CPSC Sets $450K Penalty for Failing to Report Refrigerator Defect
The Consumer Product Safety Commission has posted a provisionally-accepted settlement agreement containing a civil penalty of $450,000 to settle staff allegations that Viking Range Corporation knowingly failed to immediately report to CPSC, as required by statute, a hazardous defect with its refrigerator door hinges.
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Any interested person may ask CPSC not to accept this settlement agreement or otherwise comment on its contents by July 13, 2011.
Viking Knew About Hinge Failure Since 2001 but Only Reported Problem in 2009
From 1999 to 2006, Viking manufactured and distributed approximately forty-five thousand built-in, 48 inch, side-by-side refrigerators and 36 inch refrigerators with bottom freezers under the Viking brand name (the refrigerators). According to CPSC, the refrigerators were defective because the “tower” hinges attaching the refrigerator door to the cabinet can detach, allowing the door to fall on consumers.
Viking received its first complaints involving hinge failure in January 2001 and introduced redesigned hinges by January 2002. By September 2006, Viking stopped using the “tower” hinge on new production. By April 2008, Viking had received eight injury complaints and developed a new field repair fix kit for consumers whose refrigerators exhibited problems with the hinges.
Despite being aware of the problem, Viking did not report the refrigerator defect to CPSC until April of 2009. The refrigerators were recalled in June of 2009.
CPSC Says Knowing Failure to Report Defect Subject to Civil Penalties
CPSC states that Viking is subject to civil penalties for its “knowing” failure1 to immediately report the defect to CPSC as required by statute.2 Viking denies the allegations. This provisional settlement would settle staff allegations without an admission by Viking or a determination by the Commission that Viking violated the Consumer Product Safety Act’s (CPSA’s) reporting requirements.
Settlement Will Be Deemed Final if There Are No Requests to Deny It
If the CPSC receives no written request to deny the settlement agreement within fifteen calendar days, it will be deemed finally accepted.
1Under CPSC’s statute, the term "knowingly" means: (1) the having of actual knowledge, or (2) the presumed having of knowledge deemed to be possessed by a reasonable man who acts in the circumstances, including knowledge obtainable upon the exercise of due care to ascertain the truth of representations.
2Section 15(b) of the CPSA (15 USC 2064(b)) requires manufacturers (including importers) to immediately report a substantial product hazard to the Commission.