Reporting Defective Products ~ OPOLAW Injury Blog

Thursday, February 8, 2007

Reporting Defective Products

It is not difficult to imagine the high cost involved in the recall of a defective product. However, the cost of a product going unreported as defective is even higher when you consider the returns, repairs and exchanges. Moreover, the adverse publicity can be very costly to a manufacturer indeed. For instance, in January, the Hoover Co. agreed to pay a $750,000 penalty. It seems the company failed to report to the CPSC the sale of vacuum cleaners that had defective switches, which could cause the vacuum cleaners to catch fire. That lack of disclosure could have cost lives and caused horrible injures. Each and every manufacturer, distributor, and retailer is required to report to the CPSC any product that fails to comply with the applicable consumer product safety rule. Such a report is not a suggestion it is required by the federal Consumer Product Safety Act. As seen in the Hoover Company’s lack of disclosure, a failure to disclose defective product information can result in substantial penalties.

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