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Hoover Company Fined $750,000 BY CPSC (Read 254 times)
D.E.P.
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Hoover Company Fined $750,000 BY CPSC
02/15/07 at 7:47am
 
AS TAKEN FROM THE CPSC WEBSITE:
 
"WASHINGTON , D.C. – The U.S. Consumer Product Safety Commission (CPSC) announced today that Hoover Company Inc., of North Canton, Ohio, has agreed to pay a $750,000 civil penalty. The penalty, which the Commission has provisionally accepted, settles allegations that the company failed to report to CPSC the sale of vacuum cleaners with defective on-off switches that can overheat and cause the vacuum cleaner to catch fire.  
 
In April 2005, Hoover conducted a recall of 636,000 Hoover Self-Propelled Upright Vacuum Cleaners because of defective on-off switches.  
 
In June 2004, after CPSC received notice of several vacuum cleaner incidents, the Commission staff requested Hoover provide a full report of incident information. In July 2004, when Hoover submitted a full report, it had notice of 260 consumer incidents, of which 141 involved reports of fire. Additionally, there was one report of a minor burn injury.  
 
Hoover first learned of a vacuum cleaner switch on one of these units overheating and melting in April 1999.  
 
Federal law requires firms to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect which could create a substantial risk of injury to the public, presents an unreasonable risk of serious injury or death, or violates a federal safety standard.  
 
These Hoover Self-Propelled Upright Vacuum Cleaners are plastic, upright vacuums with the brand name “Hoover” and words “Self Propelled” printed on the front of the product. Only those Hoover Self-Propelled Upright Vacuum Cleaners manufactured between May 1998 and November 1999 are included in the recall that is the subject of this penalty.  
 
For additional information, contact Hoover toll-free at (800) 250-6075 between 8 a.m. and 5 p.m. ET Monday through Friday, or visit the firm’s Web site at www.hoover.com
 
In agreeing to settle the matter, Hoover Company Inc. denies CPSC’s allegations that the company knowingly violated the law. "
 
Here is a link to the acutal article on the CPSC website....
 
http://www.cpsc.gov/cpscpub/prerel/prhtml07/07079.html
 
Dan
 
 
 
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Carmine_Difazio
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Re: Hoover Company Fined $750,000 BY CPSC
Reply #1 - 02/15/07 at 8:16am
 
Quote from D.E.P. on 02/15/07 at 7:47am:


Federal law requires firms to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect which could create a substantial risk of injury to the public, presents an unreasonable risk of serious injury or death, or violates a federal safety standard.


 
Immediately and 24 hours is a disingenuous turnaround time for a law.  What if it is a weekend and/or Holiday and the CPSC is closed?  Most government offices save those for national emergency operations are closed on weekends and Holidays.  A good example is this Monday, Feb 19:  A Federal Holiday for President's Day.  And....Federal workers in Wash DC were released early (noon) on Tuesday Feb 13 due to the bad weather.  And given delayed arrival and liberal leave Wednesday also due to weather conditions.  Possibly today too.  
 
If the Federal government were writing the rules for itself to follow, the 24 hours would undoubtedly be "3 business days."   Three business days seems more reasonable and appropriate for commerce even for the most egregious product defects.
 
Carmine D.
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D.E.P.
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Re: Hoover Company Fined $750,000 BY CPSC
Reply #2 - 02/15/07 at 10:49am
 
Carmine -  
Yes - I would agree on three day rule, but there is a huge difference between 3 days and a number of years - according to the penalty report, Hoover knew of the first occurance in April 1999 and choose not to report it until the CPSC received complaints and requested the information from Hoover...
 
"In June 2004, after CPSC received notice of several vacuum cleaner incidents, the Commission staff requested Hoover provide a full report of incident information. In July 2004, when Hoover submitted a full report, it had notice of 260 consumer incidents, of which 141 involved reports of fire. Additionally, there was one report of a minor burn injury.  
 
Hoover first learned of a vacuum cleaner switch on one of these units overheating and melting in April 1999.  
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Carmine_Difazio
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Re: Hoover Company Fined $750,000 BY CPSC
Reply #3 - 02/15/07 at 12:49pm
 
Quote from D.E.P. on 02/15/07 at 10:49am:


Carmine -
Yes - I would agree on three day rule, but there is a huge difference between 3 days and a number of years ...

 
Hello Dan:
 
According to the CPSC law, had HOOVER and/or any company reported a defect after 24 hours of knowledge whether it be one hour/one day/one year it is non-compliant and subject to penalty.   The CPSC law is an absurdity.
 
Keep in mind the Federal government is currently operating under a stopgap budget resolution that limits spending to 2006 levels.  Why?  Because Congress has not passed the appropriations to fund the Federal government's operations for fiscal year 2007 which began on October 1, 2006.  So the Congress of the United States is in violation of the law which requires it to approve funding appropriations by October 1 of the year.  Not too bad.  Only 4 1/2 months passed the required date in the law and still counting.  AND considering the 2007 budget was delivered to Congress by the President in the first week of February 2006, Congress is more than a year overdue.    
 
I propose we fine each member of Congress for every day a budget is not passed after the October 1 deadline in the law.  What are the chances of that becoming a Federal law?   I'd say about the same chances as a company reporting a product defect to the CPSC within 24 hours of knowledge.
 
Carmine D.
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earthworm
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Re: Hoover Company Fined $750,000 BY CPSC
Reply #4 - 02/15/07 at 7:14pm
 
""Federal law requires firms to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect which could create a substantial risk of injury to the public, presents an unreasonable risk of serious injury or death, or violates a federal safety standard.""  
 
 
This, IMO, is very open to intreptation.
Lawyers write these laws, they try to be fair - true - but lawyers will never run out of work.
 
IMO, we have gone too far with all this safety stuff. The consumer must have some responsibility.
 
We are talking about 9 year old vacuums, Hoovers yet - aren't all of them  in the junk-yard by now ???    
And this switch,( I doubt if Hoover makes any switches) is probably made in some sweat shop for 14.5 cents...maybe everyone uses this same switch... will we ever know ???
 
So "our" federal government can violate its own laws ; but Heavens Forbid if Hoover or any small company try it........      
 
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Re: Hoover Company Fined $750,000 BY CPSC
Reply #5 - 02/15/07 at 9:56pm
 
Hoover has a responsibility to make safe products.  When they create a defective product, they owe it to consumers to do the right thing and recall an unsafe product.  Hoover's lack of action on this serious defect has done great damage to their reputation.    
 
I'm sure that the size of the fine is related to length of time that Hoover waited to recall the defective product.  If Hoover had acted in good faith, both the fine and the damage to their reputation would have been greatly attenuated.  It's a shame that Hoover has shown so little interest in the company's reputation.  Clearly this attitude is what has led to the company's downfall.  
 
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Re: Hoover Company Fined $750,000 BY CPSC
Reply #6 - 02/15/07 at 11:29pm
 
Hello RAT:
 
Eloquently stated.  I am not defending HOOVER's actions/lack thereof.  I'm criticizing the CPSC law and the penalty it meted out for the violation.
 
HOOVER has a history of almost 100 years of vacuums and floorcare products in the USA and easily numbers 1000 to its name.  ONE and only one faulty product component (a power switch) in all that time even with arguably less than swift recall action are hardly sufficient grounds for such a huge fine.  Especially in light of the facts and circumstances of the HOOVER WT SP switch defect.
 
Carmine D.
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