CPSC and ACCC Target Retailers for Product Safety Faults

Retailers Meijer in the U.S. and Woolworths in Australia both September 17 were the subjects of separate legal announcements by the nations’ respective product safety regulators. The CPSC action with Meijer involved a $2 million civil penalty settlement of allegations that the company sold already-recalled products between April 2010 and April 2011. Such activity was made illegal in 2008 under the CPSIA.

Meijer’s response in the settlement agreement included assertion that it relied on “the reverse logistics system operated through an independent third party it hired to handle its disposition of the recalled Products. Meijer believed that adequate safeguards were in place to prevent recalled products from being distributed into commerce.” CPSC allegations included that the company “received information about products handled by the contractor but…failed to take action to prevent distribution of recalled products.”

The products included lamps, baby slings, vacuum cleaners, tricycles, toys, teether/rattles, ceramic heaters, high chairs, orbit sanders, and box fans.

Meanwhile, the Australian Competition and Consumer Commission (ACCC) said it has filed against Woolworths in federal court, alleging the retailer “made false or misleading representations about the safety of certain…products” as well as not fulfilling mandatory reporting duties.

The alleged misleading claims involved the weight capacity of a chair and folding stool. Testing found they failed before stated weight limits, ACCC said. Other allegations involved a deep fryer, drain cleaner, and safety matches.

At a hearing set for October 3 in Sydney, the agency will seek penalties as well as orders that the company create a product safety compliance program and perform a public education program on product safety and incident reporting.

Other recent news involving risks to retailers has included last summer’s warning (PSL, 8/11/14), by CPSC and Best Buy and that the store or its liquidators sold at least 10 products after they were recalled in 2012 and 2013.

Also, CPSC recently published an open letter on ensuring compliance of holiday lights (PSL, 7/21/14). Its similar letter a few years ago on drawstrings on children’s clothes has led to many retailers paying civil penalties.