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Williams-Sonoma to pay $987,500 penalty for failing to report defective Pottery Barn wooden hammock stands

WASHINGTON, D.C. - Williams-Sonoma, Inc., of San Francisco, Calif., has agreed to pay a $987,500 civil penalty for failing to report defective Pottery Barn wooden hammock stands, according to the U.S. Consumer Product Safety Commission. The Commission voted 3-0 to accept a penalty agreement provisionally.
In addition to paying a monetary penalty, Williams-Sonoma agreed to implement and maintain a compliance program designed to ensure compliance with the safety statutes and regulations enforced by the Commission. Williams-Sonoma has also agreed to maintain and enforce a system of internal controls and procedures designed to ensure that:
*information required to be disclosed by the firm to the Commission is recorded, processed, and reported, in accordance with applicable law;
*all reporting made to the Commission is timely, truthful, complete, and accurate; and
*prompt disclosure is made to Williams-Sonoma's management of any significant deficiencies or material weaknesses in the design or operation of such internal controls that are reasonably likely to adversely affect, in any material respect, the company's ability to report to the Commission.
Williams-Sonoma also agreed to provide written documentation of such improvements, processes, and controls, upon request of CPSC staff; to cooperate fully and truthfully with CPSC staff; and to make available all information, materials, and personnel deemed necessary to staff to evaluate the company's compliance with the terms of the agreement.
The settlement resolves CPSC staff's charges that the firm knowingly failed to report to CPSC immediately, as required by federal law, a defect involving Pottery Barn wooden hammock stands. Williams-Sonoma imported the wooden hammock stands between March 2003 and July 2008, and distributed them exclusively through Pottery Barn and PBteen catalogs and websites, and Pottery Barn Outlet stores. The hammock stands were sold nationwide for approximately $300.
CPSC staff alleged that when used outdoors, the wood in the hammock stands can deteriorate over time and break. Because the deterioration was occurring inside the metal bracket and was hidden from view, there was sometimes no outward indication to consumers that the wood was rotting until a consumer sat in the hammock and the beams broke. This posed fall and laceration hazards to consumers.
Williams-Sonoma did not file its full report with CPSC until Sept. 11, 2008. On Oct. 1, 2008, Williams-Sonoma and CPSC announced the recall of 30,000 wooden hammock stands. By that time, Williams-Sonoma was aware of 45 incidents involving the hammocks, including 12 reports of injuries requiring medical attention for lacerations, neck and back pain, bruising and one incident involving fractured ribs.
Federal law requires manufacturers, distributors, and retailers 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 product hazard, creates an unreasonable risk of serious injury or death, or fails to comply with any consumer product safety rule or any other rule, regulation, standard, or ban enforced by CPSC.
In agreeing to the settlement, Williams-Sonoma neither admits nor denies CPSC staff's allegations that its hammock stands contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury or death, or that it failed to notify the Commission in a timely manner, in accordance with the reporting requirements of the Consumer Product Safety Act.

 

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