The Home Depot to Pay $5.7 Million Civil Penalty Over Recalled Products

The company has agreed to a maintain compliance program for selling and distributing recalled products.

The Home Depot (NYSE: HDS), Atlanta, GA, has agreed to pay a $5.7 million civil penalty for selling and distributing previously recalled consumer products, according to the U.S. Consumer Product Safety Commission.

The company has also agreed to maintain a program to ensure compliance with the Consumer Product Safety Act, including a program for the appropriate disposal of recalled products. Home Depot will also maintain a system of internal controls and procedures.

The agreement settles charges that the firm knowingly sold and distributed approximately 2,816 recalled products from 33 separate voluntary corrective actions during a four-year period from August 2012 through November 2016.

Federal law prohibits the sale, offer for 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.

CPSC staff charged that Home Depot’s procedures failed to accurately identify, quarantine, and prevent the sale and distribution of the recalled products. Home Depot sold and distributed the recalled products in its stores through traditional register lanes and special services desks, and through sales for salvage from its reverse logistic centers, internet sales and donation program.

 

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