Sen. Casey, Rep. Scanlon introduce legislation to combat corporate criminal conduct

U.S. Sen. Bob Casey (D-PA) and U.S. Rep. Mary Gay Scanlon (D-PA) joined U.S. Rep. Richard Blumenthal (D-CT) Tuesday in introducing bicameral legislation that would hold corporate officers accountable for withholding information that could harm consumers and workers.

The legislation, the Hide No Harm Act, would impose penalties of up to five years in jail, as well as fines, for any corporate officer who knowingly conceals information about an action or product that poses serious physical injury or death for consumers and workers. The legislation would also provide safeguards for corporate whistleblowers who choose to report dangers to federal regulators.

“No consumer should have to fear that products they use are unsafe, and no worker should have to fear repercussions for taking steps to remove unsafe or dangerous products from the market,” Casey said. “This bill will hold corporate officers accountable for shielding information on faulty products from the public and protect those workers who speak out from retaliation.”

The lawmakers cited several examples of corporate wrongdoing in a statement about the proposed legislation. Examples included faulty ignition switches and airbags in cars; opioids and the dangers of abusing them, known by pharmaceutical company executives; and problems with infant formula that executives were slow to fix while still selling the product to parents.

The congress members said the Hide No Harm Act would hold corporations responsible for high-level failures where corporate executives knew risks existed.

“When companies break the law, the people in charge rarely face serious consequences,” Scanlon said. “Time and again, we see companies sell dangerous or fraudulent products, pay out a settlement, and continue with business as usual. The corporate executives who make these decisions should not be let off the hook.”

The legislation is endorsed by Public Citizen and the Coalition for Sensible Safeguards, a national alliance of more than 160 public interest groups.

“Countless lives have been lost because corporations intentionally hid life-threatening dangers to the public,” said Lisa Gilbert, executive vice president of Public Citizen and co-chair of the Coalition for Sensible Safeguards. “The litany of devastating examples, like the Boeing 737 Max airplane crashes, the Big Pharma induced opioid epidemic, and the recent infant formula safety crisis, are sadly endless. Over and over again, fines – even historic ones – have proven to be ineffective at holding corporate actors accountable and ensuring they don’t break the law again. We need tough new criminal penalties for those at the top.”