product safety

In 2011, Australia and Canada adopted new product safety laws that require manufacturers and others in the supply chain to monitor their products in use, and to report safety issues and take appropriate corrective actions in certain situations. In addition, the U.S. Consumer Product Safety Commission has become more aggressive in levying civil penalties on companies who do not report safety problems in a timely fashion.

Being first to market is what enables a company to capture the rewards of an efficient product development program. Among the benefits of such a program is a greater return on investment (ROI), triumph over the competition and increased shareholder’s satisfaction. However, there are pressures such as a slow growth domestic economy, a growing global marketplace and a highly competitive market environment.

As manufacturers design new products and update the design of old products, many times they sell and offer for sale different designs with differing levels of safety and quality. There are many reasons for the differences including multi-functional uses of the product, different price points (e.g. good, better, and best), requests by customers, adoption of safety improvements, and inconsistent regulations and standards between the U.S. and foreign countries.

This article will explore the legal and practical risks in selling products with these differences and what manufacturers can do to minimize the risk.