By Will Burgess

Washington, DC — Segway Powersports Inc. (SPI), of McKinney, Tex. was assessed a fine of $5 million dollars by the Consumer Product Safety Commission (CPSC) under the charge they knowingly violated federal laws.

The claim states Segway deliberately imported ATVs into the United States that were not subject to a CPSC-approved ATV action plan. The CPSC has not specified when the imports took place, although SPI has only been a powersports manufacturer since 2019.

The ATV action plan is a written notice to the CPSC of the intent for sale of the vehicles imported, including a description of the safety measures the manufacturer will take in conjunction with the sale of these vehicles.
“Such measures include rider training, dissemination of safety information, age recommendations, and other actions to promote safety,” said Alexander Hoehn-Saric, Chair of the CPSC.

According to a release, the CPSC claims Segway willingly disobeyed this commercial trade agreement when importing 152 ATVs, which is a violation of federal law.

Segway has claimed an inability to pay the $5 million dollar fine in full, and submitted evidence to support their case to the CPSC.

“Although the penalty amount in this matter is $5 million, the Commission will suspend all but $1.25 million based upon evidence submitted by Segway of its inability to pay the full amount,” said Hoehn-Saric, noting a significant reduction in the fine.
“This $5 million fine is significant and a reminder of the importance of complying with all applicable safety laws. And if Segway’s representations of inability to pay were inaccurate, the full amount of the penalty will be due.”

In a 2016 appeal to the government, the Segway parent company claimed an infringement of the patent for their self-balancing mobility board that resulted in the International Trade Commission restricting the US import of some Personal Electric Vehicle balance scooters commonly called “hoverboards”.

Cover photo: the Segway Snarler AT6 L powersports ATV | credit: CPSC.gov

Will Burgess is a journalist with Adrenaline Powersports Mag