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RCA: Johnson Health Tech Co., Ltd. and Johnson Health Tech North America, Inc. – Proposed Civil Penalty Settlement

August 12, 2015

Final

Record of Commission Action

(Briefing Package August 3, 2015. OS no. 3197)

Decision

The Commission voted (3-2) to provisionally accept a Settlement Agreement and Order, which would order Johnson Health Tech Co., Ltd. ("Johnson Taiwan") and Johnson Health Tech North America, Inc. ("Johnson USA") to pay a civil penalty of $3.0 million and to address compliance measures. The provisional Settlement Agreement and Order will be announced in a Federal Register Notice. Chairman Kaye, Commissioner Adler and Commissioner Robinson voted to provisionally accept the Settlement Agreement and Order. Commissioner Buerkle andCommissioner Mohorovic voted to reject the Settlement Agreement and Order. The Commission's Compliance Division staff of the Office of General Counsel negotiated the proposed Settlement Agreement and Order to settle staff allegations that Johnson USA and Johnson Taiwan knowingly violated 19(a)(4) of the Consumer Product Safety Act ("CPSA"), 15 U.S.C. § 2068(a)(4), by failing to report information under section 15(b) of the CPSA, 15 U.S.C. § 2064(b), with respect to two types of elliptical trainers ("Trainers"). The Trainers contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury or death. Section 20(a)(1) of the CPSA, 15 U.S.C. § 2069(a)(l), permits the imposition of civil penalties for any person who knowingly violates section 19 of the CPSA, 15 U.S.C. § 2068(a)(4), by failing to report information under section 15(b).

Commissioners Voting

Ballot vote due August 12, 2015 (Commissioner Buerkle extended due date from August 7, 2015)

  • Chairman Elliot F. Kaye
  • Commissioner Robert S. Adler
  • Commissioner Ann Marie Buerkle
  • Commissioner Joseph P. Mohorovic
  • Commissioner Marietta S. Robinson
Type
Records of Commission Action and Commission Meeting Minutes
Date
Report an unsafe product