What product safety reporting requirements apply to owning a small business?

Asked on 1/20/2009 by Christopher Hoenn, Silph Co.
Answered by ABC Staff

There are three primary reporting requirements in the U.S. Consumer Products Safety Act (CPSA) that apply to small businesses:

1. Any manufacturer, importer, distributor, or retailer of consumer products must notify Consumer Product Safety Commission (CPSC) immediately if it could be concluded that one of its products: (a) has a defect that creates a substantial risk of injury to the public; (b) creates an unreasonable risk of serious injury or death; or (c) violates a consumer product safety standard or ban of the product. (15 U.S.C. 2064)

2. A manufacturer must report to CPSC when any of its consumer products has been involved in three or more lawsuits in a two-year period. Each lawsuit must have alleged death or grievous bodily injury and resulted in a settlement or a court judgment in favor of the person who filed the suit. (15 U.S.C. 2085)

3. A manufacturer, distributor, retailer, or importer of marbles, small balls, latex balloons, or toys or games that contain such items must report to CPSC any incidents of children choking on those items. (15 U.S.C. 2064 note)

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