As 2022 came to a close, the
Shortly after the settlement, CPSC Commissioner
One thing is clear: The majority of the current Commission are raising the civil penalties imposed on consumer product manufacturers for failing to timely report potentially hazardous products. Section 15(b) of the CPSA mandates that every manufacturer (including importers), distributor or retailer of a consumer product shall immediately inform the commission about any product which:
- Fails to comply with a product safety rule or voluntary standard, or
- Contains a defect which creates a substantial product hazard, or
- Fails to comply with any other relevant rule, regulation, standard, or ban, or
- Creates an unreasonable risk of serious injury or death.
The Commission considers "immediately" to mean within 24 hours even if investigation into the subject product is not complete, per 16 C.F.R. § 1115.14(e). Companies may take up to 10 days to report if there is actual uncertainty about whether filing a report is required, as set forth in 16 C.F.R. § 1115.14(d). But even 10 days can be a very short time to comply with section 15(b) reporting requirements and the consequences for not filing can be expensive.
So manufacturers, importers, distributors, and retailers should remain alert when it comes to reports and issues with consumer products they sell. Failure to timely report even a potential product defect could be a very costly mistake as the CPSC continues to raise the civil fines and penalties it imposes. And denying an actual defect exists will not save a company from its failure to report. Reporting to the CPSC under section 15(b) is a duty separate and distinct from recalling or otherwise fixing a defective product.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Mr
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