Notice2026-05135
Proposed Settlement Agreement, Stipulation, Order and Judgment, etc.; Shimano, Inc. and Shimano North America Holding, Inc.
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 17, 2026
Issuing agencies
Consumer Product Safety Commission
Abstract
The Commission publishes in the Federal Register any settlement that it provisionally accepts under the Consumer Product Safety Act. Published below is a provisionally accepted Settlement Agreement with Shimano, Inc. and Shimano North America Holding, Inc., containing a civil penalty in the amount of $11,500,000 subject to the terms and conditions of the Settlement Agreement. The Commission provisionally accepted the proposed Settlement Agreement and Order pertaining to Shimano, Inc. and Shimano North America Holding, Inc.
Full Text
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<title>Federal Register, Volume 91 Issue 51 (Tuesday, March 17, 2026)</title>
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[Federal Register Volume 91, Number 51 (Tuesday, March 17, 2026)]
[Notices]
[Pages 12761-12764]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05135]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 26-C0002]
Proposed Settlement Agreement, Stipulation, Order and Judgment,
etc.; Shimano, Inc. and Shimano North America Holding, Inc.
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
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SUMMARY: The Commission publishes in the Federal Register any
settlement that it provisionally accepts under the Consumer Product
Safety Act. Published below is a provisionally accepted Settlement
Agreement with Shimano, Inc. and Shimano North America Holding, Inc.,
containing a civil penalty in the amount of $11,500,000 subject to the
terms and conditions of the Settlement Agreement. The Commission
provisionally accepted the proposed Settlement Agreement and Order
pertaining to Shimano, Inc. and Shimano North America Holding, Inc.
DATES: Any interested person may ask the Commission not to accept this
agreement or otherwise comment on its contents by filing a written
request with the Office of the Secretary by April 1, 2026.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to Comment 26-C0002, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Bethesda, MD 20814; telephone: (301) 504-7479 (office); email: <a href="/cdn-cgi/l/email-protection#8be8fbf8e8a6e4f8cbe8fbf8e8a5ece4fd"><span class="__cf_email__" data-cfemail="36554645551b5945765546455518515940">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Liana G.T. Wolf, Senior Trial
Attorney, Division of Enforcement and Litigation, Office of Compliance
and Field Operations, Consumer Product Safety Commission, 4330 East
West Highway, Bethesda, Maryland 20814; <a href="/cdn-cgi/l/email-protection#e08c978f8c86a083909383ce878f96"><span class="__cf_email__" data-cfemail="3e52495152587e5d4e4d5d10595148">[email protected]</span></a>; 240-743-8559
(mobile).
SUPPLEMENTARY INFORMATION: The text of the Settlement Agreement and
Order appear below.
Dated: March 12, 2026.
Brianna Bell,
Paralegal Specialist.
UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION
In the Matter of:
CPSC Docket No.: 26-C0002
SHIMANO, INC. AND SHIMANO
NORTH AMERICA HOLDING, INC.
Settlement Agreement
1. In accordance with the Consumer Product Safety Act, 15 U.S.C.
2051-2089 (``CPSA''), and 16 CFR 1118.20, Shimano, Inc. and Shimano
North America Holding, Inc. (collectively, ``Shimano'' or ``the
Firm''), and the United States Consumer Product Safety Commission
(``Commission'' or ``CPSC''), through its staff, hereby enter into this
Settlement Agreement (``Agreement''). The Agreement and the
incorporated attached Order resolve staff's charges set forth below.
The Parties
2. The Commission is an independent federal regulatory agency,
established pursuant to, and responsible for, the enforcement of the
CPSA, 15 U.S.C. 2051-2089. By executing the Agreement, staff is acting
on behalf of the Commission, pursuant to 16 CFR Sec. 1118.20(b). The
Commission issues the Order under the provisions of the CPSA.
3. Shimano, Inc. is a corporation, organized and existing under the
laws of
[[Page 12762]]
Japan, with its principal place of business in Japan.
4. Shimano North America Holding, Inc. is a corporation, organized
and existing under the laws of the state of California, with its
principal place of business in Irvine, California. Shimano North
America Holding, Inc. is a subsidiary of Shimano, Inc.
Staff Charges
5. Between 2012 and 2023, approximately 680,000 11-Speed Bonded
Hollowtech II Bicycle Cranksets, Models Ultegra FC-6800 and FC-R8000
and Dura-Ace FC-9000, FC-R9100, and FC-R9100P (collectively, the
``Subject Products'') were imported and distributed in the United
States.
6. The Subject Products are ``consumer products'' that were
``manufactured'' and ``import[ed]'' and ``distribut[ed] in commerce,''
as those terms are defined or used in sections 3(a)(5), (7), (9), and
(10) of the CPSA, 15 U.S.C. 2052(a)(5), (7), (9), and (10). Shimano,
Inc. is the ``manufacturer'' of the Subject Products, and Shimano North
America Holding, Inc. is a ``distributor'' of the Subject Products, as
such terms are defined in sections 3(a)(8) and (11) of the CPSA, 15
U.S.C. 2052(a)(8) and (11).
Violation of CPSA Section 19(a)(4)
7. The Subject Products contain a defect which could create a
substantial product hazard or create an unreasonable risk of serious
injury or death because the recalled bonded crank parts can separate
and break, posing a crash hazard to consumers.
8. Between 2013 and 2022, Shimano received thousands of warranty
claims relating to the Subject Products and dozens of reports of
consumers globally sustaining personal injuries while using the Subject
Products, including bone fractures, joint displacement, and
lacerations, due to falls from bicycles, contact with the broken
Subject Products, and impact with the ground.
9. During this time, Shimano, Inc. made nine overall manufacturing
and design changes that resulted in over twenty-five individual changes
to the Subject Products to mitigate the potential for the Subject
Products to separate and break.
10. Despite possessing information that reasonably supported the
conclusion that the Subject Products 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.
11. The Commission and Shimano North America Bicycle, Inc. jointly
announced a recall of the Subject Products 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.
Failure To Timely Report
12. Despite having information reasonably supporting the conclusion
that the Subject Products contained a defect which could create a
substantial product hazard or created an unreasonable risk of serious
injury or death, Shimano did not notify the Commission immediately of
such defect or risk, as required by sections 15(b)(3) and (4) of the
CPSA, 15 U.S.C. 2064(b)(3), (4), in violation of section 19(a)(4) of
the CPSA, 15 U.S.C. 2068(a)(4).
13. Because the information in Shimano's possession about the
Subject Products constituted actual and presumed knowledge, Shimano
knowingly violated section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4),
as the term ``knowingly'' is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d).
14. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Shimano is
subject to civil penalties for its knowing violation of section
19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).
Response of Shimano
15. Shimano has a longstanding history of proactively working with
the CPSC and remains committed to doing so. This Agreement does not
constitute an admission by Shimano to the staff's charges as set forth
in Paragraphs 5 through 14 above, including, without limitation, that
the Subject Products contained a defect that could create a substantial
product hazard or created an unreasonable risk of serious injury or
death; or, that Shimano failed to notify the Commission in a timely
manner in accordance with section 15(b) of the CPSA, 15 U.S.C. 2064(b);
or, that Shimano knowingly violated section 19(a)(4) of the CPSA, 15
U.S.C. 2068(a)(4), as the term ``knowingly'' is defined in section
20(d) of the CPSA, 15 U.S.C. 2069(d).
16. As part of the corrective action, Shimano voluntarily agreed to
start an inspection and replacement program whereby Shimano agreed to
replace any Subject Products if they failed the inspection free of
charge. Since the start of the inspection and replacement program,
there have been no reported injuries by consumers.
17. Shimano enters into this Agreement to settle this matter and to
avoid the distraction, delay, uncertainty, and inconvenience of
protracted litigation or other proceedings. Shimano does not admit that
it violated the CPSA or any other law, and Shimano's willingness to
enter into this Agreement and Order does not constitute, nor is it
evidence of, an admission by Shimano of liability, or violation of any
law.
Agreement of the Parties
18. Under the CPSA, the Commission has jurisdiction over the matter
involving the Subject Products and over Shimano.
19. The parties enter into the Agreement for settlement purposes
only. The Agreement does not constitute an admission by Shimano or a
determination by the Commission that Shimano violated the CPSA.
20. In settlement of staff's charges, Shimano shall pay a civil
penalty in the amount of eleven million, five hundred thousand dollars
($11,500,000). The $11,500,000 Payment shall be paid within thirty (30)
calendar days after receiving service of the Commission's final Order
accepting the Agreement. All payments to be made under the Agreement
shall constitute debts owing to the United States and shall be made by
electronic wire transfer to the United States via <a href="http://www.pay.gov">http://www.pay.gov</a>,
for allocation to, and credit against, the payment obligations of
Shimano under this Agreement. Failure to make such payment by the date
specified in the Commission's final Order shall constitute Default.
21. The Commission or the United States may seek enforcement for
any breach of, or any failure to comply with, any provision of this
Agreement and Order in United States District Court, to seek relief
including, but not limited to, collecting amounts due.
22. All unpaid amounts, if any, due and owing under the Agreement,
shall constitute a debt due and immediately owing by Shimano to the
United States, and interest shall accrue and be paid by Shimano at the
federal legal rate of interest set forth at 28 U.S.C. 1961(a) and (b)
from the date of Default, until all amounts due have been paid in full
(hereinafter ``Default Payment Amount'' and ``Default Interest
Balance''). Shimano shall consent to a Consent Judgment in the amount
of the Default Payment Amount and Default Interest Balance, and the
United States, at its sole option, may collect the entire Default
Payment Amount and Default Interest Balance, or exercise any other
rights granted by law or in equity, including, but not limited to,
referring such matters for private collection, and Shimano agrees not
to contest, and
[[Page 12763]]
hereby waives and discharges any defenses to, any collection action
undertaken by the United States, or its agents or contractors, pursuant
to this paragraph. Shimano shall pay the United States all reasonable
costs of collection and enforcement under this paragraph, respectively,
including reasonable attorney's fees and expenses.
23. After staff receives this Agreement executed on behalf of
Shimano, staff shall promptly submit the Agreement to the Commission
for provisional acceptance. Promptly following provisional acceptance
of the Agreement by the Commission, the Agreement shall be placed on
the public record and published in the Federal Register, in accordance
with the procedures set forth in 16 CFR 1118.20(e). If the Commission
does not receive any written request not to accept the Agreement within
fifteen (15) calendar days, the Agreement shall be deemed finally
accepted on the 16th calendar day after the date the Agreement is
published in the Federal Register, in accordance with 16 CFR
1118.20(f).
24. This Agreement is conditioned upon, and subject to, the
Commission's final acceptance, as set forth above, and it is subject to
the provisions of 16 CFR 1118.20(h). Upon the later of: (i) the
Commission's final acceptance of this Agreement and service of the
accepted Agreement upon Shimano, and (ii) the date of issuance of the
final Order, this Agreement shall be in full force and effect, and
shall be binding upon the parties.
25. Effective upon the later of: (1) the Commission's final
acceptance of the Agreement and service of the accepted Agreement upon
Shimano, and (2) the date of issuance of the final Order, for good and
valuable consideration, Shimano hereby expressly and irrevocably waives
and agrees not to assert any past, present, or future rights to the
following, in connection with the matter described in this Agreement:
(i) an administrative or judicial hearing;
(ii) judicial review or other challenge or contest of the
Commission's actions;
(iii) a determination by the Commission of whether Shimano failed
to comply with the CPSA and the underlying regulations;
(iv) a statement of findings of fact and conclusions of law; and
(v) any claims under the Equal Access to Justice Act.
26. Shimano shall maintain a compliance program designed to ensure
compliance with the CPSA with respect to any Shimano consumer product
imported, manufactured, distributed or sold in the United States, which
shall contain the following elements:
(i) written standards, policies, and procedures, including those
designed to ensure that information that may relate to or impact CPSA
compliance is conveyed effectively to personnel responsible for CPSA
compliance, whether or not an injury has been reported;
(ii) procedures and systems for tracking and reviewing claims,
including warranty claims, and reports for safety concerns reported by
consumers, whether inside or outside the United States, and for
implementing corrective and preventive actions when compliance
deficiencies or violations are identified;
(iii) procedures requiring that information required to be
disclosed by Shimano to the Commission is recorded, processed, and
reported in accordance with applicable law;
(iv) procedures requiring that all reporting made to the Commission
is timely, truthful, complete, accurate, and in accordance with
applicable law;
(v) procedures requiring that prompt disclosure is made to Shimano
management of any significant deficiencies or material weaknesses in
the design or operation of such internal controls that are reasonably
likely to affect adversely, in any material respect, Shimano's ability
to record, process and report to the Commission in accordance with
applicable law;
(vi) mechanisms to effectively communicate to all applicable
Shimano employees, through training programs or other means,
compliance-related company policies and procedures to prevent
violations of the CPSA;
(vii) a mechanism for confidential employee reporting of
compliance-related questions or concerns to either a compliance officer
or to another senior manager with authority to act as necessary;
(viii) Shimano's senior management responsibility for, and general
board oversight of, CPSA compliance, including the implementation of
steps to ensure that incident and injury data is reviewed and analyzed
for purposes of CPSA Section 15(b) reporting;
(ix) an annual internal audit of the effectiveness of policies,
procedures, systems, and training related to CPSA compliance that
evaluates opportunities for improvement, deficiencies or weaknesses,
and the Firm's overall culture of compliance; and
(x) retention of all CPSA compliance-related records for at least
five (5) years, and availability of such records to CPSC staff upon
request.
27. Shimano shall submit a report under CPSA Section 16(b), sworn
to under penalty of perjury:
(i) describing in detail its compliance program and internal
controls and the actions Shimano has taken to comply with each
subparagraph of paragraph 26;
(ii) affirming that during the reporting period, Shimano has
reviewed its compliance program and internal controls, including the
actions referenced in subparagraph (i) of this paragraph, for
effectiveness, and that it complies with each subparagraph of paragraph
26, or describing in detail any non-compliance with any such
subparagraph; and
(iii) identifying the results of the annual internal audit
referenced in paragraph 26(ix) and any changes or modifications made
during the reporting period to Shimano's compliance program or internal
controls to ensure compliance with the terms of the CPSA and, in
particular, the requirements of CPSA Section 15 related to timely
reporting.
Such reports shall be submitted to the Director, Office of
Compliance and Field Operations, Division of Enforcement and
Litigation, for a period of three (3) years. The first report shall be
submitted 30 days after the close of the first 12-month reporting
period, which begins on the date of the Commission's Final Order of
Acceptance of the Agreement, and successive reports shall be due
annually on the same date thereafter. Without limitation, Shimano
acknowledges and agrees that failure to make such timely and accurate
reports, as required by this Agreement and Order, may constitute a
violation of Section 19(a)(3) of the CPSA, 15 U.S.C. 2068(a)(3), and
may subject Shimano to enforcement under Section 22 of the CPSA, 15
U.S.C. 2071.
28. Notwithstanding and in addition to the above, Shimano shall
promptly provide written documentation of any changes or modifications
to its compliance program or internal controls and procedures,
including the effective dates of the changes or modifications thereto.
Shimano shall cooperate fully and truthfully with staff and shall make
available all non-privileged information and materials and personnel
deemed necessary by staff to evaluate Shimano's compliance with the
terms of the Agreement.
29. The parties acknowledge and agree that the Commission may
publicize the terms of the Agreement and the Order.
30. Shimano represents that the Agreement:
[[Page 12764]]
(i) is entered into freely and voluntarily, without any degree of
duress or compulsion whatsoever;
(ii) has been duly authorized; and
(iii) constitutes the valid and binding obligation of Shimano,
enforceable against Shimano in accordance with its terms. The
individuals signing the Agreement on behalf of Shimano represent and
warrant that they are duly authorized by Shimano to execute the
Agreement.
31. The signatories represent that they are authorized to execute
this Agreement.
32. The Agreement is governed by the laws of the United States.
33. The Agreement and the Order shall apply to, and be binding
upon, Shimano and each of its parents, successors, transferees, and
assigns; and a violation of the Agreement or Order may subject Shimano,
and each of its parents, successors, transferees, and assigns, to
appropriate legal action.
34. The Agreement, any attachments, and the Order constitute the
complete agreement between the parties on the subject matter contained
therein.
35. The Agreement may be used in interpreting the Order.
Understandings, agreements, representations, or interpretations apart
from those contained in the Agreement and the Order may not be used to
vary or contradict their terms. For purposes of construction, the
Agreement shall be deemed to have been drafted by both of the parties
and shall not, therefore, be construed against any party, for that
reason, in any subsequent dispute.
36. The Agreement may not be waived, amended, modified, or
otherwise altered, except as in accordance with the provisions of 16
CFR 1118.20(h). The Agreement may be executed in counterparts.
37. If any provision of the Agreement or the Order is held to be
illegal, invalid, or unenforceable under present or future laws
effective during the terms of the Agreement and the Order, such
provision shall be fully severable. The balance of the Agreement and
the Order shall remain in full force and effect, unless the Commission
and Shimano agree in writing that severing the provision materially
affects the purpose of the Agreement and the Order.
(Signatures on next page)
SHIMANO, INC.
Dated: March 2, 2026.
By: /s/----------------------------------------------------------------
Keisuke Nakano,
Executive Officer, Vice President, Process Engineering R&D
Department and Supervising of Quality Assurance, Department in
Process, Quality Management Division, Shimano, Inc.
Authorized Signatory.
SHIMANO NORTH AMERICA HOLDING, INC.
Dated: March 3, 2026.
By: /s/----------------------------------------------------------------
Gerriet O'Neill,
Senior Vice President & Chief Financial Officer, Shimano North
America Holding, Inc.
Authorized Signatory.
Dated: March 2, 2026.
By: /s/----------------------------------------------------------------
Cheryl Falvey,
Crowell & Moring LLP, Counsel to Shimano.
Dated: March 2, 2026.
By: /s/----------------------------------------------------------------
E. Paul Dougherty,
Gregory K. Lee,
Wilson Elser LLP, Counsel to Shimano.
U.S. CONSUMER PRODUCT SAFETY COMMISSION
Mary B. Murphy,
Director, Division of Enforcement and Litigation, Office of
Compliance and Field Operations.
Dated: March 4, 2026.
By: /s/----------------------------------------------------------------
Liana G.T. Wolf,
Senior Trial Attorney, Division of Enforcement and Litigation,
Office of Compliance and Field Operations.
United States of America
Consumer Product Safety Commission
In the Matter of: SHIMANO, INC. AND SHIMANO NORTH AMERICA HOLDING,
INC., CPSC Docket No.: 26-C0002
Order
Upon consideration of the Settlement Agreement entered into between
Shimano, Inc. and Shimano North America Holding, Inc. (collectively,
``Shimano'' or ``the Firm'') and the U.S. Consumer Product Safety
Commission (``Commission'' or ``CPSC''), and the Commission having
jurisdiction over the subject matter and over Shimano, and it appearing
that the Settlement Agreement is in the public interest, the Settlement
Agreement is incorporated by reference and it is:
Provisionally accepted and Order issued on the 12 day of March,
2026.
By Order of the Commission:
/s/--------------------------------------------------------------------
Alberta E. Mills,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 2026-05135 Filed 3-16-26; 8:45 am]
BILLING CODE 6355-01-P
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