Haier America Trading has agreed to pay a civil penalty of $850,000 to resolve Consumer Product Safety Commission allegations that the company failed to report a defect involving its blenders that resulted in nearly 60 incidents and an injury to a consumer's hand.
The nut on the blender that holds the blade assembly can dislodge during use, allowing the blade assembly pieces to break apart, and/or crack the blender's glass jar, posing a laceration hazard.
According to the settlement, Haier America failed to report the safety issue immediately to the CPSC, as required by federal law. The blenders were for sale October 2006 to October 2009, but the company became aware of the incidents and injury between January 2007 and September 2009, yet did not file a full report to the CPSC until October 2009. The recall of some 54,000 blenders was then announced in December 2009.
Federal law requires manufacturers, distributors, and retailers to report to the CPSC within 24 hours after obtaining information about a product defect that could create a substantial hazard or an unreasonable risk of serious injury or death, or if a product fails to comply with consumer product safety rules, regulations standards or bans.
In agreeing to the settlement, Haier America denies that it violated the law as well as denies the CPSC staff allegations about the blender defect.