[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC2064]
TITLE 15--COMMERCE AND TRADE
CHAPTER 47--CONSUMER PRODUCT SAFETY
Sec. 2064. Substantial product hazards
(a) ``Substantial product hazard'' defined
For purposes of this section, the term ``substantial product
hazard'' means--
(1) a failure to comply with an applicable consumer product
safety rule which creates a substantial risk of injury to the
public, or
(2) a product defect which (because of the pattern of defect,
the number of defective products distributed in commerce, the
severity of the risk, or otherwise) creates a substantial risk of
injury to the public.
(b) Noncompliance with applicable consumer product safety rules; product
defects; notice to Commission by manufacturer, distributor, or
retailer
Every manufacturer of a consumer product distributed in commerce,
and every distributor and retailer of such product, who obtains
information which reasonably supports the conclusion that such product--
(1) fails to comply with an applicable consumer product safety
rule or with a voluntary consumer product safety standard upon which
the Commission has relied under section 2058 of this title;
(2) contains a defect which could create a substantial product
hazard described in subsection (a)(2) of this section; or
(3) creates an unreasonable risk of serious injury or death,
shall immediately inform the Commission of such failure to comply, of
such defect, or of such risk, unless such manufacturer, distributor, or
retailer has actual knowledge that the Commission has been adequately
informed of such defect, failure to comply, or such risk.
(c) Public notice of defect or failure to comply; mail notice
If the Commission determines (after affording interested persons,
including consumers and consumer organizations, an opportunity for a
hearing in accordance with subsection (f) of this section) that a
product distributed in commerce presents a substantial product hazard
and that notification is required in order to adequately protect the
public from such substantial product hazard, the Commission may order
the manufacturer or any distributor or retailer of the product to take
any one or more of the following actions:
(1) To give public notice of the defect or failure to comply.
(2) To mail notice to each person who is a manufacturer,
distributor, or retailer of such product.
(3) To mail notice to every person to whom the person required
to give notice knows such product was delivered or sold.
Any such order shall specify the form and content of any notice required
to be given under such order.
(d) Repair; replacement; refunds; action plan
If the Commission determines (after affording interested parties,
including consumers and consumer organizations, an opportunity for a
hearing in accordance with subsection (f) of this section) that a
product distributed in commerce presents a substantial product hazard
and that action under this subsection is in the public interest, it may
order the manufacturer or any distributor or retailer of such product to
take whichever of the following actions the person to whom the order is
directed elects:
(1) To bring such product into conformity with the requirements
of the applicable consumer product safety rule or to repair the
defect in such product.
(2) To replace such product with a like or equivalent product
which complies with the applicable consumer product safety rule or
which does not contain the defect.
(3) To refund the purchase price of such product (less a
reasonable allowance for use, if such product has been in the
possession of a consumer for one year or more (A) at the time of
public notice under subsection (c) of this section, or (B) at the
time the consumer receives actual notice of the defect or
noncompliance, whichever first occurs).
An order under this subsection may also require the person to whom it
applies to submit a plan, satisfactory to the Commission, for taking
action under whichever of the preceding paragraphs of this subsection
under which such person has elected to act. The Commission shall specify
in the order the persons to whom refunds must be made if the person to
whom the order is directed elects to take action described in paragraph
(3). If an order under this subsection is directed to more than one
person, the Commission shall specify which person has the election under
this subsection. An order under this subsection may prohibit the person
to whom it applies from manufacturing for sale, offering for sale,
distributing in commerce, or importing into the customs territory of the
United States (as defined in general note 2 of the Harmonized Tariff
Schedule of the United States), or from doing any combination of such
actions, the product with respect to which the order was issued.
(e) Reimbursement
(1) No charge shall be made to any person (other than a
manufacturer, distributor, or retailer) who avails himself of any remedy
provided under an order issued under subsection (d) of this section, and
the person subject to the order shall reimburse each person (other than
a manufacturer, distributor, or retailer) who is entitled to such a
remedy for any reasonable and foreseeable expenses incurred by such
person in availing himself of such remedy.
(2) An order issued under subsection (c) or (d) of this section with
respect to a product may require any person who is a manufacturer,
distributor, or retailer of the product to reimburse any other person
who is a manufacturer, distributor, or retailer of such product for such
other person's expenses in connection with carrying out the order, if
the Commission determines such reimbursement to be in the public
interest.
(f) Hearing
An order under subsection (c) or (d) of this section may be issued
only after an opportunity for a hearing in accordance with section 554
of title 5 except that, if the Commission determines that any person who
wishes to participate in such hearing is a part of a class of
participants who share an identity of interest, the Commission may limit
such person's participation in such hearing to participation through a
single representative designated by such class (or by the Commission if
such class fails to designate such a representative). Any settlement
offer which is submitted to the presiding officer at a hearing under
this subsection shall be transmitted by the officer to the Commission
for its consideration unless the settlement offer is clearly frivolous
or duplicative of offers previously made.
(g) Preliminary injunction
(1) If the Commission has initiated a proceeding under this section
for the issuance of an order under subsection (d) of this section with
respect to a product which the Commission has reason to believe presents
a substantial product hazard, the Commission (without regard to section
2076(b)(7) of this title) or the Attorney General may, in accordance
with section 2061(d)(1) of this title, apply to a district court of the
United States for the issuance of a preliminary injunction to restrain
the distribution in commerce of such product pending the completion of
such proceeding. If such a preliminary injunction has been issued, the
Commission (or the Attorney General if the preliminary injunction was
issued upon an application of the Attorney General) may apply to the
issuing court for extensions of such preliminary injunction.
(2) Any preliminary injunction, and any extension of a preliminary
injunction, issued under this subsection with respect to a product shall
be in effect for such period as the issuing court prescribes not to
exceed a period which extends beyond the thirtieth day from the date of
the issuance of the preliminary injunction (or, in the case of a
preliminary injunction which has been extended, the date of its
extension) or the date of the completion or termination of the
proceeding under this section respecting such product, whichever date
occurs first.
(3) The amount in controversy requirement of section 1331 of title
28 does not apply with respect to the jurisdiction of a district court
of the United States to issue or exend \1\ a preliminary injunction
under this subsection.
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\1\ So in original. Probably should be ``extend''.
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(h) Cost-benefit analysis of notification or other action not required
Nothing in this section shall be construed to require the
Commission, in determining that a product distributed in commerce
presents a substantial product hazard and that notification or other
action under this section should be taken, to prepare a comparison of
the costs that would be incurred in providing notification or taking
other action under this section with the benefits from such notification
or action.
(Pub. L. 92-573, Sec. 15, Oct. 27, 1972, 86 Stat. 1221; Pub. L. 94-284,
Sec. 12(a), May 11, 1976, 90 Stat. 508; Pub. L. 97-35, title XII,
Sec. 1211(h)(4), Aug. 13, 1981, 95 Stat. 723; Pub. L. 97-414,
Sec. 9(j)(3), (m), Jan. 4, 1983, 96 Stat. 2064, 2065; Pub. L. 100-418,
title I, Sec. 1214(d), Aug. 23, 1988, 102 Stat. 1156; Pub. L. 101-608,
title I, Secs. 111(a)(2), 112(a), 113, Nov. 16, 1990, 104 Stat. 3114,
3115, 3117.)
References in Text
The Harmonized Tariff Schedule of the United States, referred to in
subsec. (d), is not set out in the Code. See Publication of Harmonized
Tariff Schedule note set out under section 1202 of Title 19, Customs
Duties.
Amendments
1990--Subsec. (b). Pub. L. 101-608, Sec. 112(a)(4), (5), in
concluding provisions substituted ``comply, of such defect, or of such
risk'' for ``comply or of such defect'' and ``defect, failure to comply,
or such risk'' for ``defect or failure to comply''.
Subsec. (b)(1). Pub. L. 101-608, Sec. 112(a)(1), inserted reference
to voluntary consumer product safety standard upon which Commission has
relied under section 2058 of this title.
Subsec. (b)(3). Pub. L. 101-608, Sec. 112(a)(2), (3), added par.
(3).
Subsec. (f). Pub. L. 101-608, Sec. 113, inserted at end ``Any
settlement offer which is submitted to the presiding officer at a
hearing under this subsection shall be transmitted by the officer to the
Commission for its consideration unless the settlement offer is clearly
frivolous or duplicative of offers previously made.''
Subsec. (h). Pub. L. 101-608, Sec. 111(a)(2), added subsec. (h).
1988--Subsec. (d). Pub. L. 100-418 substituted ``general note 2 of
the Harmonized Tariff Schedule of the United States'' for ``general
headnote 2 to the Tariff Schedules of the United States'' in last
sentence.
1983--Subsec. (g)(1). Pub. L. 97-414 clarified previous
inconsistencies in 1982 amendment by substituting ``section 206(d)(1)''
for ``section 206(c)(1)'' and amending Pub. L. 97-35, Sec. 1211(h)(4),
so as to strike out direction that par. (1) be amended by inserting ``,
Science and Transportation'' after ``on Commerce''.
1981--Subsec. (g)(1). Pub. L. 97-35, Sec. 1211(h)(4), substituted
reference to section 2061(c)(1) for reference to section 2061(e)(1), but
probably should have substituted instead reference to section 2061(d)(1)
in view of the redesignation of section 2061(e)(1) as section 2061(d)(1)
by section 1205(a)(2) of Pub. L. 97-35 and the nonexistence of a section
2061(c)(1) of this title. Provisions of Pub. L. 97-35 directing that ``,
Science and Transportation'' be inserted after ``on Commerce'' could not
be executed in view of lack of such language in text. Section 1211(h)(4)
of Pub. L. 97-3
