Update
Casper's Electronics Inc. Clean Air Act Settlement
WASHINGTON - The Department of Justice and U.S. Environmental Protection Agency (EPA) announced today a landmark settlement requiring Casper's Electronics, of Mundelein, Ill., to pay a penalty and stop selling devices that allow cars to release excess levels of pollution into the environment, in violation of the Clean Air Act (CAA).
Today's settlement, the first of its kind, requires Casper's to stop selling electronic devices-known as oxygen sensor simulators or "O2 Sims"-recall the devices, and pay more than $74,000 in civil penalties to the United States. An O2 Sim tricks an automobile engine's computer into sensing a properly functioning emission control system, even when the catalytic converter is missing or faulty.
These "after-market" sensors are considered illegal "defeat devices" under the federal CAA.
Casper's has sold approximately 44,000 defeat devices through retailers and from its Web site since 2001. The EPA estimates that the increased emissions from installation of these devices over the life of the vehicles are 7,400 tons of hydrocarbons, 347,000 tons of carbon monoxide, and 6,000 tons of nitrogen oxides.
This is equivalent to the emissions produced by a half-million cars with fully operational emission control systems over their lifetimes.
"Reliable and effective automobile pollution control systems are essential to protect human health and the environment from harmful automobile emissions," said Granta Nakayama, the EPA's Assistant Administrator for enforcement and compliance assurance.
" Casper 's sale of the oxygen sensor simulator defeat devices over a multi-year period is a serious violation because it facilitated the removal or malfunctioning of motor vehicle catalytic converters, which are the primary emission controls devices to prevent excessive pollution from cars and trucks."
Federal Settlement Targets Illegal Emission Control “Defeat Devices” Sold for Autos
WASHINGTON - The Department of Justice and U.S. Environmental Protection Agency (EPA) announced today a landmark settlement requiring Casper’s Electronics, of Mundelein, Ill., to pay a penalty and stop selling devices that allow cars to release excess levels of pollution into the environment, in violation of the Clean Air Act (CAA).
Today’s settlement, the first of its kind, requires Casper’s to stop selling electronic devices — known as oxygen sensor simulators or “O2 Sims” — recall the devices, and pay more than $74,000 in civil penalties to the United States.
An O2 Sim tricks an automobile engine’s computer into sensing a properly functioning emission control system, even when the catalytic converter is missing or faulty. These “after-market” sensors are considered illegal “defeat devices” under the federal CAA.
Casper’s has sold approximately 44,000 defeat devices through retailers and from its Web site since 2001. The EPA estimates that the increased emissions from installation of these devices over the life of the vehicles are 7,400 tons of hydrocarbons, 347,000 tons of carbon monoxide, and 6,000 tons of nitrogen oxides. This is equivalent to the emissions produced by a half-million cars with fully operational emission control systems over their lifetimes.
“Emission control defeat devices, like those used here, risk harming human health and the environment by allowing huge increases in pollutants from motor vehicles,” said Ronald J. Tenpas, Acting Assistant Attorney General for the Justice Department's Environment and Natural Resources Division.
“The Justice Department will continue to vigorously enforce all of the provisions of the Clean Air Act — including its rule against these devices — against violators, including those using the Internet to illegally sell their wares.”
“Reliable and effective automobile pollution control systems are essential to protect human health and the environment from harmful automobile emissions,” said Granta Nakayama, the EPA’s Assistant Administrator for enforcement and compliance assurance.
“Casper’s sale of the oxygen sensor simulator defeat devices over a multi-year period is a serious violation because it facilitated the removal or malfunctioning of motor vehicle catalytic converters, which are the primary emission controls devices to prevent excessive pollution from cars and trucks.”
An oxygen sensor simulator sends a false electronic signal to the car's engine control computer, preventing the “check engine” or “malfunction indicator” light from illuminating. The malfunction light, part of a vehicle's on-board diagnostic (OBD) system, alerts the driver when there is a problem with the emission control system.
Casper’s O2 Sims allowed vehicle owners to remove or disable the catalytic converter without the OBD system detecting the problem and turning on the check engine light.
The CAA prohibits the manufacture and sale of any devices, such as Casper’s O2 Sims, that bypass or defeat required pollution control equipment on motor vehicles. Cars and trucks with defeat devices can emit up to 50 times the amount of harmful pollution emitted by vehicles with properly functioning emission controls.
The EPA is currently investigating other automobile parts manufacturers and sellers that may also be making and selling similar products. EPA has found that some companies are advertising O2 Sims and other defeat devices as a way to enhance a car’s performance.
In addition, some companies include in their advertisements a claim that the devices are for “off-road use only”, despite clearly marketing the devices for on-road vehicles.
Air emissions from cars include harmful pollutants such as non-methane hydrocarbons and oxides of nitrogen, key ingredients in the production of ozone, a major component of urban smog. Tailpipe emissions also include carbon monoxide, which impairs breathing. Both ozone and carbon monoxide are especially harmful to children, people with asthma and the elderly.
The recall required by the settlement requires Casper’s to implement a mandatory repurchase program under which it must notify its customers that Casper’s will buy back any O2 Sims sold by Casper’s or its distributors, and create and implement a reporting system to ensure future compliance.
Both the complaint and the consent decree were filed today in the U.S. District Court for the Northern District of Illinois, Eastern Division.
The consent decree is subject to a 30-day public comment period and subsequent court approval, and is available for viewing at the Justice Department Web site
http://www.usdoj.gov/enrd/Consent_Decrees.html and
DOJ Findings Overview: Casper’s Electronics Inc., located in Mundelein Ill., is an “aftermarket” manufacturer and distributor of electronic parts and equipment for automobiles that markets its products nationwide over the internet.
Among the products manufactured and sold by Casper's were “oxygen sensor simulators” or “O2 Sims.” An “O2 Sim” is small device which is designed to be installed as part of a car’s emission control system. O2 Sims are illegal “defeat devices” under the Clean Air Act because they “defeat” the operation of a car’s emission control equipment.
An O2 Sim works by sending a false computer signal to the computer on a car or truck. The false signal prevents the “malfunction indicator light” (or “check engine” light) from illuminating when the catalytic converter malfunctions, is damaged or is missing.
The malfunction light is part of a car’s “onboard diagnostic system,” and alerts the driver when there is a problem with the emission control system that needs to be repaired. A missing or damaged catalytic converter will result in much higher levels of pollutants in car exhaust.
Casper’s sold over 44,000 O2 Sims before further sales of these illegal “defeat devices” were halted as a result of EPA’s investigation and follow-up enforcement action. These devices were advertised for “off road use only” or “non-road use only.
” However, the O2 Sims were designed and marketed to be used in regular production vehicles (“on road” or “on highway” vehicles), which is illegal under the Clean Air Act. In addition, while there are different control standards for “off road” vehicles (e.g., construction equipment) because of differences in the types of engines and applications, there is no general “off road” use exemption from the pollution control requirements of the Clean Air Act.
Injunctive Relief:
Mandatory Recall and Repurchase Program: Casper’s is required to notify purchasers of its O2 Sims that the product is not legal to be sold or installed on automobiles, and to refund the purchase price to customers and distributors who return the O2 Sims to Casper's. Casper’s began the recall program before lodging of the Consent Decree.
Destruction of O2 Sims: Casper’s is required to destroy all O2 Sims remaining in inventory, as well as all O2 Sims returned to Casper’s under the Recall and Repurchase Program.
Prohibition on Future Manufacture or Sale: Casper’s is permanently prohibited from manufacturing, selling or distributing O2 Sims or other illegal defeat devices in the future. Casper’s voluntarily stopped its manufacture or sale of O2 Sims prior to lodging of the Consent Decree.
Emissions Impact: The estimated emissions impact from the O2 Sims sold by Casper’s over the life of the vehicles in which they were installed is:
7,400 tons of hydrocarbons (HC)
347,000 tons of carbon monoxide (CO)
6,000 tons of nitrogen oxides (NOx)
The prohibition on future sales of O2 Sims will prevent additional excess emissions of HC, CO and NOx.
Health Effects: HC and NOx are both contributors to the production of ground-level ozone, or smog, which can trigger serious respiratory problems. NOx also contributes to the formation of acid rain and to global warming, among other impacts. CO impairs the ability to breathe and is especially harmful to children, people with asthma and the elderly. More information on the health effects of air pollutants.
Penalty: Casper’s is required to pay a civil penalty and interest totaling $80,000. The penalty was substantially reduced from what Casper’s would have been liable for, based on Casper’s demonstrated inability to pay a larger penalty.
