Commentary From Crisis Management Expert Edward Segal, Author of the Award- Winning Book "Crisis Ahead: 101 Ways to Prepare for and Bounce Back from Disasters, Scandals, and Other Emergencies " (Nicholas Brealey)

Friday, February 23 was not a good day for the Family Dollar discount store chain, which found itself dealing with not one, but two different crisis situations.

Crisis #1

Rodents

According to CNN, the FDA warned that various products bought within the past year from Family Dollar stores may be contaminated and unsafe to use after the discovery of rats at one of the company's warehouses.

"The 22-page FDA inspection report, acquired by CNN on Tuesday, describes a dirty, rat-infested [warehouse] facility where merchandise including human and animal food was stored. The inspectors note that they observed 'rodent evidence, including live rodents, dead rodents of various states of decay, rodent excreta pellets ... gnawings, nesting, and odors indicative of rodents throughout the entirety' of the facility."

Advice For Consumers

The FDA issued a news release about the crisis to alert the public about potentially contaminated products from the stories in six states. The agency said that," Consumers are advised not to use and to contact the company regarding impacted products. The agency is also advising that all drugs, medical devices, cosmetics and dietary supplements, regardless of packaging, be discarded. Food in non-permeable packaging (such as undamaged glass or all-metal cans) may be suitable for use if thoroughly cleaned and sanitized.

Consumers should wash their hands immediately after handling any products from the affected Family Dollar stores.

Statement From FDA

"Families rely on stores like Family Dollar for products such as food and medicine. They deserve products that are safe," said Associate Commissioner for Regulatory Affairs Judith McMeekin. "No one should be subjected to products stored in the kind of unacceptable conditions that we found in this Family Dollar distribution facility.

"These conditions appear to be violations of federal law that could put families' health at risk. We will continue to work to protect consumers," she said.

Family Dollar Responds

In response to the situation, Family Dollar temporarily closed more than 400 of its stores in six states related to the rodent infestation and that are also tied to a recall (See Crisis #2 below.)

Company spokesperson Kayleigh Campbell said, ''We take situations like this very seriously and are committed to providing safe and quality products to our customers. We have been fully cooperating with all regulatory agencies in the resolution of this matter and are in the process of remediating the issue.

''We temporarily closed the affected stores in order to proficiently conduct the voluntary recall of certain FDA-regulated products. Our teams are working hard to reopen these stores as soon as possible.''

Crisis #2

Product Recalls

Family Dollar announced a voluntary recall affecting items purchased from the hundreds of stores between January 1, 2021 through this year.

The FDA said it was working with Family Dollar to begin a voluntary recall of affected products. Those products included human food, pet food, dietary supplements, cosmetics, medical devices and over-the-counter medications that were purchased in January or February from Family Dollar stores in Alabama, Arkansas, Louisiana, Mississippi, Missouri or Tennessee. 

The company issued a news release, saying that it wasn't aware of any consumer complaints or reports of illness related to the recall.

Actions Taken By Family Dollar

Family Dollar said it was notifying the affected stores by letter asking them to check their stock immediately and to quarantine and discontinue the sale of any affected product. Customers that may have bought affected product may return such product to the Family Dollar store where they were purchased without a receipt, they noted.

"Customers with questions regarding this recall may contact Family Dollar Customer Service at 844-636-7687 between 9 am and 5 pm EST. Customers should contact their physician or health care provider if they have experienced any problems that may be related to using these products. Customers with concerns about their pets who have eaten the recalled animal food products should contact their veterinarian," the company advised.

Best Crisis Management Practices

Family Dollar stores appeared to follow best practices for responding to and communicating about public health-related crisis situations. They:

• Cooperated with the appropriate government agencies.
• Issued a press release about the situation.
• Gave a statement about the crisis to a major news organization.
• Include information about the product recalls on their website.
• Explained what it knew about the crisis.
• Provided advice and guidance to consumers and the public.
• Shared details of how people could contact the company with questions.

Advice For Business Leaders

• Many companies and organizations can be challenged by having to manage one crisis—and challenged even more with two crises on the same day.
• Don't wait until you have a crisis to ensure you have the resources that will be needed to manage any scenario that becomes a reality.
• Practice full public disclosure about any crisis. The longer companies are quiet about a crisis—or try to cover it up—the worse it will look when the truth comes out.
• Be proactive in making sure that your company is in full and complete compliance with all federal, state and local laws—especially those that affect the health and safety of the public                                                                                                                                                                                  ###