Hewlett-Packard will pay US$425,000 to settle a claim
that it knowingly sold laptops with hazardous
batteries that could overheat or catch fire, the U.S.
Consumer Product Safety Commission (CPSC) announced
Monday.
The settlement resolves staff allegations that HP
knowingly failed to report immediately to CPSC, as
required by federal law, that certain lithium-ion
battery packs contained a defect or created an
unreasonable risk of serious injury or death. The
lithium-ion battery packs can overheat, posing a fire
and burn hazard to consumers. The packs were shipped
with new HP Notebook computers, sold as accessories or
provided as spare parts for various HP models.
CPSC staff alleges that by September 2007, HP knew of
about 22 incidents associated with the lithium-ion
battery packs. At least two of these incidents
resulted in injuries to consumers. HP also was aware
that at least one consumer apparently went to the
hospital. HP did not receive any information on the
consumer's injuries or treatment, if any. CPSC staff
also alleges that between March 2007 and April 2007,
HP conducted a study, from which it obtained
additional information about the lithium-ion battery
packs.
HP did not notify the Commission about the incidents
or the study until July 25, 2008. By that time, CPSC
staff alleges that the firm was aware of at least 31
incidents involving the lithium-ion battery packs.
In October 2008, HP and CPSC announced a recall of
about 32,000 lithium-ion battery packs. HP sold
notebook computers for between $700 and $3,000 that
contained the lithium-ion battery packs, as did
computer and electronics stores in the U.S. and
various Web retailers. Lithium-ion battery packs that
were sold separately for use with the notebook
computers retailed for between $100 and $160.
Federal law requires manufacturers, distributors, and
retailers to report to CPSC immediately (within 24
hours) after obtaining information reasonably
supporting the conclusion that a product contains a
defect which could create a substantial product
hazard, creates an unreasonable risk of serious injury
or death, or fails to comply with any consumer product
safety rule or any other rule, regulation, standard,
or ban enforced by CPSC.
In agreeing to the settlement, HP denies CPSC staff
allegations that the lithium-ion battery packs (or the
notebooks with which the packs were used) could create
an unreasonable risk of serious injury or death, or
that HP violated the reporting requirements of the
Consumer Product Safety Act.