Whirlpool Corporation (NYSE:WHR) has agreed to pay $11.5 million in civil penalty to settle U.S. Consumer Product Safety Commission (CPSC) charges.
The company was accused of failing to immediately report to CPSC about the defect of its glass cooktops, posing burn and fire hazards.
The proposed settlement covers 17 models of electric radiant heat cooktops under the JennAir, KitchenAid and Whirlpool brand electric radiant heat cooktops.
From early November 2017 to 2019, Whirlpool consumers complained that their cooktops surface elements turned on by themselves, posing a risk of serious injury and death.
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CPSC said Whirlpool reported the problem only after it received considerable complaints totaling 157 out of which 14 were of property damage and two minor burns.
The company had announced a recall of all cooktops in August 2019.
The settlement agreement requires Whirlpool to maintain internal controls and procedures designed to ensure compliance with the Consumer Product Safety Act (CPSA), including enhancements to its compliance program.
The company has also agreed to submit, for a period of three years, annual reports regarding its compliance program, internal controls, and internal audits.
Price Action: WHR shares closed lower by 1.62% at $133.55 on Thursday.
