Fitbit To Pay $12.25 Million Penalty For Failing To Report Burn Hazard In Ionic Smartwatches

Fitbit LLC was recently forced to pay a $12.25 million civil penalty after the U.S. Consumer Product Safety Commission (CPSC) found the company did not immediately report a serious burn hazard associated with its Ionic smartwatches. The case should serve as a cautionary tale. Companies have duties to the public under the Consumer Product Safety Act (CPSA). Delays in responding to known safety concerns can lead to both injury and legal liability.

What happened? 

From 2018 through 2020, Fitbit received several reports from consumers that their Ionic smartwatches were overheating while being worn. Some individuals reported second- and third-degree burns on their arms or wrists. In early 2020, Fitbit attempted to address the issue via a firmware update intended to mitigate battery overheating. Despite this, burn reports continued.

Although Fitbit had “information that reasonably supported the conclusion” that its watches contained a serious defect posing a “substantial product hazard” or “an unreasonable risk of serious injury or death,” the company did not immediately notify the CPSC, which is required by law.

On March 2, 2022, Fitbit and the CPSC jointly announced a recall of the Ionic smartwatches. By that point, Fitbit had documented at least 115 reports of the battery overheating in the U.S., and 78 burn injuries, including two reports of third-degree burns and four reports of second-degree burns. Internationally, there were additional overheating and burn complaints.

Legal findings and penalty 

Under the CPSA, manufacturers are required to report to the CPSC when they become aware of a defect that could create a substantial hazard or pose an unreasonable risk of serious injury or death. Since Fitbit delayed reporting despite receiving multiple complaints, the CPSC determined the company violated that requirement.

As part of its settlement, Fitbit will pay the $12.25 million fine. The company also agreed to adopt enhanced internal controls and procedures to ensure compliance with the CPSA. They will submit annual reports on its compliance program, internal audit processes, and effectiveness of its internal safety reporting systems.

Why this is important 

• Consumer safety – The injuries that were reported are severe. Consumers suffered second- and third-degree burns as a result of the watch overheating. Delays in reporting only created more injuries. Had the hazard been reported earlier, a recall or fix could have happened sooner, potentially reducing the number of victims.

• Regulatory duty – A company’s obligation under the CPSA is not optional or theoretical. Reporting duties are triggered by credible reports of defect, overheating, or other risk. Failure to do so can result in substantial penalties.

• Precedent – The Fitbit case joins a growing list of enforcement actions taken by the CPSC in recent years against companies that failed to report known defects or risks.

• Corporate compliance – Internal systems for tracking consumer complaints, assessing risk, and reporting must be effective and timely. Having firmware or software patches is good, but not enough if warnings are delayed and the risk remains.

Talk to a Florida Product Liability Lawyer Today 

Halpern, Santos & Pinkert represent the interests of plaintiffs in product liability lawsuits filed against negligent companies. Call our Florida personal injury lawyers today to schedule an appointment, and we can begin investigating your case right away.