15 U.S.C. § 1274 — Remedies respecting banned hazardous substances

(a) If an article or substance sold in commerce is defined as a banned hazardous substance, whether or not it was a banned hazardous substance when it was sold, and the Commission decides after offering interested people, including consumers and consumer organizations, a hearing that notice is needed to protect the public, it may order the manufacturer or any distributor or dealer to do one or more of these things: (1) give public notice that the article or substance is a banned hazardous substance; (2) mail the notice to every manufacturer, distributor, or dealer of it; or (3) mail the notice to everyone whom the sender knows received or bought it. The order must state the notice's form and content. (b) If an article or substance sold in commerce is defined as a banned hazardous substance, whether or not it was a banned hazardous substance when it was sold, and the Commission decides after a hearing that action is in the public interest, it may order the manufacturer, distributor, or dealer to choose one of these actions: (1) repair or change the article or substance so it is no longer a banned hazardous substance, if that is possible; (2) replace it with a similar or equivalent article or substance that is not banned; or (3) refund its purchase price. The refund may subtract a reasonable amount for use if the consumer possessed it for at least one year when the subsection (a) public notice was given or when the consumer first received actual notice that it was banned, whichever happened first. The order may require a plan acceptable to the Commission. It must identify the people who receive refunds if option (3) is chosen. If the order covers more than one person, it must say who gets to choose. The order may also prohibit manufacturing for sale, offering for sale, distributing in commerce, importing into the customs territory of the United States (as defined in general note 2 of the Harmonized Tariff Schedule of the United States), or any combination of those acts for the article or substance. (c)(1) If, after the hearing required by subsection (e), the Commission finds that a toy or other article intended for children, which is not a banned hazardous substance, has a defect creating a substantial risk of injury to children, and finds that notice is needed to protect the public, it may order the manufacturer or any distributor or dealer to: (A) give public notice of the defect and risk; (B) mail that notice to every manufacturer, distributor, or dealer; or (C) mail it to everyone whom the sender knows received or bought it. The order must state the notice's form and content. The Commission may consider the defect's pattern, the number distributed, the seriousness of the risk, or other facts. (c)(2) If, after the required hearing, the Commission finds the same kind of defect and risk and decides action is in the public interest, it may order the manufacturer, distributor, or dealer to choose: (A) repair or change the toy or article so it no longer has the defect creating the substantial risk, if possible; (B) replace it with a similar or equivalent toy or article without that defect and risk; or (C) refund the purchase price. A reasonable use allowance may be subtracted if the consumer possessed it for at least one year when the paragraph (1)(A) public notice was given or when the consumer first received actual notice of the defect and risk, whichever came first. The order may require an acceptable action plan, must identify refund recipients, and must identify the person who chooses if more than one person is ordered to act. It may prohibit manufacturing for sale, offering for sale, distributing in commerce, importing into the customs territory of the United States (as defined in general note 2 of the Harmonized Tariff Schedule of the United States), or any combination of those acts for the toy or article. (d)(1) A person other than a manufacturer, distributor, or dealer who uses a remedy under an order under subsection (b) or (c) may not be charged for it. The person subject to the order must reimburse that person for reasonable and foreseeable expenses of using the remedy. (d)(2) An order under subsection (a), (b), or (c) may require a manufacturer, distributor, or dealer to reimburse another manufacturer, distributor, or dealer for expenses of carrying out the order, if the Commission finds reimbursement in the public interest. (e) An order under subsection (a), (b), or (c) may be issued only after an opportunity for a hearing under section 554 of title 5. If the Commission finds that a participant belongs to a class whose members share the same interest, it may limit that participant to appearing through one representative chosen by the class, or by the Commission if the class does not choose one. (f) For this section, “manufacturer” includes an importer for resale. A dealer selling an article or substance at wholesale is treated as its distributor for that sale. (g) This section does not require the Commission, when deciding that an article or substance presents a substantial product hazard and that notice or other action should be taken, to compare the costs of the notice or action with its benefits.