The penalty resolves allegations in a complaint filed by the U.S. Department of Justice in the U.S. District Court for the Southern District of Texas that the firm knowingly failed to inform CPSC immediately, as required by federal law, that its packaged terminal air conditioners/heaters (PTACs) contained a hazardous defect and posed an unreasonable risk of serious injury or death to consumers. The complaint also alleges that when the company ultimately reported the fire risk to CPSC, it misrepresented the number of fires that had occurred.
After receiving numerous reports about the PTACs catching fire, smoking and overheating, including three reports of hotel fires, the company delayed reporting the fire hazard to CPSC for about two years. When it ultimately reported, the company identified only three reports of overheating, even though it had received additional reports of overheating and fires.
After reporting to CPSC, the company learned of additional fires involving the PTACs, but the firm failed to timely report. The firm withheld notifying the government of six additional incidents.
To read the source document or entire CPSC Press Release please follow this link: $5.55M for CPSC Violations