Fitbit failed to report overheating incidents involving its Ionic watches in which customers suffered serious burns, safety regulator said.

Google-owned Fitbit agreed to pay $12.25 million to resolve claims it failed to immediately report a defect in certain smartwatches that could create a burn hazard for wearers.

Two popular models of Fitbit tracker are potentially affected by overheating problems, with the firm ready to financially compensate.

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