Furniture seller Bestar has agreed to pay $4 million of a $16 million penalty for not reporting that its wall beds had a defect that killed someone, the Consumer Product Safety Commission said Monday.
The CPSC said that Bestar received "numerous reports" from Sept. 2014 through 2022 that its well beds detached from the wall, including one death and 15 injuries, some of which were serious.
Bestar and the CPSC recalled the wall beds in April 2022.
The CPSC said it is only requiring Bestar to pay $4 million of the around $16 million penalty "based on the accuracy, truthfulness, and completeness of documents provided by Bestar and the Firm’s sworn representations that paying a penalty exceeding that amount would cause Bestar significant financial hardship and compel Bestar to cease operations."
The agreement also requires Bestar to "maintain internal controls and procedures," including additional compliance efforts, so the company follows product safety law, the CPSC said.
Bestar will submit for three years annual reports on its compliance program, audits, training and other details, the CPSC said.