Consumer Product Safety Commission Announces $4.3 Million Settlement With Mini-Bike/Go-Cart Manufacturer

The U.S. Consumer Product Safety Commission (CPSC) announced yesterday that it reached a settlement with the manufacturer of mini-bikes and go-carts for $4.3 million after the manufacturer failed to immediately report to the CPSC alleged defects and an unreasonable risk of serious injury involving eleven of the company’s models.  The CPSC had alleged that the gas cap could leak or detach from the fuel tank, which posed fire and burn hazards, and that the throttle could stick given an alleged improperly positioned fuel line and throttle cable, which posed sudden acceleration hazards.  The CPSC had charged the manufacturer with knowing about at least four reports of fires caused by these hazards and a number of other customer complaints before informing the CPSC of the issue in June 2010.

Manufacturers, importers, distributors, and retailers of consumer products have legal obligations to report certain types of information to the CPSC, including in some cases within 24 hours of obtaining the reportable information.  For example, defective products that could create a substantial risk of injury to consumers, products that create an unreasonable risk of serious injury or death, products that fails to comply with applicable consumer product safety rules, incidents in which a child chokes on a part or suffers serious injury, and certain types of lawsuits have to be reported.