CPSC Considers Fining Nordica $214K for not Reporting Ski Defect
The Consumer Product Safety Commission is seeking comments on a provisionally-accepted settlement agreement with Nordica USA which contains a civil penalty of $214,000 to settle charges that Nordica failed to immediately report defective ski binding plates.
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Comments on whether CPSC should accept this agreement are due by October 26, 2011.
Alleges Nordica Received 200 Cracking/Breaking Complaints Before Informing CPSC
From August 2006 through December 2008, Nordica imported and sold to ski retailers about 4,500 pairs of XBI ALU skis. Beginning in December 2007, Nordica began receiving complaints that the skis’ binding plates were cracking and breaking. In the fall of 2008, Nordica began investigating the problem and learned that the foreign manufacturer had redesigned the ski’s binding plate. By the time Nordica informed CPSC of the problem in December 2008, it had about 200 reports of warranty claims related to the skis’ binding plates cracking and breaking.
Staff allege that despite being aware of information that reasonably supported the conclusion that its skis’ binding plates contained a defect that could create a substantial product hazard or an unreasonable risk of serious injury or death, Nordica knowingly1 failed to immediately (within 24 hours) inform CPSC of the defect.
(The settlement agreement has been provisionally accepted by the Commission. It does not constitute an admission by Nordica or a determination by the Commission that Nordica violated CPSC’s reporting requirements or that the Skis’ binding plates presented a substantial product hazard.)
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.
CPSC -- Dennis Kacoyanis (301) 504--7587
CPSC press release, dated 10/06/11, available here.
(FR Pub 10/11/11, D/N 12--C0001)