Clarus Corporation (CLAR), a maker of outdoor equipment and lifestyle products, is not quantifying what it characterizes as a substantial penalty related to a product recall.

The Consumer Product Safety Commission (CPSC) sent Clarus a letter in late 2023 notifying it that a subsidiary had failed to report to the Commission a malfunction in one of its avalanche beacons that would prevent rescuers from locating skiers lost in an avalanche.

Likewise, Clarus also revealed in its latest annual report the CPSC alleges the company:

“... made a material misrepresentation in a report to the CPSC, and that the agency staff intends to recommend that the CPSC impose substantial civil monetary penalties.”

Clarus disputes the CPSC’s allegations.

The ordeal began three years ago when the company first notified the CPSC about a fix it had developed for the beacons and requested a fast track recall.

The investigation centers on whether Clarus waited too long to notify CPSC of the malfunction and whether the company was truthful in answering staff questions.

Clarus did not immediately respond when DuDil requested the company quantify the civil penalty proposed by the CPSC.

More than 76,000 of the beacons were recalled.

Using the retail price advertised online, recalled beacons grossed approximately $29.2 million, or the equivalent of 10.2% of Clarus’ 2023 sales.