Product liability prevention strategies for thrift stores
Many non-profit organizations operate thrift stores to help raise funds for their causes. Thrift stores play an important role in helping their communities by providing discounted goods to low-income households and promoting environmental sustainability through recycling and reusing goods. However, thrift stores face significant risk when re-selling donated items that have been recalled by their manufacturers.
Did you know that the Consumer Products Safety Commission (CPSC) had more than 300 recalls in 2023, a 20% increase over the prior year?1
In a 2000 study, the CPSC found that 69% of the 301 thrift stores they visited had at least one hazardous product.2
The top 3 hazardous products identified by the CPSC were:2
- Drawstrings on children’s outerwear – posing a strangulation or entanglement hazard.
- Hairdryers without corded GFCI protection – an electrocution hazard in wet areas.
- Cribs that didn’t meet current safety standards.
It’s important to remember that just because a product has been recalled and removed from retail store shelves does not necessarily mean that it has been removed from people’s homes. These items may eventually be donated to thrift stores for resale.
Understanding product liability exposure is essential for protecting your business from liability claims and your customers from personal injury or property damage due to defective products.
Here are some practical steps to help reduce the potential for a product liability claim against your organization, along with links to resources for more detailed information.
- Post signage in clearly visible locations, stating that all products are sold ‘as is’ with no warranties or guarantees.
- Train designated employees to screen all incoming items for potentially hazardous or recalled products.
- Test all home electronics, handheld power tools, lamps, electrically powered toys, personal hygiene devices (curling irons, electric shavers, blow dryers), and small/large appliances to ensure they are functioning properly and are free of frayed, cracked, or otherwise defective wiring.
- Implement a ‘when in doubt, throw it out’ policy and empower employees to discard items they believe might pose a hazard to customers.
- Keep good records of employee training and product screenings in case a claim is made.
- Subscribe to the CSPC's E-Mail List for resale stores and product resellers.
- Stay current on information developed specifically for resale stores at cpsc.gov/resale.
- Download and use the CPSC Resellers Guide to Selling Safer Products.
Thrift stores can help mitigate product liability risks by being vigilant, informed, and proactive. By considering these tips and resources, you can help contribute to safer consumer experiences, support your community and promote sustainability.
Related resources: