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Practice Areas

$1.5 Million Penalty for Delay in Reporting Product Safety Issue

Monday, February 19, 2018
Sandler, Travis & Rosenberg Trade Report

The Department of Justice reports that a U.S. company has agreed to pay $1.5 million to resolve allegations that it failed to timely report to the Consumer Product Safety Commission information regarding a product that injured consumers. A DOJ press release states that the company possessed information about the injuries as early as 2007 but did not report to the CPSC until February 2010.

In addition to paying the fine the company will be required to maintain a program to ensure that it complies with the Consumer Product Safety Act. It will also have to maintain internal controls and procedures designed to ensure timely, complete, and accurate reporting to the CPSC.

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