How does the Graco and Simplicity product name survive? It seems to experience major baby products recalls about every other month.
Graco and Simplicity distinguishes itself as one of the most embattled and recalled companies in U.S. history. Still, it seems able to live up to it’s business model of delivering inexpensive baby and children’s products.
Millions of their many products (cribs, strollers, high chairs , car seats, swings, walkers, carriers, bassinets and toys) have been recalled. The recalls include incidents of suffocation, choking, falls and amputations, among other injuries.The cost of handling all the recalls and Product Liability lawsuits must reach into the hundreds of millions of dollars over the past decade.
Maybe the $4 million civil penalty imposed by the CPSC for not reporting known product defects in a timely manner served as a slap on the wrist.
Surely some college professor somewhere is teaching a class based on Graco’s business model. But I give Graco credit. Despite its association with injuries and deaths, being fined millions, and involvement in product recalls and Product Liability lawsuits, Graco survives, thrives and remains profitable
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