WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission (CPSC) is announcing that Bestar Inc., of Canada, has agreed to a $16.025 million civil penalty. The settlement, which has been provisionally accepted by CPSC, resolves CPSC’s charges that Bestar knowingly failed to immediately report to CPSC, as required by law, that its wall beds contained a defect that could create a substantial product hazard or created an unreasonable risk of serious injury to consumers.
Beginning in September 2014 and continuing through 2022, Bestar received numerous reports that the wall beds had detached from the wall but did not immediately report to CPSC as required by federal law. By the time Bestar reported to the Commission, Bestar was aware of 35 incidents, including one fatality and 15 injuries, some of which were serious. Bestar and the Commission jointly announced a recall of the wall beds on April 7, 2022.
In addition to imposing a monetary penalty, the settlement agreement requires Bestar to maintain internal controls and procedures designed to ensure compliance with the Consumer Product Safety Act, including enhancements to its compliance program. Bestar has also agreed to submit, for a period of three years, annual reports regarding its compliance program, internal controls, and internal audits of the effectiveness of compliance policies, procedures, systems and training.
CPSC has agreed to suspend all but $4 million of the $16.025 million penalty based on the accuracy, truthfulness, and completeness of documents provided by Bestar and the Firm’s sworn representations that paying a penalty exceeding that amount would cause Bestar significant financial hardship and compel Bestar to cease operations.
By a 5-to-0 vote, the Commission provisionally accepted the settlement agreement. Serena Anand, a Trial Attorney in the Division of Enforcement and Litigation, represented the Commission in this enforcement action.
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About the U.S. CPSC
The U.S. Consumer Product Safety Commission (CPSC) is charged with protecting the public from unreasonable risk of injury or death associated with the use of thousands of types of consumer products. Deaths, injuries, and property damage from consumer product-related incidents cost the nation more than $1 trillion annually. CPSC's work to ensure the safety of consumer products has contributed to a decline in the rate of injuries associated with consumer products over the past 50 years.
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