Appliance maker to pay $1.2 million to settle charges

WASHINGTON -- A leading appliance maker has agreed to pay a $1.2 million penalty to settle allegations it belatedly reported defects in three kitchen products linked to fires and injuries such as cuts and burns.

The civil penalty on Hamilton Beach/Proctor-Silex Inc. marks the fourth largest from the Consumer Product Safety Commission, which last week announced a record $4 million settlement with a popular maker of baby products -- part of what the agency says is a renewed effort to hold companies accountable.

The CPSC planned to announce the penalty today.

The Glen Allen, Va.-based appliance company allegedly failed to immediately report problems with its countertop toasters, juice extractors and slow cookers, which were on store shelves at various times from 1992 to 2002 and -- following revelations of defects -- recalled by the millions.

Federal law requires companies to inform the commission immediately of known defects that pose risks of injury or violate federal safety standards, a timeframe typically interpreted as 24 hours.

But Hamilton Beach/Proctor-Silex waited several years in some instances to report consumer complaints, the CPSC said.

In a statement, the company denied knowingly violating reporting requirements for the products, all manufactured in China.

Among violations cited by the CPSC, the company waited until 1999 to report more than 200 complaints it had received involving toasters that didn't properly shut off, including three cases of fire damage.

The company also allegedly failed to promptly report nine instances of consumers suffering eye injuries or requiring stitches for cuts caused by metal or plastic pieces breaking off juice extractors, which were sold through the 1990s.

And slow cookers with weak handles elicited more than 2,000 complaints, including two burn injuries, over about three years before the CPSC says it was notified in 2002.

Though the company's reporting irregularities surfaced several years ago, the CPSC declined Tuesday to explain the penalty's timing.

Topping this penalty, Graco Children's Products Inc. recently agreed to pay $4 million for reporting violations, bike maker Dynacraft BSC Inc. settled for $1.4 million in 2004, and Cosco and Safety 1st jointly paid $1.75 million in 2001.

More recall information is available by calling HB/PS at (800) 672-5872, weekdays 8 a.m. to 3:30 p.m.

---

On the Net:

Consumer Product Safety Commission: http://www.cpsc.gov

Hamilton Beach/Proctor-Silex Inc.: http://www.hamiltonbeach.com