Product Safety Issues in Consumer Rights: Statistics, Causal Factors, and Regulations - Pr, Study notes of Production and Operations Management

Download Product Safety Issues in Consumer Rights: Statistics, Causal Factors, and Regulations - Pr and more Study notes Production and Operations Management in PDF only on Docsity! AHRM 2404 Consumer Rights Chapter 16: Product Safety Issues  Statistics…  Each year, 1 in 4 Americans injured or killed  Deaths –  Vehicle crashes 41,800 - Poisonings 6,000  Firearms 32,000 - Drownings 6,000  Falls 13,000 - Fires/burns 4,000  Consumer products 29,000  Accidents are leading cause of death for children Product Safety  Tension between safety advocates and product manufacturers  Government is referee  Political influences reduce government’s involvement Product Liability Example  Dalkon Shield IUD  (In 1970’s..doctor made new IUD type, was deemed safe…but not)  (Doctor that evauluated saftety of product was same doctor invented/benefiting from) Product Safety - Goals  Reduce # of injuried  Reduce the severity of injuries that happen  Important to determine causal factors Causal Factors in Injuries  Poorly designed or defective product  Normal use.  Misuse that is foreseeable (Riding a bike at night)  Incorrect age use children under 16 using ATV  Environmental factors (weather, light causing accident and not car/vehicle)  Human behavior.  Knowledge  State of mind (drunkenness) Safety Decisions  Cost/benefit analysis  Approach to policy recommendation that quantifies monetary costs and benefits  Net benefit is total of all the benefits of a course of action less all the costs  One policymaking tool How much risk?  Reasonable vs. unreasonable risks  Reasonable risk  Consumer understands that risks exist, can appraise probability and severity, knows how to cope with them, and accepts the risks to get the benefits  Unreasonable risk AHRM 2404 Consumer Rights Chapter 16: Product Safety Issues  Consumer does not know that the risk exists, is unable to assess risk, or does not know how to cope with it or when risk is unnecessary  (Will children or elderly understand risk?)  (EX: ATV risk, there is a reasonable risk)  (EX: Crib, think a crib is safe, and slats are spaced too far apart) Measuring risk for policy decisions  Must be known hazard  Probability that hazard causes injury or death  Magnitude of loss warrants attention  Inexpensive ways to reduce risk  Benefits should outweigh costs  Industry fails to voluntarily regulate  Political willingness to regulate (baby bath seats…forced to put a warning on them…70 children have drowned after a warning issued) Consumer Responsibilities  Check safety before buying - ASK!  Register for recall notices and respond  Follow instructions with item  Use products as intended  Assume responsibility for normal precautions  Notify authorities when product fails (when buy a used car, contact manufacterure so they know you are the new owner so that they contact you in case of recall) Consumer Product Safety Commission  Established in 1973 as independent agency  Budget has been reduced dramatically (in last 2 years)  (Widely criticzed by consumer advocates for not doing enough)  Oversees products sold in the U.S.  Some products (food, alcohol, motor vehicles, etc.) regulated by other agencies CPSC Broad Responsibilities  Gather and disseminate info on injuries  Protect the public against unreasonable risks  Promote uniform safety standards  Require manufacturers to test for safety  Promote research and investigation of causes and prevention of loss CPSC Powers  Can set mandatory product safety standards  Can ban product after court action to declare an imminent or substantial hazard  (Ex: 3-wheelers…argument: no feasible way to protect public from injury unless discontinuing product…changing them to 4-wheelers)  Recall  Civil and criminal penalties (For those who knowingly and willingly violate laws)