Consumer Product Safety ActThe Consumer Product Safety Act states that any business that receives numerous complaints about product defects must report these complaints to the CPSA. According to the CPSA, reporting responsibilities belong to manufacturers, importers, distributors and retailers of consumer products. Each is required to notify the Commission if it obtains information that reasonably supports the conclusion that a product does not comply with a consumer product safety standard or ban regulation. Additionally, if the product has a defect that could create a substantial hazard to the product, an unreasonable risk of serious injury or death to the consumer. The Commission's interpretative regulation explains the obligations of the company and those of the Commission. product to report to the Commission if a particular model of a consumer product is the subject of three civil actions filed in federal or state court, each suit alleging the involvement of that model in death or serious bodily injury . Then, at least three of the actions will result in a final settlement involving the manufacturer; or in a judgment in favor of the plaintiff within one of the specified two-year periods. The first two-year period began on January 1, 1991 and ended on December 31, 1992. The second two-year period began on January 1, 1993; the third, January 1, 1995; and so on. Manufacturers must file a report within 30 days of settlement or judgment in the third civil action to which the reporting requirement applies. Why is reporting required? Congress's intent was to encourage broad reporting of potential product hazards. Congress sought not only to direct the Commission to discover significant product hazards, but also to identify injury risks that the Commission could attempt to prevent through its own efforts, such as information and education programs, safety labeling and adoption of product safety standards. Although the CPSC relies on sources other than company reports to identify significant product hazards, company reports are invaluable because companies often become aware of product safety issues well in advance of the Commission. For this reason, any company involved in the manufacturing, importing, distributing or selling of consumer products should develop a system for reviewing and handling complaints, inquiries, product liability suits and feedback. consumers on the products it handles. this does not necessarily mean that there is a significant risk to the product.