Tag Archives: Section 212

Exposing Foreign Manufactures That Sell Defective Products

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The million-dollar question for many is – will the new searchable database (Section 212) provided by the Consumer Product Safety Commission hold foreign manufacturers that ship defective products into the U.S. more accountable?

Now that the CPSC requires product and package markings that contains information such as source of the product, it should be easier to identify manufactures that sell defective products.

It is my belief that many U.S. manufacturers hope the searchable database (Section 212) provided by the Consumer Product Safety Commission that publishes the name of the product and the manufacturer will impose enough of an indirect cost such as loss of consumer confidence and company credibility that foreign manufacturers looking to do business in the U.S. will have to invest more in product research and safety and therefore, even the playing field for more U.S. manufacturers to compete with regards to product pricing. 

U.S. Importers could be one the biggest benefactors of the searchable database.  Since it is next to impossible to litigate product liability issues against foreign manufacturers, U.S. importers are typically held entirely accountable for the safety of foreign made products.  By having a searchable database that quickly identifies the names of problem foreign manufactures, U.S. importers will be in a better informed and less likely to bring inferior products into the U.S. that could result in costly product liability trials and product recalls.

While the overall goal of the CPSC is to protect the U.S. public from defective products, the changes could also help U.S. manufacturers by imposing some of the same costs on foreign manufacturers for testing and product safety that they must incur in order to do business in the U.S. and it could potentially help U.S. Importers by avoiding foreign manufacturers that have a poor history of safe products.

The U.S. Consumer Products Safety Improvement Act of 2008 Mandates Searchable Database for Consumers

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One of the most significant changes of the U.S. Consumer Product Safety Improvement Act of 2008 is the creation of a searchable database (Section 212) for consumers by the Consumer Product Safety Commission.  This one change could significantly impact a company’s reputation and product liability litigation.

CPSC is required to establish a searchable data base by October 2010 on the internet that consumers can access.  The information provided will identify the name of the product, the manufacturer’s name and provide reports on deaths and injuries caused by the product.  In order to make sure that no information on the website is materially incorrect or trade secrets are not exposed, manufacturers will be allowed to review and comment on the information before it is posted on the database.

This one change should help potential U.S. importers and distributors of foreign products to identify problem foreign manufactures and as a result, reduce the number of unsafe products brought into the U.S.  It may also increase product liability litigation because U.S. consumers will be able to identify more easily whether their product in question has a history or potential for harm and assist with gathering important facts to assist them with their product liability lawsuit.