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A recent letter from the U.S. Food & Drug Administration (FDA) encouraged industry leaders to streamline and enhance product recall communications, highlighting the need for industry and government systems to transform and evolve to deliver timely updates to the public. As part of the letter, the FDA recommended a strategic overhaul for communications strategies leveraging cutting-edge technologies to collect, analyze, and disseminate recall information. While its critical that technology, and eventually AI, be used throughout the recall comms processand it already isthere are numerous other aspects of recalls that are already being improved by technology that will continue to see significant advancements in the second half of 2025 and heading into 2026. This also comes at a time when the number of recalled products surged 25% to 125.37 million, and the number of food items recalled by the FDA increased by 232% in Q1 2025. As communications teams, companies, and consumers see the impact of these changes, company reputation and brand trust will be improved as well amid a rapidly changing regulatory environment. The New Landscape for Recall Comms The name of the game with recalls is speed. Consider a food recall. An allergen or bacterial contamination occurs, and consumers need to know as soon as possible. Companies should be using a multi-modal approach with the knowledge that it will never be one-size-fits-all. This strategy is vital in ensuring a smooth and efficient recall process which will soon be substantially expanded in its effectiveness as AI is integrated in a larger capacity. As companies communication strategies improve, including finding new avenues to reaching consumers, understanding generational differences, and identifying tech that is best used to reach them (apps and digital notifications for younger generations, calls and even fax machines for older generations), the ability for consumers to communicate with companies will progress as well. Improvements in contact centers, through AI, will soon enhance inbound and outbound channels, helping to provide timely, precise, and personalized assistance at every step. The future of comms, and call centers, for recalls may see AI agents offering responses to consumers in different languages at all hours of the day, with human agents taking over when tasks become more complex. This represents the first stage in an exciting transformation for the comms strategies of companies across sectors, and one that will set them up to be better prepared for all aspects of a recall as AIs presence continues to growand not just in comms. Companies Will Improve the Entire Lifecycle of a Recall Beyond comms strategies, technology will be critical in the entire lifecycle of a product and a recall. Already, tech is supporting companies in monitoring the effectiveness of recalls, including early identification, product defects or issues, and more, through social media scraping, monitoring regulatory updates, and identifying trends and insights. Early identification is just one part of the process, but a substantial one. This can reduce the impact of a recall and the amount of time a defective product is in the market. Once AI has assisted in early identification, its next role is supporting in monitoring the effectiveness of a recall. Social media scraping and AI tools can track the progress of a recall to see if consumers are still concerned about their products, or are having difficulties in understanding their best course of action, and if a company will need to shift the public narrative if there is still skepticism. Another key point of emphasis for companies and their use of AI is, and will continue to be, the identification of bad players in the recall space. As fraud persists, in which duplicated or manipulated photos of defective products are sent in with the goal of receiving payment, gift cards, or replacement products, AI will be key in weeding out the real from the fake. What will determine the success of AI in recalls, as it will in all other sectors, is establishing trust. Consumers must trust that AI is finding new solutions, identifying recalls at a more rapid pace, supporting their needs through call centers, and more. Companies, in turn, must ensure that employees are properly trained to use this technology, understand where it is delivering value, and know where human oversight is still required, so they are not fearful of it automating their roles, and understand the road ahead. A Transformed Landscape for the Benefit of All While the FDA is pushing for improved recall practices, companies should already be planning these and understanding how AI is set to transform every aspect of their strategies. The benefits are significant for companies, consumers, and overall brand trust, if tech integrations are accomplished with planning, precision, and patience. In tandem with a smart and balanced AI strategy should be the acknowledgment that regulators across industries are rapidly changing guidelines for this technology as they look to keep pace with international competition, as well as drive innovation while balancing user safety. New enforcement protocols, and litigation, which emerged as a significant trend in 2024 with organizations filing lawsuits against agencies and regulators pushing criminal actions against companies and individuals related to recall and product safety issues, are crucial to keep in mind as well. Finally, the regulatory landscape, both for recalls and AI, has evolved significantly in the U.S. and the EU, as well as globally, requiring diverse strategies for each region. Yet, a comprehensive comms and company strategy for recalls that understands where we are now with AI, and where were going, will set up leaders and their customers for success, safety, and much more moving forward.
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E-Commerce
At a new restaurant in Manhattan, the goal isnt to make money. Launching as a pilot in September, the projectcalled Community Kitchenis designed to show what it looks like when a restaurant does everything right: healthy, sustainably grown ingredients from local farmers; well-paid workers; excellent, plant-forward cooking; and food accessible to everyone, not just those who can afford $100 dinners. [Photo: Community Kitchen] Mark Bittman, the longtime food writer, started the restaurant as a nonprofit after stepping away from a career that spanned dozens of cookbooks, long-running New York Times columns, and books critiquing the food system. I felt like Id written enough, he says. I wanted to do something. Bittman had often written about the benefits of cooking at home for health, cost, and sustainability. But he realized it wasnt realistic to expect everyone to cook, and that those who dont have the time often struggle to find healthy food. “If people want to and have the time and resources to cook, the information’s out there,” he says. “I think the real hole is in helping people find good food affordably outside of the home.” [Photo: Community Kitchen] Community Kitchens pilot will open September 10 inside the Lower Eastside Girls Club in Manhattan’s East Village, with communal tables available four days a week. Diners will reserve fixed-menu meals on a sliding scale: $15 (just a bit more than a typical fast-food meal in New York City), $45 for middle incomes, and $125 for those used to fine dining. The concept of “pay what you can” isnt new, though it has often meant uncomfortable exchanges at the register. “It turns into a humiliating negotiation for the payer and the payee,” Bittman says. By paying online in advanceor eventually through appsdiners wont have to ask publicly for a lower price. [Photo: Community Kitchen] Still, many pay-what-you-can restaurants have struggled to survive financially. Meanwhile, restaurants that prioritize ethical sourcing and worker pay often end up unaffordable. “I think you could do those first three thingssource great food, pay workers well, have great foodas long as you charge $150 to $100 a person,” Bittman says. “With widespread access, you can’t do that and make money at the same time.” Thats why Community Kitchen is structured as a nonprofit. The organization has raised funding from Bloomberg Philanthropy, Grace Foundation, Kapor Foundation, and Ford Philanthropy, among others, and will run on a budget of $1.2 million this year, including operations beyond the pilot restaurant. But Bittman doesnt expect it to rely on philanthropy forever. One possibility is spinning off a for-profit restaurant to help fund it. He also advocates for policy change: he believes healthy, accessible restaurants should receive government support. [Photo: Community Kitchen] “My argument is that food is as important as education and healthcare and defense and police and all those other things,” he says. “And so should be funded by tax dollarsby federal money, state money, city money. We should make it so that everybody can eat really good food whenever they need to.” Some government-subsidized “public restaurants” exist in other countries, like Brazil’s “Popular restaurants,” which serve $3 meals to low income residents. Community Kitchen will pay workers at least $30 an hour and offer predictable schedulesa rarity in the industry. While tipping isnt necessary, any tips will be pooled and shared among nearly everyone. To avoid inequities, cooks will help serve food, and dishwashers, who remain in the back of house, will earn more than others. [Photo: Community Kitchen] The pilot will last through November, and the nonprofit will be carefully evaluating how it works. “Through the pilot, we hope to learn what it would be like to do a long-term version of community of Community Kitchen. How much do we need to raise? How much can we count on for income from the restaurant?” Bittman says. The next step will be to raise money for a permanent restaurantand begin sharing the learnings with anyone else who wants to start a similar project. [Photo: Community Kitchen]
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E-Commerce
Earlier this month, the president signed an executive order (EO) that could potentially clear the path for 401(k) plans to include alternative investments like cryptocurrency. Theoretically, relaxing the rules about crypto in defined-contribution retirement plans will allow more average Americans to take advantage of the upsides of these investments. Gen X investors should beware. Crypto might seem like a perfect opportunity for Gen X investors. This generation has the kind of tech savvy that comes from learning to use new digital tools as theyre invented, making them much more likely to understand and appropriately invest in cryptocurrency. The timing also feels ideal, since Gen X retirements are on the horizon, and crypto enthusiasts promise this investment can provide quick financial boosts. But unlike chocolate and peanut butter, getting cryptocurrency in your 401(k) is unlikely to be two great tastes that taste great together. In fact, crypto, like private equity, doesnt belong in a 401(k) or other defined-contribution planand not just because no one can satisfactorily explain what the heck a blockchain is. Heres what you need to know about the very real hazards of inviting cryptocurrency into your 401(k). Theres more than meets the EO The August 7 executive order gave the Secretary of Labor 180 days (until February 3, 2026, specifically) to clarify its position on the rules for alternative assets in 401(k)s, per the Employee Retirement Income Security Act of 1974, known as ERISA. Under ERISA, employers have a fiduciary responsibility to make sure the investment options in your 401(k) are prudent and that any fees are not onerous. So far, this executive order sounds about par for the course. Theres a limit to executive power via EO. Its reasonable that a president whod like to buy the world a cryptocoin in perfect 401(k) harmony would start by asking the U.S. Department of Labor (DOL) to review current rules to clarify its position. But the DOL has already indicated its willing to open the door to 401(k) crypto investments. On May 28, 2025, the DOLs Employee Benefits Security Administration rescinded 2022 Biden-era guidance that actively discouraged fiduciaries from including cryptocurrency in defined-contribution retirement plans. Weeks before the executive order was signed, the rollback of this 2022 guidance had already made it easier for plan sponsors to start including crypto in 401(k) plans. The problem is that Ive seen this kind of irrational exuberance about an investment before. And that one didnt belong in a 401(k), either. The Beanie Baby connection In the late 1990s, an acquaintance once spent an interminable hour explaining how her collection of plush toys would not only pay for her childrens college education but also fund her retirement. I was reminded of that long ago conversation the first time a crypto enthusiast told me that fiat currencys days were numbered, and that the theoretical coins he mined were poised to bring about world peace, in addition to making him rich. Thats when I came to the conclusion that cryptocurrency is Beanie Babies for tech bros. Like Ty Inc.s plush toys, which were kept artificially scarce, there is a limit to the amount of Bitcoin that can be mined from the blockchain, which helps drive up the price on the secondary market. Similarly, Ty used a unique and confusing distribution model that only sold 36 of any one specific character at a time to independent retailers. This triggered a kind of a market frenzy in collectors. While Tys distribution model is easier to understand than the process behind limited-supply cryptocurrencies like Bitcoin, the opacity of the crypto process causes a similar kind of frenzy among investors. Many crypto buyers only know they need to buy and buy quickly, even if they dont understand what theyre purchasing. But most damning of all, neither Beanie Babies nor cryptocurrency have inherent value beyond the markets faddish interest. The only way to make money with either Legs the Frog or cryptocurrency is to sell them for a higher price than you paid for themwhich is more like gambling than a true investment. Whats the beef? It may seem like no big deal that cryptocurrency might be on the menu in your 401(k). Its there if youre interested, and you can just ignore it if you dont. But as with the inclusion of private equity in your defined contribution plan, just opening the door to this kind of investment could cause problems for a number of reasons, including: No regulations! Dogs and cats living together! One of the selling points of cryptocurrency is the fact that it is decentralized, with next to no government oversight, and little to no regulation. This offers investors a potentially thrilling opportunity to win big in a Wild West-type situation where anything is possible. Gen Xerswho wear their hard-earned skepticism of institutions on their sleevesmay be especially intrigued by the promise of decentralized currency. Unfortunately, the exhilarating lack of oversight is also a cybersecurity nightmare. Blockchain analysis firm Chainalysis found in its 2024 Crypto Crime Report that over $1.7 billion in cryptocurrency was stolen in 2023, while $3.8 billion was stolen in 2022. Since this industry has so little oversight or regulation in the United States, its difficult to predict what kind of security your 401(k) could offer against cyberattacks and hacks aiming for your cryptocoins, or what avenues for recovery (if any) you would have if you are the victim of a hack. There’s that one key word: fiduciary ERISA rules require 401(k) plan sponsors (i.e., employers) to act as fiduciaries when choosing investment options for the defined-contribution plans offered to their employees. In other words, it is the employers responsibility to only include investments they believe are in the employees best interests, are free of onerous fees, and have prudent levels of risk. Legal scholars have argued that crypto categorically does not fit that definition. Remember: te word fiduciary isnt the kind of corporate speak that doesnt mean anything, like paradigm-shift or lunchtime. It has a legal definition and employers can (and do) run afoul of ERISA if they do not meet their fiduciary responsibilities. In just the past year, ERISA lawsuits against excessive 401(k) fees have risen to a near record high. This does mean 401(k) plan participants have legal recourse if their employers fail in their fiduciary duty. But it raises an important question: can you trust that a plan that offers crypto as an investment option is taking its fiduciary responsibility seriously in all aspects of implementing your plan? Knowing is half the battle A healthy distrust of institutions is an important part of Generation Xs emotional makeupwhich may leave investors in this cohort vulnerable to the idea of investing in crypto via their 401(k). But even though the current administration is all-in on cryptocurrency, it doesnt necessarily belong in anyones defined-contribution retirement plan. Crypto is generally volatile and overhyped, and does not have any underlying value, making it an investment similar to Beanie Baby plush toys. Though enthusiasts tout the intriguing-to-Gen X fact that crypto is decentralized and unregulated, lack of oversight leaves 401(k) investors vulnerable to cybersecurity hacks with no clear recourse if theyre targeted. Finally, considering all of the risks associated with cryptocurrency, its unclear how 401(k) plan sponsors will meet the legal requirements for fiduciary responsibility while offering crypto to plan participants. It will be some time before crypto might start popping up in your retirement plans. Before that happens, tell your employer to please keep it out. Just Say No.
Category:
E-Commerce
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