The U.S. Consumer Product Safety Commission (CPSC) announced that Segway Powersports Inc. (SPI), of McKinney, TX has been assessed a $5 million civil penalty. The settlement resolves CPSC’s charges that SPI knowingly imported ATVs without a CPSC-approved ATV action plan in violation of the Consumer Product Safety Act (CPSA).
CPSC charged that SPI knowingly imported approximately 152 ATVs that were not subject to a CPSC-approved ATV action plan, as required by federal law. ATV action plans promote the safe and responsible use of ATVs, particularly for children under age 16.
In addition to imposing a monetary penalty, the settlement agreement requires SPI to maintain a compliance program to ensure that the company complies with the CPSA and maintains internal controls designed to ensure timely, complete and accurate reporting to CPSC. SPI has also agreed to file annual reports with the agency on the efficacy of these programs for three years.
CPSC has agreed to suspend all but $1.25 million of the $5 million penalty based on SPI’s sworn representations that paying a penalty exceeding that amount would cause the company financial hardship and compel SPI to cease business operations.
SPI’s settlement of this matter does not constitute an admission by SPI, or a determination by the Commission, that SPI knowingly violated the CPSA. The settlement agreement has been accepted provisionally by the Commission by a 4-0-1 vote.
