5.5 Million Fine for Failure to Report

A Texas-based company has agreed to pay a civil penalty of $5.5 million to settle charges that it knowingly failed to report to the U.S. Product Safety Commission (CPSC) defective air conditioning/heating units that posed an unreasonable risk of injury to consumers.

According to the CPSC, the company, Goodman Company, LP of Houston, TX, failed to promptly report to the Commission known defects in its packaged terminal air conditioners/heaters (PTACs) that resulted in multiple reports of overheating, smoking and fires. The company also reportedly misrepresented the number of fires that occurred in connection with the defective units.

Ultimately, Goodman recalled 233,500 of the air conditioning and heating units in August 2014. The recalled units were sold through heating and cooling equipment dealers from January 2007 through June 2008 for between $700 and $1000.

As part of its settlement with the CPSC, the company has also agreed to implement a program to ensure future compliance with the provisions of the U.S. Consumer Product Safety Act (CPSA), as well as a related system of internal controls and procedures.

Read the complete text of the CPSC’s press release regarding the Goodman Company settlement over failing to report defective air conditioning/heating units.

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