Abstract: A recall and promotion processing system may include shopper devices, each associated with a corresponding shopper, and a recall-promotion processing server. The server may obtain historical purchase data associated with the shoppers, and determine whether a given recalled product was purchased by a given shopper based upon the historical purchase data. The server may, when the given recalled product was purchased by the given shopper, generate and communicate a recall notification and a digital promotion to the corresponding shopper device. The digital promotion may be redeemable toward a product for purchase based upon the given recalled product and may have a redeemable value associated therewith. The server may, when the given recalled product was purchased by the given shopper, obtain redemption data associated with the digital promotion for the shoppers, and adjust a subsequent redeemable value for a subsequent digital promotion based upon the redemption data.