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Keurig Green Mountain Pays $5.8 Mil Civil Penalty

Sedona AZ (May 11, 2017) – The U.S. Consumer Product Safety Commission (CPSC) announced on February 21, 2017, that Keurig Green Mountain, Inc., of Waterbury, Vermont, has agreed to pay a $5.8 million civil penalty to the government.

The penalty settles charges that Keurig knowingly failed to report a defect and unreasonable risk of serious injury to CPSC immediately with Keurig MINI Plus Brewing Systems, as required by federal law.

Between 2010 and 2014, Keurig received about 200 reports of hot water, coffee, and coffee grounds spraying out of the brewers. In more than 100 of these incidents, consumers suffered burn-related injuries to their faces, hands, and bodies. Some of these injuries were severe and resulted in second and third-degree burns.

In addition to paying a penalty, Keurig has agreed to develop, implement and maintain a compliance program that is designed to ensure that the company complies with the Consumer Product Safety Act.

Keurig recalled about 6.6 million MINI Plus brewers in December 2014.  The brewers were sold at Kmart, Kohl’s, Target, Walmart and other stores nationwide and online at keurig.com, greenmountaincoffee.com, and keurig.ca from December 2009 through December 2014 for about $100.

Keurig’s settlement of this matter does not constitute an admission of CPSC staff’s charges.

Keurig is a $4.5 billion business with over 6,000 employees.* At the time of the recall and for all the relevant years prior Keurig was a publicly traded company. On March 3, 2016, Keurig was acquired by an investment firm and is now a privately held company.

*See Keurig Green Mountain Annual Report on Form 10‐K dated November 19, 2015.

The penalty agreement has been accepted provisionally by the Commission by a 4 to 1 vote.

Joint Statement by Commissioners Robert S. Adler, Elliot F. Kaye and Marietta S. Robinson

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