|
MARCH 21, 2001 |
Contact: |
HB 3125 targets
corporate concealment of
hidden product dangers
HB 3125 (Rep. Bosse) imposes penalties on companies that produce faulty products but do not disclose the harms to the public. Following are examples of corporations charged with failing to disclose important product information to their customers, often with dangerous consequences.
· Flammable Robes Recalled
Hanro USA sold robes nationwide between October 1998 and January 2000. Hanro distributed the robes despite the company's own flammability tests that showed they were dangerous. Hanro recalled 1,200 robes and they are being fined $150,000 for violating the Flammable Fabrics Act.· Rezulin (Diabetes) Drug Risks
Warner-Lambert Co. distributes a diabetes drug called Rezulin. The company insists the drug does not cause liver damage even though their clinical trials showed liver damage occurred almost four times more often with Rezulin than with a placebo. There have been at least 383 lawsuits filed against Warner-Lambert Co. The drug supposedly caused 391 deaths yet the company made more than $2 million dollars in drug sales. Warner-Lambert Co. is now owned by Pfizer Inc.
· KIA Motors' Bad Brakes
Three law firms filed a class-action lawsuit against KIA Motors America. The suit charges the company with producing 1998, 1999, and 2000 year Sephia models that have defective brakes. Documents filed showed that KIA had been aware of the defect for awhile.
· Faulty Attic Furnaces in California
The Consumer Product Safety Commission and a New York Times investigation showed that hundreds of thousands of California consumers owned faulty attic furnaces that allegedly caused scores of fires in the state throughout the last decade. Some residents chose not to disclose the fact that they had faulty attic furnaces to people who bought their homes.
· Chrysler Sued for Selling Lemons
Lawsuits filed against Chrysler Corporation claim the automaker failed to disclose that the cars consumers bought had been bought back from other owners because the vehicles had defects that could not be repaired after several attempts. The N.Y. Court of appeals unsealed the Chrysler documents which detailed Chrysler's legal strategy over the resale of the defective vehicles.
# # #
©1998-2006 Consumers Union