Because of this, the CPSC chairman, Elliot Kaye, stated that consumer product manufacturers really need to make sure that they have effective strategies in place for monitoring and, reporting all potential hazards to the CPSC to eliminate the chances of civil penalties.
CPSC civil penalties occur if the product and company:
1. Fails to meet an applicable CPSC safety rule,
2. Contains a defect that could create a substantial product hazard; or
3. Creates a defect that could create an unreasonable risk of death or serious injury.
The penalties given to a company can be large, therefore it is important to follow the CPSC standard.