Legal Tort System Offering Consumer Protection Laws

Legal Tort System Offers Consumer Protection

Whether it is the National Highway Traffic Safety Administration regulating automobiles, the Food and Drug Administration (FDA) regulating drugs, the Securities and Exchange Commission regulating securities—or the Consumer Product Safety Commission regulating consumer products, the legal tort system offers you consumer protection. Because it steps in where federal agencies leave off because of limited enforcement resources.

The tort system gives average people a way to influence powerful businesses and institutions and change their dangerous practices. It allows victims of unsafe products seek justice and ensure manufacturers are held accountable. If not for the tort system, manufacturers—such as the following examples—would continue their negligent behavior.

One Drug-maker Hides Unsafe Product Further Shaking Consumer Confidence

A recent product recall occurred when McNeil products, a unit of Johnson & Johnson, recalled millions of bottles of liquid children’s Tylenol and other pediatric medicines because they contained too much of the active ingredient of the drug, metal specks or inactive ingredients that failed testing. Even more troubling was the news that the company was accused of hiding the product recall by buying back one of the recalled products.

This product recall became part of four product recalls of McNeil in the past year, which has shaken consumers confidence and threaten to stain the Johnson & Johnson brand name. The FDA noted lengthy delays by the company in reporting problems to the agency and said the company may face criminal penalties, product seizures or other sanctions. The outcome, according to the FDA, was 775 children and infants who experienced an adverse reaction after taking one of the recalled products and 37 deaths.

Penalties for Not Reporting Unsafe Products

The law requires companies to tell regulators within 24 hours if they discover an unsafe product or learn a product is dangerous to consumers. IKEA agreed to pay the government a $500,000 civil penalty to settle allegations that the company failed to immediately report incidents about unsafe outdoor candles.

And the Consumer Product Safety Commission and the Department of Justice charged Wall-Mart in 2001 for failing to report an unsafe product, by not reporting a defective exercise glider, which violated a section of the Consumer Product Safety Act. It was the first time a retailer had been sued in federal court for not reporting an unsafe product. Sixty-eight injuries went unreported to the commission. Claims were settled out of court.