Hoverboards: Products Liability

Hoverboards started out as a hot gift idea.  They quickly fell from grace as concern over potentially explosive lithium-ion batteries quite literally blew up.

Over 60 airlines banned hoverboards either as carry-ons or in checked luggage.  Lithium-ion batteries power everyday items from smart phones to laptops.   But the larger size of hoverboard batteries, and problems with cheaper knock-off  products, make the scooter batteries more vulnerable.

Now, not only manufacturers but also importers and sellers of hoverboards are on notice to the danger they present.

CPSC Hoverboard Warning

As hoverboard dangers become more apparent, the U.S. Consumer Product Safety Commission now warns of the potential unreasonable risk of injury or death from the devices.  In a February 18, 2016 letter, the CPSC urges manufacturers, importers and retailers to comply with safety and lithium-ion battery regulations.

Between December 1, 2015 and February 17, 2016 52 hoverboard fires were reported by consumers in 24 states.  Two Million Dollars in property damage resulted from those incidents including the destruction of two homes and an automobile.

The CPCS warning stops short of saying the boards violate the law, but “urges” all importers, manufacturers, and retail sellers to make certain that they comply with safety standards.  The Commission considers devices that do not meet the safety standards cited in the letter to be defective, presenting a substantial product hazard.

Products Liability Law & Hoverboards

A major problem for importers and sellers is that the CPCS action sets them up for liability.  Under U.S. law, liability for the sale of dangerous products extends not only to manufacturers but also to those who place such items “in the stream of commerce.”  This includes importers and sellers.

Principles of strict liability apply to sellers and suppliers of defective products.   The products liability laws of nearly every state hold retailers responsible if a product was defective or unreasonably dangerous to the user when sold, and if the defect causes injuries.  Section 402A of the “Restatement of Torts, 2d Edition” has been adopted in some form in nearly every state and applies even if the retail seller has exercised all possible care in the preparation and sale of the product.

For example, an Essex County, Massachusetts Jury returned a $20 Million judgment against Toys R Us in a case of a defective swimming pool slide manufactured in China which caused the death of a 29 year old woman.  More on that case.

Hoverboards Pulled from Marketplace

At one point, Ebay reported selling one hoverboard every 12 seconds.  Following reports of potential dangers, retailers started to take action.  Toys R Us removed hoverboards from their website.  Amazon offered full refunds.  Overstock.com stopped all sales.

Hoverboards a Dying Fad?

A growing number of universities and other entities banned hoverboards from their campuses including University of Massachusetts, Emerson College, American University, George Washington University, University of Denver and others.

Most fads have a beginning, middle and end. But unless manufacturers, importers and retailers find a way to comply with safety warnings, hoverboards appear likely to come to a screeching halt.

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