The U.S. Justice Department said two California businessmen were indicted last week for their roles in importing and knowingly selling fire-prone dehumidifiers.
Simon Chu, 63, and Charley Loh, 60, were charged with wire fraud and lying to the Consumer Product Safety Commission (CPSC) regarding the import of the “defective and dangerous” dehumidifiers imported from China.
The Consumer Product Safety Act requires manufacturers, importers and distributors of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or creates an unreasonable risk of serious injury or death, which Chu and Loh failed to do.
The indictment alleges that as early as September 2012, Chu, Loh and their companies received multiple reports that their Chinese dehumidifiers were defective, dangerous and could catch fire, but they continued to sell them to retailers.
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