Office Depot Chair Seatback Problems Result in $3.4M CPSC Penalty

Office Depot has agreed to pay a $3.4 million civil penalty to settle charges alleging the company knowingly failed to report dangerous defects with two office chair models, which have ben linked to dozens of injuries caused by seatback failures. 

The U.S. Consumer Product Safety Commission (CPSC) announced a $3.4 million settlement agreement with the retailer on May 27, following an investigation into problems with Office Depot chair seatbacks.

The safety regulators indicate that the company failed to report 186 consumer complaints involving the seatbacks of certain chairs unexpectedly detached. The reports included 39 injury reports in which some experienced contusions, abrasions and reports of injuries to the head, neck and a fractured back and hip which required medical attention.

The Office Depot chairs included in the investigation are the Quantum and Gibson models, sold exclusively at Office Depot stores and online. Roughly 150,000 Quantum models were sold between May 2006 and August 2009 for about $350 each, and an estimated 1.4 million Gibson chairs were sold nationwide between 2003 and 2012 for about $40.

An original Office Depot chair recall was issued in May 2014, after the manufacturer found that mounting plate weld can break and separate the seat from the base of the chair, posing a fall hazard to consumers. Since the chairs do not have arm rest, the users who fell were not able to brace themselves when the plate weld separated, guaranteeing a fall.

Under the Consumer Product Safety Act, products containing defects with an unreasonable risk of serious injury must be reported to the CPSC within 24 hours of receiving an incident report, or within a reasonable time frame after a defect is suspected.

Office Depot reportedly withheld the incident reports and consumer complaints of the chair backings breaking to avoid  a recall by the CPSC. The CPSC also indicates that Office Depot never reported the Quantum chair defects, injuries, or consumer complaints when the company reported the Gibson chair recall. The Quantum chair defects were only reported to the CPSC because an Office Depot employee filed a report with the company. At the time of the chair defects being reported, Office Depot had already received 186 consumer complaints and close to 40 injury reports.

According to the Office Depot settlement agreement, the retailer has neither admitted nor denied the allegations but has agreed to pay the $3.4 million penalty and abide by the ruling and implement a compliance program that will ensure compliance with the Consumer Product Safety Act and a related system of internal controls and procedures.  The compliance program must include written standards and policies designed to convey information obtained from complaints and incident reports to the CPSC within the mandated time frame.

The CPSC reported that the Commission has accepted this settlement provisionally for now but could be increased if more information is found indicating Office Depot withheld information on other product problems.