buckyball recall stirs a wider legal campaign
The $40 magnetic stacking ball has sparked a call for a stupid and disrespectful social media campaign against government regulators.
The law known as free ball-defense fund.
The key to this battle is a mysterious legal struggle, which has attracted the attention of some mainstream business organizations and free organizations.
Legal groups in the market.
This involves the effort of the federal Consumer Product Safety Board to recall Buckyballs, a small and powerful set of magnetic stacked balls that the magazine Rolling Stone and the characters used to be on the list of popular products
Last year, the commission announced that the balls were at risk of swallowing young children and filed an administrative lawsuit against the company that produced the product, asked it to recall all Buckyballs and a kind of money called buckycube to return to the consumer
The company Maxfield & Oberton Holdings questioned the action, saying the label on the package clearly warned that the product was not safe for children.
But now the fuss has nothing to do with safety.
On last December, after Maxfield & Oberton closed down on the grounds of the financial loss of the recall war, lawyers at the product safety agency took very unusual steps to increase the CEO of the dissolution company, as the accused of the recall action, Craig Zukel argued that he controlled the company\'s activities. Mr.
Zuker and his lawyer said the move could eventually hold him personally responsible for the $57 million recall.
And the principle of \"responsible company officials (
Also known as Park doctrine)
Often used in criminal cases, allowing the prosecution of individual company officials in cases of alleged misconduct by the company, an use that experts say is almost unheard
In an administrative action that does not claim a violation of the law or regulation.
A spokesman for the product safety committee said the organization had never used it in the recall action.
He declined to say why it was used in this case.
\"I think there are some important and disturbing legal issues raised in this case, which are indeed C. P. S. C. Said Nancy.
Nordisk is the only commissioner to vote against the filing of an administrative lawsuit. Ms.
Nordisk retired from the committee last weekend. Three well-
Well-known business organization
National Association of Manufacturers, National Retail Federation and Association of Retail Leaders-
Join forces this summer to submit a briefing urging the administrative law judge reviewing the recall case to give up
Zhu was listed as the defendant.
These groups believe that it is a disturbing example to hold individuals accountable for a broad and expensive recall, contrary to the business desire of limited liability.
They believe that this risk can adversely affect the spirit of entrepreneurs and the openness of dealing with regulators.
\"It really has a chilling effect on what all of us are trying to do that involves the involvement of company officials in these decisions --
Deciding whether something should be reported and whether it should be recalled, \"said Li Bishop, a lawyer for the Manufacturers Association, who helped draft the briefing.
Conservative legal groups like the cause of the lawsuit, a non-profit organization targeting excessive government expansion, have been watching the lawsuit with great interest and weighing whether to take some action.
\"It really penalized the entrepreneur spirit and set a bad precedent for businesses that are committed to creating products for consumers,\" said Daniel Z . \".
Group executive director Epstein.
\"This weakens the ability of the business community to rely on corporate forms. ”Mr.
Epstein worked for the foundation run by Charles G.
Together with his brother David, Koch has funded many conservative and anti-government or anti-regulatory undertakings.
He will not disclose the donors behind the reasons for the action.
The Washington law Foundation
Business and free
Market position, with an article entitled \"C. P. S. C. \'s Misuse of R. C. O.
Doctrine heralds C. E. O.
The administrative law judge in the case refused to give up.
Zucker\'s name in the caseLast month, Mr.
Zukel, 34, started.
Launched the unite us ball campaign on Facebook, Twitter and other sites to raise money for his legal defense fund.
The product sold is called free ball, which is a larger version of the pirate ball.
He said it was too big and there was a risk of swallowing.
He said the campaign has raised $100,000 so far.
\"The consumer goods safety act of Congress is very clear that recalls cannot be carried out by individuals, so entrepreneurs can innovate and create products, in the case of product defects, don\'t worry about personal bankruptcy and personal financial bankruptcy ,\"
Zucker said in an interview.
He added: \"But there is no defect in the buc ball.
The committee changed its mind.
The company said the product was legal and changed its mind.
\"The case is now the responsibility of the administrative law judge.
If he believes that the product is indeed in danger and there is reason to recall it,
Zucker may appeal to the Commissioner, who will then vote on what action to take.
The Buc ball is made by Mr.
Zuker and Jake Bronstein are two friends who say that when they invest in the company, they have the last $1,000 each.
Stacking the powerful little magnets into endless shapes, with some strange addictions, the product takes off.
Sales reached $2011, up 18 million. Mr.
Bronstein was not named in the case.
The company has a history of working with the Commission, including during the voluntary recall of the product in 2010 to change its warning label.
The original label stated that the product was unsafe for people under the age of 13, but after Congress passed a law that changed the definition of children to those under the age of 14, the company works with the Commission to recall the product and replace the label.
The product safety agency said about 1,700 children were reported to have received high doses of food in the emergency room.
Powerful magnets including buc balls.
In some cases, the power of the magnet causes the intestine to tear.
\"The core issue with the Consumer Product Safety Committee is that we have not seen progress in child safety,\" said Scott walsen, spokesman for the agency . \".
\"The label has no effect,\" he said . \" He explained that many people did not put the ball in the package, so the label was not noticed.
\"Children have access to this product,\" he said . \".
After the company protested the recall, the Commission contacted the retailer directly. At least six —
Including Barnes & Noble and Bed Bath & Beyond-
Initiate a voluntary recall and agree to stop selling the product.
Buckyballs are also popular in Europe and elsewhere, including Canada and Australia, where similar regulatory actions have been launched.
The product has distributors in about 15 foreign countries, accounting for 15% of sales. Zucker.
Sales to these distributors also stopped when Maxfield & Oberton went down.
Last week, the European Commission continued to implement plans to ban these types of small powerful magnets from the market, separate from the recall.
Five doctors testified at a hearing about potential safety hazards, which was designed to draft a federal rule restricting the power and size of magnets sold to the public.