Legal Question in Consumer Law in New York
I have a question about "voluntary recalls" of consumer products across geographic jurisdictions. Let's say we have a US-based manufacturer of a consumer product - this manufacturer issues a "voluntary recall" of that product because the European Union's European Commission announces that the product does not adhere to certain EU-specific safety regulations. Is the manufacturer only legally obligated to issue the recall in the EU, or does its obligation extend to the US as well?
1 Answer from Attorneys
It's not a legal obligation. However, the manufacturer is now aware of the defect. If it does not recall product in the US domestic market, then the manufacturer will be held liable in negligence instead of just strict product tort. Plaintiffs will seek punitive damages for knowingly continuing to market a known defective product. The company is unlikely to survive the following storm, as it will not have insurance for punitive damages, and the insurance companies are likely to cancel coverage at the first opportunity.
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