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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 114797
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I have a growing concern about products that are "crowd

Customer Question

I have a growing concern about products that are "crowd sourced" but are not held up to safety and certifications like legit businesses. There is a product that is so unsafe that simply having it in the house will poison the people who live in the house. If it were actually plugged in and turned on it could start fires and blind people.
I personally don't believe the product actually exists and is not supposed to ship until January of next year, so there is plenty of time to sell the company, give back the initial orders price and beat it out of town with over 7 million dollars of crowd sourcing.
I am sure this happens all the time, but I have a growing concern that these companies taint the industries that it mimics and created unreal and dangerous expectations from consumers. It will not stop until someone raises this as a legal issue or proves it as fraud. Problem is this happens so fast that no agency or commission can work that fast.
So, I wonder if there is a way to work with consumer advocacy in a way that can impact this issue?
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Thank you for your reply. There are several entities that you can report these issues to. The SEC is one such agency, also the Consumer Product Safety Bureau is another that you can report it to. Unfortunately, you cannot work to sue the company directly if you are not an investor and merely are a concerned citizen trying to protect people from these types of things. You would have to report these issues to the SEC and CPSB and also the Federal Trade Commission and they will undertake the fraud investigations on the matter.