CPSC Fines Macy’s $750,000 for Failure to Properly Handle Product Recall

By Mike Rozembajgier

The Consumer Product Safety Commission (CPSC) announced Monday that Macy’s Inc. has agreed to pay a $750,000 fine for failing to comply with CPSC regulations governing the proper handling of clothing product recalls.

According to the CPSC, Macy’s failed to follow federal requirements to immediately report that it had sold children’s upper body outerwear with drawstrings located at or near the neckline. The CPSC found that the drawstrings in these sweatshirts, sweaters, and jackets could strangle a child and result in severe injury or even death.

The hefty fine imposed by the CPSC is a good example of the importance of having an efficient recall management process in place before you have to recall a defective or dangerous product. After voluntary guidelines banning drawstrings from children’s clothing items were issued in 2006, Macy’s and Macy’s owned stores, along with their garment manufacturers and distributors, announced that they would recall the items.

Between 2006-2010, however, Macy’s continued to sell children’s clothing with drawstrings that the CPSC found to be defective and dangerous. Now, with passage of the Consumer Product Safety Improvement Act of 2008, selling a product after a recall has begun is illegal.

In a press release detailing the fine imposed on Macy’s, the CPSC notes that federal law requires manufacturers, distributors and retailers to report within 24 hours after finding “that a product contains a defect which could create a substantial product hazard, creates an unreasonable risk of serious injury or death, or fails to comply with any consumer product safety rule or any other rule, regulation, standard or ban enforced by CPSC.”

Earlier this month, the CPSC went a step further and formalized the long-standing voluntary drawstring guidelines into new mandatory federal safety standards. According to the new regulations, children’s upper outerwear in sizes 2T through 12 with neckline drawstrings, and sizes 2T through 16 with certain waistline drawstrings, are classified as having substantial product hazards. The updated classification gives the CPSC increased regulatory authority to order a product recall. To underline the importance of the new regulations the CPSC points out that it has received 26 reports of children who have died as a result of their garment’s drawstring becoming entangled with another object.

Manufacturers, distributors and retailers should pay close attention to the new regulations being issued by the CPSC, and try to prevent recall by complying with the highest possible safety standards In the event that a recall is required, Macy’s huge civil penalty should serve as a reminder of the need efficient and comprehensive recall management services.

Stericycle ExpertRECALL™ is the industry leader in recall logistics and regulatory compliance for consumer product, pharmaceutical, medical device, juvenile product, and food and beverage recalls. ExpertRECALL’s professionals are experts in recall management who can help you streamline the entire product recall process.