed 
    The most essential part of brand triage is to address the issue head-on proactively and expeditiously before it is manipulated by competitors, misrepresented by the media, or, worse, misinterpreted by customers. Quick acknowledgement of the problem, even in the absence of all of the facts, will buy valuable time and foster the benefit of the doubt from the public. Innocent until proven guilty holds true, but brands would be wise not to abuse customer trust and act fast.

    Transparency
    The old adage “the cover up is worse than the crime” holds true especially for corporations, whether embezzlement or infidelity. The willing and open invitation for scrutiny suggests the absence of deliberate wrongdoing and demonstrates genuine commitment to customer loyalty and restitution. Conversely, aggressive denial risks the impression of greedy capitalism, indifference to customers, or corporate arrogance.

    Generosity
    In the end, Volkswagon’s settlement with its customers appears to be fair. However, the actual reality of this will be tested in the coming months. Brands must weigh the short-term bottom line pain of paying reparations to customers against the arduously painful consequences of dwindling investor confidence, continuing bad press, and diminishing brand loyalty. Invest generously in the future of your brand.

    In the case of Chipotle, Ikea and Tesla the damage, although costly, was addressed immediately and their brands will survive their wounds. For Volkswagon, it is too early to tell what the long-term effect will be for their brand and subsidiaries. Their bond of trust is badly broken.

    If your brand is causing a crisis in customer confidence, simply do the right thingearly, clearly and generously.

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  5. Ikea to extend product recall to China

    Jul 14, 2016 | Inside Retail Asia

    After two weeks of rising public pressure, Swedish furniture maker Ikea will extend a recent product recall to China.

    With safety officials blaming chests and dressers for the deaths of at least six toddlers in falling accidents, Ikea recalled 29 million items of furniture in the US last week. It initially excluded China and Europe from the recall, saying its products in those regions met local regulations. But after criticism online and in the government-controlled Chinese media, Ikea has switched course and says it will recall 1.7 million chests and dressers in China.

    “Ikea is a very responsible company, and consumer safety is very important to us,” says company spokeswoman Xian Jiaxin.

    However, the recall will still not be extended to the European Union, she says.

    For Ikea, the backlash in China was almost immediate, with angry consumers using social media to complain about its recall practices as well as criticise inadequate domestic safety regulations. Xinhua, the official news agency, went so far as to call the recall exclusion “blatant bullying”.

    Consumer groups followed with statements decrying the company’s decision. Then, 11 days after the US recall, Ikea said it would discuss the possibility of a recall with the Chinese Consumers’ Association, a government-established watchdog group, and government officials.

    Ikea’s China sales for the fiscal year ended in September totalled $1.55 billion.
    Meanwhile, product recalls are so rare in China that many consumers cannot recall a single one, according to Fortune. Instead of vehicle recalls, for example, online notices will appear warning customers not to buy certain models.

    Ikea did not launch a recall in China because there is mandatory standard there requiring large furniture to be anchored to a wall,” says Ikea spokeswoman Linda Xu.

    Meanwhile, Ikea’s Chinese website features a graphic of a happy child under the headline Secure it, with a link to a page urging customers to ensure their Ikea dressers and chests of drawers are securely anchored to a wall using restraints provided in the packaging.

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  6. On China recall drawers IKEA: dangerous goods without problems arouse awareness

    Jul 14, 2016 | Netease International News

    IKEA (China) Investment Co., Ltd. announced that from July 12, 2016 recall of sales during the period 1999-2016 MALM series of drawers in the Chinese market.

    After communication with the AQSIQ, the China Consumer Association, the Shanghai Quality and Technical Supervision and other Chinese government departments at all levels more than a week, IKEA (China) Investment Co., Ltd. announced that from July 12, 2016, in the Chinese market sales on the recall period 1999-2016 the Malm series of drawers, drawers recall the same way as their in the United States, Canada.

    For products within the scope of this recall of IKEA China recommend that all users bought IKEA above chest of drawers to see if the home drawers connected to the wall, IKEA has always provided free on the wall connector, and the difficulties on the wall user support free homeinstallation; or consumers can choose to return the furniture IKEA stores, IKEA gift cards obtained in the form of a full refund.

    Xu Lide, public relations manager of IKEA China surging told the news, these drawers if not fixed to the wall, the existence of possible dangers dumping, but the product itself does not have any problems. Therefore, the recall, while other series of drawers Malm will be sold as IKEA, commodity without improvement. IKEA emphasized that Ikea chest of drawers meet the mandatory standards the EU and all other countries of the product.

    Since compliance with mandatory standards, why IKEA announced the recall of lead in the US market, and eventually agreed to recall in China?

    “The IKEA China was willing to recall no matter the cost of these compulsory standards chest of drawers, the greatest significance lies in the risk of overturning furniture evoke the perception and responses taken to prevent accidents.” Xu Lide said, “to prevent the best way to put it is to dump furniture to the wall. “

    Prior to June 29, due to the possible risk of tipping over, IKEA announced the recall in the United States and Canada, including the best-selling series of Malm, including 36.5 million drawers. It is reported that these issues drawers has killed six children died. But at that time IKEA said the recall does not involve China, because these drawers Cabinet stability in line with Chinese standards, in line with China’s regulatory requirements, and the company has not heard of Chinese children have died.

    Ikea side explained, when the lethal dumping of drawers Malm another tragedy in the US, IKEA initiated discussions with the United States Consumer Product Safety Commission (CPSC), the result is one product recall in North America. Recall is based on ASTM standard local uses.

    It is understood, ASTM refers to the American Society for Testing and Materials (American Society of Testing Materials), the predecessor of the International Society for Testing andMaterials. It is one of America’s oldest and largest non-profit standard academic community. After a century of development, ASTM existing 33,669 (individual and group) members, 22,396 members of the Main Committee as a technical expert working in its various committees. Under ASTM technical committees with a total of 2004 technical sub-committee. There are 105 817 units participated in the ASTM standards development work, the main task is to develop thecharacteristics and performance standards, test methods and procedures for standardmaterials, products, systems, and services in areas such as promoting the development and dissemination of knowledge. ASTM existing 11,000 more than in the standard in each of the ASTM standard yearbook carved steel, nonferrous metals and other 15 categories of more than 70 volumes released publicly.

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  7. Philadelphia Products Liability Lawyers: Ikea Recall

    Jul 14, 2016 | Bradley Smith Products Liability Law Blog on Lawyers.com

    By Bradley Smith

    Ikea Launches Massive Recall After Dressers Cause Injuries and Deaths

    Over 29 million Ikea model dressers have been recalled after multiple reports revealed that severalinjuries and deaths have occurred because the dressers tip and/or fall over. The products recalledinclude dressers from Ikea’s lower-cost Malm line, which has been plagued with consumer reportsregarding injuries and deaths.

    The recall became public after the deaths of three infants. Some of the models of dressers that were recalled were ten years old. After these terrible accidents occurred, the dressers were industry-tested for stability.  They failed these tests.

    After news of the massive, nationwide recall broke, the USA Ikea branch president, Lars Petersson went as far as to ask all consumers who own any of the recalled models to “please take them out” of any or all rooms that are accessible to children because of how dangerous – even deadly — they have proven themselves to be.

    This is not a new issue for Ikea. In the past they have asked their consumers, after complaints of dressers and/or other items tipping or falling over, to secure the products to walls. Ikea also began offering free anchoring kits, as opposed to recalling the products and regulating them to be up to par with industry safety standards.

    Ikea’s initial refusal to redesign these faulty products solicited a strong response from safety advocates. Safety advocates proclaimed that Ikea’s actions  were insufficient and that greater measures should have been taken.

    National medical data shows that multiple people die and thousands are injured annually because of “tip-overs”. The most recent toddler who lost his life marked the third in less than 2 years. All three infants had died after their Malm-dressers fell over.

    Ikea has now officially recalled the products and is also offering financial refunds. The company is also working on a “repair program”, which includes 27 million products, including some of the Malm models. Ikea has also said that for any consumerswho wish to keep their products that they will send a staff member out to their home to properly anchor the device to the wall.

    While the recall is in effect, legislators are also trying to make changes to the industry. Pennsylvania Senator Bob Casey said that he hopes that one day there will be mandatory stability standards as opposed to voluntary ones, which allow for injuriesand deaths such as these. Mandatory stability standards would require a close regulation of  products and would protect thelives of consumers.

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  8. Wednesday, July 13, 2016

  9. Deconstructing the IKEA Dresser Recall

    Jul 13, 2016 | The Wall Street Journal

    By ABBY W. SCHACHTER

    Under pressure from the Consumer Product Safety Commission, IKEA last month recalled 36 million dressers. In 2014 and 2015, three children were killed by the furniture after it tipped over on top of them.

    Those deaths were tragic, but they were also anomalies. IKEA’s furniture poses no major safety threat to consumers, who can eliminate the danger by anchoring the dressers to a wall as the company instructs. Yet the Swedish firm must now spend untold sums to recall furniture that in many cases is more than a decade old. The scale of the recall is unprecedented and would send most companies into bankruptcy. “It’s truly remarkable,” a source with the CPSC told the Philadelphia Inquirer. “A scope that we haven’t seen from the agency. It’s total capitulation by IKEA.”

    This type of fear-driven regulation—providing negligible safety benefits while sabotaging legitimate businesses—is now common. The CPSC long ago abandoned its mandate to protect Americans from “unreasonable risks of injury or death.” Instead, using an expanded and seemingly arbitrary interpretation of risk, its busybodies have embarked on a crusade against everything from baby seats to adult office toys.

    Consider the saga of the Bumbo “Baby Sitter” seat. In 2007, the CPSC reported that 28 infants had fallen out of the seats. Three cases involved fractured skulls, but only because the seats had been placed on top of tables—though the agency noted that the back of the seat warned: “Never use on a raised surface.” Bumbo, a South African company, voluntarily recalled one million of the four million units it had sold in the U.S. and issued a new warning label.

    Yet in 2012, the agency forced the company into a much more significant recall, this time for four million seats, because regulators wanted the product redesigned to include a safety strap. The massive recalls, coupled with an onslaught of negative publicity, led the company to absorb the cost of replacing millions of seats. This despite the fact that reported injuries from kids in Bumbos did not even amount to one-hundredth of 1% of the number of products sold.

    Scanning the CPSC’s weekly recall email alerts shows many similar stories: Toys and children’s equipment recalled when few to no injuries have been reported. In 2013, the agency recalled 14,000 of the Step2 Whisper Ride Touring Wagon. The agency had received 29 reports of the seat back detaching. Twenty-eight children fell off the cart, and 14 bumped their heads.

    But the agency doesn’t necessarily wait for definitive proof that products have injured users. In February 2014, regulators demanded the recall of 191,000 monkey-shaped teething toys. The CPSC had received seven reports of infants gagging or choking on the monkey’s tail—but with no injuries. A year later came an announcement for a recall of about 400 children’s bicycles. “The handlebars can loosen or separate during use. This can cause the rider to lose control and crash,” the recall notice reported, though again injuries hadn’t been reported.

    In November 2015, 130,000 Ignite plastic drinking tumblers were recalled. Again, no reported incidents, but the CPSC predicted: “If a child chews on the drinking straw, small pieces can break off into the child’s mouth, posing a risk of ingestion or aspiration.”

    The agency doesn’t make it entirely clear how its employees calculate risk or what the precise standard to trigger a recall is. If regulators have the power to put law-abiding firms out of business, at the very least they ought to be more transparent about their decision-making process for preventive recalls.

    The CPSC has also shown a penchant for going after products that are risky for children, even if they are intended for adults. Take the agency’s crusade against Craig Zucker and his company’s office desk toy, Buckyballs. Mr. Zucker’s firm sold three million units of the magnetic knickknacks over four years, but 22 children mistakenly ingested them, half of whom required surgery. In 2012, the CPSC recalled the product after working with Mr. Zucker for over two years to find a reasonable accommodation for warning labels. The regulators also sued Mr. Zucker personally for $57 million because he had the gall to publicly, and accurately, state that the risk of injury was statistically insignificant. They killed his company, and he settled the lawsuit by agreeing to create a $375,000 “recall trust” administered by the CPSC.

    I understand the desire to protect our children. My husband and I were among the millions who purchased one of IKEA’s now-recalled dressers. In 2014, we had a close call when the furniture tipped over and nearly crushed our 6-year-old. We were lucky. The few parents who aren’t must experience unimaginable pain. Yet the fact remains: A few accidents don’t provide a sensible justification for large-scale economic sabotage.

    No government agency—no matter how well-staffed, efficiently run or well-intentioned—can stop all harm from coming to all children at all times. The Consumer Product Safety Commission, with its extreme intolerance for any reasonable level of risk, least of all. Parents and consumers deserve better.

    Ms. Schachter is the author of “No Child Left Alone: Getting the Government Out of Parenting,” out from Encounter Books in August.

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