GE Agrees to Pay $1,000,000 Fine for Delay in Reporting Product Defect
to CPSC
NEWS from CPSC
U.S. Consumer Product Safety Commission
Office of Information and Public Affairs
Washington, DC 20207
FOR IMMEDIATE RELEASE
August 8, 2002
Release # 02-225
CPSC Consumer Hotline: (800) 638-2772
CPSC Media Contact: Deborah Lewis, (301) 504-7662
Margaret Plank, (301) 504-7627
GE Agrees to Pay $1,000,000 Fine for Delay in Reporting Product Defect
to CPSC
WASHINGTON, D.C.- The U.S. Consumer Product Safety Commission (CPSC)
announced today that the General Electric Co. (GE), of Fairfield, Conn.,
has agreed to pay the Government a $1 million civil penalty (PDF copy of the Settlement Agreement). The fine
settles allegations that GE knowingly failed to report to CPSC in a
timely manner a defect with certain models of dishwashers. Under the
Consumer Product Safety Act (CPSA), manufacturers, importers,
distributors, and retailers must immediately report information about
potentially hazardous products to the Commission.
"This settlement puts companies on notice that they must notify
CPSC without delay when they learn of product hazards or consumer
injuries," said Commission Chairman Hal Stratton. "We intend to
enforce these requirements vigorously and there will be serious
consequences for companies that fail to report such information quickly.
The Commission will investigate and seek penalties against those who
violate federal safety laws."
CPSC alleged that beginning in 1992, GE, one of the largest
manufacturers of household appliances in the world, became aware of
incidents of fire, smoking and melting related to the energy-saver slide
switches on six models of dishwashers. The slide switches can overheat,
causing the plastic to melt, and in some cases, ignite. Between
January 1992 and November 1998, GE received 49 reports of fires that
involved melted switches. By the time the company first reported to the
Commission in November 1998, it knew of at least 111 incidents involving
fire, smoke, or melting of the switches on these dishwashers.
In agreeing to settle this matter, GE denies that it knowingly
violated the CPSA.
GE manufactured 3.1 million of the GSD500D, GSD500G, GSD540,
HDA467, HDA477, and HDA478 model dishwashers between 1983 and 1989. All
of these models have identical slide switches that allow consumers to
choose between a heated and non-heated drying cycle. In December 2000,
CPSC and GE announced a free repair option in the form of a rewiring for
the dishwashers. A GE-authorized technician will rewire the slide
switch at no cost to consumers. The rewire program supplements the
original rebate program announced in October 1999. In that recall, GE
provided consumers with a rebate toward the purchase of a new
dishwasher. CPSC and GE announced the supplemental rewiring option to
increase the effectiveness of the original rebate program.
Consumers who have one of these recalled dishwashers should
immediately discontinue use, unlatch the door, and contact GE anytime at
(800) 599-2929 or log on to their website at
www.geappliancerecall.com
