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Chrissie Cole
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Lasko Products to Pay $500,000 Penalty Over Faulty Fans

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Lasko Products Inc. denies knowingly violating the law, but has agreed to pay a $500,000 civil penalty (pdf) which settles claims that the company failed to immediately report incidents associated with its defective portable fans according to the U.S. Consumer Product Safety Commission (CPSC).

In February 2006, CPSC and Lasko jointly announced the recall of more than 5 million box and floor fans.

The Commission claimed the company failed to report, in a timely manner, that the fans could overheat, catch fire, smoke and pose fire and burn hazards to consumers.

Lasko received 42 reports of the fans melting, catching fire or overheating between November 2002 and September 2005, which resulted in nine personal injuries and personal damage. The company failed to fully report the incidents to CPSC until September 2005.

Federal law requires firms to report to CPSC immediately within 24 hours.