Yesterday, the U.S. Senate confirmed Doug Dziak by a voice vote to serve as a commissioner of the Consumer Product Safety Commission (“CPSC”). Mr. Dziak will be the second Republican to serve on the Commission presently joining his former boss Commissioner Peter Feldman. Notably, the Commission will once again have a full complement of five commissioners—Hoehn-Saric, Trumka, Boyle, Feldman, and Dziak. However, Commissioner Dziak’s ascendancy to the Commission will not change the balance of power as the Democratic commissioners will hold their 3-2 voting majority over the Republican commissioners.Continue Reading Senate Confirms Dziak to CPSC; Agency Back to Five Commissioners
Consumer Product Safety Commission (CPSC)
CPSC Chair Hoehn-Saric Addresses Annual Product Safety Conference
Greetings from Orlando, FL! The Crowell product safety team is currently attending the annual meeting and training symposium of the International Consumer Product Health and Safety Organization (ICPHSO). We just heard keynote remarks from the Chair of the U.S. Consumer Product Safety Commission (CPSC), Alexander Hoehn-Saric, and wish to share some highlights. As he did in October 2023 at the ICPHSO International Conference in Sweden, Chair Hoehn-Saric focused his remarks on addressing products sold on or through online marketplaces.
Chair Hoehn-Saric first set the stage by sharing some important data points. In 2023, the CPSC announced more than 300 product recalls; levied more than $52 million in civil penalties; engaged in 14 new mandatory safety standard rulemakings; screened more than 60,000 harmful products at the ports; and participated in numerous safety education campaigns. He also noted the budget uncertainty at the CPSC and the need to “do more with less” and stated that the CPSC will always “put consumers first” as they prioritize their work should the CPSC budget decrease.Continue Reading CPSC Chair Hoehn-Saric Addresses Annual Product Safety Conference
New Bill Could Mean Higher Penalties for Failure to Report Safety Concerns
On January 25, 2024, Rep. Jan Schakowsky (D-Ill.) and Sen. Peter Welch (D-Vt.), introduced the Consumer Advocacy and Protection (CAP) Act in the U.S. House of Representatives (HR 7096) and U.S. Senate (S 3667). The CAP Act aims to deter companies from committing safety violations by increasing CPSC’s penalty authority.
Under current law, manufacturers, importers, and distributors of consumer products are required to report immediately to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or an unreasonable risk of serious injury or death. If violations occur, the applicable civil penalty is a maximum of $100,000 per individual violation and $15,000,000 for a series of related violations. These amounts were adjusted for inflation in 2021, reaching $120,000 per violation and $17,150,000 for a series of related violations.Continue Reading New Bill Could Mean Higher Penalties for Failure to Report Safety Concerns
CPSC to Hold January 2024 Webinar on Reese’s Law and Button Cell and Coin Battery Requirements
Enacted in 2022, Reese’s Law (P.L. 117-171) mandates federal safety requirements for button cell or coin batteries. This law mandates various requirements for button cell or coin batteries as well as consumer products that have or can use such batteries. The requirements range from performance to labeling and certification. Our team’s previous blog posts on Reese’s Law can be found here and here.Continue Reading CPSC to Hold January 2024 Webinar on Reese’s Law and Button Cell and Coin Battery Requirements
Recall Litigation Report: Consumer Lawsuit Alleges Electrolux Dehumidifier Caused Church Fire Years After Recall
Products are commonly recalled due to a hazard (i.e., a risk of harm), even where large swaths of consumers have never had a problem with the products they purchased. When those consumers then file suit, they often seek to recover economic harm based on the “benefit of the bargain” theory—because the recalled products that they previously purchased are now worth less than what they paid for them. Where a consumer does experience the hazard (i.e., suffers personal injury or property damage) and subsequently files suit, that suit often seeks to recover not just economic harm but also for personal injury or property damage. Regardless of the nature of the harm, the alleged injury naturally precedes any recall of the product.Continue Reading Recall Litigation Report: Consumer Lawsuit Alleges Electrolux Dehumidifier Caused Church Fire Years After Recall
The FDA Appears to Expand Its Definition of a “Medical Device” to Include CPSC-Regulated Infant Sleep Products
On March 30, 2023, the FDA authorized marketing of Happiest Baby’s SNOO Smart Sleeper, an over-the-counter infant sleep system intended to keep infants on their back throughout sleep. This marks the first time we are aware of that the FDA has given de novo marketing authorization to a product designed to keep sleeping babies positioned on their backs,[1] and signals a potential expansion of what the FDA considers to be a “medical device” within its regulatory purview.Continue Reading The FDA Appears to Expand Its Definition of a “Medical Device” to Include CPSC-Regulated Infant Sleep Products
CPSC Seeks Civil Penalty Against SunSetter in Rare Federal Court Action
Last Thursday, April 6, the Department of Justice (DOJ) and Consumer Product Safety Commission (CPSC) sued SunSetter Products LP (SunSetter) in a Massachusetts federal court in a rare civil penalty lawsuit. SunSetter manufactures motorized retractable awnings for outdoor use. The Government alleges in its complaint that SunSetter knowingly failed to timely report under Section 15(b) of the Consumer Product Safety Act (CPSA) a hazardous defect related to vinyl covers for its retractable awnings. The complaint seeks permanent injunctive relief, including a third-party monitorship over the company, and civil penalties.Continue Reading CPSC Seeks Civil Penalty Against SunSetter in Rare Federal Court Action
CPSC Chairman Addresses Gas Stoves and Other Issues at ICPHSO Conference
On Wednesday afternoon, CPSC Chairman Alexander Hoehn-Saric addressed the annual conference of the International Consumer Product Health and Safety Organization (ICPHSO) for the second time as chairman. In his remarks, Hoehn-Saric looked back on his first year as chairman, including the recent controversy over gas stoves, and shared some of the agency’s priorities moving forward. But the central theme of Hoehn-Saric’s remarks could not have been clearer— consumers are first in everything the agency does. Continue Reading CPSC Chairman Addresses Gas Stoves and Other Issues at ICPHSO Conference
CPSC Enforcement Trend: Unilateral Press Releases
Companies take note: over the past month or so, the U.S. Consumer Product Safety Commission (CPSC) has issued four unilateral press releases instructing consumers to stop using a product. Since May of this year, that number rises to seven. If that number does not seem high, consider this: between 2011 and 2019—a nine-year period—the agency issued two. So, what exactly is a “unilateral press release” and what does the agency’s issuance of four over recent weeks mean for you?Continue Reading CPSC Enforcement Trend: Unilateral Press Releases
“Wiping the Slate Clean”— CPSC Commissioners Signal Higher Penalties to Come in Wake of Vornado Penalty Resolution
Despite imposing onerous new compliance terms, the recently announced Vornado civil penalty was criticized by three commissioners as too low amid their urgent calls for larger penalties in the future. On July 7, the U.S. Consumer Product Safety Commission (CPSC) announced a $7.5 million civil penalty settlement with manufacturer of air circulation products, Vornado Air (Vornado). Vornado agreed to pay the civil penalty to resolve charges that the Company knowingly failed to immediately report allegedly defective electric space heaters to the CPSC under Section 15(b) of the Consumer Product Safety Act (CPSA). The Commission voted 4-0-1 to provisionally accept the settlement. Notably, three of the agency’s five commissioners published individual statements alongside the agency’s announcement of the penalty, which is atypical. The statements provide product safety stakeholders with insights on how the “new” Commission views civil penalties and its enforcement authority. Continue Reading “Wiping the Slate Clean”— CPSC Commissioners Signal Higher Penalties to Come in Wake of Vornado Penalty Resolution