US bike supplier pays dearly for recall tardiness

Dynacraft of California - supplier of cheap Chinese bicycles to big box retailers such as Wal-Mart, Toyrs R Us, Target and Kmart - has agreed to pay $1.4m to settle allegations that it incompletely and belatedly informed the US Consumer Product Safety Commission of serious problems with its MTBs.
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From 2000 to 2002, Dynacraft Industries Inc. issued recalls for 267,000+ bikes. This was in association with the Consumer Product Safety Commission, but the CPSC said the recall notitfications were made late by Dynacraft.

Under federal law, suppliers must inform the CPSC within 24 hours of any reports of defective products that could injure consumers.

Of the quarter of a million bikes Dynacraft imported from July 1999 to March 2001, all were manufactured with forks that could break and separate from the front wheel. The CPSC said more than a fifth of the bikes also had pedals that could easily loosen and fall off.

As part of the out-of-court settlement, Dynacraft denies it violated reporting requirements.

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