The U.S. Consumer Product Safety Commission announced that Waukesha, Wis.-based Generac Power Systems, Inc. has agreed to pay a $15,800,000 civil penalty to resolve CPSC allegations that the company violated terms of the Consumer Product Safety Act. The CPSC charged Generac with failing to immediately report that 32 models of its Generac- and DR-brand 6500 and 8000 watt portable generators contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury to consumers.

According to the CPSC, Generac began receiving reports in October 2018 from consumers whose fingers were partially amputated or crushed by the unlocked handle of the portable generator models in question. These reports continued into 2020, the CPSC said. Generac did not immediately report these incidents to the CPSC, the agency said, and by the time the company did report them, it had received five such reports. Generac recalled more than 321,000 portable generators on July 29, 2021.

The settlement agreement requires Generac to implement and maintain a compliance program and system of internal controls and procedures to ensure compliance with the Consumer Product Safety Act. The company has also agreed to file annual reports regarding its compliance program, system of internal controls, and internal audits of both for a period of 3 years.