Home Shopping Network (HSN) is in hot water with the federal government.
The U.S. Consumer Product Safety Commission (CPSC) has fined HSN $875,000 over failing to report a defective pressure cooker that was the subject of a recall and burned 37 consumers.
Home Shopping of St. Petersburg, Florida has agreed to pay the civil penalty but it does not admit any fault.
The company sold approximately 4,387 of the Welbilt Electronic Pressure Cookers Model PC 501 from September 2001 to November the following year over its airwaves to unsuspecting consumers. The model number PC 501 is located in three places on the appliance.
The CPSC says that for a three year period beginning in September 2001, HSN received at least 25 complaints from buyers angry about the defective product.
But, the government contends, HSN did not alert the CPSC as it's required to do by law about a product that poses a serious risk to the public.
Home Shopping finally reported the hot cooker to the feds in February 2005. The pressure cookers were then the subject of a government recall from June to October 2005.
The government says the cooker lid opens prematurely and hot contents have hurt consumers. 43 complaints have been lodged and 37 people report being burned. Four of them suffered third degree burns.
The $875,000 payment prevents a lawsuit by the CPSC and the Department of Justice.
But Home Shopping is not admitting fault. In fact, it acknowledges no responsibility and denies it knew anything about customer complaints.
"HSN denies the Government’s allegations that the cookers contain a defect or defects that could create a substantial product hazard and/or that the cookers created an unreasonable risk of serious injury. HSN further denies that it received approximately 25 reports indicating tha the cookers contained a defect or defects that could creates a substantial product hazard and/or that the cookers created an unreasonable risk ofserious injury. HSN denies that it violated the reporting requirements of 15 U.S. C. 2064(b). HSN further denies that prior to February 18, 2005 the CPSC was not adequately informed that the cookers contained a defect or defects that could create a substantial product hazard and/or that the cookers created an unreasonable risk of serious injury. HSN has entered into this Agreement in order to resolve the Government’s allegations without the expense and distraction of litigation. By agreeing to this settlement, HSN does not admit any of the factual allegations of liability set forth in the preceding section of this Agreement."
Speaking to AP, HSN spokesman Brad Bohners says, "The safety of our customers is HSN's highest priority, which is why we voluntarily reported this matter to the CPSC...Although we disagree with the allegations of the CPSC, we have agreed to resolve this matter without the distraction and expense of litigation."
The Welbilt pressure cooker was manufactured in Korea by DRECO Ltd., formerly known as DaeRyuk Electronics Ltd.
Home Shopping and its partner companies are now known as HSN LP. The partners include HSN Interactive LLC, HSN Fulfillment LLC and Home Shopping Network en Espanol LLC. HSN is a subsidiary of IAC/InterActiveCorp.