At the end of last year, we reported that the U.S. Consumer Product Safety Commission issued $12.2 million in civil penalties in 2014, more than double the amount issued in 2013. The number of companies fined increased as well. These trends signal the CPSC’s intention to stake itself as a serious enforcement agency, which was reinforced recently by Chairman Elliot Kaye, who announced that the agency would seek to levy more penalties that approach the statutory maximum of $15 million.

Background -

When the Consumer Product Safety Improvement Act of 2008 was passed, Congress increased the maximum penalties from $8,000 to $100,000 per occurrence and increased the maximum penalty amounts for a related series of violations from $1.8 million to $15 million. The CPSC has authority to penalize manufacturers, distributors and retailers for failure to report within 24 hours of obtaining information “which reasonably supports the conclusion that its consumer product fails to comply with an applicable consumer product safety rule or voluntary consumer product safety standard, contains a defect which could create a substantial risk of injury to the public, or creates an unreasonable risk of serious injury or death.” 16 C.F.R. § 1115.14(e).

Originally published in Consumer Protection Law360 on March 19, 2015.