A manufacturer that receives reports from consumers that they have been injured by their product is supposed to report that to the U.S. Consumer Product Safety Commission (CPSC) within 24 hours after receiving credible information that the defective product presents a hazard of injury or death. In the case of Spin Master, Inc. of Los Angeles, the mandatory reporting didn’t happen; thus, the company has agreed to pay a civil fine of $1.3 million, a civil penalty agreement reached with the CPSC and announced on Thursday, October 27.
Spin Master made the product Aqua Dots, which was recalled after they were found to contain toxic and banned hazardous materials in the arts and crafts beads within the kit.
By October 2007, the company had received reports that children and a dog had ingested the beads and become ill, and in the following weeks more reports came in of illness and more emergency medical treatment that was needed as a result. Spin Master still did not report the consumer calls as required under federal law.
The company also allegedly learned that the dots contain 1,4-butylene glycol (TMG) which is harmful to the central nervous system and kidneys, depresses the respiratory system, and can cause seizures. Some of the injury reports to the company were about hospitalized children who were in a coma.
By November 2007, the CPSC had received its own illness reports about Aqua Dots and recalled 4.2 million of the defective craft games.
If a defective product creates an unreasonable risk to consumers, the CPSC can order a recall and fine the company that fails to report a substantial product hazard. An experienced Florida product liability law firm can also file an action to seek compensation based on a defect of the product in its manufacturing, its design, or in a failure to warn if that defective product causes harm to a consumer.
Source: http://www.prnewswire.com/news-releases/spin-master-agrees-to-13-million-civil-penalty-for-failing-to-report-aqua-dots-and-for-selling-a-banned-hazardous-substance-132683928.htmlZ
