Law Library Articles
Reporting Requirements - Section 15 of the Act requires that if a manufacturer of a consumer product obtains information which supports the conclusion that a product contains a defect which creates a substantial risk of injury to the public; either because of the pattern of the defect, the number of defective products distributed in commerce, the severity of the risk, the vulnerability of the population affected, or creates an unreasonable risk of serious injury or death, the manufacturer must immediately report that defect or risk to the Commission. Reporting is also required when a product fails to meet a consumer product safety rule promulgated by CPSC.
For additional information on reporting requirements and for the reporting form click here . The pattern of defect may be a design flaw, an engineering problem, quality control, labeling issue, or assembly defect. If the Commission determines that the product presents a substantial product hazard, they may order the manufacturer to:
- Give public notice of the defect;
- Notify the distributors and retailers of the product;
- Notify each known purchaser;
- Repair the defective condition;
- Replace the product with a safer one; and/or
- Refund the purchase price of the product.
The Commission requires that manufacturers, distributors and retailers maintain records relating to defective products, and may inspect these records if the question of product safety arises.
CPSC may obtain knowledge of consumer product defects that present a substantial product hazard by consumer complaints, or data collected by hospital emergency rooms. Many hospitals regularly present injury data to the Commission.
If the Commission learns of a product defect, it will use CPSC's technical staff, as well as, outside experts to evaluate a product's safety and make a preliminary determination as to whether a substantial product hazard exists.
After reporting a substantial product hazard, within 5 to 7 days a full report must be provided to the Commission with what provisions will be taken to get the defective product out of the hands of the consumer.
The Commission may impose civil penalties against retailers, distributors or manufacturers for failing to report product hazards.
There is a "Fast Track Recall" program. If a company reports a defect under section 15 of the Act, and is ready to conduct a recall within 20 days, the CSPC does not need to conduct its own investigation. The incentive for manufacturers to use the Fast Track program is that there is no letter in the company's files from the government regarding the safety of the product, which is preferential if there is a product liability lawsuit.
Product Liability Lawsuits - There are also reporting requirements under Section 37 of the Act. If the product is subject to 3 or more civil actions for death or grievous bodily injury and the actions result in a final settlement in favor of the plaintiff within a defined 24-month period, the company must report to the Commission within 30 days of the final settlement in the third action.
Recall Requirements - If your product is subject to a recall, the goal is to reach as many owners of the recall products as possible and provide incentives for them to stop using the defective product.
Examples of consumer notification include:
- Press releases, including broadcast version;
- Point of Purchase Posters displayed in several visible locations for 120 days, minimum;
- Providing a Web site for additional information;
- Specialty posters at repair centers or doctors offices;
- Direct consumer notification resulting from product registration cards, extended warranty purchases, or parts and accessories purchases;
- Toll free numbers.
Consumer incentives can include:
- A bounty or reward, such as a gift/certificate or cash;
- Postage paid to return item;
- Free or substantial contribution toward accessory products.