Johnson Health Tech to pay US fine over exercise equipment defects

WASHINGTON (Reuters) - Johnson Health Tech agreed to pay a $3 million penalty for failing to report a defect with its Matrix Fitness Ascent Trainers and Elliptical Trainers that could spark fires and lead to potentially serious injury, the U.S. Consumer Product Safety Commission. The company, based in Taiwan with a subsidiary in Wisconsin, did not admit to the charges in agreeing to pay the fine, the commission said. In January 2014, Johnson Health Tech recalled the trainers, which had sold for $6,000 to $11,000 each, after it had received multiple reports of fires, smoking, sparking or melted power components involving the machines, the commission said. The company did not promptly notify the commission about the incidents, caused by a build-up of moisture in power sockets from perspiration or cleaning liquids, or two design changes it hoped would fix the problem, the commission said. (Reporting by Lisa Lambert; Editing by Susan Heavey)