Pep Boys has reportedly agreed to pay a $5 million civil penalty and take corrective measures to settle allegations that it violated the Clean Air Act (CAA) by importing and selling Chinese-manufactured motorcycles, recreational vehicles and generators that do not comply with U.S. environmental requirements. The agreement requires the company to export or destroy more than 1,300 non-compliant vehicles and engines and to mitigate adverse environmental effects of equipment already sold to consumers, estimated at 620 tons of excess hydrocarbon and nitrogen oxide emissions and more than 6,520 tons of excess carbon monoxide emissions.

The government alleged that at least 45 vehicle and generator models imported and sold by Pep Boys and another company were not certified to meet federal standards. The complaint also alleged that Pep Boys failed to provide purchasers with the full emission-system warranty required by the CAA and imported and sold vehicles and engines without the proper emission-control information labels. The agreement was lodged in the U.S. District Court for the District of Columbia on May 10, 2010. It is subject to a 30-day public comment period and federal-court approval. See DOJ Press Release, May 10, 2010