‘Hide No Harm’ Act Will Imprison Execs for Hiding Defects

‘Hide No Harm’ Act Will Imprison Execs for Hiding Defects

The GM recall is spurring new legislation that will hold executives responsible if they are caught concealing safety defects in their products.

Senators Richard Blumenthal and Bob Casey will introduce the Hide No Harm Act of 2014 that will make it a crime for corporate officers and executives to intentionally hide a product defect or corporate action that “poses a danger of death or serious physical injury to consumers and workers,” according to a joint statement released by Blumenthal and Casey. Guilty executives would face up to five years in prison and potential fines.

SEE ALSO: GM Recalls Another 8.4 Million Vehicles

The new legislation is part of the fallout from the massive GM ignition switch recall where several GM employees learned about the defective ignition switches in 2004. Still, the American automaker failed to recall the vehicles for a decade during which at least 13 people were killed in related crashes.

[Source: Automotive News]

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