What kind of an unintended impact do you think safety warnings and consumer product recalls like this have on people?
They generate often unwarranted fear of a product. Say, for example, a car is recalled because a faulty part caused accidents in 30 out of 3 million cars. The recall is justified, sure, but will likely seriously impact sales of the vehicle, both short and long term, with an economic impact out of proportion to the risk posed by the defect.
I would have to agree with post #2 in that one of the biggest impacts is the panic a safety recall can create. In today'sworld of technology there is more information available and it becomes increasingly harder for the public to determine the truth in all cases.
Also, warnings and recalls can have a very negative impact in terms of scaremongering. The media tend to distort such recalls, creating massive panic among the consumer community which can really damage sales of a particular item. Even if it is just a small batch of an item that is affected, the media can ensure that people never buy this item again because of scaremongering.