These Unprecedented Recalls Cost Companies Billions

Recently, several pet food brands from Answers Pet Food and Darwin’s Natural Selections were recommended for recall after listeria and salmonella were found in the food. The U.S. Food and Drug Administration (FDA) found that at least six samples tested were contaminated. At this point, the FDA urges pet owners to stop feeding these foods to their animals. Despite the organization’s recommendations, however, neither company has officially recalled the products. In fact, Darwin’s Natural CEO has come out to affirm that the products are actually safe and that trace amounts of salmonella were to be expected. Pet owners should still be hesitant about using these pet foods, as they could be unsafe. (With these recalled products, the impacts were catastrophic.)

Product recalls happen after a certain product is found to be defective, dangerous, or unsafe in some ways. While recalls happen, companies should act swiftly to protect their consumers — and their brands. Looking at the history of product recalls, some stand out more than others — and not for good reasons. Here, 24/7 Wall St. put together a list of some of the biggest recalls of all time. To do so, we used data from Reddit, SI Live, and Thomas Net. This list is ordered in descending order from smallest to largest recalls. 

Why Is This Important? 

As one might suspect, anytime a recall takes place, it’s as much of a potential stock hit as a public relations one. In the case of many recalls on this list, the company’s valuations fell significantly, and in at least one case, it left the company bankrupt and out of business. For these reasons, this topic aligns perfectly with our desire to provide you with information on financial health — and to let you know what companies you might want to avoid. 

12. Keurig Coffee Machines

• Recall size: 7.2 million 

Keurig received some credit for voluntarily recalling over 7 million of its Mini Plus single-serve units. The affected models, K10 and B31, were manufactured between 2009 and 2014. At the time of the recall, Keurig issued a notice asking customers not to use and to stay away from its machines until a fix had been made available. The recall centered around the machines errantly spraying burning hot liquid that could potentially land on someone’s skin, and had received at least 200 reports of this incident taking place. 

11. Toyota and Lexus

• Recall size: 8.1 million 

In 2010, Toyota was at the center of a massive recall affecting over 8.1 million Toyota and Lexus models. After receiving multiple reports of floor mats sticking to acceleration pedals, the U.S. government forced Toyota to recall its vehicles. Sadly, this was only after learning that at least five deaths could be attributed to this issue. The resulting recall would cost Toyota at least $2 billion in lost value and another $1.2 billion to settle a lawsuit with the Justice Department. 

*Editor’s note: A previous version of this story incorrectly stated 89 deaths instead of 5.

10. Zen Magnets

• Recall size: 10 million 

In August 2021, the Zen Magnets and Neoballs Magnets playsets were recalled after complaints started to surface about children swallowing the magnetic balls. Consumers were advised to stop playing with the units immediately after at least two children required surgery to remove the magnets, which resulted in part of their intestines being removed as well. There was also a report of a 19-month-old girl who passed away as a result of swallowing one of the magnets that were part of the Zen sets. 

9. Volkswagen “Dieselgate” 

• Recall size: 11 million 

One of the most expensive recalls in history, “Dieselgate” (as it’s commonly known) happened when Volkswagen was accused of tricking U.S. vehicle emission standards. With more than 11 million vehicles recalled, Volkswagen had to spend around $18.3 billion to buy back vehicles from owners who could no longer drive a vehicle that would not pass vehicle emission standards, which it had already cheated once before. The Environmental Protection Agency made its determination around Volkswagen’s trickery around September 2015 and forced the recall. 

8. Schneider Electric 

• Recall size: 15 million 

Electric giant Schneider Electric had to recall surge protectors that would overheat or melt. Starting in October 2013, the recall returned to models produced as far back as 2003, or one full decade before the recall was uninitiated. While Schneider Electric indicates the number of incidents was rare and only occurred in 0.01% of all surge protectors, it doesn’t change the reality that over 700 complaints were received by the Consumer Protection Agency. 

7. Ikea Dressers

• Recall size: 17 million 

One of the most shocking recalls of all time is centered around furniture giant Ikea. While the issue was first identified in June 2016, it wasn’t until after November 2017 that the recall began in earnest. The focal point osurrounded the popular Malm dresser lineup, which had tipped over and injured at least 144 children and killed at least eight children. Ikea reportedly received at least 300 complaints and settled lawsuits for up to $46 million for the affected families. Still, Ikea is accused of knowing about the problem and failing to notify customers. 

6. Firestone Tires

• Recall size: 23 million

In 2000, Firestone Tire and Rubber Company found itself in a situation where it had to work with Ford to recall over 23 million tires in over 19 million vehicles. Faulty tires were said to be responsible for over 271 deaths and 800 injuries. The resulting impact on Bridgestone, the parent company of Firestone, would halve the company’s market value. At the same time, Ford fired many executives who publicly accused both companies of blame. 

5. General Motors Ignition Switches 

• Recall size: 30.4 million 

In one of the largest recalls ever from the automobile industry, General Motors had to recall 30.4 million cars worldwide after learning that 800,000 of its vehicles suffered from faulty ignition switches. This faulty switch could result in the engine shutting off without warning, even while driving. As the weeks passed, GM had to bring the recall to more than 30.4 million cars, extending the recall for months. With over 124 deaths associated with the issue, the recall couldn’t have happened fast enough. 

4. Tylenol 

• Recall size: 31 million 

Johnson & Johnson recalled Tylenol in 1982. At the time, it was one of the most shocking and prominent recalls in U.S. history. While the company’s recall of 31 million bottles of Tylenol sent consumers into a frenzy, it remains a textbook study on the ideal way to handle a product recall and come out stronger. Even though it cost the company over $100 million, the company’s proactive steps no doubt saved the company and the Tylenol brand from failure. 

3. McDonald’s Step-iT Wristband

• Recall size: 33 million 

In August 2016, McDonald’s issued a massive recall of its Step-iT activity wristband, which was part of a Happy Meal offer. Following more than 70 reports of burning and seven reports of blisters, the company immediately stopped distributing the wristbands. McDonald’s indicated that it had received “limited reports” of skin irritations that “may be associated with wearing the band,” but also shared that not many wristbands had actually been introduced to customers. McDonald’s hoped introducing the wristband would change the perception of Happy Meals as unhealthy — but the unfortunate recalls did little to up its reputation. 

2. Kidde Fire Extinguisher

• Recall size: 37.8 million 

After a series of recallsstarting with smoke alarms in September 2014, Kidde’s recall troubles went from bad to worse in November 2017. The U.S. Consumer Product Safety Commission issued a recall notice for 134 models of Kidde fire extinguishers after discovering they could fail to discharge correctly when used. The recall involved over 37.8 million fire extinguishers, and it was so deep that it went back to products Kidde made in the 1970s. At least one death has been attributed to the failure. 

1. Takata Airbags

• Recall size: 67 million 

Takata’s airbag recall was both the largest recall of all time, and the most expensive. Almost all of the company’s airbags from 2002 to 2015 were recalled. The recall was so large that it spread across 20 carmakers, including (but not limited to) Honda, Toyota, Subaru, Mitsubishi, Nissan, and Mazda. In total, this recall cost Takata $24 billion. The company went bankrupt as a result in January 2024 and has since closed up shop.

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