Teavana agrees to pay $3.75 million civil penalty for failure to report hazardous tea tumblers
June 1, 2016, cpsc.gov
An U.S. Consumer Product Safety Commission news release states that the penalty settles charges that Teavana knowingly failed to report to CPSC as required by federal law, that the tumblers contained a defect that could create a substantial product hazard or that the tumblers created an unreasonable risk of serious injury. The company failed to report to the CPSC complaints about the tea tumblers unexpectedly exploding, shattering or breaking during normal usage, including 6 reports of injuries to consumers who suffered cuts to their fingers or legs by broken glass or burns from hot liquid. In addition, the company agreed to comply with and maintain the compliance program of its parent company that is designed to ensure compliance with the Consumer Product Safety Act and regulations enforced by the Commission.
CPSC announces civil penalty against Teavana; Commissioners remain divided on civil penalty enforcement, calculations, and transparency.
May 31, 2016, The National Law Review (Mintz Levin)
An analysis of the Commission action highlights that Commissioners remain divided on civil penalty enforcement, calculations, and transparency. Commissioner Joseph Mohorovic, in a strongly worded dissent, explains his concerns about how the agency “calculates, imposes, and settles civil penalty demands for alleged violations” of CPSC statutes. Mohorovic’s dissent comes on the heels of a similar statement by Commissioner Ann Marie Buerkle over how the Commission pursues civil penalties.
Why it seems like there’s a rash of recalls lately: better detection, fewer suppliers
May 29, 2016, Seattle Times
A deluge of recalls this year shows no sign of slowing down. A record 51 million vehicles, a doubling of food recalls since 2002, and an average of a recall a day announced by the Consumer Product Safety Commission are indications that across industries the trends are the same. Two factors are driving this activity: stricter safety rules including more testing and certifications, and industry’s reliance on few more widely shared suppliers. The result is recalls that are larger and more complicated to manage.
Hoverboards angling for comeback
June 1, 2016, wraltechwire.com
Forget the fires: Hoverboards just want a second chance. Having largely vanished from the U.S. and other regional markets due to a tendency to burst into flames, manufacturers are hoping for a second chance. Segway will begin taking Amazon pre-orders for a new hoverboard to be shipped in July. It’s a significant step given the fact that Amazon, Walmart, and other retailers dumped the products months ago.
Recalling years of recalls of dangerous products
May 27, 2016, Detroit News/Associated Press
Takata, the Japanese air bag maker has joined a list of notorious product recalls, some of which were handled better than others, but all on the list had their defective products in the hands of millions of consumers creating a wide spread serious hazard. Ford Pinto, Johnson and Johnson’s Tylenol, and Firestone tires are just a few of the illustrations of products in the hands of consumers threatening them and their families with serious injuries or even deaths.
China formulating standards for personal information security and data protection
June 1, 2016, The National Law Review (Covington & Burling LLP)
China’s National Information Security Standardization Technical Committee organized a meeting to launch a working group tasked with drafting a Personal Information Security Standard. In addition to government agency participation in the Committee, several Chinese research institutions and internet companies (including Tencent and Alibaba) will participate in the working group. An official said the standard would cover both data privacy and security.
FDA: One case may change recall procedure for online food sales
May 28, 2016, digitaljournal.com
The U.S. Food and Drug Administration is considering whether they need to develop food recall procedures and notifications for on-line retailers selling food products over the internet. This unusual move is in response to a new Salmonella Virchow case reported by Wisconsin health officials recently. The latest victim brings the total number of cases to 34 in a food-borne illness outbreak that was declared over on April 21 by the U.S. Centers for Disease Control and Prevention.
Product recall system needed
May 29, 2016, The Star/Malaysia
A more effective and specific product recall system, similar to the one in Europe, is needed to better protect consumers from faulty and potentially dangerous products, according to a Malaysian leader with the Malaysian Association of Standards Users. Nur Asyikin Arminuddin, a technical policy (product safety) executive with the association says such a system is important to help consumers identify which products to avoid. She points to the European Commission’s Rapid Alert System as one that would “be easy for consumers to refer to by having a user friendly product recall list uploaded on-line.”
VW Group profit rises 3.4% despite steep plunge in core brand results
May 31, 2016, Automotive News Europe
While the Groups overall profit rose, profit at the core VW brand plunged 86^ highlighting the challenge the carmaker faces in emerging from the nearly nine-month old emissions cheating scandal. Revenue fell 3.4% to 51 billion euros. “2016 will be a transitional year for Volkswagen that will see us fundamentally realign the group,” says company CEO Matthias Mueller.
Increased transparency becoming a business critical initiative
May 26, 2016, environmental leader.com
Consumer, public interest groups, and government, along with media, are demanding information about the safety and environmental impacts of the products being sold today, and organizations are responding in larger numbers. This trend is spreading through the supply chain. Consumers in the U.S., U.K., and China rate “honesty and transparency” alongside price and quality when considering whether to buy a product or brand. Companies are working to obtain greater insight into their supply chains and improved transparency for consumers.
Consumer Product Update: Health Canada alerts consumers to risks in purchasing products on line
May 27, 2016, Montreal Gazette
Health Canada is informing consumers of potential risks in buying consumer products and cosmetics online, including the fact that some products from around the world may not meet Canadian laws and regulations. Some have been recalled from the Canadian market for failure to meet health or safety requirements. Consumers are directed to various government websites that list information about products that have been recalled or are considered unsafe.
