Requires consumers to be notified concerning recalled products

Summary of specific provisions

This bill would add a new section 394-f to the General Business Law to require within thirty days of notification of a recall or of a defective or hazardous product from a manufacturer, distributor or by a federal or state agency, the seller of such product shall post such a notice. The notice must be prominently displayed for at least 90 days. The notice shall include information identifying the product including but not limited to any serial, model, lot or code number of the product, information describing the nature of the problem and information about redemption or refund. In addition to the posting of the notice, the notice shall also be mailed by the manufacturer or distributor to all users of the product who have either filed a warranty registration card, owner's registration card or other similar form.

Whenever there shall be a violation of these provisions, the Court may impose a civil penalty of not more than five hundred dollars for each violation. The court may impose a civil penalty of not more than one thousand dollars if the violation was knowing or willful. Additionally, any person who has been injured may bring an action in his/her name to recover damages or one hundred dollars, whichever is greater. The Court may increase the award to an amount not to exceed three times the actual damages up to one thousand dollars if the court finds that the defendant willfully or knowingly violated these provisions. The court may also award reasonable attorney's fees to the prevailing plaintiff.

Justification

This bill incorporates recommendations advocated by many including the federal Consumer Product Safety Commission, FDA, Nation Highway Traffic Safety Commission, the Center for Auto Safety, PIRG and the Institute for Injury Reduction. Products (e.g. toys, appliances, electronic and medical devices, food, drugs and cosmetics) can prove very dangerous to consumers especially children. They may be excessively flammable; they may present a risk of asphyxiation or electrocution; or, they may be adulterated or misbranded, Because of health hazard determination, these products may be recalled through the efforts of many federal and state authorities. While press releases about the recall of an unsafe product are often issued by companies who sold and/or manufactured

the product and/or by the appropriate governmental agency, the news of the recall often does not reach consumers who have purchased the product. Few media outlets publicize the notice. Thus, the redemption rate remains low. According to the Consumer Product Safety Commission, the news of a recall often reaches fewer than 10% of the purchasers of the recalled item within the first two years after the recall.

While some merchants and or distributors provide point of sale notification of recalls and mail information to some users, these practices are not uniformly followed. These notification practices should be standard. Point of sale notification of hazards or defects in a product is one of the most effective ways of alerting consumers to the dangers of a specific product and of ensuring that such item does not remain in the hands of users. Because consumers tend to frequent the same stores, they will be likely to view the posters informing them of the problem and learn of the redemption procedures. Additionally, those who purchase appliances and other electronic and medical devices tend to register their purchase and take advantage of the warranty or guarantee by filing the appropriate card or papers. Therefore, this list is a vital source of user information which can be utilized to inform consumers of any recall and further information about refunds or replacements.

Increased consumer awareness will reduce the numbers of deaths and injuries associated with defective or hazardous products and thereby, reduce product liability.

Fiscal implications for state & local governments

None.

Effective date

On the ninetieth day.