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Consumer Product Safety
The federal Consumer Product Safety Act requires catalogers and other retailers to report to the Consumer Product Safety Commission (CPSC) any product defect that “could create a substantial product hazard.” This regulatory scheme heavily relies on self-reporting with large penalties for failure to do so. Many catalog merchants are unaware of the act’s record-keeping requirements, what events trigger a reporting obligation to the CPSC, the extent to which a company can negotiate with the staff of the CPSC the terms of a consumer recall notice, or the possibility of offsetting recall responsibilities onto the manufacturer or supplier.
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