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U.S. Gov't Still Fighting the Man Behind Buckyballs; Guess Who's Winning?

usacoder writes with news of Craig Zucker, former CEO of the company behind Buckyballs, the popular neodymium magnet toys that were banned by the U.S. Consumer Product Safety Commission in July 2012. Zucker ran a brief campaign to drum up opposition to the government's ban, but it didn't turn out to be enough. Unfortunately for Zucker, the story didn't end there. Despite the magnets being labeled as not for kids, the Commission filed a motion to find him personally liable for the costs of a product recall, estimated at around $57 million. "Given the fact that Buckyballs have now long been off the market, the attempt to go after Mr. Zucker personally raises the question of retaliation for his public campaign against the commission. Mr. Zucker won't speculate about the commission's motives. 'It's very selective and very aggressive,' he says. ... Mr. Zucker says his treatment at the hands of the commission should alarm fellow entrepreneurs: 'This is the beginning. It starts with this case. If you play out what happens to me, then the next thing you'll have is personal-injury lawyers saying "you conducted the actions of the company, you were the company."'"

3 of 555 comments (clear)

  1. Re:Sounds good to me by Attila+Dimedici · · Score: 5, Informative

    No, the company was told to come up with a corrective action plan to deal with the danger which the Consumer Product Safety Board thought that the product posed The CPSB gave them a two week deadline or face a lawsuit. In the meantime, contrary to precedent, the CPSB contacted retailers directly. The CPSB filed lawsuit the morning after the corrective action plan was filed (meaning the CPSB had not had time to review the plan before they submitted the lawsuit).
    In response to the lawsuit, the CEO of the company launched a PR campaign to attempt to raise public awareness and political pressure to save his business. When the PR campaign failed, the CEO dissolved the company (since the CPSB had essentially outlawed their only product). Oh, and by the way, my understanding of the legality of the situation is that it was legal to continue selling the Buckyballs until the CPSB got a court ruling in their favor.

    --
    The truth is that all men having power ought to be mistrusted. James Madison
  2. Re:Sounds good to me by ShanghaiBill · · Score: 5, Informative

    I don't believe hand grenades have the same warning on them.

    As a former Marine, I have some experience with hand grenades, and I can assure you that every case of grenades comes with an entire booklet of warnings, written in dense legalese.

  3. Re: Sounds good to me by dk20 · · Score: 5, Informative

    I'm in complete agreement with you. Ever since the early 90's the world has moved towards a "its not my fault because" type attitude. Its not my fault that little sally is a b*tch and failing school, she has ADHD/Aspergers....

    I've got three kids, and one had a set of buckyball magnets. I gave them to a 15 year old as he was old enough to know he shouldn't eat them. When they were in the "everything goes into the mouth" phase i didn't give them powerful magnets. I bought age-appropriate toys to avoid this exact problem. It should be common sense that at a certain age you need to watch the kids and protect them from themselves.

    Combine the "it wasn't my fault attitude" with the ability to sue for a lot more then if you won an average lottery and you have a real mess on your hands.