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Foreign Corporations Getting Free Ride On Dangerous Products

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In a study entitled Defective Foreign Products in the United States: Issues and Discussion , American University’s Washington College of Law, and the American Association for Justice pointed out the unfair advantage foreign companies have by not being held accountable, Basically, that through the ,complex web of laws, policies, and practices that make it difficult, if not impossible to successfully sue foreign manufacturers in domestic courts they are allowed to profit off dangerous and deadly products.

According to Professor Andrew Popper of American University Washington College of Law, “Foreign manufacturers suffer few consequences from exporting popular and profitable products that are also inexpensive, untested, and deadly.” Without the prospect of being held accountable through the U.S. civil justice system, a foreign producer has little incentive to maximize product quality and safety.

The paper goes futher to look at potential remedies and finds that requiring a bond be posted to ensure importers have either enough money or insurance to pay for damages their products might compel the importer to ensure the quality of their products sold in the U.S. Foreign manufacturers could also be required to comply with state court jurisdictions where their products are sold.

Clearly, this is a disadvantage to the United State manufacturers and a dangerous condition for the American consumer. Popper concludes, “Stripped of the incentive value the tort system provided, it should come as no surprise that domestic consumers have been exposed to tens of millions of defective products produced by foreign suppliers.”