Many West Midland company directors are unaware that they may be liable for fines of up to £20,000 or face a possible prison sentence for failing to report unsafe products, experts claim.
Business leaders have teamed up to issue a warning to companies in the region after litigation lawyers at the Birmingham office of global law firm DLA Piper Rudnick Gray Cary expressed concern that the changes in the law had not registered with all company directors.
Partner Neil Bowker, head of litigation, said: "The recent General Product Safety Regulations place a number of obligations on companies.
"These include the need to notify the authorities when a defective product has been recalled."
The new rules are designed to give better protection to consumers and mean that the regulating authorities, often the local Trading Standards Department, can order the recall of dangerous products.
Companies must also keep records which trace where a product has come from and maintain a register of customer complaints to assist in identifying potential safety problems.
Neil Bowker said: "Noncompliance with the rules is simply not an option now, particularly given their importance to the safety of consumers."