Daikin to pay $8.5 million for failing to flag PTAC hazard 

Daikin has agreed to pay an $8.5 million civil penalty for failing to report fire hazards regarding one of its U.S.-made Amana packaged terminal air conditioners, the U.S. Consumer Product Safety Commission (CPSC) announced in a June news release. 

What’s happening: The settlement resolves previous charges that Daikin “knowingly failed to immediately report” to the CPSC that its PTAC units equipped with ‘DigiAir’ modules “contained a defect which could create a substantial product hazard and created an unreasonable risk of serious injury,” the agency wrote. 

The backstory: Between 2017 and 2023, Daikin received several warranty claims regarding the PTACs, over a dozen fire reports, and one report of a smoke inhalation injury, according to the announcement. 

• “Despite possessing information that reasonably supported the conclusion that the PTACs contained a defect which could create a substantial product hazard… Daikin did not immediately report to the Commission,” it said. 
• In August 2023, the CPSC and Daikin jointly announced a recall of over 62,000 units sold across the U.S.

Looking ahead: As part of the settlement, Daikin is required to appoint an “Internal Compliance Monitor” and has agreed to “submit annual reports regarding its compliance program, internal controls, and internal audit of the effectiveness of compliance.”

• Representatives for Daikin didn’t return a request for comment.