FOR IMMEDIATE RELEASE
May 25, 2001
Release # 01-161
CPSC Consumer Hotline: (800) 638-2772
CPSC Media Contact: Ken Giles, (301) 504-7052
Wal-Mart and Exercise Equipment Manufacturer Sued for Not Reporting Product Defects CPSC, Justice Department Seek $9 Million in Fines
WASHINGTON, D.C.- The U.S. Consumer Product Safety Commission (CPSC)
announced today that the CPSC and the Department of Justice (DOJ) are
suing Wal-Mart Stores Inc., of Bentonville, Ark., two of its
subsidiaries, and Icon Health & Fitness Inc., of Logan, Utah, for
failing to report serious safety hazards associated with home exercise
equipment. Many of the incidents occurred at Wal-Mart stores while
customers were trying out the equipment. The lawsuit seeks fines of up
to $9 million from the companies. This is the first time that the
government has sued a retailer in federal court for failing to report
product-related injuries.
CPSC and DOJ are charging that the companies failed to report a
dangerous defect with Weider and Weslo exercise gliders manufactured by
Icon and distributed by Wal-Mart and its subsidiaries between 1996 and
1999, even after the companies had been notified of dozens of injuries
caused by the equipment. Icon manufactured 75,000 of the gliders, many
of which were distributed by the Wal-Mart companies nationwide. Under
the Consumer Product Safety Act, manufacturers, distributors and
retailers are required to report to CPSC products that have a defect
that could create a substantial risk of injury to the public or that
present an unreasonable risk of serious injury or death. The Weider and
Weslo exercise gliders had a defect that allowed the seat to collapse
during use, causing the user to fall abruptly and suffer severe
injuries.
Wal-Mart, the world's largest retailer, and Icon began to receive
information about injuries in the summer of 1996. The lawsuit alleges
that Wal-Mart, its subsidiaries, and Icon were aware of dozens of
injuries, including fractured vertebrae and herniated discs, but did not
report them to the CPSC. Some injuries resulted in partial disability,
including a compression injury to a woman's spine that left her 50
percent permanently disabled. In April 1999, Icon recalled the gliders
in cooperation with CPSC.
Among the charges:
Wal-Mart was the first to learn of a potential problem when an injury
occurred at a Wal-Mart store in July 1996, but did not report to CPSC.
The Wal-Mart companies knew of 46 incidents and 41 injuries to
consumers, but did not report to CPSC. Twenty-nine of the incidents
occurred at Wal-Mart stores while consumers were trying out the
equipment and the incidents were reported to store personnel. CPSC
alleges that numerous Wal-Mart employees and managers were aware of
incidents. The company that handled 36 claims involving glider
incidents is owned by Wal-Mart.
Icon knew of 86 incidents and 68 injuries to consumers, but did not
report to CPSC.
In November 1997, after receiving more than 76 incident reports,
design changes were made to gliders in inventory, but CPSC was not
informed about the hazards presented by those in homes or on store
shelves.
In the course of its investigation into Icon's failure to report, CPSC
discovered that Wal-Mart had extensive knowledge of injuries, which it
did not report to CPSC. Icon and the Wal-Mart companies deny they had
any responsibility for informing CPSC about the known defects or
injuries.