Background

The Consumer Product Safety Commission has provisionally accepted an agreement assessing a $7.95 million civil penalty against a company to resolve charges that it failed to immediately report to the CPSC that certain of its products contained a defect or created an unreasonable risk of serious injury.

According to the CPSC, the company had information that a weld on one of its products could fatigue and fail and received 85 reports of such incidents, including reports of serious injuries. The CPSC alleges that the company also had information that another of its products could fail and received 27 reports of injuries associated with that product, including reports of paralysis and spinal fracture. Both products were ultimately recalled.

The CPSC states that in addition to paying the penalty the company has agreed to maintain an enhanced product safety compliance program and maintain a related system of internal controls and procedures to ensure that information required to be disclosed to the CPSC is recorded, processed, and reported in accordance with applicable law.

For more information on product safety issues, please contact Beth Ring at (212) 549-0133 or Ned Steiner at (202) 730-4970.

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