Perfect Fitness in 2008.
Perfect Fitness, of Sausalito, Calif., has agreed to pay a $425,000 civil penalty for not reporting to the U.S. Consumer Product Safety Commission (CPSC) that its Perfect Pullup wasn't so perfect.
As required by federal law, companies are to inform the CPSC immediately—within 24 hours, if possible—once they are aware of possible defective products. But the CPSC alleges that Perfect Fitness failed to do so regarding its faulty Perfect Pullup exercise gear—for more than two years.
According to the CPSC, the company's internal audit in 2008 revealed "an unusual number of returns" and one complaint of broken handles for its Perfect Pullups home exercise equipment. After re-testing the gear, sold nationwide at sporting goods stores, online and through direct television marketing, Perfect Fitness redesigned the product to correct the defect in July 2008.
Still, the CPSC alleges Perfect Fitness was aware of at least 23 injuries associated with its product in March 2010, and posted a notice on its website to advise consumers of free replacement handles since the original handles were "inferior" and could result in an "accident."
The firm did not report the defect to CPSC until December 2010. By that time, CPSC staff alleges the firm was aware of at least 45 complaints of injury associated with the handles breaking and had received more than 2,000 requests for replacements.
In February 2011, the firm and CPSC announced a recall of about 7,000 Perfect Pullups.
In agreeing to settle the matter, Perfect Fitness denies CPSC staff's allegations that it knowingly violated the law.