[ACCESSWIRE]
LONDON, UK / ACCESSWIRE / October 5, 2016 / Active Wall St. blog coverage looks at the headline from Best Buy Co., Inc. (NYSE: BBY). On October 4th, 2016, Best Buy agreed to pay a $3.8 million fine to settle charges that it distributed and sold previously recalled products, including cameras, computers and washing machines. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.
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The U.S. Consumer Product Safety Commission (CPSC) announced that Best Buy has agreed to pay the civil penalty for distributing and selling previously recalled consumer products.
The Agreement
The agreement settles charges that Best Buy knowingly sold and distributed 16 different recalled products during a five year period from 2010 through 2015. Between September 2010 and October 2015, Best Buy sold about 600 recalled items, including more than 400 Canon EOS Rebel t4i digital cameras, which were recalled on August 14th 2012 to consumers.
Recalled Products continued to Sell after Complaints
CPSC charged Best Buy with failure to implement adequate procedures to accurately identify, quarantine, and prevent the sales of the recalled products across all of its supply channels. The organisation also stated that Best Buy, in some cases, failed to permanently block product codes due to inaccurate information that signaled that the recalled product was not in inventory. At other times, the blocked codes were reactivated prematurely, and in a few cases, overridden. CPSC stated that sales of recalled products continued even after Best Buy has confirmed to CPSC that it had put a system in place to reduce the risk of sales of recalled products.
The commission first made the charges public in 2014 and said the recalls were for hazards which include fire, burn, shock, expelled parts, falls and skin irritation depending on the product. On July 24, 2014, CPSC and Best Buy jointly re-announced the recalls of 10 products that Best Buy had been selling after the original recalls had been announced. Meanwhile, apart from paying the $3.8 million civil penalty, Best Buy has agreed to maintain a compliance program that is designed to ensure compliance with the Consumer Product Safety Act (CPSA), including a program for the appropriate disposal of recalled products. The firm has also agreed to maintain a system of internal controls and procedures.
Best Buy's settlement of this matter does not constitute an admission of CPSC staff's charges.
Stock Performance
Best Buy's stock is trading slightly down by 0.52%, closing Tuesday's session at $37.98 on volume of 2.85 million shares. The company's shares surged 29.67% since the beginning of the year. Additionally, the stock has advanced 24.92% and 23.99% in the last three months and six months, respectively. The company's shares are trading a PE ratio of 12.58 and have a dividend yield of 2.95%.
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SOURCE: Active Wall Street
