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Friday, April 19, 2024

Michaels Stores agrees to $1.5 million settlement for alleged delay in reporting safety claims

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WASHINGTON, D.C. — Michaels Stores Inc., and Micheal Stores Procurement Co. Inc., has agreed to pay $1.5 million to settle allegations the company delayed in reporting a claim to Consumer Product Safety Commission (CPSC).

The Department of Justice (DOJ) recently announced that Michaels had entered into a consent decree to resolve allegations that the company did not report incidents of consumers being injured from a large glass vase between 2007 and 2009.

According to the DOJ, Michaels sold nearly 200,000 of the vases in the U.S. and Canada but did not report the safety issues to the CPSC until February 2010. The department alleges the company violated the Consumer Product Safety Act.


“I’m pleased that the Department of Justice and Michaels were able to reach this agreement,” CPSC acting chairwoman Ann Marie Buerkle said in a news release. “We greatly appreciate DOJ’s efforts on behalf of consumers.”

As part of the settlement, Michaels has not admitted the company violated the law and is required to maintain a compliance program to confirm it is complying with the CPSA. Michaels must also maintain internal controls and procedures to allow for reporting to the CPSC in a timely, complete and accurate manner. 

 

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