Air conditioning units carried on wheels sparked over 40 blazes and resulted in a single fatality
Defunct Company Faces Criminal Charges for Selling Defective Air Conditioners
Royal Sovereign International Inc., a now-defunct New Jersey company, has pleaded guilty to criminal charges for willfully violating the Consumer Product Safety Act (CPSA) by failing to report dangerous defects in portable air conditioners. The company sold and imported more than 33,000 defective units between 2008 and 2014.
The defective air conditioners were due to a faulty drain motor that could electrically short and cause them to catch fire and burn uncontrollably. This flaw was linked to over 40 fires and one tragic death.
In November 2010, Royal Sovereign misled the CPSC by reporting only two fire incidents and claiming the products were discontinued, while it was actually aware of at least 16 fires and continued distribution. A 2016 incident involved a fatal fire caused by one of Royal Sovereign’s air conditioners, resulting in the death of a mother and serious injuries to her two children due to smoke inhalation.
The company pleaded guilty on August 5, 2025, to one count of willfully violating the CPSA. Royal Sovereign agreed to pay $16 million in civil penalties—the largest authorized under the CPSA—and approximately $395,786 in restitution to victims. Due to inability to pay the full amount, the civil penalty was later suspended to $100,000.
This case marks a notable use of criminal enforcement under the CPSA, emphasizing that companies can face criminal penalties for not timely reporting known product safety hazards. The resolutions in this matter show the Office's commitment to protecting the public and holding companies accountable for violating their obligations under the Consumer Product Safety Act.
Assistant Attorney General Brett A. Shumate stated that companies must not attempt to evade liability by delaying or avoiding reporting. Acting U.S. Attorney Alina Habba echoed this sentiment, stating, "The resolutions in this matter show the Office's commitment to protecting the public and holding companies accountable for violating their obligations under the Consumer Product Safety Act."
Takwan Lim, the former CEO of the company, died in 2023. Royal Sovereign has permanently ceased all company operations related to the marketing, sale, or distribution of consumer products. Victims who experienced bodily injury or damage, destruction, or loss of property caused by a fire involving a portable air conditioner made or distributed by Royal Sovereign International Inc., or Royal Centurian Inc., with a model number beginning with PAC-3012, ARP-3012, or ARP-3014, should contact the Department of Justice by Sept. 5, if they have not previously received compensation and believe they are entitled to restitution. The consent decree requires Royal Sovereign and certain individuals associated with it to notify the government and to develop internal controls and procedures designed to ensure timely, truthful, complete, and accurate reporting to CPSC.
- Despite the criminal charges against Royal Sovereign International Inc. for selling defective air conditioners, the company was also active in the sports sector, sponsoring several professional football teams in the late 2000s and early 2010s.
- As technology advances, it is crucial for companies in sectors such as sports and consumer goods to prioritize product safety and promptly report any defects to ensure the protection of public wellbeing.
