Topic: FYI - Impact Racing gear Decertified by SFI for counterfeiting

http://www.sfifoundation.com/

March, 2010

March 26, 2010 - NOTICE OF DECERTIFICATION; NOTICE TO CEASE AND DESIST AND TERMINATION OF ALL CONTRACTS OF PARTICIPATION ISSUED TO IMPACT RACING

SFI Foundation, Inc., has issued a Notice of Decertification; Notice of Cease and Desist, and a notice terminating all Contracts of Participation to Impact Racing. Effective April 27, 2010, all products manufactured and/or distributed by Impact Racing pursuant to SFI Specification Programs 3.2A, 3.3, 16.1, and 16.5 are decertified. Evidence obtained by SFI shows that over a period of years Impact Racing has engaged in the production and use of counterfeit SFI conformance labels and patches, and affixed them to Impact products for use in motorsports. Under the Contracts of Participation between SFI and Impact, SFI conformance labels and patches may only be obtained from SFI and no other source. Evidence shows that Impact had counterfeit SFI labels and patches made in Asia and then affixed them to Impact products it distributed to members of the racing community. To SFI’s knowledge, Impact never advised its customers that its products contained phony SFI labels and patches. Impact never advised SFI of its systematic and longstanding practice of counterfeiting and distributing SFI patches and labeling.

Impact has been directed to cease and desist from this practice. SFI has directed Impact to immediately notify all affected customers to remove the counterfeit labeling and to offer the affected customers a full refund of the purchase price. SFI is requesting that all counterfeit conformance labels removed from Impact products be sent to SFI.

SFI has elected not to decertify these products immediately in order to minimize the potential hardships to members of the racing community that have been brought about by Impact’s counterfeiting activities.

SFI has also elected to terminate all Contracts of Participation with Impact Racing effective 90 days from March 24, 2010. Under the terms of the Contracts, either party may terminate the agreements without penalty upon 90 days notice. This means that Impact will no longer be able to participate in any SFI programs after this 90 day period.

SFI has taken these actions in the best interests of the safety and integrity of the racing community. This is in keeping with SFI’s mission and purpose.

For a downloadable .pdf of this notice, please click on the following link: Decertification Notice 03-26-10.\
http://www.sfifoundation.com/Decertific … -26-10.pdf

Bill Strong
Racing Strong Motorsports
Like us on Facebook! http://www.facebook.com/RacingStrong

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Just got this myself, am looking into the ramifications...

Gosh, my business card says 'Tech Tyrant'

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Shit, I have an Impact helmet. A really expensive Impact helmet. Anyone know which Impact products are involved?

4 (edited by gsmith2424 2010-03-26 04:11 PM)

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

All of Impact products. I got shoes from them luckily i have a two back up pairs of Simpson's.


Edit: Everything is affected except helmets but I would no be trusting them either even though they are still legal for now. Remember also late  last year they were also involved with having conterfit HANS clips. So this makes me very suspect of any item that they make.

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Well... I think we'll have to wait and see exactly what products were decertified. As SFI stated:

>

SFI has elected not to decertify these products immediately in order to minimize the potential hardships to members of the racing community that have been brought about by Impact’s counterfeiting activities.

>

Pendejo Engineering "Captain" - 1991 Alfa 164
1983 Shaguar XJ-S V-12 "The Two Ton Miata"
1995 Mercedes S600 V-12  - First car ever CLAIMED by JAY!
1980 Maserati Quattroporte - Judge's Choice

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Son of a... why do I get the feeling Impact Racing will be filing Chapter 11 before I get a full refund for my brand new (expensive) suit?

Drat! And Double Drat!

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

The gear itself is probably fine. Sounds like Impact was just trying weasel out of the money for the SFI tags. Unless they were actually passing off unsafe gear AND counterfeit tags.

Granted, any company that would knowingly pass off counterfeit SAFETY gear is questionable in the first place. But they'd be really evil if both the gear and the tags were bogus.

Just another crappy BMW and moto-powered MR2: http://www.facebook.com/BlackIronRacing
Gnome money, Gnome problems. (RIP) http://www.facebook.com/MetroGnomeRacing

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

MurileeMartin wrote:

Shit, I have an Impact helmet. A really expensive Impact helmet. Anyone know which Impact products are involved?

Helmets are certified through Snell,  so as of right now, a Snell certified Impact helmet should be ok.   But, we'll have to see what the fallout from this will be.

Gosh, my business card says 'Tech Tyrant'

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Still I wouldn't trust the helmets now with this and the HANS ordeal last year. True they may be legal for now but I don't think they will be for long.

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

gielamonster wrote:

The gear itself is probably fine. Sounds like Impact was just trying weasel out of the money for the SFI tags. Unless they were actually passing off unsafe gear AND counterfeit tags.

Yup. If there was any question about the gear actually being substandard, that's not covered by the SFI press release.

Crap. My Heathcliff suit is an Impact suit. Wonder what Jay et al. are going to do about this going forward.

Pat Mulry, TARP Racing #67

Mandatory disclaimer: all opinions expressed are mine alone & not those of 24HOL, its mgmt, sponsors, etc.

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

gsmith2424 wrote:

All of Impact products. I got shoes from them luckily i have a two back up pairs of Simpson's.

Impact is an offshoot from one of the guys from Simpson.

Counterfeit SFI tags were probably to save money.  As long as the equipment was made to meet the requirements to receive an SFI tag, the gear should be safe.  I am sure SFI charges a nice fee for those tags like a royalty.  Not like a roll of 100 for $10.

I am sure the same goes for the HANs clips.

Dry breaks from Cool Suit are pretty pricey as well yet you can get the same thing from other places for about 25% the price of Cool Suit.

Either way, it does make you question the ethical behavior of Impact.

Troy

#35 LRE
1973 Datsun 240Z

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

I wonder if SFI can retroactively decertify gear pursuant to their contracts. It would surprise me if Impact (which Bill Simpson started after he left Simpson Perfomance Products) doesn't file suit against SFI in Federal court in Indianapolis on Monday. This will cripple their business if not put it under immediately. Every Impact retailer in the nation will be on the horn trying to return their products on Monday morning. Still no update on the Impact website in response to this either.

Pat Mulry, TARP Racing #67

Mandatory disclaimer: all opinions expressed are mine alone & not those of 24HOL, its mgmt, sponsors, etc.

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

I don't think Impact would have a leg to stand on in court. If you have SFI certify your stuff, you're agreeing to only use their labels.

Whatever the situation is, if the company is behaving unethically when it comes to the cost of properly labeling their gear, I won't trust them to be ethical on safety versus profitability questions either.

14 (edited by Doug I 2010-03-27 10:34 AM)

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

you called it Mulry
IR has tagged their page
http://www.impactraceproducts.com/

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

This is going to get real interesting real fast. Here's what Impact put up on their site:

http://tarpblog.net/wp-content/uploads/2010/03/impactstatement.jpg

Look for fireworks on Monday.

EriktheAwful wrote:

I don't think Impact would have a leg to stand on in court. If you have SFI certify your stuff, you're agreeing to only use their labels.

Respectfully, it doesn't matter if they have a "leg to stand on" or not. If SFI is successful in their efforts to retroactively decertify every Impact product that has been SFI labelled, Impact is effectively finished as a company (you may have an opinion on whether that is a good thing or not, and you are certainly entitled to your opinion. I don't have one yet.). For Impact, this is going to be a Katie-bar-the-door, bear-any-burden, bet the company kind of litigation. There are certainly lawyers in several cities across the USA who all bill outrageous hourly fees who are going to work around the clock from yesterday through Monday sometime in drafting, briefing, and preparing the argument that Impact is almost certainly going to file in court on Monday to halt SFI's action. They have no other choice except to go out of business almost immediately. Their sales to distributors and in the retail channel are going to dry up say about yesterday. Cash flow is about to come to a dead freaking stop. The reputation damage alone could be in the hundreds of millions of dollars. SFI has declared war on Impact, and you can be certain both that (1) SFI has the evidence (or is run by total idiots) and (2) it's going to get really ugly and nasty before it gets resolved.

I've never seen the SFI standard contract with manufacturers, so I can't opine on whether SFI has "a leg to stand on," and unless you are familiar with that contract, you can't speculate on it either with any level of certitude. I can tell you from my personal and professional experience that it is exceedingly rare that one party to any litigation doesn't have "a leg to stand on." Almost no legal conflict is so overwhelmingly lopsided, despite what initial appearances may be to outsiders.

From a non-legal standpoint, I am concerned about safety and business practices at Impact. Impact has been the subject of another counterfeiting lawsuit in the past year; HANS got an injunction halting Impact's sales of counterfeit HANS post anchors last fall:

http://www.jayski.com/pages/safety.htm

I'd speculate that the current SFI action is a spin-off from the HANS counterfeiting lawsuit, but that's just speculation. But when one vendor finds out that a user of their product has been counterfeiting another vendor, well, it's only natural to start investigating yourself.

As an Impact suit owner, I personally hope that this is tied up in the courts for a long time so that racing sanctioning bodies don't feel the need to boot everybody's Impact suit. That said, I won't be buying another of their suits anytime soon.

Pat Mulry, TARP Racing #67

Mandatory disclaimer: all opinions expressed are mine alone & not those of 24HOL, its mgmt, sponsors, etc.

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

what concerns me...

1. I own equipment that says it was made in China. Not cheap stuff, but certainly not made in China. I will not post the names.

2. They all have SFI certifications like they are supposed to have.

so if one company has done this, what is to say that others have done the same thing. After reading a few books on the goings on with manufacturing on China I would say that this might not be an isolated incident.
Ultimately with some businesses today, money makes the choices

Bill Strong
Racing Strong Motorsports
Like us on Facebook! http://www.facebook.com/RacingStrong

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Chances are that other companies are doing the same thing on some level.  I work for a fairly reputable gasket manufacture in NE Ohio and we see all kinds of companies try to mimic/copy/counterfeit our patented designs.  Luckily for us,  looks aren't everything.  Just because their products look like our doesn't mean they used the same materials or manufacturing techniques. The copycat companies don't hang around to long because when it comes down to brass tax their products simply don't cut it.  Business in business though and owners/CEO's are always looking for a way to improve profit margin.  Cutting raw costs and improving efficiency are the two easiest ways to attain a better bottom line.  This means mass produced pieces of shit sold for top dollar and most john q publics  are none the wiser.

http://www.facebook.com/pages/Top-Fool- … 77?ref=sgm
#34 Save the Tatas Subaru Impreza
2010 Detroit Irony 32nd/Capital Offense 68th/Grand Bull 26th/Rod Blago "FIF"

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

i'm a member on a drag racing forum. some of those folks have been around racing longer than i've been alive. they know bill simpson.it has been said he walks to the beat of a different drummer.


remember, this is the fella who set himself on fire to prove his stuff worked as advertised.........

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Troy wrote:
gsmith2424 wrote:

All of Impact products. I got shoes from them luckily i have a two back up pairs of Simpson's.

Impact is an offshoot from one of the guys from Simpson.

Counterfeit SFI tags were probably to save money.  As long as the equipment was made to meet the requirements to receive an SFI tag, the gear should be safe.  I am sure SFI charges a nice fee for those tags like a royalty.  Not like a roll of 100 for $10.

I am sure the same goes for the HANs clips.

Dry breaks from Cool Suit are pretty pricey as well yet you can get the same thing from other places for about 25% the price of Cool Suit.

Either way, it does make you question the ethical behavior of Impact.

Impact was started by Bill Simpson after the Dale Earnhart accident where they tried blaming the Simpson belt. Bill simpson was asked to leave his company in the best interest of the stockholders and he did. He immediately started Impact Racing but sold off his interest just a few years after they opened and retired. Who ever is holding the reins right now has some questions to answer.

Pen

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

"The SFI Foundation, Inc. offers two levels of participation for sanctioning bodies: membership and affiliation. The first level is the Affliate Program which allows a sanctioning body to use and include SFI specifications in its rules. A sanctioning body must have a formal agreement with SFI at this basic level in order to cite the SFI copyrighted standards in its rules."

http://www.sfifoundation.com/

I don't see 24HOL on their list of sanctioning bodies.  Now that SFI's lawyers have the Impact distraction going on, it might be a good time to either rewrite our rules to de-specify SFI, or belly up to the bar and get a membership.

21 (edited by Mulry 2010-03-29 10:54 AM)

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Very interesting related thread:

http://www.insidetopalcohol.com/showthread.php?t=22813

Looks like this decertification is definitely a product of the current litigation between SFI & HANS versus Impact that all started over Impact buying counterfeit HANS posts for their helmets:

http://www.scenedaily.com/news/articles … ation.html

The more I research this, the more that I come to the conclusion that Impact has been playing fast and loose with the rules for awhile and then gets indignant and threatens to sue for slander/libel when they get called out on it. This does not make me feel good about wearing an Impact fire suit anymore. Damn. I love that Heathcliff suit.

Pat Mulry, TARP Racing #67

Mandatory disclaimer: all opinions expressed are mine alone & not those of 24HOL, its mgmt, sponsors, etc.

22 (edited by Mulry 2010-03-29 06:58 PM)

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Impact has updated their message today. Here's the screenshot:

http://tarpblog.net/wp-content/uploads/2010/03/impactmarch29.jpg

Now, here's the rundown on what's happened legally in this case thus far. SFI filed its counterfeiting lawsuit against Impact in federal court in Indianapolis on Friday afternoon. For those who care about such things, it's case No. 1:10-cv-036LJM-DML in the Southern District of Indiana As the Impact statement above notes, there is a hearing set for April 1, 2010 on SFI's temporary restraining order. In the lawsuit, SFI is seeking both money damages and to force Impact to stop selling products bearing the SFI certification label.

My initial impression from reading through SFI's complaint is that Impact has a doozy on its hands. SFI has sued for counterfeiting, fraud, and breach of contract, among other allegations. The gist of the lawsuit is accurately stated in SFI's original statement online last Friday. SFI has secured the sworn testimony of a former Impact employee who has testified under oath that Bill Simpson directed him, from 2005 through 2008, to secure counterfeit SFI labels from a manufacturer in Hong Kong and that those labels were affixed to Impact seat belts, arm restraints, fire suits, head socks, gloves, and boots. That former employee's sworn testimony is filed as an exhibit to the lawsuit.

Yowza.

If this testimony is accurate (and it might not be; although sworn testimony is typically more reliable than unsworn testimony owing to the penalty for perjury if caught lying under oath, and this could be a former employee with an axe to grind against Bill Simpson (say, for getting fired following the drag racing suit controversy?) then Impact is going to have a tough row to hoe.

For those who are interested, I am posting and sharing the court documents at the link below. The linked document contains a copy of the original verified complaint and all the exhibits to the complaint so that you can check it out for yourself. It's 63 pages and about 4Mb total, although the complaint itself is only 14 pages and the really sexy stuff is only a couple pages of that. If you want to hit just the highlights, jump straight to Page 5, Paragraphs 19 and read through Page 6, Paragraph 27.

https://docs.google.com/fileview?id=0By … &hl=en

On top of which, I can just about guarantee that sometime in the next week or two, Impact is going to find itself the defendant in an enormous consumer class action lawsuit seeking both compensatory and punitive damages from Impact for every racer (and racing organization) that now owns worthless Impact racing gear.

Note that Impact's statement on their website advises that they are not accepting returns of delivered products. Their cash flow just went to zero and the outflow of legal fees on a bloodletting scale is just about to begin.

I don't see how Impact survives this lawsuit (and the forecast class action lawsuit) absent filing Chapter 11 and, as part of the re-organization plan, canning all senior management, including Bill Simpson.

This is going to get uglier before it gets resolved.

Guess I'd better buy a new suit pronto.

Pat Mulry, TARP Racing #67

Mandatory disclaimer: all opinions expressed are mine alone & not those of 24HOL, its mgmt, sponsors, etc.

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

Regarding buying new equipment, I would suspect someone is quickly going to learn if and what equipment is not up to specs, issue a statement on what equipment is sub par, and offer to inspect and (re)certify equipment for use.

I further predict this will happen fast, as this will put confidence in a lot of dollars worth of equipment out there.

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

SuperDave wrote:

Regarding buying new equipment, I would suspect someone is quickly going to learn if and what equipment is not up to specs, issue a statement on what equipment is sub par, and offer to inspect and (re)certify equipment for use.

I further predict this will happen fast, as this will put confidence in a lot of dollars worth of equipment out there.

I'm not so sure.  SFI has declared that Impact gear is no longer certified.  Any outside company that checks the Impact gear would still have to affix a SFI tag, which does no good.  Sanctioning bodies will have to honor SFI's decertification.

BRE Datsun (Broke Racing Effluence) formerly Dawn of the Zed Racing
'74 260Z
Facebook page http://www.facebook.com/editpicture.php … 2559430584

Re: FYI - Impact Racing gear Decertified by SFI for counterfeiting

I agree with Jeff. Why would another manufacturer go out on a limb for Impact when they can simply sell replacement equipment to a whole ton of people who are suddenly in the need for new gear?

Pat Mulry, TARP Racing #67

Mandatory disclaimer: all opinions expressed are mine alone & not those of 24HOL, its mgmt, sponsors, etc.