[Epoch Times October 30, 2021](English Epoch City News Service report/Gao Shan compilation) US federal prosecutors announced on Friday (October 29) that a Chinese electrical appliance manufacturer and its two subsidiaries will pay The US$91 million fine was imposed because they failed to promptly report to the US Consumer Product Safety Commission (CPSC) that the millions of dehumidifiers they sold to American consumers were defective and could catch fire.
According to reports from the U.S. Department of Justice, Gree Electric Appliances Inc., a home appliance manufacturer headquartered in Zhuhai, China, and its subsidiary, Hong Kong Gree Electric Appliances Sales Co. Ltd.), reached an agreement with the U.S. prosecutors to pay a fine of US$91 million for the defective dehumidifier to resolve the criminal charges submitted to the Los Angeles Federal Court.
The Acting Attorney General of the United States, Tracy L. Wilkison, said in a statement: “No one should live in fear that a properly used consumer product may cause harm or harm to their loved ones. Death.” “Gree did not promptly report the dangerous and defective known problems of its dehumidifiers. It was prolonged for several months. This was criminal and costly. Gree’s delay in reporting defective dehumidifiers resulted in hundreds of Tens of thousands of such products have been recalled and millions of dollars have been spent on this. We will not allow companies to profit at the expense of consumer health and safety.”
According to the Consumer Product Safety Act (Consumer Product Safety Act), these Chinese companies were charged with a felony of deliberately failing to report consumer product safety-related information to the committee.
These companies know that their dehumidifiers are defective, do not meet safety standards, and may catch fire. But according to court documents, these companies only reported and started recalling dehumidifiers after consumers complained about the fire.
These Chinese companies admitted that they sold more than 2 million dehumidifiers in the United States between 2007 and 2013. According to court documents, they also agreed to continue to cooperate with federal prosecutors.
In addition, another subsidiary of Gree Company is Gree USA. Its chief executive officer and chief administrative officer are respectively: Charley Loh, 63, who lives in Arcadia, and Simon Chu, 66, lives in Chino Hills. The two were previously charged with felony charges for failing to report that the dehumidifier they sold was defective. But both refused to plead guilty.
According to the Department of Justice (DOJ), these resolutions are considered to be the first ever criminal enforcement actions against companies under the Consumer Product Safety Act.
The US Department of Justice stated that according to the agreement reached with the prosecutor, Gree Zhuhai Company and Gree Hong Kong Company must pay a total fine of US$91 million. These companies will also provide compensation to victims who have not been compensated for the fire caused by a defective dehumidifier.
According to US federal prosecutors, City of Industry-based Gree USA Inc. agreed to plead guilty to the same charges of deliberately failing to report consumer product safety information to the Consumer Product Safety Commission.
Representatives of Gree America will appear in Los Angeles Federal Court for the first time on November 8.
Editor in charge: Ye Ziwei#
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