Notice2026-16010
Johnson Health Tech
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 6, 2026
Issuing agencies
Consumer Product Safety Commission
Abstract
The Commission publishes in the Federal Register any settlement that it provisionally accepts under the Consumer Product Safety Act. Published below is a provisionally accepted Settlement Agreement with Johnson Health Tech., containing a civil penalty in the amount of $16,875,000, subject to the terms and conditions of the Settlement Agreement. The Commission provisionally accepts the proposed Settlement Agreement and Order pertaining to Johnson Health Tech.
Full Text
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<title>Federal Register, Volume 91 Issue 150 (Thursday, August 6, 2026)</title>
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[Federal Register Volume 91, Number 150 (Thursday, August 6, 2026)]
[Notices]
[Pages 50819-50822]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-16010]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 26-C0004]
Johnson Health Tech
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
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SUMMARY: The Commission publishes in the Federal Register any
settlement that it provisionally accepts under the Consumer Product
Safety Act. Published below is a provisionally accepted Settlement
Agreement with Johnson Health Tech., containing a civil penalty in the
amount of $16,875,000, subject to the terms and conditions of the
Settlement Agreement. The Commission provisionally accepts the proposed
Settlement Agreement and Order pertaining to Johnson Health Tech.
DATES: Any interested person may ask the Commission not to accept this
agreement or otherwise comment on its contents by filing a written
request with the Office of the Secretary by August 21, 2026.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to Comment 26-C0004, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Bethesda, MD 20814; telephone: (240) 863-8938 (mobile), (301) 504-7479
(office); email: <a href="/cdn-cgi/l/email-protection#492a393a2a64263a092a393a2a672e263f"><span class="__cf_email__" data-cfemail="a9cad9daca84c6dae9cad9daca87cec6df">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Leah Wade, Supervisory General
Attorney, Division of Enforcement and Litigation, Office of Compliance
and Field Operations, Consumer Product Safety Commission, 4330 East
West Highway, Bethesda, Maryland 20814; <a href="/cdn-cgi/l/email-protection#135f4472777653706360703d747c65"><span class="__cf_email__" data-cfemail="cb879caaafae8ba8bbb8a8e5aca4bd">[email protected]</span></a> (301) 504-7225
(office).
SUPPLEMENTARY INFORMATION: The text of the Settlement Agreement and
Order appear below.
Dated: August 4, 2026.
Brianna Bell,
Paralegal Specialist.
United States of America Consumer Product Safety Commission
In the Matter of: JOHNSON HEALTH TECH.
CPSC Docket No.: 26-C0004
Settlement Agreement
1. In accordance with the Consumer Product Safety Act, 15 U.S.C.
2051-2089 (``CPSA''), and 16 CFR 1118.20, Johnson Health Tech Trading,
Inc. (``JHTT'' or ``the Firm''), Johnson Health Tech North America,
Inc. (``JHTNA'') (collectively, ``Johnson Health Tech''), and the
United States Consumer Product Safety Commission (``Commission'' or
``CPSC''), through its staff, hereby enter into this Settlement
Agreement (``Agreement''). The Agreement and the incorporated attached
Order resolve staff's charges set forth below.
The Parties
2. The Commission is an independent federal regulatory agency,
established pursuant to, and responsible for, the enforcement of the
CPSA, 15 U.S.C. 2051-2089. By executing the Agreement, staff is acting
on behalf of the Commission, pursuant to 16 CFR Sec. 1118.20(b). The
Commission issues the Order under the provisions of the CPSA.
3. JHTT is a corporation, organized and existing under the laws of
the state of Wisconsin, with its principal place of business in Cottage
Grove, Wisconsin.
4. JHTNA is a corporation, organized and existing under the laws of
the state of Wisconsin, with its principal place of business in Cottage
Grove, Wisconsin.
Staff Charges
5. Between 2018 and 2022, JHTT imported and distributed in the
United States approximately 192,000 Horizon T101-05 treadmills (the
``Subject Products'').
6. JHTT is responsible for the distribution and marketing of the
Horizon T101-05 treadmills in the United States.
7. The Subject Products are ``consumer products'' that were
``manufactured'' and ``import[ed]'' and ``distribut[ed] in commerce,''
as those terms are defined or used in sections 3(a)(5), (8), and (9) of
the CPSA, 15 U.S.C. 2052(a)(5), (8), and (9). JHTT is a
``manufacturer'' and ``distributor'' of the Subject Products, as such
terms are defined in sections 3(a)(8) and (11) of the CPSA, 15 U.S.C.
2052(a)(8) and (11).
[[Page 50820]]
Violation of CPSA Section 19(a)(4)
8. The Subject Products contain a defect which could create a
substantial product hazard or create an unreasonable risk of serious
injury because the machines could unexpectedly accelerate, stop, or
change speed, posing a fall hazard to consumers.
9. Between March 2018 and October 2022 JHTT received at least 874
reports of the treadmills unexpectedly accelerating, stopping, or
changing speed, including at least 71 reports of consumer injury.
10. In September 2020, JHTT began a root-cause investigation,
leading to the adoption of production changes in February 2021 and
September 2021 to reduce the fall hazard. However, JHTT continued to
receive reports of unexpected accelerations, stoppages, or speed
changes in the treadmills, including two reports of consumers who fell
and suffered a broken bone.
11. JHTT did not immediately inform the Commission under 15 U.S.C.
2064(b) regarding the defect and risk posed by the Subject Products and
did not file a Full Report as required by 16 CFR 1115.13(d) until March
9, 2022, following a request from Commission staff.
12. JHTT and the Commission jointly announced a recall of
approximately 192,000 Horizon T101-05 treadmills on October 27, 2022,
offering a software update to consumers that addressed the hazard.
Failure to Timely Report
13. Despite having information that reasonably supported the
conclusion that the Subject Products contained a defect that could
create a substantial product hazard or created an unreasonable risk of
serious injury, JHTT did not immediately inform the Commission of such
defect or risk, as required by sections 15(b)(3) and (4) of the CPSA,
15 U.S.C. 2064(b)(3) and (4), in violation of section 19(a)(4) of the
CPSA, 15 U.S.C. 2068(a)(4).
14. Because the information in JHTT's possession constituted actual
and presumed knowledge, JHTT knowingly violated section 19(a)(4) of the
CPSA, 15 U.S.C. 2068(a)(4), as the term ``knowingly'' is defined in
section 20(d) of the CPSA, 15 U.S.C. 2069(d).
15. Pursuant to Section 20 of the CPSA, 15 U.S.C. 2069, JHTT is
subject to civil penalties for its knowing violations of section
19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).
Response of Firm
16. This Agreement does not constitute an admission to the staff's
charges as set forth in paragraphs 4 through 15 above, including
without limitation that the Subject Products in fact contained a defect
that could create a substantial product hazard or created an
unreasonable risk of serious injury or death; that Johnson Health Tech
had an obligation to, and failed to, notify the Commission in a timely
manner in accordance with section 15(b) of the CPSA, 15 U.S.C. 2064(b);
and that Johnson Health Tech knowingly violated section 19(a)(4) of the
CPSA, 15 U.S.C. 2068(a)(4), as the term ``knowingly'' is defined in
section 20(d) of the CPSA, 15 U.S.C. 2069(d).
17. JHTT asserts that at all relevant times, it had a compliance
program and took reasonable steps to monitor, evaluate, and address
reports associated with the Horizon T101-05 treadmill.
18. Prior to the recall and thereafter, JHTT has maintained the
position that it did not agree with the incident and injury counts or
the inclusion of a stop hazard in the recall announcement. The Firm did
not object to the publication of this information in the recall
announcement for the purpose of expeditiously announcing the recall.
Johnson Health Tech further enters into this Agreement to settle this
matter and to avoid the cost, distraction, delay, uncertainty, and
inconvenience of protracted litigation or other proceedings. Johnson
Health Tech does not admit that it violated the CPSA or any other law,
or that reportable information or a substantial product hazard existed.
Johnson Health Tech's willingness to enter into this Agreement and
Order does not constitute, nor is it evidence of, an admission by
Johnson Health Tech of liability, or violation of any law.
Agreement of the Parties
19. Under the CPSA, the Commission has jurisdiction over the matter
involving the Subject Products and over Johnson Health Tech.
20. The parties enter into the Agreement for settlement purposes
only. The Agreement does not constitute an admission by Johnson Health
Tech or a determination by the Commission that Johnson Health Tech
violated the CPSA.
21. In settlement of staff's charges regarding the Subject
Products, Johnson Health Tech shall pay a civil penalty in the amount
of sixteen million, eight-hundred-seventy-five-thousand dollars
($16,875,000) within thirty (30) calendar days after receiving service
of the Commission's final Order accepting the Agreement. All payments
to be made under the Agreement shall constitute debts owing to the
United States and shall be made by electronic wire transfer to the
United States via <a href="http://www.pay.gov">http://www.pay.gov</a>, for allocation to, and credit
against, the payment obligations of Johnson Health Tech under this
Agreement. Failure to make such payment by the date specified in the
Commission's final Order shall constitute Default.
22. After receipt of the payment set forth in paragraph 21, the
Commission releases and agrees that it will not seek civil penalties
from Johnson Health Tech for any violation of section 19(a)(4) of the
CPSA, 15 U.S.C. 2068(a)(4), regarding any defect or risk posed by a
consumer product for which Johnson Health Tech, as of March 1, 2026,
had submitted an Initial or Full Report under CPSA section 15, 2064(b)
and 16 CFR 1115.13 (c) and (d). This paragraph does not relieve Johnson
Health Tech from the continuing duty to report to the Commission any
new, additional, or different information as required by CPSA section
15.
23. The Commission or the United States may seek enforcement for
any breach of, or any failure to comply with, any provision of this
Agreement and Order in United States District Court, to seek relief
including, but not limited to, collecting amounts due.
24. All unpaid amounts, if any, due and owing under the Agreement,
shall constitute a debt due and immediately owing by Johnson Health
Tech to the United States, and interest shall accrue and be paid by
JHTT at the federal legal rate of interest set forth at 28 U.S.C.
1961(a) and (b) from the date of Default, until all amounts due have
been paid in full (hereinafter ``Default Payment Amount'' and ``Default
Interest Balance''). Johnson Health Tech shall consent to a Consent
Judgment in the amount of the Default Payment Amount and Default
Interest Balance, and the United States, at its sole option, may
collect the entire Default Payment Amount and Default Interest Balance,
or exercise any other rights granted by law or in equity, including,
but not limited to, referring such matters for private collection, and
Johnson Health Tech agrees not to contest, and hereby waives and
discharges any defenses to, any collection action undertaken by the
United States, or its agents or contractors, pursuant to this
paragraph. Johnson Health Tech shall pay the United States all
reasonable costs of collection and enforcement under this paragraph,
respectively, including reasonable attorney's fees and expenses.
25. After staff receives this Agreement executed on behalf of
Johnson Health Tech, staff shall promptly submit the Agreement to the
Commission for provisional acceptance. Promptly
[[Page 50821]]
following provisional acceptance of the Agreement by the Commission,
the Agreement shall be placed on the public record and published in the
Federal Register, in accordance with the procedures set forth in 16 CFR
1118.20(e). If the Commission does not receive any written request not
to accept the Agreement within fifteen (15) calendar days, the
Agreement shall be deemed finally accepted on the 16th calendar day
after the date the Agreement is published in the Federal Register, in
accordance with 16 CFR 1118.20(f).
26. This Agreement is conditioned upon, and subject to, the
Commission's final acceptance, as set forth above, and it is subject to
the provisions of 16 CFR 1118.20(h). Upon the later of: (i) the
Commission's final acceptance of this Agreement and service of the
accepted Agreement upon Johnson Health Tech, and (ii) the date of
issuance of the final Order, this Agreement shall be in full force and
effect, and shall be binding upon the parties.
27. Effective upon the later of: (1) the Commission's final
acceptance of the Agreement and service of the accepted Agreement upon
Johnson Health Tech and (2) the date of issuance of the final Order,
for good and valuable consideration, Johnson Health Tech hereby
expressly and irrevocably waives and agrees not to assert any past,
present, or future rights to the following, in connection with the
Horizon T101-05 matter described in this Agreement:
(i) an administrative or judicial hearing;
(ii) judicial review or other challenge or contest of the
Commission's actions;
(iii) a determination by the Commission of whether Johnson Health
Tech failed to comply with the CPSA and the underlying regulations;
(iv) a statement of findings of fact and conclusions of law; and
(v) any claims under the Equal Access to Justice Act.
28. Johnson Health Tech has, and shall maintain, a compliance
program (``Compliance Program'') designed to ensure compliance with the
CPSA with respect to any consumer product imported, manufactured,
distributed or sold by Johnson Health Tech. This program has, or will
be modified to include, the following elements:
(i) written standards, policies, and procedures, including those
designed to ensure that information that may relate to or impact CPSA
compliance is conveyed effectively to Johnson Health Tech personnel
responsible for CPSA compliance, including the individual appointed
pursuant to (viii) of paragraph 28, whether or not an injury has been
reported;
(ii) procedures and systems for tracking and reviewing claims,
including warranty claims, and reports for safety concerns and for
implementing corrective and preventive actions when compliance
deficiencies or violations are identified;
(iii) procedures requiring that information required to be
disclosed by Johnson Health Tech to the Commission is recorded,
processed, and reported in accordance with applicable law;
(iv) procedures requiring that all reporting made to the Commission
is timely, truthful, complete, accurate, and in accordance with
applicable law;
(v) procedures requiring that prompt disclosure is made to the
individual appointed pursuant to (viii) of paragraph 28 and to Johnson
Health Tech management of any significant deficiencies or material
weaknesses in the design or operation of such internal controls that
are reasonably likely to affect adversely, in any material respect, the
Johnson Health Tech's ability to record, process and report to the
Commission in accordance with applicable law;
(vi) mechanisms to effectively communicate to all applicable
Johnson Health Tech employees, through training programs or other
means, compliance-related company policies and procedures to prevent
violations of the CPSA;
(vii) a mechanism for confidential employee reporting of
compliance-related questions or concerns to either a compliance officer
or to another senior manager with authority to act as necessary;
(viii) Johnson Health Tech's senior management responsibility for,
and general board oversight of, CPSA compliance, including the
appointment of a product safety professional who will supervise
compliance with the CPSA and make recommendations on timely section
15(b) reporting, and implementation of steps to ensure that incident
and injury data is reviewed and analyzed for purposes of CPSA Section
15(b) reporting;
(ix) an annual internal audit for 3 years of the effectiveness of
policies, procedures, systems, and training related to CPSA compliance
that evaluates opportunities for improvement, deficiencies or
weaknesses, and the Johnson Health Tech's overall culture of
compliance; and
(x) retention of all CPSA compliance-related records for at least
five (5) years, and availability of such records to CPSC staff upon
request.
29. Johnson Health Tech, in coordination with the individual
appointed pursuant to paragraph (viii) above, shall submit a report
under CPSA Section 16(b), sworn to under penalty of perjury:
(i) describing in detail its compliance program and internal
controls and the actions Johnson Health Tech has taken to comply with
each subparagraph of paragraphs 28-29:
(ii) affirming that during the reporting period, Johnson Health
Tech has reviewed its compliance program and internal controls,
including the actions referenced in subparagraph (i) of this paragraph,
for effectiveness, and that it complies with each subparagraph of
paragraphs 28-29, or describing in detail any non-compliance with any
such subparagraph; and
(iii) identifying the results of the annual internal audit
referenced in paragraph 28(ix) and any changes or modifications made
during the reporting period to Johnson Health Tech's compliance program
or internal controls to ensure compliance with the terms of the CPSA
and, in particular, the requirements of CPSA Section 15 related to
timely reporting.
Such reports shall be submitted annually to the Director, Office of
Compliance, Division of Enforcement and Litigation, for a period of
three (3) years. The first report shall be submitted 30 days after the
close of the first 12-month reporting period, which begins on the date
of the Commission's Final Order of Acceptance of the Agreement, and
successive reports shall be due annually on the same date thereafter.
Without limitation, Johnson Health Tech acknowledges and agrees that
failure to make such timely and accurate reports, as required by this
Agreement and Order, may constitute a violation of Section 19(a)(3) of
the CPSA, 15 U.S.C. 2068(a)(3), and may subject Johnson Health Tech to
enforcement under Section 22 of the CPSA, 15 U.S.C. 2071.
30. Johnson Health Tech shall cooperate fully and truthfully with
staff and shall make available all non-privileged information and
materials and personnel deemed necessary by staff to evaluate Johnson
Health Tech's compliance with the terms of the Agreement.
31. The parties acknowledge and agree that the Commission may
publicize the terms of the Agreement and the Order.
32. Johnson Health Tech represents that the Agreement:
(i) is entered into freely and voluntarily, without any degree of
duress or compulsion whatsoever;
(ii) has been duly authorized; and
[[Page 50822]]
(iii) constitutes the valid and binding obligation of JHTT and
JHTNA respectively, as set forth in the Agreement, enforceable against
JHTT and JHTNA in accordance with its terms. The individuals signing
the Agreement on behalf of Johnson Health Tech represent and warrant
that they are duly authorized by Johnson Health Tech to execute the
Agreement.
33. The signatories represent that they are authorized to execute
this Agreement.
34. The Agreement is governed by the laws of the United States.
35. The Agreement and the Order shall apply to, and be binding
upon, Johnson Health Tech and each of its successors, transferees, and
assigns; and a violation of the Agreement or Order may subject Johnson
Health Tech, and each of its successors, transferees, and assigns, to
appropriate legal action.
36. The Agreement, any attachments, and the Order constitute the
complete agreement between the parties on the subject matter contained
therein.
37. The Agreement may be used in interpreting the Order.
Understandings, agreements, representations, or interpretations apart
from those contained in the Agreement and the Order may not be used to
vary or contradict their terms. For purposes of construction, the
Agreement shall be deemed to have been drafted by both of the parties
and shall not, therefore, be construed against any party, for that
reason, in any subsequent dispute.
38. The Agreement may not be waived, amended, modified, or
otherwise altered, except as in accordance with the provisions of 16
CFR 1118.20(h). The Agreement may be executed in counterparts.
39. If any provision of the Agreement or the Order is held to be
illegal, invalid, or unenforceable under present or future laws
effective during the terms of the Agreement and the Order, such
provision shall be fully severable. The balance of the Agreement and
the Order shall remain in full force and effect, unless the parties
agree in writing that severing the provision materially affects the
purpose of the Agreement and the Order.
(Signatures on next page)
Johnson Health Tech Trading, Inc.
Dated: July 28, 2026
By:___S___
Ryan Hoodjer,
Johnson Health Tech Trading, Inc.
Vice President of E-Commerce and Operations
Dated: July 27, 2026
By:___S___
Matthew R. Howsare,
Cooley LLP, Counsel to Johnson Health Tech
Johnson Health Tech North America, Inc.,
(agreed where applicable)
Dated: July 28, 2026
By:___S___
Robert Hoge,
Johnson Health Tech North America, Inc., General Counsel--US Region
U.S. Consumer Product Safety Commission
Mary B. Murphy, Director
Leah Wade, Supervisory Attorney
Dated: July 28, 2026
By:___S___
Mark Raffman,
Senior Trial Attorney, Division of Enforcement and Litigation, Office
of Compliance and Field Operations
United States of America Consumer Product Safety Commission
In the Matter of: JOHNSON HEALTH TECH.
CPSC Docket No.: 26-C0004
Order
Upon consideration of the Settlement Agreement entered into between
Johnson Health Tech Trading, Inc. and Johnson Health Tech North
America, Inc. (collectively, ``Johnson Health Tech'') and the U.S.
Consumer Product Safety Commission (``Commission'' or ``CPSC''), and
the Commission having jurisdiction over the subject matter and over
Johnson Health Tech, and it appearing that the Settlement Agreement is
in the public interest, the Settlement Agreement is incorporated by
reference and it is:
Provisionally accepted and this Order issued on the 4 day of
August, 2026.
By Order of the Commission:
By:___S___
Alberta E. Mills,
Secretary,
U.S. Consumer Product Safety Commission
[FR Doc. 2026-16010 Filed 8-5-26; 8:45 am]
BILLING CODE 6355-01-P
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