What happens if a company knows its product is dangerous but doesn't report it?

What the Law Says

The Consumer Product Safety Act (CPSA) establishes strict duties for manufacturers, distributors, and retailers to report known product hazards to the U.S. Consumer Product Safety Commission (CPSC). While § 2051 sets the foundational purpose of the Act, the reporting obligation itself is codified in 15 U.S.C. § 2064(b), which requires immediate reporting upon obtaining information that reasonably supports the conclusion that a product contains a defect that could create a substantial risk of injury or death. Though § 2051 does not contain the reporting rule directly, it declares Congress’s intent to protect the public from unreasonable risks — the legal bedrock for enforcement of reporting duties.

Under federal law, any manufacturer, importer, distributor, or retailer who obtains information indicating that a consumer product 'does not comply with an applicable consumer product safety rule' or 'contains a defect which could create a substantial product hazard' must notify the CPSC immediately — within 24 hours of obtaining such information.

Failure to report is a violation of the CPSA and triggers enforcement actions including civil penalties, mandatory recalls, and, in cases of knowing or willful violations, criminal prosecution.

The CPSC may assess civil penalties up to $15,831,899 per violation (adjusted annually for inflation), and criminal penalties include fines and up to five years’ imprisonment for knowingly failing to report.

Statutory Text

The Congress finds that — (1) national production and distribution of consumer products have increased the need for uniform safety standards; (2) the health and safety of consumers are affected by the design, construction, contents, and labeling of consumer products; (3) many consumer products present unreasonable risks of injury or death; (4) the public interest requires that consumer products be safe and that consumers be informed about the safety of consumer products; and (5) the Federal Government should assist consumers in evaluating the comparative safety of consumer products.

— Consumer Product Safety Act, 15 U.S.C. § 2051 — Congressional findings and declaration of purpose

What to Do

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