So, uh, have you heard of a guy named Ralph Nader? He wrote a book called “Unsafe At Any Speed” in the 60s about how auto manufacturers were selling cars that they knew to be dangerous, and how they resisted changing in order to make vehicles safer. It resulted in the US DOT and eventually NTHSA, and a whole bunch of new regulations that auto manufacturers were obligated to comply with.
You also have things like the Consumer Product Safety Commission that can force companies to recall products–at their own expense–to fix products with health and safety defects. The results of recalls can be fines, as well as the product being entirely removed from the market, which can easily end up costing more than has already been spent on tooling and processes.
So, yeah, companies can, and do, change designs as a result of regulations.
Now, how were you planning on eating your entire dick?