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RRK Holdings Inc. Fined for Failing to Report Hazard
Oct 22, 2004
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Power tool maker RRK Holdings Inc. (formerly known as Roto Zip Tool Corp.), of Black Rock, WI, U.S, has agreed to pay U.S. $100,000 for allegedly violating federal reporting requirements by not informing the U.S. Consumer Product Safety Commission (CPSC) in a timely manner about problems with the handle on its spiral saw.

Between 1999 and October 2001, Roto Zip sold an estimated 1.4 million hand-held spiral saws under the Revolution, Rebel, and Solaris brand names. Some of the power tools had a loose fit between the handle and body, causing the handle to detach from saw while it was in use in some instances.

Between January 2001 and October 2001, the company received at least 235 reports of saws detaching from the handle and 20 injury reports due to handle. Between February and April of 2001, Roto Zip made design changes to the saw to correct the problem. Consumers continued to report handle failures to the company, yet the company failed to notify CPSC of the design changes and consumer reports. In September 2001, after receiving incident reports directly from consumers, CPSC conducted an inspection of the company's headquarters. One month later, Roto Zip filed a full report with the Commission.

In February 2002, CPSC and Roto Zip announced a recall of 1.9 million spiral saws. By this time, there were 360 reports of handle failures. In August 2003, Roto Zip sold all of its assets and ceased operations.

According to federal law, manufacturers, distributors, and retailers are required to report to CPSC immediately (within 24 hours) after obtaining information which reasonably supports the conclusion that a product contains a defect which could create a substantial risk of injury to the public, presents an unreasonable risk of serious injury or death, or violates a federal safety standard. In agreeing to settle the matter, RRK Holdings Inc. denies that the spiral saws were defective and that it violated the reporting requirements of the Consumer Product Safety Act.

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