The U.S. Consumer Product Safety Commission (CPSC) has reached an agreement with Baja Inc. and its corporate affiliate One World Technologies Inc. to settle charges that “the firm knowingly failed to report to CPSC immediately, as required by federal law, defects and unreasonable risk of serious injury involving 11 models of minibikes and go-carts,” according to an October 28, 2014, CPSC press release. CPSC alleged several defects in Baja’s products, including a leaking or detaching gas cap and a sticking throttle, and claimed that Baja knew about four faulty gas cap reports— including one that apparently led to a child’s serious burn injury—and “two dozen consumer reports of stuck throttles” but failed to notify CPSC or consumers of potential problems.
In a record high for civil-penalty settlements, Baja will pay $4.3 million and will “maintain a program designed to ensure compliance with the safety statutes and regulations enforced by the Commission,” including written standards, systematic procedures for reports of potential safety issues, compliance oversight, and records retention. By agreeing to the settlement, Baja has not admitted to wrongdoing. Public comments are requested by November 14, 2014. See Federal Register, October 30, 2014.