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Consumer Daily Reports

Manufacturer pleads guilty to criminal charge of not reporting a product safety issue

By Truman Lewis Consumer News: Portable air conditions caused more than 40 fires and one death of ConsumerAffairs
August 6, 2025

Royal Sovereign International Inc., a New Jersey corporation that sold office and home appliances, pleaded guilty today to a criminal information charging it under the Consumer Product Safety Act (CPSA) with failing to report immediately to the U.S. Consumer Product Safety Commission (CPSC) information concerning portable air conditioners allegedly linked to more than 40 fires and one death.

Additionally, Royal Sovereign agreed to a civil settlement with the United States that included a $16,025,000 civil penalty, the maximum civil penalty authorized by the CPSA.

According to court documents, Royal Sovereign, which also did business as Royal Centurian Inc., imported and sold more than 33,000 defective air conditioners between 2008 and 2014. The air conditioners were defective due to a faulty drain motor that could electrically short and cause them to catch fire and burn uncontrollably. The companys CEO, Takwan Lim, previously signed a settlement agreement with CPSC stemming from allegations that a related entity, Royal Sovereign Corporation, sold certain portable ceramic heaters that posed a fire risk. Royal Sovereign recalled the defective air conditioner models in 2021.

Reporting delays not acceptable

It is critical for companies, corporate executives, and their employees to exercise strict compliance with their obligations under the Consumer Product Safety Act to safeguard the American public and recall hazardous products as soon as possible, said Assistant Attorney General Brett A. Shumate of the Justice Departments Civil Division. Companies cannot attempt to evade liability by delaying or avoiding reporting. When they do, they must be held accountable.

The criminal and civil resolutions in this matter show this Offices commitment to protecting the public and holding companies accountable for violating their obligations under the Consumer Product Safety Act, said Acting U.S. Attorney Alina Habba for the District of New Jersey.

Royal Sovereigns failure to report a deadly defect led to tragedy, including the death of a mother and serious injuries to her children, said CPSC Acting Chairman Peter A. Feldman. CPSC will not hesitate to use the full weight of its executive power to pursue violations of the law including criminal penalties and we thank our partners at DOJ for helping to bring this company to justice.

Sales continued despite fires

In pleading guilty, Royal Sovereign admitted that, despite knowing of the defects from numerous consumer complaints and lawsuits, it willfully failed to report information about the air conditioners immediately to CPSC, as was its obligation under the CPSA. According to the information filed in the case, the company misled the CPSC in November 2010 by telling the agency that it was aware of only two fire incidents related to the air conditioners and that the products had been discontinued. In reality, the government alleged, the company was aware of at least 16 fires and continued to distribute the products anyway.

According to therecall notice, a woman died in August 2016 from smoke inhalation and her two children were injured after their Royal Sovereign air conditioner caught fire. In connection with the guilty plea, Royal Sovereign is required to pay $395,786.48 in restitution to victims.

The civil settlement resolves allegations that Royal Sovereign failed to notify the CPSC immediately, as required by law, that its portable air conditioners contained a defect presenting a substantial product hazard and that the products created an unreasonable risk of serious injury or death.

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. In recognition of the companys limited ability to pay, all but $100,000 of the civil penalty was suspended. 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 as required by law before resuming the marketing, sale, or distribution of any consumer products.

For more information about the products that were recalled, visitwww.cpsc.gov/Recalls/2022/Royal-Sovereign-Recalls-Portable-Air-Conditioners-Due-to-Fire-and-Burn-Hazards-One-Death-Reported.

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 atThis email address is being protected from spambots. You need JavaScript enabled to view it.by Sept. 5, if they have not previously received compensation and believe they are entitled to restitution.




Posted: 2025-08-06 18:54:15

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Consumer News: There’s a growing emergency in the emergency room, study warns

Thu, 07 Aug 2025 13:07:07 +0000

More patients are waiting hours for treatment

By Mark Huffman of ConsumerAffairs
August 7, 2025
  • One in four ER patients waits over four hours for a hospital bed, even during non-peak months.

  • Nearly 5% of admitted patients wait 24+ hours in emergency departments during winter.

  • Boarding times have remained dangerously high for four years, threatening care quality and emergency readiness.


Hospitals across the United States are facing a persistent and worsening crisis: patients sick enough to require inpatient care are being forced to wait sometimes for hours, sometimes for an entire day in emergency departments due to a lack of available hospital beds.

This practice, known as boarding, has surged in recent years, according to a new study published in Health Affairs by researchers from the University of Michigan Medical School and Beth Israel Deaconess Medical Center.

The study analyzed more than 46 million emergency visits across 1,500 hospitals in all 50 states from 2017 through September 2024.

From hours to days: A dangerous trend

While boarding was already increasing before the COVID-19 pandemic, the problem accelerated in mid-2020 and has remained at dangerously high levels ever since across all seasons, the researchers reported.

Key findings include:

  • From 2022 to 2024, more than 25% of admitted ER patients during non-peak months waited four hours or more for a bed.

  • During the winter months, that figure rose to 35%.

  • By 2024, nearly 5% of ER-to-inpatient admissions in peak months faced boarding times of 24 hours or more, a level virtually unheard of before the pandemic.

These boarding times far exceed national hospital safety guidelines, which recommend no more than four hours of waiting in the ER before transfer to an inpatient bed.

Whos most affected?

The study reveals that boarding affects all regions and demographics, but certain groups bear a disproportionate burden:

  • The Northeast showed the highest rate of 24-hour boarding.

  • Increases were especially sharp for:

    • Adults aged 65 and older

    • Patients whose primary language is not English or Spanish

    • And Black patients.

The researchers said these disparities suggest broader systemic issues in healthcare equity and resource allocation.

The root causes are both structural and administrative, according to both the studys authors and a recent summit convened by the Agency for Healthcare Research and Quality (AHRQ):

  • Mismatch between the number of emergency visits and the capacity of inpatient care.

  • Inefficient discharge processes that slow the turnover of inpatient beds.

  • Backlogs in mental and behavioral health services often require prolonged ED stays.

This growth in long boarding times for admitted patients is the most important driver of crowded conditions and long wait times in emergency departments, said lead author Dr. Alex Janke, emergency physician at U-M Health. Sustained high levels of boarding suggest the health system is at risk of collapse in the event of another pandemic.

The study concludes things got worse during the pandemic. Even in 2024s lowest-boarding months, four-hour-plus waits were more frequent than the worst winter months of 2017 to 2019.


Read More ...


Consumer News: Claire’s declares bankruptcy to find financial partners

Thu, 07 Aug 2025 13:07:07 +0000

Its the second time in seven years the jewelry retailer has restructures

By Mark Huffman of ConsumerAffairs
August 7, 2025
  • Claires U.S. files for Chapter 11 bankruptcy in Delaware, with a similar filing planned in Canada.

  • The company will continue operating stores across North America during the proceedings.

  • CEO Chris Cramer cites market shifts and debt pressure as drivers behind the restructuring move.


For the second time in seven years, Claire's Holdings LLC, the global accessories and jewelry retailer known for its Claires and ICING stores, has filed for Chapter 11 bankruptcy protection.

The filing, made in the U.S. Bankruptcy Court for the District of Delaware, comes as the company attempts to restructure its operations and maximize business value amid challenging retail conditions.

In parallel, Claires also intends to initiate proceedings in Canada under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice. These combined efforts are aimed at facilitating a strategic monetization of Claires assets and creating room to evaluate new partnerships and business alternatives.

The retailer has been a longtime favorite of the tween age group, populating malls across America. For many young people, its where they got their ears pierced. But lately, the company has struggled to become profitable.

Claires cited a confluence of economic and industry-wide pressures as key reasons behind the bankruptcy decision, including intensified market competition, evolving consumer spending behavior, and the broader migration away from physical retail shopping. The weight of existing debt obligations and macroeconomic uncertainties further exacerbated the situation, prompting the company to seek legal protection as it charts a new course.

Difficult but necessary

This decision is difficult, but a necessary one, said Claires CEO Chris Cramer. We remain in active discussions with potential strategic and financial partners and are committed to completing our review of strategic alternatives.

Cramer also extended his gratitude to the company's employees, acknowledging their continued commitment to providing exceptional service and products in an increasingly complex market.

Despite the filings, Claires said that its retail locations in both the U.S. and Canada will remain open and continue serving customers. The company is also pursuing court approval for standard first day motions that will allow it to honor its obligations to employees, vendors, and partners. These motions include continued payment of wages and benefits, a signal of Claires intention to operate business as usual throughout the restructuring process.


Read More ...


Consumer News: States demand DOJ action to dismantle offshore gambling rings

Wed, 06 Aug 2025 22:07:07 +0000

State AGs say offshore gambling sites cost U.S. communities over $4 billion in lost tax revenue annually

By Truman Lewis of ConsumerAffairs
August 6, 2025

  • State AGs say offshore gambling sites cost U.S. communities over $4 billion in lost tax revenue annually

  • AGs call foreign gambling platforms a threat to consumers and public safety

  • Coalition demands DOJ use seizure powers, financial blockades, and domain takedowns


In a rare display of bipartisan unity, all 50 U.S. state and territorial attorneys general have joined forces to demand a federal crackdown on illegal offshore gambling operations, which they warn are siphoning billions from local economies and exposing vulnerable populations to serious harm.

Illegal offshore gambling platforms are siphoning billions of dollars away from American communities, exploiting vulnerable consumers, and fueling transnational crime. That ends now, saidMissouri Attorney GeneralAndrew Bailey.

In a formal letter to U.S. Attorney General Pam Bondi, the attorneys general urged the Department of Justice (DOJ) to take immediate and decisive action against the foreign-based gambling enterprises that continue to flout U.S. law. The coalition cited rampant violations of age verification, consumer protection, and tax compliance laws.

A $400 billion shadow industry

The letter warns that the illegal online gaming industry now exceeds $400 billion annually, resulting in an estimated $4 billion in lost tax revenue for U.S. state governments. These unlicensed sites, often run from jurisdictions with little oversight, undermine the legal gaming market and are linked to serious crimes including money laundering, human trafficking, and organized criminal networks.

These operations deliberately sidestep U.S. law, the letter states, functioning without licenses, avoiding taxes, and offering no safeguards to protect minors or problem gamblers.

To combat the spread of these platforms, the AGs called on the DOJ to deploy multiple enforcement tools, including:

  • Seizing domain names under the Unlawful Internet Gambling Enforcement Act

  • Confiscating assets and servers via powers granted under 18 U.S.C. 1955(d)

  • Partnering with banks and payment processors to block illicit financial transactions

The AGs cited previous DOJ actions including the 2011 Black Friday online poker crackdown and the 2024 takedown of a Russian cybercrime network as models for an aggressive federal response.

The rule of law must prevail

With both economic stakes and consumer protections on the line, the letter marks an urgent appeal for coordinated enforcement, signaling that the states are no longer willing to tolerate a digital Wild West of illegal gambling. The DOJ has not yet issued a public response.


Read More ...


Consumer News: Trump Administration proposes sweeping changes to enable long-range drone deliveries

Wed, 06 Aug 2025 16:07:08 +0000

The administration proposes to allow commercial drones to fly beyond the visual line of sight

By Truman Lewis of ConsumerAffairs
August 6, 2025
  • Proposed FAA rule would allow commercial drones to fly beyond visual line of sight without case-by-case waivers
  • Industry-backed move seen as boost to drone delivery firms like Wing, Walmart, and Zipline

  • New safety, cybersecurity, and traffic-management standards required for drone operations


In a major policy shift aimed at accelerating the growth of the drone delivery sector, the Trump administration has proposed a rule that would allow commercial drones to fly beyond the visual line of sight of their operators without requiring individualized approvals from the Federal Aviation Administration (FAA).

The new framework, unveiled Tuesday by U.S. Transportation Secretary Sean Duffy, would streamline the current regulatory process that industry leaders say has hampered innovation and growth in the U.S. drone market.

Its not that America cant innovate, Duffy said. Its that weve had a bureaucracy in place that makes it incredibly difficult.

Clearer path for industry players

If finalized, the rule would eliminate the need for case-by-case waivers, enabling companies like Alphabets Wing, Walmart, and Zipline to scale operations more efficiently. Drones weighing up to 1,320 pounds including cargo would be allowed to fly beyond line of sight at or below 400 feet, provided they meet industry consensus standards and comply with new cybersecurity and safety protocols.

Operators would be permitted to fly drones over people in general, but not over large public gatherings such as concerts or sporting events. Personnel involved in drone operations may also be subject to TSA threat assessments, and drones operating in certain airspaces must be equipped with collision-avoidance technology and yield to manned aircraft broadcasting location data via ADS-B.

Supporters say the rule could put the U.S. on stronger footing in the global drone market, where China currently dominates 90% of consumer drone sales. It also introduces new air traffic management standards designed to prevent midair collisions with manned aircraft and other drones.

Yet safety advocates and industry voices emphasized the importance of strong controls. In a Bloomberg report, Beth Flippo, CEO of drone tech firm DEXA, warned:We dont want people just flying any homegrown drone over people and beyond line of sight. Manned air travel is the safest form of travel in the world we dont want to jeopardize that.

The FAAs plan still requires public comment and further review, but it marks a pivotal shift toward normalizing commercial drone operations in sectors ranging from package delivery and farming to manufacturing and emergency services.

While some hurdles remain including risks from aircraft not broadcasting location data advocates hope the proposal signals a long-awaited modernization of U.S. airspace policy.


Read More ...


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