Gree Electric and its subsidiaries to pay $91 million for failing to report dangerous dehumidifiers

115
SHARE

On July 26, 2012, the CEO of Gree USA informed the top executives of its parent company that the Gree dehumidifier has a “very serious” quality problem. He sent them a video the product was catching fire and it could lead to lawsuits.

Consumers reported over 2,000 incidents involving Gree dehumidifiers

Instead of reporting the issue to the CPSC immediately, Gree Electric and its subsidiaries continued selling the dangerous dehumidifiers to U.S. consumers until mid-July 2013, when it finally notified the Commission about its decision to recall the products.

On September 12, 2013, the CPSC announced a voluntary recall of 2.2 million Gree dehumidifiers in the United States. Consumers reported more than 2,000 incidents including 450 fires and over $19 million in property damages caused by Gree dehumidifiers.

In a statement, CPSC Chairman Alexander Hoehn-Saric said, “This historic criminal enforcement action should serve notice” that the Commission “will use its authority to the fullest to keep American families safe.”