Royal Sovereign International Inc.

Royal Sovereign pleaded guilty to a criminal information charging the company under the Consumer Product Safety Act. The company was sentenced to pay $395,786 in restitution to victims and a criminal fine of $8 million. In addition, Royal Sovereign previously agreed to a civil settlement that included a $16,025,000 civil penalty, the maximum authorized by the CPSA. The company has permanently ceased all operations involving the marketing, sale, or distribution of consumer products. Total financial penalty: $24,420,786.

Royal Sovereign International Inc., a New Jersey corporation that sold office and home appliances, was sentenced for willfully failing to report to the U.S. Consumer Product Safety Commission dangerously defective air conditioners linked to more than 40 fires and one death. The company imported and sold more than 33,000 defective air conditioners manufactured in China between 2008 and 2014.

The air conditioners used a faulty drain motor that could short circuit, causing them to catch fire and burn uncontrollably. Royal Sovereign willfully failed to report information about the dangerous defects to the CPSC. The company misled the CPSC in November 2010 by telling the agency it was aware of only two fire incidents when it knew of at least 16 fires, and falsely claimed it was no longer selling the units while continuing to sell them. According to the CPSC recall notice, a woman died in August 2016 from smoke inhalation and her two children were injured after their Royal Sovereign air conditioner caught fire.