CPSC Fines Daikin $8.5 Million for Failing to Report Air Conditioner Fire Hazard

The U.S. Consumer Product Safety Commission announced on June 16, 2026 that Daikin Comfort Technologies Manufacturing, Inc., of Waller, Texas, has agreed to pay an $8.5 million civil penalty for knowingly failing to immediately report to the CPSC that its Amana-branded packaged terminal air conditioners contained a fire-hazard defect.

The settlement resolves CPSC charges that Daikin violated the Consumer Product Safety Act's mandatory reporting requirement — Section 15(b) — which requires manufacturers to immediately notify the agency when they learn a product contains a defect that could create a substantial product hazard.

What Daikin knew and when

Between 2017 and 2023, Daikin received multiple warranty claims related to the affected units, along with over a dozen reports of fires and one report of a smoke inhalation injury. The company did not report the hazard to the CPSC as required.

The affected products are Amana-branded Packaged Terminal Air Conditioners and Heat Pumps (PTACs) equipped with factory-installed "DigiAir" modules — configurable make-up air systems with dehumidification — with model numbers beginning with PMH or PMC. The DigiAir module's compressor can overheat, posing burn and fire hazards.

Approximately 62,100 units were sold in the United States, plus an additional 302 in Canada. The units were sold through direct sales and heating and cooling dealers from May 2015 through January 2023 for between $1,200 and $1,400. PTACs of this type are commonly installed in hotels, multi-family residential buildings, schools, and healthcare facilities.

The penalty and compliance requirements

Under the settlement agreement, Daikin will pay the $8.5 million civil penalty and must appoint an Internal Compliance Monitor to oversee its safety reporting procedures. The company is also required to submit annual reports on its compliance program, internal controls, and audit results.

CPSC Acting Chairman Peter A. Feldman issued a statement on the settlement. He said that where a monetary penalty alone is unlikely to secure future compliance, the agency should reach for tools like compliance monitors. Repeat offenders, he added, should expect greater consequences than first-time violators.

What owners of affected units should do

The underlying recall was issued in 2023 under CPSC Recall No. 23-779. Owners of Amana PTACs with DigiAir modules who have not yet received the free repair should contact Daikin Comfort Technologies Manufacturing at 844-309-1141, Monday–Friday 8 a.m.–4:30 p.m. CT, or online at www.amana-ptac.com/digi-air-recall. The repair involves disabling the DigiAir compressor and a follow-up repair by a qualified technician, at no cost.

The broader pattern

Federal law has required manufacturers to immediately report substantial product hazards to the CPSC since the Consumer Product Safety Act passed in 1972. The agency has brought similar delayed-reporting cases against HVAC manufacturers before: in 2016, Goodman Company agreed to pay a $5.55 million civil penalty for delaying its report of a fire risk in packaged terminal air conditioners and heaters — and for misrepresenting the number of fires when it did report.

Seven-figure penalties for putting workers or the public at risk are not unique to the CPSC. The Labor Department's OSHA has pursued comparable corporate-accountability settlements, including a $12 million agreement with Dollar General over years of repeated store-safety violations.

At $8.5 million, the Daikin penalty is among the larger civil penalties the CPSC has obtained for a reporting-delay violation.