CPSC OGC Advisory Opinion No. 82

_;...

11 fEB 1974

Professor

Roy M. Carter

Department

of Wood and

Paper

Science

North

Carolina

State

University

School

of Forest.Resources

Box 5488

Raleigh,

North

Caroli.na

27607

Dear

Professor

Carteri

This

is

in response

to your

letter

of November

26,

1973

forwarded

to our office

by Mr. Ron Eisenberg

on Deca~ber

18,

1973,

in which

you inquired

about

the

latest

policies

and

requirements

regarding

a manufacturer's

product

liability.

The Consumer

Product

Safety

Comruission

is

con~e~~ed

with

a c:anufactu:rer's

product

liability

only

to the

extent

that

a cons1..l!!ler product

which

a manufacturer

produces

vio-

lates

a consu.-ner

product

safety

I:ulc

adopted

by the Com-

mission,

or contains

a defect

which

could

create

a sub-

st~ntial

product

hazard.

In this

regard,

section

lS(b)

of the

Consu.rner Product

Safety

Act

requires

manufacturers,

distributors

and

retailers

of

consu.rner

products

who obtain.:.!~

information

which

rea-

sonably

supports

the

conclusion

that

such

product·

fails

to comply

with

a consu.:'.,Cr product

safety

rule

or contains

a

defect

which

creates

a substantial

risk

of injury

to imme-

diately

report

i.l1is

information

to the

Commission.

Purt!

suant

to

section

15 (c}

of the

Act,

if

the

Cornraission

de-

tcru-.i.nes,

after

an approf:)riate

hearing,

that

a product

distributed

in commerce

presznts

a substantial

product

hazard

and t~at

notific~tion

is

required

in oruer

to ade-

quately

protect

the

public

from

such

hazard,

the

Conunission

may order

the

manufacturer,

or any distributor

or retailer

of the

product

to take

any of the

following

actions:

(1) to give

public

r.otice

of the

def0ct

or failure

to ccr.,ply,

a product

distributed

in commerce

presznts

a substantial

product

hazard

and t~at

notific~tion

is

required

in oruer

to ade-

quately

protect

the

public

from

such

hazard,

the

Conunission

may order

the

manufacturer,

or any distributor

or retailer

of the

product

to take

any of the

following

actions:

(1) to give

public

r.otice

of the

def0ct

or failure

to ccr.,ply,

(2)

to r.,.:dl

not.ice

to

e;::ich person

who is

a manufacturer,

distributor,

or retailer

of such

product,

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1 1 FEB 1974

Professor Roy M. Carter

Department of Wood and

Paper Science

North Carolina State University

School of Forest, Resources

Box 5488

Raleigh, North Carolina 27607

Dear Professor Carter:



This is in response to your letter of November 26, 1973

forwarded to our office by Mr. Ron Eisenberg on December 18,

1973, in which you inquired about the latest policies and

requirements regarding a manufacturer's product liability.

The Consumer Product Safety Commission is concerned

with a manufacturer's product liability only to the extent

that a consumer product which a manufacturer produces vio­

lates a consumer product safety rule adopted by the Com­

mission, or contains a defect which could create a sub­

stantial product hazard.

In this regard, section 15(b) of the Consumer Product

Safety Act requires manufacturers, distributors and retailers

of consumer products who obtaine& information which rea­

sonably supports the conclusion that such product fails

to comply with a consumer product safety rule or contains a

defect which creates a substantial risk of injury to imme­

diately report ihis information to the Commission

n this regard, section 15(b) of the Consumer Product

Safety Act requires manufacturers, distributors and retailers

of consumer products who obtaine& information which rea­

sonably supports the conclusion that such product fails

to comply with a consumer product safety rule or contains a

defect which creates a substantial risk of injury to imme­

diately report ihis information to the Commission.

Pure

suant to section 15(c) of the Act, if the Commission de­

termines, after an appropriate hearing, that a product

distributed in commerce presents a substantial product

hazard and that notification is required in order to ade­

quately protect the public from such hazard, the Commission

may order the manufacturer, or any distributor or retailer

of the product to take any of the following actions:

(l) to give public notice of the defect or failure

to comply,

(2) to mail notice to each person who is a manufacturer,

distributor, or retailer of such product,







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to mail

notice

to every

person

to whom the person

required

to give

notice

knows such product

was

delivered

or sold.

Under section

lS(d),

if

the

Commission

determines,

after

an appropriate

hearing,

that

a product.

distributed

in commerce presents

a substantial

product

hazard

it may,

if

it

believes

it

is

in the public

interest,

order

the

manufacturer,

or any distributor

or retailer

o£ such product

to take

whichever

of the following

actions

the person

to

whom the order

is directed

electsi

(1) to bring

the product

into

conformity

with

the

requirements

of an applicable

product

safety

rule

or to repv.r

the defect

in the

product.

(2) to replace

the product·with

a like

or equivalent

product

which complies

with

an applicable

consumer

proquct

safety

rule

or which does

not contain

the

defect.

ing

actions

the person

to

whom the order

is directed

electsi

(1) to bring

the product

into

conformity

with

the

requirements

of an applicable

product

safety

rule

or to repv.r

the defect

in the

product.

(2) to replace

the product·with

a like

or equivalent

product

which complies

with

an applicable

consumer

proquct

safety

rule

or which does

not contain

the

defect.

(3) to refund

the purchase

price

of the

product

(less

a reasonable

allowance

for

use,

if

such product

has

been

in t~1e possession

of a consumer

for

one year

or more.

In addition,

section

23 of the Act

(15 U.S.C.

2072)

allows

any person

injurad

as a result

of any knowing

(in-

cluding

willful)

violation

of a consumer

product

sa£0ty

rule

or order

issued

by the Co~mission

to sue any parson

who knowingly

(including

willfully)

violated

any Euch

rule

or order

in the appropriate

United

States

district

court.

This

remedy

is in addition

to any other

remedy

provided

by corr.man law or Federal

or State

law.

Further,

any

interested

person,

may, pursuant

to section

24 o·f the Act,

(15 u.s.c.

2074~ bring

an action

in the

appropriate

U.S.

district

court

to enforce

a consumer

product

safety

rule

-

provided

30 days

notice

by registered

mail

is given

to the

Commission,

to the United

States

Attorney

General,

and to

the person

against

whom the action

is directed.

A copy of our Act is enclosed

for

your

information.

If. we may be of further

assistance

please

let

me know •

. Sincerely,

Origbd

s;..z.:"c! 'oy

:.\?.~ic::.'.).el A. Eric•.,n

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V'.iABrown:

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Michael

A. Bro~n

General

Ccun::;el

F.

Barrett

R. Eisenberg

A. Schoern

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V'.iABrown:

c;ng: 2/7 / 7 4

be:

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Michael

A. Bro~n

General

Ccun::;el

F.

Barrett

R. Eisenberg

A. Schoern

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(3) to mail notice to every person to whom the person

required to give notice knows such product was

delivered or sold.

Under section 15(d), if the Commission determines,

after an appropriate hearing, that a product distributed

in commerce presents a substantial product hazard it may,

if it believes it is in the public interest, order the

manufacturer, or any distributor or retailer of such product

to take whichever of the following actions the person to

whom the order is directed elects:

(l) to bring the product into conformity with the

requirements of an applicable product safety

rule or to repair the defect in the product.

(2) to replace the product with a like or equivalent

product which complies with an applicable consumer

product safety rule or which does not contain

the defect.

(3) to refund the purchase price of the product (less

a reasonable allowance for use, if such product has

been in the possession of a consumer for one year

or more.

In addition, section 23 of the Act (15 U.S.C. 2072)

allows any person injured as a result of any knowing (in­

cluding willful) violation of a consumer product safety

rule or order issued by the Commission to sue any person

who knowingly (including willfully) violated any such

rule or order in the appropriate United States district

court.

This remedy is in addition to any other remedy

provided by common law or Federal or State law.

Further, any

interested person, may, pursuant to section 24 of the Act,

(15 U.S.C. 2074 bring an action in the appropriate U.S

e or order issued by the Commission to sue any person

who knowingly (including willfully) violated any such

rule or order in the appropriate United States district

court.

This remedy is in addition to any other remedy

provided by common law or Federal or State law.

Further, any

interested person, may, pursuant to section 24 of the Act,

(15 U.S.C. 2074 bring an action in the appropriate U.S.

district court to enforce a consumer product safety rule ҙ

provided 30 days notice by registered mail is given to the

Commission, to the United States Attorney General, ana to

the person against whom the action is directed.

A copy of our Act is enclosed for your information.

If we may be of further assistance please let me know.

Enclosure

MABrown:dmg: 2/7/74

bc: S. Dunn

Sincerely,

Original sis.ed by

\'icheel A. Brevn

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Michael A. Erovn

General Ccunsel

F. Barrett

R. Eisenberg

A. Schoem

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