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$550,000 Civil Penalty for Failure to Report Defective Fitness Balls

Wednesday, December 21, 2011
Sandler, Travis & Rosenberg Trade Report

The Consumer Product Safety Commission announced Dec. 19 a provisional settlement agreement under which a New York company will pay a $550,000 civil penalty to settle allegations that it failed to timely report a defect with its fitness balls. Commission staff alleged that as early as 2007 the company’s subsidiary knew of 25 incidents related to the defective balls, some of which led to consumers being injured, but that no report was filed with CPSC until October 2008. Federal law requires manufacturers, distributors and retailers to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect that could create a substantial product hazard, creates an unreasonable risk of serious injury or death, or fails to comply with any consumer product safety rule or any other rule, regulation, standard or ban enforced by CPSC.

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