Gun Business: Canadian court ruling could zap Taser’s bottom line
Posted by Kevin Kullman on August 23, 2010 · Leave a Comment
Taser X3 multi-shot ECD
Canadian Judge Robert Sewell, denied Taser International Inc.’s (TASR) request to reject the previous findings of a governmental inquiry. A public inquiry into stun gun safety began in May 5, 2008 after the 2007 death of a man in a Vancouver Airport. Royal Canadian Mounted Police (RCMP) shot the man multiple times with a stun gun and he later died. The inquiry report provided evidence that stun guns also called conducted energy weapons which disable potential targets with up to 50,000 volts of electricity can be lethal.
“It is quite clear to me that there were presentations made to the commissioner by medical experts,” said British Columbia Supreme Court judge Sewell,” and others to the effect that such weapons can cause serious harm and even death in exceptional circumstances.”
Taser has responded with its own safety documents showing its stun guns have never caused any deaths. The company has complained that the Canadian court findings are affecting sales. Unlike the U.S. where tasers are not considered firearms and are legal in most states, in Canada tasers are prohibited weapons which can only be used by law enforcement. Across Canada, 73 law enforcement agencies were using stun guns by the end of 2008. The RCMP themselves had 2,800 Tasers at their disposal.
Taser is arguing that the governmental findings which they disagree with have pushed the RCMP to develop stricter policies which are reducing sales. In May, 2010 the RCMP established new rules related to stun guns that permit their use only if a person is causing bodily harm or has potential to imminently do harm. A recent watch dog group released figures showing a 30 percent reduction in stun gun use by the RCMP since 2008 when the formal inquiry began. Figures like these validate Taser’s argument of lost sales. In 2009, 78 percent of its total sales were from the U.S. while 22 percent or some $22.7 million came from international sales. In there 2009 annual report Taser stated that 2009 saw significant orders from the United Kingdom, Australia, New Zealand and Brazil. If this court ruling affects the bottom line it will likely have a small impact given that Canadian sales represent only a small percent of Taser’s total sales.
