Today, the Commission is announcing the provisional acceptance of a settlement agreement under which Segway Powersports Inc. (Segway) agreed to pay a $5 million civil penalty, which the CPSC will suspend to $1.25 million due to Segway’s representations of inability to pay. In addition, under the terms of the agreement Segway must maintain a compliance program and system of internal controls.
This agreement settles claims that Segway knowingly and illegally imported 152 all-terrain vehicles (ATVs) without an accompanying Commission-approved action plan. Under the law, all ATVs imported into the U.S. must have an associated ATV action plan approved by the Commission, which describes the safety measures the ATV manufacturer or distributor will take in connection with the sale or distribution of its ATVs. Such measures include rider training, dissemination of safety information, age recommendations, and other actions to promote safety. Every year hundreds of consumers, including children, die or suffer life-threatening injuries from riding ATVs. ATV action plans provide potentially life-saving information to ATV purchasers and riders. Despite warnings to wait for Commission approval, Segway imported eight shipments of ATVs into the U.S. without an accompanying ATV action plan. The ATVs, however, did not enter into commerce.
Although the penalty amount in this matter is $5 million, the Commission will suspend all but $1.25 million based upon evidence submitted by Segway of its inability to pay the full amount. This $5 million fine is significant and a reminder of the importance of complying with all applicable safety laws. And if Segway’s representations of inability to pay were inaccurate, the full amount of the penalty will be due.
Finally, I wish to thank CPSC staff for their work on this matter as well as our partners at Customs and Border Protection for their diligence and unwavering assistance in enforcing our product safety laws at all ports of entry.