DOJ & CPSC Complaint: Stanley Black & Decker Faces Scrutiny Over Reporting Delays
Introduction:
The pursuit of product safety is a cornerstone of consumer protection in the United States. A recent example highlighting this commitment is the legal action taken against Stanley Black & Decker, Inc. The Justice Department (DOJ), in collaboration with the Consumer Product Safety Commission (CPSC), has filed a civil enforcement action against the company, alleging significant delays in reporting hazardous defects associated with its utility bars and miter saws. This case underscores the critical importance of timely reporting by manufacturers and the potential consequences of failing to meet these obligations. Delayed reporting can lead to increased injuries and undermines the CPSC’s ability to protect consumers effectively.
The Complaint: Allegations of Delayed Reporting
The complaint, filed in the U.S. District Court for the District of Maryland, alleges that Stanley Black & Decker violated the Consumer Product Safety Act (CPSA) by failing to promptly report information about potential safety hazards. The specific products at the center of the complaint are DeWALT utility bars and miter saws.
- Utility Bars: According to the DOJ, Stanley Black & Decker began receiving reports in December 2015, shortly after manufacturing began, that the utility bars were breaking unexpectedly during use, sometimes resulting in serious injuries. Despite these reports from consumers and a national retailer, the company allegedly did not notify the CPSC until May 2019.
- Miter Saws: The complaint further alleges that between 2019 and 2022, Stanley Black & Decker received hundreds of reports concerning its miter saws. These reports indicated that the rear protective guards and plastic deflectors were breaking, leading to lacerations on consumers’ faces and fingers. The DOJ asserts that the CPSC was not informed of these incidents until June 2022.
Legal Implications and Potential Penalties
The CPSA mandates that manufacturers, distributors, and retailers must immediately report to the CPSC any information that suggests a product defect could create a substantial product hazard or an unreasonable risk of serious injury or death. The DOJ’s lawsuit seeks monetary civil penalties and injunctive relief to prevent future violations of the CPSA.
Failure to comply with the CPSA’s reporting requirements can result in substantial financial penalties. The CPSC has the authority to seek civil penalties of up to \$16 million for failing to report safety issues in a timely manner. In addition to financial penalties, companies may also be subject to court-ordered changes in their safety reporting and compliance procedures.
The Importance of Timely Reporting
The CPSC emphasizes that timely reporting is crucial for protecting consumers from hazardous products. Prompt reporting allows the agency to quickly assess potential risks, conduct investigations, and implement corrective actions, such as product recalls, to prevent injuries and save lives.
Advice for Manufacturers and Distributors
Given the potential legal and financial consequences of failing to report product safety issues promptly, manufacturers and distributors should take proactive steps to ensure compliance with the CPSA. Here are some key recommendations:
- Establish Clear Reporting Procedures: Develop and implement clear, well-documented procedures for evaluating and reporting potential product hazards. These procedures should outline the steps to be taken when a safety issue is identified, including who is responsible for gathering information, assessing the risk, and reporting to the CPSC.
- Train Employees: Provide comprehensive training to all employees on product safety reporting requirements. Ensure that employees understand their responsibilities and know how to identify and report potential hazards.
- Maintain Open Communication Channels: Foster open communication channels between different departments within the company, such as engineering, manufacturing, marketing, and customer service. This will help ensure that safety information is shared effectively and that potential hazards are identified and addressed promptly.
- Conduct Regular Audits: Conduct regular audits of your product safety reporting procedures to identify any weaknesses or areas for improvement.
- Cooperate with the CPSC: If the CPSC initiates an investigation, cooperate fully and provide all requested information in a timely manner.
Stanley Black & Decker’s Response
Stanley Black & Decker has stated that its Black & Decker unit had previously cooperated with the agency to provide refunds or replacements for the utility bars and miter saws in 2019 and 2022 recalls. The company also stated that it believes it acted in a timely and appropriate manner.
Previous Instances of Non-Compliance
The complaint references previous instances in which Black & Decker settled alleged late reporting allegations in 1986, 1991, 1999, 2011, and 2015. The complaint also states that a consent decree entered into by Black & Decker to resolve the most recent of those matters required Black & Decker to maintain a compliance program and a system of internal controls meant to ensure timely and accurate reporting to CPSC.
The Consumer Product Safety Act (CPSA)
The CPSA is a United States federal law that was enacted in 1972. The CPSA gives the CPSC the authority to develop safety standards and pursue recalls for products that present unreasonable or substantial risks of injury or death to consumers. The CPSC also has the authority to ban products that are deemed to be too dangerous for consumers.
The Consumer Product Safety Commission (CPSC)
The CPSC is an independent agency of the United States government. The CPSC is responsible for protecting the public from unreasonable risks of injury or death associated with consumer products. The CPSC has the authority to develop safety standards, pursue recalls, and ban products that are deemed to be too dangerous for consumers.
Conclusion
The DOJ & CPSC Complaint: Stanley Black & Decker Faces Scrutiny Over Reporting Delays serves as a stark reminder of the importance of product safety and the critical role that timely reporting plays in protecting consumers. Companies that fail to meet their reporting obligations under the CPSA face significant legal and financial consequences. By establishing clear reporting procedures, training employees, and fostering open communication channels, manufacturers and distributors can help ensure compliance with the CPSA and protect the safety of their customers.
Call to Action:
If you or a loved one has been injured by a defective product, it is important to seek legal advice. Contact our firm today for a free consultation to discuss your rights and options.