Shimano has agreed to pay an $11.5 million civil penalty in the US for failing to immediately report that the cranksets it recalled in 2023 posed a hazard to users.
The parts manufacturer recalled 760,000 11-speed Hollowtech II cranksets in September 2023, reporting more than 4,500 incidents of the product separating, six of which resulted in injuries, “including bone fractures, joint displacement and lacerations,” according to the US Consumer Product Safety Commission (CPSC).
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The CPSC claimed that Shimano “knowingly failed to immediately report” the hazards posed by the crankset or that it “created an unreasonable risk of serious injury or death to consumers”.
“Despite possessing information that reasonably supported the conclusion that the bicycle cranksets contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury or death, Shimano did not immediately report to the Commission,” the CPSC wrote in a statement.
“In addition to the $11.5 million civil penalty, the settlement agreement requires Shimano to maintain internal controls and procedures designed to ensure compliance with the Consumer Product Safety Act (CPSA), including enhancements to its compliance program.
“Shimano has also agreed to submit annual reports regarding its compliance program, internal controls, and internal audits of the effectiveness of compliance policies, procedures, systems, and training.”
During the nine years that Shimano did not report the hazard, the company made nine manufacturing changes, which brought about “over 25” changes to the affected crankset, the CPSC said.
A Shimano representative, quoted in Bicycle Retailer, said: “Shimano cannot comment beyond what has been included in the public settlement.”
The recall came after reports of “bonding separation” – the coming apart or delamination of metal components. Shimano offered a free inspection and replacement programme to any customers affected, and later put aside 17.6 billion yen ($119.4 million, £89.3 million) to cover the costs.
According to previous reports in Bicycle Retailer, the proposed settlement calls for Shimano to provide free replacements for all faulty cranksets, offer an extra two years of warranty to customers affected by the recall, and pay each of the 14 plaintiffs $500 as a ‘service award’.
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