Fitbit to pay $12.25 million over smartwatches that caused burns

Bestar Inc. of Canada in November 2024 agreed to a $16.025 million civil penalty. The settlement followed charges that Bestar failed to immediately report that its wall beds could injure people. 

From September 2014 through 2022, Bestar “was aware of” 35 complaints of the beds detaching from the wall, the CPSC said. One person died; 15 suffered injuries. Bestar and the CPSC announced the recall of 129,000 beds on April 7, 2022.

HSN Inc., (formerly Home Shopping Network,) of St. Petersburg, Fla., in November 2023 agreed to pay a $16 million civil penalty. The settlement follows charges by the CPSC that HSN knowingly failed to report that its Joy Mangano-brand My Little Steamer and My Little Steamer Go Mini contained a defect that could cause injuries.

From late 2012 until early 2019, HSN received “numerous” complaints that the steamers “would spray, expel, and/or leak hot water while in use, leading to serious and permanent injuries, a limited number of which constituted grievous bodily injury.”

When HSN finally told the CPSC, it had received about 400 complaints of the steamers spraying or expelling hot water and about 700 more reports of leaks. Among the complaints: at least 91 injuries and 29 insurance claims regarding injuries including second and third-degree burns and one case of hearing loss. There were about 650 additional complaints on HSN Online Reviews. HSN and the CPSC announced a recall May 26, 2021.

After Gree USA pleaded guilty to not notifying the CPSC about risks with its dehumidifiers, the company was ordered to pay a $500,000 criminal fine and restitution to victims as part of a $91 million criminal resolution with Gree USA, Gree Zhuhai and another related Gree company, Hong Kong Gree Electric Appliances Sales Co. Ltd.

In addition, the Department of Justice filed criminal charges against two former Gree USA executives. In November 2023, a jury found the two former executives guilty of conspiracy to defraud the CPSC and knowingly and willfully failing to report known problems with millions of defective dehumidifiers sold for years starting in 2005. The pair were indicted in 2019.

These were the first-ever criminal convictions against executives for failing to report issues with a dangerous product to the CPSC.

Gree manufactured, imported, sold and eventually recalled more than 2.5 million dehumidifiers nationwide under brands including Frigidaire, GE, Gree, Kenmore and SoleusAir. About 100 models were involved.

Back in 2016, Gree Electric Appliances Inc. of Zhuhai, China; Hong Kong Gree Electric Appliances Sales Co. Ltd. of Hong Kong; and Gree USA Sales Ltd. of City of Industry, Calif., agreed to pay a $15.45 million civil penalty.

The penalty settled charges that Gree:

• Knowingly failed to report a defect and unreasonable risk of serious injury to CPSC immediately (within 24 hours) with dehumidifiers sold under 13 different brand names, including Frigidaire, GE, Gree, Kenmore and Soleus Air, as required by federal law.
• Knowingly made misrepresentations to CPSC staff during its investigation.
• Sold dehumidifiers bearing the UL safety certification mark knowing that the dehumidifiers did not meet UL flammability standards.

Gree’s dehumidifiers had a defect that caused the machines to overheat and catch fire. Despite Gree receiving multiple reports of incidents, and despite making design changes to fix the problem, Gree failed to report the defect to CPSC immediately. Gree also failed to report the incidents or the design changes to CPSC immediately. These incidents began in July 2012 and caused nearly $4.5 million in property damage.

The dehumidifiers were eventually recalled in September 2013. The recall was expanded in January 2014, and reannounced in May 2014.

The dehumidifiers were sold by AAFES, HH Gregg, Home Depot, Kmart, Lowe’s, Menards, Mills Fleet Farm, Sam’s Club, Sears, Walmart and other stores nationwide and in Canada, and online at Amazon.com and Ebay.com from January 2005 through August 2013 for $110 to $400.

BJ’s Wholesale Club Inc. of Marlborough, Mass., in September 2023 agreed to pay a $9 million civil penalty. The settlement follows charges by the CPSC that BJ’s knowingly failed to report that Royal Sovereign brand portable air conditioners it sold contained a defect that put customers at risk of injury or death.

BJ’s sold 1,778 of these air conditioners in 2011 and 2012, and 509 of them were returned to the store. In August 2016, one of the air conditioners sold by BJ’s was involved with a fire at a house in New York, with a woman and her two children inside. They were rescued, but the woman later died.

BJ’s was informed about the fire no later than March 2017 and issued a warning to customers in March 2021 but still didn’t inform the Commission, then-CPSC Chair Alex Hoehn-Saric said in a statement at the time. Royal Sovereign and the CPSC announced a recall on December 22, 2021.

Whirlpool Corp., of Benton Harbor, Mich., in August 2023, agreed to pay an $11.5 million civil penalty. The settlement follows charges by the CPSC that Whirlpool knowingly failed to report that 17 models of its cooktops “contained a defect that could create a substantial product hazard and created an unreasonable risk of serious injury to consumers” following 157 complaints of electric cooktops turning on by themselves.

When Whirlpool finally told the CPSC after more than a year, from November 2017 through early 2019, complaints about the 17 JennAir, KitchenAid and Whirlpool cooktop models included 14 reports of property damage, four reports of things catching on fire and two minor burn injuries. Whirlpool and the CPSC announced a recall August 28, 2019.

Generac Power Systems, Inc., of Waukesha, Wisc., in May 2023 agreed to pay a $15.8 million civil penalty. The settlement followed charges by the CPSC that Generac failed to report incidents from consumers whose fingers were partially amputated or crushed by the unlocked handle of its portable generator for more than a year, from October 2018 and into 2020.

When Generac finally told the CPSC, five people suffered finger amputations while trying to move the generator. Generac and the CPSC announced a recall on July 29, 2021.

Peloton Interactive Inc., of New York, in January 2023 agreed to pay a $19.1 million civil penalty. The settlement followed two charges by the CPSC that Peloton knowingly failed to report injuries and other incidents questioning the safety of its Tread+ treadmill over a period of months, and knowingly distributed recalled treadmills after the recall.

When Peloton finally told the CPSC, it had received more than 150 complaints that people, pets or objects had been pulled under the back of the treadmill. One child died and 13 people were injured, including broken bones. Peloton and the CPSC announced the recall of the Tread+ treadmill on May 5, 2021.