Daikin let fire reports pile up before recalling overheating AC units, and now owes $8.5 million

Daikin is facing a $8.5 million civil penalty after U.S. regulators said it let safety reports about overheating AC units accumulate before recalling certain models. The U.S. Consumer Product Safety Commission said Daikin Comfort Technologies Manufacturing, Inc., based in Waller, Texas, did not promptly notify the government about some packaged terminal air conditioner and heat pump units (PTACs) using “DigiAir” modules. Regulators cited warranty claims logged from 2017 to 2023, plus more than a dozen reports of fires and one smoke inhalation injury, before a recall was announced. The recall was jointly issued by Daikin and the CPSC on Aug. 3, 2023. Along with the payment, the settlement requires an Internal Compliance Monitor and enhanced compliance controls and annual reporting. The settlement is provisionally accepted and open for public comment.