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2005 Bad Year for Consumer Safety, CPSC Reports

Recalls and fines in record numbers

By Robert Longley, About.com

Dateline: Nov. 14, 2005

The U. S. Consumer Product Safety Commission (CPSC) reports setting several records in consumer product safety areas during fiscal 2005. Problem is, they were bad records, including:

  • Most recalls of defective consumer products

  • Most civil penalties handed out for industry failure to report hazardous products

  • Most industry reports of possible consumer product hazards

    Product Recalls

    Manufacturers voluntarily recalled 397 products during fiscal 2005, the highest number of voluntary recalls filed with CPSC in 10 years and includes the highest annual total ever for products not covered by a mandatory safety standard.

    The year also saw new records for the number of recalls involving 15 hazardous all-terrain vehicles (ATVs) and 10 rechargeable batteries.

    Civil Penalties for Failure to Report Hazards

    Six different manufacturers failed to report known defective products to CPSC during 2005, and paid a record $8.8 million in total fines for their "forgetfulness." "One of our top priorities has been to encourage companies to follow the law and report possible hazards to CPSC," said CPSC Chairman Hal Stratton in a press release. "I believe that imposing penalties against companies who fail to comply with the law will result in a higher degree of reporting and compliance with our statutes. Improved reporting compliance should also result in fewer penalties in the future."

    Consumer Product Hazard Reporting Record

    Federal law requires manufacturers, distributors, retailers and importers to report a problem product to CPSC whenever:

  • The product fails to comply a safety rule,

  • The product has a defect that could create "a substantial risk of injury" to the public, or

  • The product itself, in normal usage, poses an unreasonable risk of serious injury or death. For example, infants' toys of a size and shape that could cause choking.

    In fiscal year 2005, CPSC received 547 reports under this law. That represents an increase of almost 100 reports over the previous year’s record high.

    Wal-Mart Pitches In for Product Safety

    CPSC cites its new Retailer Reporting Model, implemented in conjunction with consumer retailing giant Wal-Mart, as a major reason for the increase in product hazard reporting. Under the new reporting model, Wal-Mart provides CPSC with detailed weekly reports on customer complaints and other incidents involving product safety issues.

    "We’re pleased with the increase of consumer product safety data and information we are receiving, which I believe is a result of cooperative efforts between our staff and stakeholders, as well as the new Retailer Reporting Model," said Chairman Stratton. "This type of information will help us keep more consumers safe in the future."

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