Cosco and Safety First, two manufacturers of children’s products, were fined $1.75 million dollars for safety violations by the CPSC. There is a federal law that all safety problems must be reported immediately so that the products may be promptly recalled. Cosco had over 300 injuries and 2 deaths before they reported the problems with the cribs to the CPSC. The CPSC had to do its own research and order the recall without any information about the products.
The CPSC had over 3000 complaints regarding the tandem baby carriage that would just collapse on its own. Cosco knowingly withheld information about the problems with the crib and the baby carriage. Cosco, instead of contacting the CPSC, made changes to the designs that still did not correct the problems. They also blamed the way in which the products were put together by the purchasers.
1. The CSPC had over 3000 complaints regarding the baby carriage before they ordered a recall. Should they be responsible for investigating every item sold and recalling it sooner?
2. What “duty of care” does CSPC have to its customers?