Company penalized by Consumer Products Safety Commission for slow reporting of defect

Distributor pays more than $500,000 to settle complaint that it violated requirement to immediately report such defects.


A New York City distributor has agreed to pay a more than $500,000 to settle a complaint that it was slow in reporting a defect and fire hazard linked to oscillating fans.

LEARN from the U.S. CPSC what you need to know about possible violations at your facility: Regulations, Laws and Information by Product for Manufacturers, Importers, Distributors and Retailers. U.S. Consumer Product Safety Commission

The $587,500 penalty is part of a settlement Haier America Trading LLC reached with the Consumer Product Safety Commission (CPSC). The agency announced that the settlement resolves CPSC staff allegations that the company knowingly failed to immediately report to the agency that the fan posed a risk of fire.

Manufacturers, distributors, and retailers are required by law to immediately report defects that could create safety hazards.

The Oscillating Tower Fan, model FTM140GG, poses a fire hazard because repeated bending of the fan's wires during oscillation causes the wires to break, CPSC said.

The agency said Haier America, which distributed the product, received about 14 reports of incidents involving the fans from May to October 2004, including reports of fires and one report of injuries. The company finally reported the problem in December 2004, after the agency asked the company to do so, said CPSC.

CPSC spokesman Scott Wolfson wouldn't comment on exactly why the announcement of a settlement came years later. But he said it's a situation where the agency put all of its resources into first recalling the product. "In the aftermath (of a recall), we begin to work up our legal case," he said. "It can take time to negotiate a settlement."

CPSC said, in agreeing to the settlement, the company denies the agency's allegations.

Read other Control Engineering articles related to manufacturer's safety responsibilities:


- Edited by David Greenfield , editorial director
Control Engineering Sustainable Engineering
News Desk

No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Make Big Data and Industrial Internet of Things work for you, 2017 Engineers' Choice Finalists, Avoid control design pitfalls, Managing IIoT processes
Engineering Leaders Under 40; System integration improving packaging operation; Process sensing; PID velocity; Cybersecurity and functional safety
Mobile HMI; PID tuning tips; Mechatronics; Intelligent project management; Cybersecurity in Russia; Engineering education; Road to IANA
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
click me