Bad Boy Enterprises, a manufacturer of off-road utility vehicles, has agreed to pay a $715,000 fine for failing to disclose safety defects to the Consumer Product Safety Commission.
According to a press release issued by the CPSC, the company’s Classic Buggies with Series and SePex brand motors, could suddenly accelerate and lead to a crash. There have been two recalls for the defect, one in October 2009 and another in December 2010 when it was uncovered that the first recall didn’t completely correct the problem. There have been at least 50 reports of sudden acceleration incidents, some causing injuries such as broken bones.
Federal law requires manufacturers, distributors and retailers to report to the CPSC within 24 hours after obtaining information about a product safety defect. The reporting requirement can help CPSC to determine if the products presents and unreasonable risk of injury, and if so will work to get the product recalled.
In agreeing to the settlement, Bad Boy Enterprises denies CPSC staff allegations as to the existence of a defect or hazard or that it violated the law.