Shimano Agrees to Pay $11.5 Million Civil Penalty for Failure to Immediately Report Bicycle Cranksets that Posed a Crash Hazard

WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC) is announcing that Shimano, Inc., of Japan, and Shimano North America Holding, Inc., of Irvine, California, have agreed to pay an $11.5 million civil penalty. The settlement, which has been provisionally accepted by CPSC, resolves CPSC's charges that Shimano knowingly failed to immediately report to CPSC, as required by law, that its 11-Speed Bonded Hollowtech II Bicycle Cranksets, Models Ultegra FC-6800 and FC-R8000 and Dura-Ace FC-9000, FC-R9100, and FC-R9100P, contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury or death to consumers.

Between 2013 and 2022, Shimano received thousands of warranty claims relating to the bicycle cranksets and dozens of reports of consumers globally sustaining personal injuries while using the bicycle cranksets, including bone fractures, joint displacement, and lacerations, due to falls from bicycles, contact with the broken cranksets, and impact with the ground. During this time, Shimano, Inc. made nine overall manufacturing and design changes that resulted in over twenty-five individual changes to the bicycle cranksets to mitigate the potential for the cranksets to separate and break. 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 Commission and Shimano North America Bicycle, Inc. jointly announced a recallof the 11-Speed Bonded Hollowtech II Bicycle Cranksets on September 21, 2023. The press release announcing the recall stated that the firm had received at least 4,519 incidents of cranksets separating, and six reported injuries, including bone fractures, joint displacement, and lacerations.

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.

The Commission has provisionally accepted the settlement agreement, subject to public comment. Liana G.T. Wolf, a Senior Trial Attorney in the Division of Enforcement and Litigation, represented the Commission in this enforcement action.