At Heidi's Cottage, we stay abreast of possible problems with items we sell in the store (or might want to feature in the future). We do that by reading several industry magazine and e-newsletters, receiving updates from our vendors, AND by subscribing to a recall alert email provided by the U.S. Consumer Product Safety Commission.
You might want to sign up for a USCPSC email alert as well. This is especially important for those of you with children (you can even request alerts only about infant/child products). http://www.cpsc.gov/