Space Heaters Lawsuit

Vornado Air Circulation Systems Inc. agrees to $500,000 defective product CPSC fine.

Space Heaters

Kansas City, MO: (Feb-01-08) The Consumer Product Safety Commission brought charges against Vornado Air Circulation Systems Inc., alleging that the now-dissolved maker of space heaters in Andover, KS failed to report product defects that resulted in fires. Records show that in August 2004, the commission and Vornado announced the recall of 1 million portable electric heaters. A faulty electrical connection caused the heater to overheat. The suit claimed that from January 1993 through February 2004, Vornado received more than 300 reports of heaters overheating, melting, smoking or catching fire, and that the company failed to report these incidents to the safety agency in a timely manner.

Federal law requires businesses to report to the commission immediately after obtaining information reasonably supporting conclusions that products contain defects that pose substantial hazards. Sources close to the case stated that the company had agreed to a settlement agreement with the commission, in which it would pay the government $500,000 to resolve allegations. Sources claim that the fine against Vornado comes at a time that Public Citizen, a national consumer advocacy group, has criticized the government for not forcing companies to report problems faster. [KANSAS CITY STAR: DEFECTIVE HEATERS]

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