Products Liability Law Reporter

Between June 2014 and March 2022, Bestar, Inc., allegedly manufactured and distributed in the United States approximately 129,000 wall beds. Beginning in September 2014 and continuing through 2022, Bestar allegedly received numerous reports that the beds were detaching from walls. By 2016, the company allegedly received notice of two incidents involving injured consumers. Although Bestar engaged with the U.S. Consumer Product Safety Commission (CPSC) and Health Canada in response to these incidents, the company did not inform regulators.

In 2018, a bed detached and fell on a consumer, who later died of her injuries. By the time Bestar filed a full report with the CPSC, the company allegedly was aware of at least 35 incidents. Bestar and the CPSC jointly announced a recall of the wall beds in April 2022.

The CPSC charged that Bestar failed to timely report to the commission that its products contained a defect that could create an unreasonable risk of serious injury or death.

The parties settled for a civil penalty totaling approximately $16.02 million. The CPSC agreed to suspend all but $4 million of the total civil penalty amount, citing the accuracy, truthfulness, and completeness of Bestar’s representations. As part of the settlement, Bestar agreed to maintain internal controls and procedures to ensure compliance with the Consumer Product Safety Act.

Citation: In the Matter of Bestar, Inc., CPSC Dkt. No. 25-C0001 (U.S. CPSC Nov. 12, 2024).

Government counsel: Serena Anand, Washington, D.C.