More Lawsuits = Increased Product Safety?
What will it take to ensure consumer products are safe and kids are protected from toxic toys? According to the Senate, more litigation against manufacturers. Consider what some provisions of S. 2045, the Consumer Product Safety Commission (CPSC) Reform Act, would do:
- Subject manufacturers to civil penalties up to $100 million for failure to make “timely” recall reports;
- Permit company employees to be imprisoned even if they had no actual knowledge that their conduct could be illegal;
- Allow employee whistleblowers to collect “bounties” of up to 25% of any civil penalty assessed against a manufacturer for reporting information to the CPSC, even if it is preliminary, erroneous or unsubstantiated (do the math – if the maximum penalty of $100 million is levied, an employee could collect up to $25 million!);
- Grant state attorneys general the ability to sue manufacturers for actions that they each (separately) interpret/allege to be consumer product safety violations; and
- End protection from disclosure for certain company information.
As approved by the Senate committee, S. 2045 is a very bad bill for manufacturers. Please contact your Senators and tell them that this bill needs improvement.
02-05-2008 9:41 AM