CPSC Charges Company $3M For Failing to Report Matrix Fitness Equipment Problems

Fitness equipment manufacturer Johnson Health Tech has agreed to pay a $3 million civil penalty and to adopt federally mandated policy changes, after being accused of intentionally failing to report dozens of customer complaints where certain training machines overheated, smoked, and caught fire. 

On August 14, the Consumer Product Safety Commission (CPSC) announced it has provisionally accepted by a 3-2 ruling for Johnson Health Tech North America Inc. to pay a $3 million civil penalty and incorporate compliance programs set forth by the CPSC, after the manufacturer allegedly withheld known defects to avoid issuing a recall for fitness and elliptical trainer machines.

The settlement agreement (PDF) was reached shortly after the CPSC determined that Johnson Health Tech had received at least 44 consumer complaints indicating the Matrix Fitness Ascent Trainers and Elliptical Trainer machines had built-up moisture in the power sockets from perspiration or cleaning liquids, causing the machines to short circuit, over heat and melt, or catch fire. The CPSC was not able to find any record of consumer injuries or property damage cause by the overheating machines.

According to the CPSC, their investigation discovered the manufacturer intentionally withheld complaints involving a potential risk of burns and fires. At least two design changes were also allegedly made by the manufacturer to resolve the issue, without ever consulting the CPSC.

The investigation revealed that Johnson Health Tech began receiving consumer complaints of overheating and sparking problems as early as March 2012, and continued selling the products up until January 2014, when a Matrix Fitness Ascent and Elliptical trainer recall was announced.

Manufacturers who sell products in the U.S. must follow the rules set forth in the Consumer Product Safety Act (CPSA), which require that federal regulators be informed of any known or reasonably foreseeable defects, as well as any consumer complaints indicating potential defects.

The CPSC officially recalled all Matrix Fitness Ascent Trainers and Elliptical trainers with swing arm handles and rotating pedal designs in January of 2014. The machines were sold throughout the U.S. to Johnson Health Tech North America dealers, commercial fitness facilities such as health clubs and military facilities from November 2011 through December 2012 for between $6,000 and $11,000.

In addition to the $3 million civil penalty, Johnson Health Tech will be mandated to follow compliance programs that will require the company to maintain written standards, policies, and written procedures to ensure that the company has, and will maintain, practices that follow the rules of the CPSA. The compliance programs will also include employee reporting systems, effective communication of policies and procedures, proper safety training, and record retention requirements.