Government Agrees With Yamaha, Honda, And Kawasaki On Aggressive Steps Against ATV Dealers Who Violate Age Requirements

The Department of Justice and the U.S. Consumer Product Safety Commission (CPSC) today announced that they have approved agreements with three of the largest distributors of all-terrain vehicles (ATVs) in this country to discipline and even initiate termination proceedings against dealers who sell adult-size ATVs to children.

The agreements with Yamaha Motor Corp. U.S.A., American Honda Motor Company, and Kawasaki Motors Corp. U.S.A. signify the harsh punishment dealers may suffer if they violate the age recommendations contained in the 1988 ATV consent decree. The distributors have also agreed to conduct systematic undercover inspections of approximately 25 percent of their dealers during each of the next two years to determine whether the dealers are violating the consent decree requirements that prohibit dealers from recommending adult-size ATVs for children under 16 years of age.

The three distributors will also conduct routine inspections of dealers to ensure that hang-tags with safety information are affixed to all ATVs and that each dealer prominently displays a safety poster in the showroom.

The Commission estimates that in 1989 approximately 40% of all deaths and injuries on ATVs occurred to children under the age of 16 who were riding adult-sized vehicles. CPSC Chairman Jacqueline Jones-Smith said, "Since so many young people are killed and injured each year riding ATVs, it is essential that dealers follow the age recommendations. Our goal is the reduction of deaths and injuries associated with ATVs."

The consent decree, which was approved by the U.S. District Court for the District of Columbia on April 27, 1988, requires that the five major distributors of ATVs (Yamaha, Honda, Kawasaki, American Suzuki Motor Corp., and Polaris Industries, L.P.) affirmatively represent in their marketing of the vehicles, that ATVs with an engine size of 70 cc through 90 cc be used only by children 12 and older. ATVs with engine sizes greater than 90 cc or "adult-sized" ATVs, are to be used only by those 16 and older. The consent decree requires that the distributors make their "best efforts" to assure that their dealers correctly represent the age recommendations in both their oral and written statements to the public.

In December 1989, an undercover survey of ATV dealers for the five distributors conducted by the Commission revealed that approximately 56% of the dealers surveyed provided age recommendations which were inconsistent with the terms of the consent decree. Based on the results of the CPSC survey and follow-up investigations by Yamaha, American Honda, and Kawasaki, the companies have already initiated termination actions against some dealers. Additional termination actions may occur for dealers identified by the CPSC survey to be in violation of the age recommendations.

Talks are continuing with the other distributors of ATVs subject to the consent decree for similar agreements to assure dealer compliance with requirements relating to age recommendations, hang-tags and safety posters.