US watch: There may be trouble ahead for Home Depot

The Consumer Product Safety Commission (CSPC) recently released some incredibly disturbing news. It seems the home repair giant, Home Depot, has been selling recalled goods. Between the items the company left on its shelves and offered directly to consumers - as well as those given to salvage companies which may have been sold - some 2,300 units have been distributed. Unknowing consumers run the risk of being shocked, burned, cut, or worse, depending on the product they purchased.

The list of recalled products is extensive and not limited to items purchased directly from Home Depot itself. As is the case with many retailers, the company offers stock that does not sell to recyclers and salvagers, which may then sell these products on. However, the CSPC was unclear as to which companies received the recalled goods, as many may have wound up at liquidation stores or sold by third-party vendors.

Alarmingly, the supply chain has made a habit of selling recalled items. So far, the CSPC has identified 28 different recalled products, sold over a three-year span. Items on the CSPC's hit list include a disposable plastic fire extinguisher, portable fan heaters, and garage door openers. Thanks to the Consumer Product Safety Improvement Act of 2008 (CPSIA), Home Depot could face millions of dollars in fines. Generally, civil penalties range from $100,000 to $15m, though there's no telling just how high the total will be in this instance. A year ago, grocery chain Meijer was caught up in a similar situation. The company sold 1,700 units, split up among 12 products. They ultimately agreed to pay $2m in penalties.

It's worth noting that third-party vendors or liquidation stores that resold items may face similar penalties, as each entity is responsible for verifying items have not been recalled. CPSIA imposes fines regardless of whether the seller is a corporation or an individual, so consumers who purchased the products and resold them may be in hot water, too.

Although some of the individual products may have injuries associated with them, at this time, nobody is reporting any injuries directly linked with recalled items bought from Home Depot. However, these things take time to unfold and it wouldn't be surprising to see several personal injury cases emerge as a result.

Companies that received goods from Home Depot may also seek damages in court. Certain products, like smoke and carbon monoxide alarms, have the potential to be silently deadly, so consumers who have any of the products listed here should stop using them immediately.

This case is noteworthy to legal practitioners with UK or European-based clients looking to expand into the US market because of the unique situation of the case. It shows that, even in the US, massive companies like Home Depot can get away with breaking the law for prolonged periods of time. Enforcement of laws like this can prove difficult due to the colossal size of the market and endless amount of products.

The CSPC is, though, trying its best to protect the American consumer and if a retailer or individual is caught breaking laws such as these they will be faced with large fines and possible jail time.

Lloyd Gastwirth is a criminal defence lawyer based in Dallas, Texas