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.
Here’s a brief review of key developments concerning the U.S. Consumer Product Safety Commission (“CPSC”) from last month. We look forward to seeing many friends at the Annual Meeting and Training Symposium of ICPHSO in two weeks. For those who are unable to make the conference, our team plans to share daily insights so stay tuned for more important product safety updates!
Decisional Meeting on Clothing Storage Units Addresses “Tip-Over” Issue. On January 19, the CPSC adopted, by a 4-0 vote, staff’s recommendation to issue a Notice of Proposed Rulemaking for Clothing Storage Units (CSUs) to address the “tip-over” issue. Notably, the Commission adopted two amendments to the proposed rule, both offered by Commissioner Richard Trumka Jr.
The first amendment pertained to the rule’s stockpiling provision. The rule presented by staff “prohibited manufacturers and importers of CSUs from manufacturing or importing CSUs that do not comply with the requirements of the proposed rule in any 12-month period between the date a rule is promulgated and the effective date of the rule at a rate that is greater than 120 percent of the rate at which they manufactured or imported CSUs during the base period for the manufacturer.” Trumka’s amendment defines the “base period” as one month out of the last 13 months with the median import or manufacture volume, and changes the percentage increase that is allowed under that base period from 120% to 105% in each month between the final rule and the effective date. It is intended to reduce the risk of stockpiling products. The Commission adopted the amendment by a vote of 4-0.
Continue Reading CPSC Insights – January 2022