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Prepare Now for Whistleblower Complaints

By Scott E. Gross
March 30, 2009

In a little publicized section of the Consumer Product Safety Improvement Act of 2008 (“2008 Act”), employees in virtually every corner of the consumer products industry were given the right to file lawsuits claiming their employer retaliated against them for having raised consumer product safety concerns. This new federal whistleblower law will likely result in consumer product manufacturers, distributors and retailers facing expensive and lengthy litigation from current or former employees who recast themselves as whistleblowers to challenge adverse employment actions. There are a number of steps employers should take to protect themselves from this expected wave of new litigation.

The New Whistleblower Protections

Spurred in 2007 by massive product recalls, many of which were children's products, and widespread coverage of lead-tainted imported toys, Congress passed the 2008 Act. The 2008 Act amends the Consumer Product Safety Act of 1972 (“1972 Act”) primarily to strengthen lead testing and labeling standards for toys and games, enhance the power and duties of the Consumer Product Safety Commission, provide public access to product history and recall databases, and empower state attorneys general to enforce consumer product safety laws.

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