Daikin agrees $8.5m penalty over hazardous PTAC
22nd June 2026
USA: Daikin has agreed to pay an $8.5m civil penalty for failing to immediately report that one of its US-made Amana packaged terminal air conditioners could overheat.
The settlement, which has been provisionally accepted by the US Consumer Product Safety Commission (CPSC), resolves charges that Daikin knowingly failed to immediately report that its PTAC air conditioners/heat pumps equipped with DigiAir modules contained a defect which could create a substantial product hazard and created an unreasonable risk of serious injury or death to consumers. The DigiAir module is a factory-installed make-up air system with configurable dehumidification..
Between 2017 and 2023, Daikin is said to have received multiple warranty claims relating to the PTACs, over a dozen reports of fires, and one report of a smoke inhalation injury.
Despite possessing information that reasonably supported the conclusion that the PTACs contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury or death, Daikin did not immediately report to the Commission.
The CPSC and Daikin jointly announced a recall of the PTACs on August 3, 2023.
Over 60,000 Amana PTACs were subject to the recall across the USA and Canada. They were produced in the USA by Daikin Comfort Technologies Manufacturing in Houston, Texas.
Daikin are said to have received 52 reports of incidents with the DigiAir compressor in the USA, including 10 that resulted in fires.
The Amana brand was acquired by Daikin when it purchased US manufacturer Goodman In 2014.
In addition to the $8.5m civil penalty, the settlement agreement requires Daikin to appoint an internal compliance monitor and maintain internal controls and procedures designed to ensure compliance with the Consumer Product Safety Act.
Daikin has also agreed to submit annual reports regarding its compliance programme, internal controls, and internal audit of the effectiveness of compliance.
The Commission has provisionally accepted the settlement agreement, subject to public comment.
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Daikin USA recalls 60,000 packaged AC units – 4 August 2023
USA/CANADA: Daikin has recalled over 60,000 Amana packaged terminal air conditioners/heat pumps (PTACs) in the USA and Canada due to fire concerns. Read more…
