A Generac product flaw led to fingers being crushed. The company is paying a $15.8 million fine.
Waukesha-based Generac Power Systems Inc. has agreed to pay a $15.8 million fine after a federal agency found the company failed to immediately report a product flaw that led to people's fingers being partially amputated or crushed.
The U.S. Consumer Product Safety Commission announced the settlement with Generac on Friday.
The commission said 32 models of the company's Generac and DR 6500-watt and 8000-watt portable generators "contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury to consumers."
Generac received reports of incidents from consumers, starting in October 2018 and continuing into 2020, whose fingers were partially amputated or crushed by the unlocked handle of the portable generator.
Generac didn't immediately report those incidents to the commission.
"By the time Generac filed a report with the commission, there were five reports of consumers suffering finger amputations while attempting to transport the portable generators, which required hospitalization, surgery, and/or sutures and resulted in permanent disfigurement," the statement said.
A recall was announced in July 2021.
In a statement, commission member Richard Trumka said eight people had "lost body parts" by the time the recall was issued.
"Had Generac reported the hazard after the first amputation, which was required by law, seven consumers could have been spared irreparable injuries and severe trauma," Trumka said.
Commission member Peter Feldman voted in favor of the settlement but also raised concerns about the fine's near-maximum amount.
"As I have expressed before, CPSC needs a consistent methodology for how we calculate penalty amounts," Feldman said. "This case did not involve fatalities. Generac is a first-time offender.
"A reasonable reading of the evidence in this case could support a conclusion that the initial reporting delay was born out of a failure to appreciate the nature of the hazard rather than a concealment of the problem from CPSC," he said.
The settlement agreement requires Generac to implement and maintain a program to comply with the Consumer Product Safety Act.
Generac has also agreed to file for three years annual reports regarding its compliance program, system of internal controls, and internal audits of the effectiveness of the new compliance program and internal controls.
"Generac takes product safety and our reporting obligations seriously, and have fully cooperated with the CPSC in this matter," said Tami Kou, director of marketing communications and public relations.
"Generac entered this settlement agreement to put this matter behind us and avoid the cost and distraction of any further, protracted legal proceedings," Kou said. "Generac’s willingness to enter into the settlement agreement does not constitute an admission to the CPSC’s charges, of any liability, or the violation of the CPSA or any other laws."
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This article originally appeared on Milwaukee Journal Sentinel: Generac pays $15.8 million fine after its generators crushed fingers
