Monday October 10, 2016

Best Buy Pays $3.8M over Allegations of Selling Recalled Items

Best Buy has agreed to pay $3.8 million to settle allegations that it sold and distributed 16 recalled products between 2010 and 2015, CPSC announced October 3. Selling recalled products was made illegal under the CPSIA. The settlement involved a 2014 announcement by the company and agency involving 10 products sold after recalls (PSL, 8/11/14). The 16 products in the settlement accounted for about 600 units sold, 400 of them a Canon camera. A list of the items is in the agency's press release, at bit.ly/2dKMr3w.

The settlement is the first announced in FY2017, which began October 1. In FY2016, CPSC had five settlements totaling $31.25 million or a $6.25 million average. However, almost half the total was a record $15.45 million paid by Gree. Without it, the average was $3.95 million.

Meanwhile in FY2015, the agency announced nine settlements totaling $24.4 million and averaging $2.71 million. Half of CPSC's FY2016 settlements were greater than the top settlement in FY2015: $4.3 million.

The Best Buy settlement agreement is at bit.ly/2duUjuN. See also the October 5 Federal Register notice, with an October 20 comment deadline, at bit.ly/2dOk6Od.

CPSC Civil Penalty Settlements
Fiscal 2016		Fiscal 2015
Company	Payment	Company	Payment
		Baja and One World Tech.	$4,300,000
		GE	$3,500,000
		phil&teds ²	$3,500,000
		Office Depot	$3,400,000
Gree	$15,450,000	Johnson Health Tech	$3,000,000
Goodman	$5,550,000	Gerber Legendary Blades	$2,600,000
Sunbeam (dba Jarden)	$4,500,000	LG ³	$1,825,000
Teavana	$3,750,000	Black & Decker	$1,575,000
PhilipsLighting N. Amer.	$2,000,000	Williams-Sonoma	$700,000
Total	$31,250,000	Total	$24,400,000
Average ¹	$6,250,000	Average	$2,711,111
¹ Without Gree = $3,950,000. ² Only $200,000 due absent default. ³ Pre-CPSIA maximum