Under federal law, companies involved in the distribution, manufacture or sale of products in Pennsylvania and throughout the country are required to report product defects that could among other things possibly cause a human serious injury or death to the U.S. Consumer Product Safety Commission. It must be reported within 24 hours of learning of the defect. The failure to do so may result in civil penalty. A manufacturer of off-road utility vehicles has come face-to-face with this law and the consequences for failing to adhere to it.

Last month the CPSC informed the public that Bad Boy Enterprises, LLC acquiesced to a payment of $715,000. The civil penalty has been provisionally accepted by the CPSC. The root of the penalty payment is the company’s failure to inform the commission of issues with sudden acceleration that were addressed via a repair program in 2008. The CPSC did not become aware of the issues with the motors in the Series brand and SePex off-road utility vehicles until August 2009. Issues with the motors could cause runaway vehicles when the vehicle would accelerate while idling.

Two recalls have been issued regarding the matter. The first recall was in October 2009, and the second, in December of the following year. At the time of the second recall, over 50 incidents of sudden acceleration causing injury had been reported. Injuries reported include fractures to legs, arms and toes. Sore muscles and an injury to a rotator cuff were reported as well.

The SePex and Series off-road utility vehicles were sold throughout the U.S. for more than 7 years, starting in 2003 and ending in 2010. Bad Boy Enterprises, LLC is offering to repair the utility buggies for free.

Source: Kansas City infoZine, “Bad Boy Enterprises to Pay Civil Penalty for Failing to Report Defective Buggies,” Sept. 26, 2011