CPSC Logs Record Year For Recalls, Civil Penalties, and Reports of Dangerous Products

The U. S. Consumer Product Safety Commission (CPSC) announced today that the agency set several records in important safety areas this fiscal year including:

- Recalls of defective consumer products

- Civil penalties imposed for industry failure to report hazardous products

- Industry reports of possible consumer product hazards

Consumer Product Recall Record

CPSC obtained the voluntary recall of 397 consumer products in fiscal year 2005. This figure represents the highest number of recalls for the agency in 10 years and includes the highest annual total ever for products not covered by a mandatory safety standard. This record comes on the heels of CPSC's single largest, individual product recall in the previous fiscal year, of metal vending machine jewelry.

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

Civil Penalties for Failure to Report Possible Product Hazards

CPSC set a new record for the amount of civil penalties imposed for failure to report defective consumer products to the agency. The total of such penalties for fiscal year 2005 was a record $8.8 million, imposed against six different companies.

"One of our top priorities has been to encourage companies to follow the law and report possible hazards to CPSC," said Chairman Hal Stratton. "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 to CPSC when a product 1) does not comply with a safety rule, 2) contains a defect that could create a substantial risk of injury to the public, or 3) presents an unreasonable risk of serious injury or death.

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. Chairman Stratton has strongly encouraged product hazard reporting on the part of all CPSC's stakeholders over the past 3 years.

Another reason for the significant increase in such reporting is a new, innovative Retailer Reporting Model implemented by CPSC with Wal-Mart. Under the new reporting model, Wal-Mart provides CPSC on a weekly basis with detailed information on customer complaints and other incidents involving product safety issues. The Retailer Reporting Model has become a major new source of early warning safety information and data, and has prompted more reporting by manufacturers and by other retailers.

"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," Stratton noted. "This type of information will help us keep more consumers safe in the future."