TJX to pay $13 million to settle recall claims
The Consumer Product Safety Commission CPSC said that TJX Companies Inc. agreed to pay $13 million in civil penalties to settle claims that it sold and distributed more than 1,000 previously recalled consumer products for five years. A majority of the products had been recalled because of the risk of infant suffocation and death, according to the CPSC.
The CPSC, an independent agency of the United States government, has charged the company with selling, offering for sale and distribution of 1,200 recalled products from 21 separate voluntary corrective actions from March 2014 to October 2019.
The agency said in a statement that federal law prohibits the sale, offer, or distribution of a consumer product that is subject to voluntary corrective action, such as a recall, that has been publicly announced and taken in consultation with the CPSC.
In November 2019, the CPSC and TJX warned consumers that T.J. Maxx, Marshalls and HomeGoods sold recalled products that consumers were told to immediately stop using.
After the notice was released, TJX reported to staff that it had discovered previous sales of three additional recalled products, according to the CPSC.
The agreement settles the charges, but it does not constitute an admission of guilt by the company, according to the agency.
TJX told FOX Business that the company prohibits the sale of recalled items in its stores.
In some instances, recalled products were not properly removed from our sales floors between 2014 and 2019, despite the recall processes that we had in place, TJX said in a statement.
The company said it has made significant investments to strengthen its processes and that it has cooperated fully with the CPSC.
In addition to paying a hefty fee, the company is required to maintain a compliance program and internal controls in order to ensure that the company is complies with the CPSC.
TJX has agreed to file annual reports on the compliance program and system of internal controls for five years.