Goodman fined $5.55m for recall delays

Goodman recallUSA: Daikin-owned US air conditioning manufacturer Goodman has agreed to pay a $5.55m fine for delay and misrepresentation in reporting a fire hazard on its PTAC units.

The penalty resolves allegations in a complaint filed by the US Department of Justice that the firm knowingly failed to inform the US Consumer Product Safety Commission (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 Goodman 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, Goodman is said to have delayed reporting the fire hazard to CPSC for about two years. When it ultimately reported, Goodman identified only three reports of overheating, even though it had received additional reports of overheating and fires.

After reporting to CPSC, Goodman is said to have learned of additional fires involving the PTACs, but the firm failed to timely report. The firm withheld notifying the government of six additional incidents.

Lu-Ve-Sept-2016

Advertisement

“Goodman’s conduct was illegal, dangerous and unacceptable,” said CPSC chairman Elliot F Kaye. “Goodman’s decision to hide information about serious fires for years, while continuing to profit from sales, slowed down the announcement of a recall and put the safety of many families at real risk.”

In addition to paying a $5.55m civil penalty, Goodman has agreed to comply with and maintain a compliance programme that is designed to ensure compliance with the Consumer Product Safety Act. The firm has also agreed to comply with and maintain a system of internal controls and procedures.

The firm recalled 233,500 of the air conditioning and heating units in August 2014. The units were sold at Goodman and heating and cooling equipment dealers nationwide from January 2007 through June 2008 for between $700 and $1,000.

Goodman was acquired by Japanese manufacturer Daikin in 2012.

Related stories:

Goodman recalls 230,000 air conditioners

Goodman recalls more air conditioners

 


Latest news from the world of air conditioning and refrigeration

UK News

1st December, 2016

steve-gowing-home

Stonegrove appoints Gowing

UK: Industrial refrigeration contractor Stonegrove Refrigeration has appointed Steve Gowing as design and project engineer.

1st December, 2016

javac-award-climate-center

Javac achieves Climate Center double

UK: Javac UK, the refrigerant recovery and vacuum pump supplier, has been named as Climate Centers’ Supplier of the Year for the second year running.

28th November, 2016

kevin-munson-home

Ruskin renamed Swegon Air Management

UK: Ruskin Air Management has been renamed Swegon Air Management following its acquisition by the Swedish manufacturer Swegon.

25th November, 2016

swep-tentlingen

SWEP to close Swiss plant

SWEDEN: Heat exchanger manufacturer SWEP is to close its manufacturing plant in Tentlingen, Switzerland, moving production to factories in Slovakia and Sweden.

World News

3rd December, 2016

daikin-czech-rep

Daikin Plzen plant is BES 6001 certified

BELGIUM: Daikin Europe’s factory in the Czech Republic has joined the group’s factory in Ostend by becoming certified to the BRE’s responsible sourcing standard.

3rd December, 2016

young-buskirk-chairmans-awards

AHRI rises to chairman’s challenge

USA: Parker Hannifin and Daikin were the big winners in a unique competition designed to raise the level of awareness of the HVACR industry both in school and government.

3rd December, 2016

aircon-teknik

Beijer Ref merges Danish businesses

DENMARK: Refrigeration wholesaler Beijer Ref has merged two of its Danish companies to form Aircon Teknik A/S.

2nd December, 2016

modine-coils

Luvata HTS merged into Modine coil division

USA: The Luvata Heat Transfer Solutions business is to be amalgamated with Modine Coils into a new Modine Commercial and Industrial Solutions division.

JOIN OUR NEWSLETTER
Leave A Comment