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Marshalls, TJ Maxx, HomeGoods Agrees to Pay $13M for Selling Recalled, Defective Products

By rlsmetro on
New Jersey

The U.S. Consumer Product Safety Commission (CPSC) announced that The TJX Companies Inc., of Framingham, Massachusetts, has agreed to pay a $13 million civil penalty for selling, offering for sale, and distributing previously recalled consumer products.

According to CPSC officials, TJX further agreed to maintain a compliance program to ensure that it meets the obligations of the law and this settlement in the future.

The agreement settles charges that the firm knowingly sold, offered for sale, and distributed approximately 1,200 recalled products from 21 separate voluntary corrective actions during five years, from March 2014 through October 2019.

Federal law prohibits the sale, offer for sale, or distribution in commerce of a consumer product subject to voluntary corrective action, such as a recall, that has been publicly announced and taken in consultation with CPSC.

CPSC staff charged that TJX sold, offered for sale, and distributed the recalled products through its brick-and-mortar retail stores, including T.J. Maxx, Marshalls, HomeGoods and online.

Most of the post-recall sales were products recalled due to the risk of infant suffocation and death, including the Kids II Rocking Sleepers, Fisher-Price Rock ‘n Play Sleepers, and Fisher-Price Inclined Sleeper Accessory for Ultra-Lite Day & Night Play Yards.  

On November 26, 2019, CPSC and TJX jointly issued a press release announcing that TJX had sold, offered for sale, and distributed 19 separate recalled products.

  After the press release was announced, TJX reported to staff that it subsequently discovered previous sales of three additional recalled products.  

In addition to paying the $13 million civil penalty, TJX will maintain a compliance program and system of internal controls to ensure that the company complies with the Consumer Product Safety Act (CPSA), including a program for the appropriate identification, quarantine, and disposal of recalled products.  

TJX will also maintain internal controls designed to ensure TJX’s compliance with the CPSA, requiring TJX to review claims, report safety concerns, implement corrective and preventive actions when compliance deficiencies or violations are identified, and establish senior management oversight of TJX’s compliance program. 

CPSA officials said TJX has also agreed to file annual reports regarding the compliance program and system of internal controls for a period of 5 years.  

TJX’s settlement of this matter does not constitute an admission by TJX, or a determination by the Commission, that TJX knowingly violated the CPSA.

The Commission voted 4-0-1 to accept the settlement provisionally.