Daikin Comfort Technologies Manufacturing Inc. has agreed to pay an $8.5 million civil penalty to resolve charges that it failed to immediately report that its Packaged Terminal Air Conditioners/Heat Pumps, or PTACs, equipped with “DigiAir” modules contained a defect.
The defect could create a substantial product hazard and a risk of serious injury or death to consumers, the U.S. Consumer Product Commission, or CPSC, said Tuesday in a statement.
Between 2017 and 2023, Daikin received multiple warranty claims relating to the PTACs, more than a dozen reports of fires, and one report of a smoke inhalation injury. Despite having information that the PTACs contained a defect, Daikin didn’t immediately report it to the CPSC.
The agency and Daikin jointly announced a recall of the PTACs on Aug. 3, 2023. The recall press release stated that the DigiAir module compressor in the PTACs can overheat, posing burn and fire hazards.
In addition to the $8.5 million civil penalty, the settlement agreement requires Daikin to appoint an internal compliance monitor and maintain internal controls and procedures designed to ensure compliance with federal safety law. Daikin has also agreed to submit annual reports these processes.
The CPSC has provisionally accepted the settlement agreement, subject to public comment.
