Fiskars Settles CPSC Reporting Violations for $2.6 Million
Fiskars has agreed to pay $2.6 million and institute a compliance program to settle charges that it failed to timely notify the Consumer Product Safety Commission of an injury risk from one of its products that eventually resulted in a recall, said CPSC in a Jan. 5 press release (here). The Gator Combo Axe, imported from Taiwan and sold under Fiskars’ Gerber Legendary Blades brand, included a built-in knife that dislodged while using the axe to hammer or chop, resulting in a serious laceration hazard for consumers, said the release. Fiskars began receiving complaints about the problem in 2005, but failed to notify CPSC until 2010, said CPSC.
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Fiskars eventually instituted a voluntary recall of the axes in March 2011, but CPSC said the problem should have been reported immediately. Under the Consumer Product Safety Act, manufacturers (including importers) of consumer products that obtain information which “reasonably supports the conclusion” that the product “contains a defect which could create a substantial product hazard” have to immediately notify CPSC.
In addition to the civil penalty, Fiskars also agreed to institute a compliance program that includes written standards and policies, procedures for reviewing safety claims and reports, confidential employee reporting, training, oversight and recordkeeping requirements. Under an injunction, Fiskars will also be required to “maintain and enforce internal controls and procedures” that ensure that the company timely and accurately reports any safety-related defects to CPSC.