Gree Electric Appliances, Inc. and two of its subsidiaries will pay $91 million to resolve criminal charges related to millions of its dehumidifiers that were defective and at risk of catching fire.
Approximately 2 million of these dehumidifiers were sold around the U.S. between 2007 and 2013, The BL reported.
“No one should live in fear that a properly used consumer product might cause injury or death to their loved ones,” Tracy L. Wilkison, acting U.S. attorney, said in a release. “Gree’s months-long delay in reporting known problems with their dangerous and defective dehumidifiers was both criminal and costly. Gree’s decision to delay the reporting of its defective dehumidifiers has resulted in the recall of millions of those products and the payment of millions of dollars. We will not allow companies to profit at the expense of consumers’
Under the agreement, the Chinese-based appliance maker resolved its criminal charges for failure to report its defective product to the U.S. Consumer Product Safety Commission.
Two U.S.-based executives for Gree pleaded not guilty for their role in not reporting the defective household appliance. Both individuals are set for trial on March 15 in Los Angeles.
“Manufacturers and distributors must immediately report dangerous consumer products to the CPSC so that actions to protect consumers may be taken as soon as possible,” Brian Boynton, acting assistant attorney general of the Justice Department’s Civil Division, said in a release. “Companies and executives that purposefully delay reporting to maintain profits will be prosecuted. The Department of Justice will continue to work closely with the CPSC to ensure consumers’ safety.”
The Gree Company agreed to continue communication with Justice Department and cooperate with any future investigations.
Alongside dehumidifiers, the company manufacturers smartphones, home appliances, and refrigerators, according to a profile by Forbes.
