Retailer Fined $2M for Selling Recalled Products

(CN) – Meijer, Inc., a regional “hypermarket” based in Walker, Mich., will pay a $2 million civil penalty to settle claims it continued to sell high chairs, vacuum cleaners and other products after they were recalled by their manufacturers.
     The agreement settles charges levied by the Consumer Product Safety Commission that the company knowingly sold and distributed 12 different recalled consumer products.
     Federal law prohibits the sale or distribution in commerce of a consumer product that is subject to voluntary corrective action, such as a recall, that has been publicly announced and taken in consultation with CPSC.
     Commission investigators said Meijer, which operates so-called “hypermarkets” or “superstores,” combining elements of the traditional supermarket and department store, distributed recalled products through a system operated with a third party contractor.
     Investigators further charged the company was well aware of the goods its contractor was handling, but failed to take steps to prevent the distribution of recalled products.
     As a result, the commission says, approximately 1,700 units of recalled consumer products were resold to consumers between April 2010 and April 2011.
     In addition to paying the $2 million fine, Meijer has agreed to implement and maintain a reverse logistics compliance program – effectively a system to handle returns – to ensure it doesn’t sell recalled products in the future.

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