CPSC Publishes $425K Settlement with Perfect Fitness for Comment
The Consumer Product Safety Commission has published for public comment a provisionally-accepted Settlement Agreement with Perfect Fitness LLC, containing a civil penalty of $425,000 to resolve allegations that it "knowingly" failed to inform CPSC immediately of a defect in its "Perfect Pullup" exercise equipment.
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(According to CPSC staff, between January to August 2008, Perfect Fitness manufactured and distributed approximately 10,000 "Perfect Pullup" exercise equipment, which were recalled in February 2011.)
CPSC Staff Say Perfect Fitness Failed to Report Product Defect
CPSC staff allege that the Perfect Pullups are defective because the handle can break during use, resulting in consumers falling to the floor. Although Perfect Fitness received its first complaint involving handle breakage in May 2008, Perfect Fitness did not report such information to CPSC until December 2010. By that time, Perfect Fitness was aware of at least 45 specific complaints of injury due to handle breakage and had received over 2,000 requests for replacement.
According to CPSC, although Perfect Fitness had obtained sufficient information to reasonably support the conclusion that the Perfect Pullup contained a defect which could create a substantial product hazard, or created an unreasonable risk of serious injury or death, Perfect Fitness failed to inform CPSC immediately (within 24 hours1) of such defect or risk, as required by the Consumer Product Safety Act.
Perfect Fitness Denies "Knowing" Violation, Agrees to $425K Civil Penalty
Under the settlement agreement, Perfect Fitness denies that it "knowingly2" violated the reporting requirements of the CPSA and that its Perfect Pullup contains a defect which could create a substantial product hazard or create an unreasonable risk of serious injury or death.
If No Adverse Comments Received by Aug 26, Settlement Deemed Final Aug 27
Any interested person may ask CPSC not to accept this agreement or otherwise comment on its contents by filing a written request with the Office of the Secretary by August 25, 2011. If CPSC does not receive any written request not to accept the settlement agreement by August 25, it will be deemed finally accepted on August 27, 2007.
1CPSC sources explain that the agency has interpreted the words “immediately inform the Commission” under 15 USC 2064(b) to mean within 24 hours.
2Under CPSC’s statute, the term "knowingly" means: (1) the having of actual knowledge, or (2) the presumed having of knowledge deemed to be possessed by a reasonable man who acts in the circumstances, including knowledge obtainable upon the exercise of due care to ascertain the truth of representations.
CPSC Contact -- Jennifer Argabright (301) 504-7808
(DN 11-C0009, FR Pub 08/11/11)