Declarations – Midwest

Counterfeit Airbags

“Anytime equipment that is critical to protecting drivers and passengers fails to operate properly, it is a serious safety concern.”

—U.S. Transportation Secretary Ray LaHood. The National Highway Traffic Safety Administration said testing has revealed problems with counterfeit airbags used as replacement parts in vehicles involved in crashes — they might not inflate and could expel metal shrapnel during deployment in an accident. NHTSA believes the issue affects less than 0.1 percent of the U.S. vehicle fleet. The safety agency said it was not aware of any deaths or injuries related to the airbags.

Deceptive Practices

“In 2009, my office received more complaints about service contract sellers than about any other industry. The industry was plagued by deceptive practices and half truths.”

—Missouri Attorney General Chris Koster comments on the sentencing of the co-founders of defunct auto service contract seller, US Fidelis, on charges of stealing consumers’ refunds, insurance fraud and consumer fraud. Darain Atkinson was sentenced to eight years in prison; Cory Atkinson was sentenced to four years on similar charges. US Fidelis was based in Wentzville, Mo. Koster said complaints about service contract sellers has dropped considerably.

Dodd-Frank Challenge

“The rule as written would impose enormous costs on U.S. firms and put them at a competitive disadvantage against government-owned oil giants not subject to the rule.”

—Chief Executive Officer Jack Gerard, CEO of the American Petroleum Institute (API). API is one of four business groups that have filed a lawsuit against the U.S. Securities and Exchange Commission’s new rule requiring oil, mining and gas companies to disclose payments they make to foreign governments. The lawsuit marks the latest in a string of legal challenges against regulators struggling to finalize dozens of rules included in the 2010 Dodd-Frank Wall Street reform law.

Topics USA