- Johnson Health Tech Trading agreed to pay a $16.875 million civil penalty — one of the largest in CPSC history — for knowingly failing to immediately report a fall hazard defect in approximately 192,000 Horizon T101-05 treadmills sold in the U.S.
- The company received 874 incident reports and 71 injury reports — including two broken bones — between March 2018 and October 2022, yet did not file a mandatory report until March 2022, only after CPSC staff requested it.
- The settlement requires JHTT to appoint a product safety professional, implement enhanced compliance procedures, and submit annual compliance reports to CPSC for three years.
- The penalty follows a similar $19.065 million CPSC action against Peloton in 2023, underscoring the agency’s intensified enforcement of mandatory product safety reporting in the fitness equipment sector.
- Public comments on the settlement may be submitted to CPSC by August 21, 2026, under Docket No. 26-C0004.
$16.875M Penalty: Johnson Health Tech Critical Treadmill Failure
WASHINGTON, Aug. 4, 2026 — The U.S. Consumer Product Safety Commission (CPSC) announced today that Johnson Health Tech Trading, Inc. (“JHTT”) of Cottage Grove, Wisconsin, has agreed to pay a $16.875 million civil penalty for knowingly failing to immediately report a dangerous defect in its Horizon T101-05 treadmills. The settlement, provisionally accepted by the Commission, resolves charges that JHTT violated Section 15(b) of the Consumer Product Safety Act (CPSA) by withholding information about a fall hazard that resulted in at least 874 incident reports and 71 consumer injuries over a four-and-a-half-year period.
Pattern of Delayed Reporting Despite Mounting Injuries
Between March 2018 and October 2022, JHTT received at least 874 reports of Horizon T101-05 treadmills unexpectedly accelerating, stopping, or changing speed without user input. These incidents resulted in at least 71 reports of consumer injury, including bruises, abrasions, and two broken bones. Despite the severity and frequency of these reports, JHTT failed to fulfill its legal obligation to immediately notify the CPSC under Section 15(b) of the CPSA.
According to the settlement agreement published in the Federal Register (Docket No. 26-C0004), JHTT initiated a root-cause investigation in September 2020 and implemented production changes in February 2021 and September 2021 in an attempt to mitigate the fall hazard. However, consumer incidents continued to occur after these modifications were implemented, including additional reports of consumers falling and suffering broken bones. The company did not file a Full Report with the Commission until March 9, 2022 — and only did so following a specific request from CPSC staff.
The Commission and JHTT jointly announced a recall of approximately 192,000 Horizon T101-05 treadmills in the United States (plus an additional 7,000 sold in Canada) on October 27, 2022, offering consumers a free USB software update to address the hazard.
Product Details and Recall Scope
The recalled product is the Horizon Fitness T101-05 folding treadmill, manufactured in China and Vietnam. The treadmill features a running area measuring 55 inches long by 20 inches wide with a 33-inch-wide console and red LED display. Only units with serial numbers beginning with “TM734” (China-manufactured) or “TM486” (Vietnam-manufactured) are affected.
The treadmills were sold nationwide at Dick’s Sporting Goods and Johnson Fitness & Wellness retail stores, as well as online through HorizonFitness.com, Amazon.com, DicksSportingGoods.com, and JohnsonFitness.com from March 2018 through October 2022. Retail prices ranged from $600 to $1,000 per unit. In Canada, approximately 6,986 units were sold from August 2018 through October 2022, with the company receiving 8 reports of unexpected speed changes and 6 injury reports in that market.
Consumers who purchased affected units were instructed to immediately stop using the treadmills and contact Horizon Fitness to receive a free USB flash drive containing a software repair. The company could be reached toll-free at 888-223-1045 or via email at retailrecall@johnsonfit.com.
Settlement Terms and Mandatory Compliance Overhaul
In addition to the $16.875 million civil penalty, the settlement agreement requires JHTT and its affiliated entity, Johnson Health Tech North America, Inc. (“JHTNA”), to implement comprehensive internal controls and compliance procedures designed to ensure adherence to the CPSA. Key requirements include:
- Appointment of a dedicated product safety professional to supervise CPSA compliance and make recommendations on timely Section 15(b) reporting
- Implementation of systematic processes to ensure incident and injury data are reviewed and analyzed for reporting purposes
- Submission of annual compliance reports to the CPSC for a period of three years, covering the compliance program, internal controls, and internal audit of the effectiveness of compliance policies, procedures, systems, and training
JHTT did not admit liability as part of the settlement. The company asserted that it maintained a compliance program throughout the relevant period and took reasonable steps to monitor and address reports associated with the treadmill. JHTT also maintained its position that it disagreed with the incident and injury counts and the inclusion of a stop hazard in the recall announcement, though it did not object to the publication of this information for the purpose of expediting the recall. The company stated it entered into the agreement to avoid the cost and uncertainty of protracted litigation.
Broader Context: CPSC’s Escalating Enforcement on Treadmill Safety
The JHTT penalty ranks among the largest civil penalties in CPSC history and signals the agency’s continued aggressive enforcement of mandatory reporting requirements under Section 15(b) of the CPSA. The case bears notable parallels to the CPSC’s $19.065 million penalty against Peloton Interactive in January 2023, which similarly involved the company’s failure to immediately report a treadmill defect — in Peloton’s case, the Tread+ entrapment hazard that resulted in the death of a child and multiple injuries.
CPSC commissioners have consistently emphasized that delayed reporting deprives the agency of the opportunity to protect consumers at the earliest possible stage. Under federal law, manufacturers, importers, and distributors must report to CPSC within 24 hours of obtaining information reasonably supporting the conclusion that a product contains a defect that could create a substantial product hazard or poses an unreasonable risk of serious injury or death.
“This settlement sends an unmistakable message to the fitness equipment industry: withholding safety information from the Commission is not a viable business strategy,” said a CPSC enforcement spokesperson. “When companies delay reporting, consumers pay the price — sometimes with broken bones, sometimes worse. The penalty reflects the seriousness of JHTT’s failure to act.”
About Johnson Health Tech
Johnson Health Tech, Inc. (JHT) is one of the world’s largest fitness equipment manufacturers, founded in 1975 by Peter Lo in Taichung, Taiwan. The company operates as a vertically integrated fitness conglomerate with brands including Matrix Fitness (commercial), Vision Fitness, and Horizon Fitness (home). Headquartered in Taichung with global product development and marketing operations in Cottage Grove, Wisconsin, JHT maintains 39 wholly-owned subsidiaries and distributes to more than 100 countries. JHTT, the U.S. trading subsidiary, is responsible for the import and distribution of Horizon Fitness products in the United States. johnsonhealthtech.com
The Commission has provisionally accepted the settlement agreement, subject to public comment. Interested parties may submit written comments by August 21, 2026, to the Office of the Secretary, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, MD 20814, or via email at cpsc-os@cpsc.gov, referencing Docket No. 26-C0004.
