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Home Shopping Network Agrees to Pay $875,000 in Civil Penalties

Failure to Report Faulty Product to the Government Proves Costly

By W. E. Lindsey, published Jan 08, 2008
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The old news is that in June 2005 over 4,000 Welbilt Electronic Pressure Cookers (Model # PC501) were recalled over an alleged defect in the design of the cooker's lid, resulting in burn injuries during the products operation. The breaking news today, is that the HSN LP (formally Home Shopping Network) has agreed to pay civil penalties totaling $875,000 for failure to report injuries resulting from this defect in a reasonable manner to the U.S. Consumer Product Safety Commission (CPSC).

According to the settlement agreement between HSN LP and the Consumer Product Safety Commission together with the United States Department of Justice... the pressure cookers in question were sold between September 2001 and November 2002, with injuries reported as late as October of 2004, yet no notice was given to the CPSC concerning any problems with the product in question unit February 18th, 2005.

Before the announced recall in 2005, these pressure cookers were known to have caused burns to 37 people, with at least 4 suffering third-degree burns. According to the recall notice, 43 reports of lids opening from the pressure of the cooker during operation were made prior to the announced recall. The CPSC alleges that HSN LP had received approximately 25 consumer reports by October of 2004.

Federal law requires that known defects in products sold to consumers, resulting in injury must be made known to the CPSC in a timely manner. The Consumer Product Safety Commission (CPSC) is a federal regulatory agency existing to protect consumers from potentially dangerous products.

While the HSN LP denies any negligence, they've agreed to pay the penalty in order to resolve all allegations. In fact, HSN LP claims that they did not receive the 25 consumer notifications concerning any dangers associated with the pressure cooker and additionally claim no known issues exist with the product.

Takeaways
  • U.S. Consumer Product Safety Commission charges HSN failed to report consumer injuries
  • HSN LP claims no wrong doing
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Good information! A pressure cooker that is not functioning properly is a scary thing!

Posted on 01/08/2008 at 6:01:46 PM

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