It appears that some national organizations are neglecting to file federal government reports concerning known product defects. An Arizona TV station investigation recently discovered that an increasing number of companies are being penalized by the Consumer Product Safety Commission for not reporting safety defects.

Since national companies were the prime focus of this investigative report, a product defect affects Pennsylvania residents, along with citizens of other U.S. states. The CPSC is becoming concerned that the number of companies incurring fines has risen from two organizations in 2010 to 10 companies in 2011. Total fines have risen from $500,000 (2009) to $4 million (2010). A CPSC spokesperson declared that the agency is disturbed that multiple injuries may be occurring, while they receive no notification of potential product defects.

Manufacturers incurring 2011 fines include those selling buggies, refrigerators, exercise and office equipment, and sweatshirts. These companies disregarded federal law, which requires organizations to notify CPSC when they discover a product that does not comply with published safety standards, has a defect that could cause a product hazard, or generates unreasonable risk of serious injury. The law mandates that companies identifying any of these conditions immediately inform the CPSC.

Manufactures responded, through their legal counsel, that the law is much more complex than it first appears. Companies must weigh contributing factors, such as consumer misuse or identifying the components of a "substantial defect." CPSC counters that when a company is "in doubt" about a potential product hazard, they should report it immediately.

Because of their rising concern, CPSC is asking consumers to make them aware of product problems. The agency hopes that, by being informed, they can re-emphasize to manufacturers that they are closely monitoring potential product problems.

Source: azfamily.com, "National companies not reporting product defects," March 9, 2012