HP fails to recall batteries one year after found to be defective

If a New York company manufactures a defective product and then fails to report it to authorities after learning that the product is defective, they could be subject to federal sanctions and injured parties could seek compensation. Hewlett Packard, a major computer company, learned that some of its lithium-ion batteries were defective to the point where the batteries could cause injury.

In fact, a study by the company was completed in 2007, but it waited a year to notify the U.S. Consumer Product Safety Commission about the problems. According to the study, faulty batteries could overheat and cause a fire. They were sold with laptops, as separate accessories or as parts for those computers.

At the time the company reported the problems with the lithium-ion batteries, it was also allegedly aware of at least 31 incidents with the defective batteries. Two of those incidents caused consumer injury, and of those, one person sought medical attention for his injuries. The report by the Consumer Product Safety Commission also stated that the computer company did not act on the knowledge gained from the study.

The defective product was reported in July 2008, and in October 2008, the computer company finally recalled 32,000 batteries for laptops. The laptops sold for $700 to $3,000. It also recalled batteries that were sold individually as parts. Those batteries cost $100 to $160. In May 2011, the computer company expanded the recall to 90,000 units.

The computer company agreed to pay $425,000 in a settlement because of allegations that it did not notify the U.S. Consumer Product Safety Commission about the batteries within a reasonable time. The notification requirement is federal law. The computer company still denies the Safety Commission’s allegations even after agreeing to pay, and stated that the batteries did not “pose an unreasonable risk of serious injury or death.”

Source: Tech Spot, “HP pays $425,000 to settle civil suit over defective batteries,” Matthew DeCarlo, Jan. 24, 2012