Starbucks Fine Has Companies Reading CPSC's Tea Leaves

Law360, New York (June 2, 2016, 11:06 PM EDT) -- Criticism from within the Consumer Product Safety Commission over a $3.75 million civil penalty against Starbucks' Teavana for failing to report exploding tea tumblers echoes manufacturers' complaints about a lack of transparency on how the agency calculates fines, attorneys say, leaving companies uncertain how to react as the CPSC seeks higher penalties.

The CPSC on Wednesday ended its claims that the Starbucks unit didn't promptly report that its glass tea tumblers were defective following reports that the cups exploded in consumers' hands, accepting a $3.75 million settlement agreement in a 3-2 vote — prompting one commissioner, Joseph P. Mohorovic, to voice...

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