HSN to pay penalty to U.S.

HSN, formerly known as Home Shopping Network, has agreed to pay the U.S. an $875,000 civil penalty after the government accused the company of failing to promptly issue warnings about pressure cookers that were blamed for burning people in at least 37 incidents.

The Consumer Product Safety Commission said the payment was part of a settlement reached with HSN and its partner companies over defects in Welbilt electronic pressure cookers sold between September 2001 and November 2002.

The agreement headed off a lawsuit the commission and the Justice Department were prepared to file against HSN accusing it of failing to tell the commission -- as required by law -- about 25 reports the company allegedly received of defects in the pressure cooker between September 2001 and October 2004. The company reported problems with the appliance to the commission in February 2005, and two recalls were issued for the appliance -- one in June 2005, another in October 2005.

As part of the settlement, the company, a subsidiary of IAC/InterActiveCorp, denied that it was aware of 25 reports about problems with the appliance and acknowledged no responsibility for failing to promptly warn consumers about risks in using the pressure cooker.