Facts

Dynojet Research Inc. (also doing business as Dynatek Ignitions Inc.) of North Las Vegas, Nevada, sells products that are touted to optimize powersports vehicles, such as motorcycles, so that they can achieve faster speeds. The United States Environmental Protection Agency's investigators notified the California Air Resources Board (CARB) about their concern regarding Dynojet's aftermarket device, the Power Commander. This device is intended to alter emissions control technologies on vehicles and motorcycles by reprogramming the original equipment manufacturer's software calibrations. CARB, acting for the People of the State of California, filed suit against Dynojet, Dynatek and its subsidiaries.

PLAINTIFF'S CONTENTIONS: Plaintiff's contended that while Dynojet had received approval for exemption of several of their add-on or modified parts from their product lines, it had not received CARB exemptions for some of its products, such as the Power Commander and Dynatek Ignition System. Those products failed to meet California's strict regulations. Specifically, CARB alleged that Dynojet and Dynatek violated the law by installing, selling, offering to sell, and/or advertising parts or devices that alter or modify the original design or performance of required motor vehicle pollution control devices or systems on California vehicles that have not been exempted by CARB from Vehicle Code Section 27156 or 38391.

DEFENDANT'S CONTENTIONS: Defendants Dynojet and Dynatek denied all contentions and did not admit any of the matters alleged in the complaint.

Result

Plaintiff CARB settled with defendants Dynojet and Dynatek for $2.1 million, which will go to CARB's Air Pollution Control Fund and be used for projects and research to improve California's air quality. Moreover, they are permanently enjoined from violating Health and Safety Code Section 43017 and Code of Civil Procedure Section 525 et seq., Vehicle Code Sections 27156 and 38391, and California Code of Regulations, Title 13, Sections 2222 and 2474. They are also not allowed to offer for sale or sell devices that alter or modify pollution control devices or systems in California unless that part has been exempted by CARB. Finally, they are required to provide in any California advertisement a disclaimer that parts that are not allowed for sale because of those modifications are not legal for sale or use in California.