⚖️ Fitbit's $12M Fine

Author

Liam Gill
February 04, 2025

In partnership with

Overview of Fitbit’s Settlement with CPSC

Fitbit, the Google-owned fitness company, has settled a long-standing issue with the U.S. Consumer Product Safety Commission (CPSC) regarding defects in its Ionic smartwatch. The company will pay a $12.25 million penalty after the CPSC found that the device posed an unreasonable risk of injury, particularly due to overheating batteries. This issue, which began as early as 2018, resulted in reports of 78 burns, including severe third-degree burns, and a broader recall of the smartwatch in March 2022. Fitbit’s failure to immediately report the defect, despite having information that supported the risk of harm, was a central point in the settlement.

Fall in love with BILL, get a $200 Saranoni blanket

BILL + controllers = ❤️

We're sharing the love! Take a demo of BILL Spend & Expense and get a $200 gift card to Saranoni Luxury Blankets & Gifts.1

"Switching to BILL for our credit cards has been such an amazing decision for us! After transitioning from a competitor to BILL Spend & Expense 6 months ago, we’ve already received over $10,000 in cash-back rewards—something our previous provider never came close to offering.” – Madolen Gossett, Controller @ Saranoni

1Terms and Conditions apply. See offer page for details.
Card issued by Cross River Bank, Member FDIC, and is not a deposit product.

Implications for Tech Startups in Consumer Electronics

For startups developing consumer electronics, this case underscores the importance of proactive safety measures and timely reporting of defects. The CPSC’s ruling highlights the potential legal and financial repercussions of failing to address product hazards quickly and transparently. A failure to comply with the Consumer Product Safety Act (CPSA) can lead to substantial penalties, recalls, and a damaged reputation. Startups should prioritize creating robust internal controls for product safety, including timely reporting of defects to regulatory bodies and implementing regular safety audits.

Opportunities for Startups in Enhancing Compliance Programs

The settlement also includes Fitbit’s commitment to submit an annual report to the CPSC and enhance its internal compliance program. This presents an opportunity for startups to focus on strengthening their product safety and compliance strategies from the outset. By investing in rigorous testing, transparent communication with consumers, and early engagement with regulatory authorities, startups can mitigate risks and avoid costly legal battles. Furthermore, startups should consider how they can differentiate themselves in the marketplace by demonstrating a strong commitment to product safety, which can foster consumer trust and loyalty.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more

Newsletter supported by:

Engage Prospects at the Perfect Moment With Our AI BDR

A poorly timed outbound message is a wasted message. Ava tracks your prospects in real-time and waits for them to trigger an intent signal before automatically sending them a personalized email or LinkedIn message.

Hire Ava who automates your entire outbound demand generation process, including:

  • Intent-Driven Lead Discovery Across Dozens of Sources

  • High Quality Emails with Human-Level Personalization

  • Follow-Up Management

  • Email Deliverability Management