HP Agrees to $425K Fine for Not Reporting Imported Notebook Battery Defect
The Consumer Product Safety Commission is seeking comments on a provisionally-accepted Settlement Agreement with Hewlett-Packard Company that includes a civil penalty of $425,000. The agreement would settle staff allegations that HP failed to immediately notify CPSC of a defect in lithium-ion battery packs for certain of its notebook computers.
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Any interested person may ask CPSC not to accept this agreement or otherwise comment on its contents by filing a written request by February 10, 2012.
Did Not Immediately Report Battery Overheating Defect Despite Injury Complaints
Staff alleges that between December 2004 and July 2006, HP imported approximately 32,000 lithium-ion battery packs that were shipped with, sold as accessories for use with, or provided as spare parts for certain HP notebook computers. According to CPSC, the computers were defective because they can overheat, posing a fire and burn hazard to consumers.
Between June 2005 and March 2007, HP received 17 reports of Product incidents, some of which involved flames or fires. By September 2007, HP knew of approximately 22 reports of incidents involving the products. Following consultation with the Commission from July to October 2008, the products were recalled in October 2008.
Despite being aware of this information, HP did not report to the Commission until July 25, 2008. According to CPSC, in failing to immediately inform the Commission, HP knowingly1 violated the reporting requirements of section 19(a)(4) of the Consumer Product Safety Act (CPSA).
Settlement Becomes Final Feb 10 if No Adverse Comments Received
If CPSC does not receive any written request not to accept the Agreement within 15 calendar days, the Agreement shall be deemed finally accepted on the 16th calendar day after the date it is published or on February 10, 2012.
(The Agreement does not constitute an admission by HP or a determination by the Commission that HP knowingly violated the CPSA’s reporting requirements.)
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.
(See ITT's Online Archives 12012417 for summary of CPSC voting to provisionally accept this settlement agreement with HP. Commissioner Adler, however, voted against acceptance because he thought that the $425,000 civil penalty was too small to deter violations.)