Welcome to the December edition of the Alston & Bird CPSC Recall Snapshot.
There has been another twist in the rare earth magnet saga. In November, the Tenth Circuit threw out the CPSC’s rule that restricted the size and strength of rare earth magnets. In vacating the rule, the Tenth Circuit found that the CPSC did not meet its burden to weigh the costs and benefits of the rule to determine whether the rule was justified. Specifically, the court found that the data behind the rule did not reflect market changes created by the CPSC’s recent compliance activities. The court also cited the fact that the injury reports the CPSC relied on only “possibly” related to magnets, which the court found to be insufficient. The Tenth Circuit’s ruling came after an administrative law judge found that the magnets of the sole company still selling them were not inherently dangerous.
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