Exposing Foreign Manufacturers of Defective Products

I previously posted information about the CPSC’s new searchable database (Section 212). Will it hold foreign manufacturers that ship defective products into the U.S. more accountable? The CPSC now requires source information be included on products and in package markings. That means manufactures selling defective products are easier to identify .

The potential benefit to U.S. manufacturers

This searchable database, which includes the name of the product and manufacturer, will impose an indirect cost (i.e. loss of consumer confidence and company credibility). That way, foreign manufacturers looking to do business in the U.S. must invest more in product research and safety. This evens the playing field for more U.S. manufacturers to compete with regard to product pricing.

U.S. importers would benefit, too

Ironically, U.S. importers benefit the most from the searchable database.  It is next to impossible to litigate product liability issues against foreign manufacturers. U.S. importers are typically held entirely accountable for the safety of foreign-made products. A searchable database that quickly identifies the names and problem of foreign manufactures should reduce importation of inferior products. Consequently, the result is fewer costly Product Liability trials and product recalls.

The overall goal of the CPSC is to protect the public from defective products. But this looks like a win for U.S. manufacturers and importers.