The Counterfeit Safety Label
Jeff Spaulding, president and CEO of Specialty Products, Inc. (SPI), learned that one of the company's Chinese suppliers had placed counterfeit UL (Underwriters Laboratories) safety certification labels on a popular line of decorative table lamps manufactured for the company. SPI designed and imported a wide range of seasonal, gift, and home d cor products, including lighting. Further investigation revealed that many lamps bearing counterfeit UL labels had already been shipped to retail stores and sold to consumers. Spaulding assembled his top management team-the heads of product development, sales, compliance, and finance-to determine the appropriate course of action. Among the factors the team needed to consider were possible safety risks to consumers, legal and reputational risks to the company, the financial costs of recalling or destroying improperly labeled lamps, the company's relationship with its suppliers, and the interests of the private investors who owned SPI.