The United States Consumer Product Safety Commission (CPSC) recently announced that popular tea chain, Teavana, has agreed to pay $3.75 million to the Federal Government for a Civil Penalty.
The consequence comes after Teavana knowingly failed to report to the CPSC, something that is required by the federal law, that the tumblers they were selling to consumers contained a defect. Reports showed that there were numerous complaints about the tea tumblers unexpectedly exploding and breaking during normal use. This resulted in six reports of injuries from people who had been cut or burned by the tumbler breaking.
Teavana, in addition to paying $3.75 million, has agreed to comply with and maintain the compliance with the Consumer Product Safety Act (CPSA) and the regulations that are enforced by the Commission. The Company has also agreed to comply and maintain a system of controls and procedures within the company that ensures Teavana discloses information to the Commission in accordance with applicable law.