Law Which Would Jail Executives Proposed

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Senator Richard Blumenthal (D-CT) wants executives to go to jail if they knowingly hide product defects. The outrage that fueled the Congressional hearings about General Motors’ faulty ignition switch that has been blamed for the deaths of more than 120 people has helped to forge proposed legislation that would send executives to jail for hiding information about defective products.

Blumenthal and Senator Bob Casey (D-PA) introduced a bill that would send corporate officers to jail for five years and get fined if they knowingly conceal information about a product or action that could put the public at risk of death or serious injury.

A long-time critic of the auto industry and a former Prosecutor and State Attorney General, Blumenthal expressed frustration that no criminal charges were filed against any GM employees as part of the settlement between the automaker and the U.S. Attorney’s Office in Manhattan. The company paid a $900 million fine.

GM also established a victims' compensation fund that will pay as much as $600 million to victims and their families. The fund’s administrator, Kenneth Feinberg, agreed to pay benefits for 124 deaths and 275 injuries.

He believes the settlement is unlikely to deter executives from sweeping issues under the rug. Blumenthal lumped Takata and its faulty airbags that have exploded sending metal pieces into the cabin of vehicles killing eight people in with GM as examples where the new law would apply.

The legislation, called the Hide No Harm Act, would apply to other products as well, noting other cases including defective body armor and cribs in which supporters of the law say corporate officials should have potentially faced greater penalties.
 

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