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 Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me