Jailed or Fined for Breaking CPSC Rules
It could happen to a helmet manufacturer or Importer!
Summary: Here are a few CPSC press releases on penalties they have imposed on manufacturers and importers for failing to comply with Commission rules similar to their bicycle helmet standard. In recent years the fines have increased. CPSC changed all of their links to the press releases, so we redirected the links to their home page and you will have to search for the press release to see the original.
Lead Paint Violations - Big fine, but not largest ever
June 5, 2009
Release # 09-237
Mattel, Fisher-Price to Pay $2.3 Million Civil Penalty for Violating Federal Lead Paint Ban
Penalty is highest ever for CPSC regulated product violations
WASHINGTON, D.C. - As part of its commitment to protecting the safety of children, the U.S. Consumer Product Safety Commission (CPSC) announced today that Mattel Inc., of El Segundo, Calif. and its wholly owned subsidiary, Fisher-Price Inc., of East Aurora, N.Y. have agreed to pay a $2.3 million civil penalty for violating the federal lead paint ban.
The penalty settlement, which has been provisionally accepted by the Commission, resolves CPSC staff allegations that Mattel and Fisher-Price knowingly (as defined in the Consumer Product Safety Act) imported and sold children's toys with paints or other surface coatings that contained lead levels that violated a 30-year-old federal law. In 1978, a federal ban was put in place which prohibited toys and other children's articles from having more than 0.06 percent lead (by weight) in paints or surface coatings. In 2007, about 95 Mattel and Fisher-Price toy models were determined to have exceeded this limit. Lead can be toxic if ingested by young children and can cause adverse health consequences.
This civil penalty, which is the highest for violations involving importation or distribution in commerce of a regulated product and is the third highest of any kind in CPSC history, settles the following allegations:
Mattel imported up to 900,000 non-compliant toys between September 2006 and August 2007, including the "Sarge" toy car and numerous Barbie accessory toys, and distributed most of them to its retail customers for sale to U.S. consumers. The "Sarge" car was recalled in August 2007 and the Barbie toys were recalled in September 2007.
Fisher-Price imported up to 1.1 million non-compliant toys between July 2006 and August 2007, including certain licensed character toys and the Bongo Band, GEOTRAX locomotive, and Go Diego Go Rescue Boat toys. Most of these toys were distributed to retail stores for sale to consumers. The licensed character toys were recalled in August 2007, the Bongo Band and GEO TRAX toys were recalled in September 2007, and the Go Diego Go Boat toys were recalled in October 2007.
"These highly publicized toy recalls helped spur Congressional action last year to strengthen CPSC and make even stricter the ban on lead paint on toys," said CPSC Acting Chairman Thomas Moore. "This penalty should serve notice to toy makers that CPSC is committed to the safety of children, to reducing their exposure to lead, and to the implementation of the Consumer Product Safety Improvement Act."
This settlement also resolves other potential matters. In agreeing to the settlement, Mattel and Fisher-Price deny that they knowingly violated federal law, as alleged by CPSC staff.
To see this release on CPSC's website, with links to the previous recalls and settlement agreement, please go to the CPSC website
Largest FHSA violation fine, but smaller than two earlier CPSA fines.
Reebok to Pay Record $1,000,000 Civil Penalty for
Violation of Federal Hazardous Substances Act
March 18, 2008 - Release #08-224
WASHINGTON D.C. - The U.S. Consumer Product Safety Commission (CPSC)
announced today that a manufacturer of athletic shoes and apparel has
agreed to pay the government a $1,000,000 civil penalty. This penalty,
which has been provisionally accepted, is the largest for a Federal
Hazardous Substances Act (FHSA) violation and follows a recall announced
by CPSC and Reebok of 300,000 bracelets.
The penalty settles allegations that Reebok International Ltd., of
Canton, Mass., imported and distributed charm bracelets that contained
toxic levels of lead. The charm bracelets were provided as free gifts
with the purchase of various styles of children's footwear. In March
2006, a 4-year-old boy from Minneapolis who swallowed the bracelet's
heart-shaped pendant died.
The FHSA bans toxic levels of accessible lead in toys and other
children's products. CPSC's enforcement policy urges manufacturers of
children's metal jewelry to keep lead content below 0.06% by weight.
"This civil penalty sends a clear message that the CPSC will not allow
companies to put children's safety at risk," said CPSC Acting Chairman
Nancy Nord. "Preventing dangerous metal jewelry from reaching the hands
of children is a priority for our agency."
In agreeing to settle the matter, Reebok denies that it violated federal
law.
To see this release on CPSC's website, including pictures of the
recalled product, please go to:
https://www.cpsc.gov/
Fireworks seller gets prison term
Pennsylvania Man Sentenced to Federal Prison for Repeatedly Selling Illegal Fireworks Components
March 3, 2006 - Release # 06-105
WASHINGTON, D.C. - A Pennsylvania fireworks chemical supplier was
sentenced to federal prison today for violating a consent decree by
selling illegal and highly dangerous fireworks components.
John Rasmus, of Hallstead, Pennsylvania, was sentenced to 5 months in
federal prison, 5 months home confinement and three years of supervised release by U.S. District Judge James M. Munley, Middle District of Pennsylvania. Rasmus pled guilty in October 2005 to three counts of criminal contempt for violating the terms of a previous illegal fireworks-related consent decree.
For details and the remainder of this release, please visit the CPSC website.
Ten Children Burned - $300,000 Fine
June 27, 2005 - Release #05-208
Rose Art Industries To Pay $300,000 Penalty For
Failing to Report Hazard with Soap Making Kit
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC)
today announced a provisional settlement with a toy and art materials
manufacturer for failing to report important product safety information to the Commission. The settlement will impose a $300,000 penalty against Rose Art Industries Inc., of Livingston, N.J., for failing to inform the government in a timely manner about a defect in soap making kits that led to injuries to young children.
Between August 1997 and December 2001, Rose Art made and sold about
125,000 Glamour Gear Soap Making Kits nationwide. The kits, which are
intended for children eight years of age and older, include bars of
soap, molds and a plastic cup to melt soap chunks. A defect in the
plastic cup, which is used to heat the soap in a microwave, can cause it to deform or develop a hole in the bottom and pose a serious burn hazard to children.
Between January 1998 and January 2002, Rose Art received 10 reports of
children who were burned by hot soap while removing the plastic cup from the microwave. The majority of the children suffered second and third degree burns. The firm did not inform CPSC about the defect, injuries and the resulting civil litigation against the company until February 2002.
In March 2002, CPSC and Rose Art announced a recall of the soap kits.
Consumers can log on to www.cpsc.gov/cpscpub/prerel/prhtml02/02121.html
for information about receiving a refund.
According to federal law, manufacturers, distributors, and retailers are required to report to CPSC immediately (within 24 hours) after obtaining information which reasonably supports the conclusion that a product contains a defect which could create a substantial risk of injury to the public, presents an unreasonable risk of serious injury or death, or violates a federal safety standard.
In agreeing to settle the matter, Rose Art Industries denies that the
soap kits were defective and that it violated the reporting requirements of the Consumer Product Safety Act.
To view this press release online, please go to our website at:
https://www.cpsc.gov/
Record Fine: $4 million
March 22, 2005 - Release # 05-138
Record Civil Penalty Levied Against Graco Children's Products Inc.
CPSC, Graco announce new recall of 1.2 million toddler beds
WASHINGTON, D.C.- The U.S. Consumer Product Safety Commission (CPSC) today announced a provisional settlement with one of the nation's largest children's product manufacturers for the largest civil penalty levied in CPSC history. CPSC has provisionally imposed a $4 million penalty against Graco Children's Products Inc., of Exton, Pa., for failing to inform the government in a timely manner about more than 12 million products that posed a danger to young children nationwide.
CPSC and Graco also are announcing the recall today of about 1.2 million toddler beds, sold between February 1994 and March 2001, because a child's arm or leg can become entrapped in the guard rails or footboard. The company's failure to report the toddler beds is one of the violations leading to today's penalty.
"CPSC is at the forefront of protecting children from products that can cause serious injuries," stated CPSC Chairman Hal Stratton. "Today's announcement demonstrates our commitment to protecting American families by holding companies accountable for keeping safety information from us."
Graco, which acquired the Century brand name in 1998, is now owned by Newell Rubbermaid Inc. From 1991 through 2002, Graco and Century failed to report defects in juvenile products that the Commission said could create substantial product hazards or unreasonable risks of injury or death to young children. According to the CPSC, the company failed to report hundreds of incidents and injuries involving 16 different products. The products, all used by young children, include infant carriers, high chairs, infant swings, strollers and toddler beds. The injuries range from contusions and fractures to strangulation (including some fatalities).
The CPSC and Graco are also finalizing corrective action plans for two additional products that were manufactured between 1994 and 2001 and are addressed by today's penalty.
Stratton added, "We want companies to take their reporting
responsibilities very seriously. The action taken by Newell Rubbermaid to identify these critical safety failures by companies they purchased and take the necessary measures to improve product safety is a positive step that other companies should follow."
$1.4 Million fine for failing to inform
November 19, 2004 - Release # 05-053
Dynacraft To Pay $1.4 Million Penalty for Failing to Report Hazard with Mountain Bicycles
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC)
announced that Dynacraft BSC Inc., of San Rafael, Calif., has agreed to
pay a $1,400,000 civil penalty (pdf) to settle allegations that it
violated federal reporting requirements. CPSC alleged that Dynacraft
failed, on multiple occasions, to inform the government in a timely
manner about a serious defect with their mountain bicycles.
Between July 1999 and March 2001, Dynacraft imported nearly 250,000
mountain bicycles that were manufactured with two types of defective
forks. The forks, which are part of the steering column, can break apart
and separate from the front wheel, causing the rider to lose control and
suffer serious injuries. Over 50,000 of these bicycles also were made
with a defect that caused the pedals to come loose and fall off,
resulting in a loss of control by the rider.
In January 2000, Dynacraft reported to CPSC that a limited number of
Vertical XL2 bicycles were involved in incidents where the fork broke
and riders suffered chipped teeth, a sprained back, or bumps and bruises
to the head. Based on this information, CPSC and the firm recalled only
19,000 bicycles in February 2000. Yet, the firm knew of additional
consumers who experienced the same problem with the bicycles, but these
incidents were not reported to CPSC until July 2000.
As a result, the February 2000 recall was expanded in September 2000 to
include another 24,800 Vertical XL2 and Magna Electroshock model
bicyles. Dynacraft reported problems with the Magna Electroshock model
in August 2000, including 35 incidents and injuries (concussions,
fractures, and lost teeth).
In March 2001, Dynacraft informed CPSC about 31 riders using the Next
Shockzone model mountain bikes who were injured between March 2000 and
March 2001. In addition to broken bones, cuts and bruises, one rider
suffered a blood clot in the brain. The recall of 38,000 Next Shockzone
bicycles in April 2001 also involved defective suspension forks.
An additional 54,000 units were recalled in May 2001 after the company
reported incidents and serious injuries involving the Magna Equator
models, due to defects with the pedals. The largest and last recall took
place in June 2002, when 132,000 Next Ultra Shock mountain bicycles were
recalled due to defective Ballistic 105 forks. Dynacraft reported 21
injuries involving the Next Ultra Shock, including concussions,
abrasions, chipped teeth, and chest trauma.
Federal law requires manufacturers, distributors, and retailers to
report to CPSC immediately (within 24 hours) after obtaining information
which reasonably supports the conclusion that a product contains a
defect which could create a substantial risk of injury to the public,
presents an unreasonable risk of serious injury or death, or violates a
federal safety standard.
In agreeing to settle the matter, Dynacraft BSC Inc. denies that it
violated the reporting requirements of the Consumer Product Safety Act.
View this press release online at
https://www.cpsc.gov/
$1 Million Fine for Failing to File Timely Reports
September 23, 2003 - Release # 03-188
Brunswick has agreed to pay a civil penalty of $1 million. The Commission alleged that Brunswick was not timely in reporting that it had learned of 31 serious incidents involving defective forks on its Mongoose and Roadmaster bicycles.
Details on the CPSC website.
$100,000 Fine for Importing Dangerous Toys
November 21, 2002 - Release # 03-041
Four California Companies Must Pay $100,000 Fine For Importing and Selling Dangerous Children's Toys
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC) is announcing today that four Los Angeles-area businesses and six individuals must pay $100,000 in civil penalties for allegedly importing and selling dangerous children's toys.
Details on the CPSC website.
$270,000 Fine for Importing Dangerous Toys
California Company Pleads Guilty To Importing and Selling Dangerous Children’s Toys
Must Pay $270,000 in Civil and Criminal Fines
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC) is announcing today that STK International Inc. (STK), of Los Angeles, Calif., must pay $270,000 in civil and criminal penalties for importing and selling dangerous children's toys. STK must pay a $120,000 criminal penalty and the company and its President Stuart T. Kole must collectively pay a $150,000 civil penalty. Additionally, STK, Kole, and other officials of STK are enjoined from violating CPSC's toy and art material regulations and must comply with an injunction mandating that the company's toys are tested before importation.
The combined fine is the largest ever to be imposed against a company that violated the small parts requirement. This requirement is aimed at protecting young children from toys that could present a choking or aspiration hazard. This case also represents the first time both civil and criminal fines were levied against a company for toy-related violations.
See details on the CPSC web page.
Million dollar fine for waiting too long to notify
August 8, 2002 - Release # 02-225
GE Agrees to Pay $1,000,000 Fine for Delay in Reporting Product Defect to CPSC
WASHINGTON, D.C.- The U.S. Consumer Product Safety Commission (CPSC) announced today that the General Electric Co. (GE), of Fairfield, Conn., has agreed to pay the Government a $1 million civil penalty. The fine settles allegations that GE knowingly failed to report to CPSC in a
timely manner a defect with certain models of dishwashers. Under the
Consumer Product Safety Act (CPSA), manufacturers, importers,
distributors, and retailers must immediately report information about
potentially hazardous products to the Commission.
"This settlement puts companies on notice that they must notify
CPSC without delay when they learn of product hazards or consumer injuries," said Commission Chairman Hal Stratton. "We intend to enforce these requirements vigorously and there will be serious consequences for companies that fail to report such information quickly. The Commission will investigate and seek penalties against those who violate federal safety laws."
CPSC alleged that beginning in 1992, GE, one of the largest
manufacturers of household appliances in the world, became aware of
incidents of fire, smoking and melting related to the energy-saver slide
switches on six models of dishwashers. The slide switches can overheat,
causing the plastic to melt, and in some cases, ignite. Between January 1992 and November 1998, GE received 49 reports of fires that
involved melted switches. By the time the company first reported to the
Commission in November 1998, it knew of at least 111 incidents involving
fire, smoke, or melting of the switches on these dishwashers.
In agreeing to settle this matter, GE denies that it knowingly
violated the CPSA.
GE manufactured 3.1 million of the GSD500D, GSD500G, GSD540,
HDA467, HDA477, and HDA478 model dishwashers between 1983 and 1989. All
of these models have identical slide switches that allow consumers to
choose between a heated and non-heated drying cycle. In December 2000,
CPSC and GE announced a free repair option in the form of a rewiring for
the dishwashers. A GE-authorized technician will rewire the slide
switch at no cost to consumers. The rewire program supplements the
original rebate program announced in October 1999. In that recall, GE
provided consumers with a rebate toward the purchase of a new
dishwasher. CPSC and GE announced the supplemental rewiring option to
increase the effectiveness of the original rebate program.
Consumers who have one of these recalled dishwashers should
immediately discontinue use, unlatch the door, and contact GE anytime at
(800) 599-2929 or log on to their website.
To see a picture of the recalled product(s) and/or to establish a link from your website to this press release on CPSC's website, link to the following address:
https://www.cpsc.gov/
Jailed for importing non-compliant products
April 9, 2002 - Release # 02-137
California Man Sentenced for Importing Illegal Toys
The U.S. Consumer Product Safety Commission (CPSC) announced
today that Steve Thai, owner of the now defunct Super Rambo Inc.,
of Los Angeles, Calif., was sentenced to three years probation and
ordered to pay a $20,000 fine for importing children's toys that violate
federal law. Thai is the first individual sentenced for a criminal
conviction
related to CPSC's mandatory children's toy standards.
U.S. District Judge Lourdes G. Baird handed down the sentence
against the 41-year-old Thai after he pled guilty in August 2001 to four counts of violating CPSC's small parts requirements for children's
toys. The Judge also ordered that Thai, and any company with which he is associated in any way, must conduct pre-importation testing and evaluation to ensure compliance with CPSC's standards.
"CPSC is pleased that the Court is requiring the testing of toys that
Thai's companies import," said CPSC Acting Chairman Thomas Moore.
"This case should alert all toy importers, manufacturers, and
distributors that CPSC is willing to prosecute individuals who place
children at risk of serious injury."
Thai's business illegally imported toy trucks, racing cars, planes, wind-up robots, and trains. Despite repeated notice from the
CPSC that he was violating the law, Thai continued to import the
illegal toys. Toys with small parts are a choking hazard for
children under 3.
Every year CPSC recalls numerous children's products that could
contribute to unnecessary deaths or injuries. In 2000, there
were 151,000 children (under 15 years old) that were treated in
hospital emergency rooms due to toy related incidents,
resulting in 17 deaths.
Waited too long to report a product defect
July 2, 2002 - Release # 02-194
Court Imposes First Civil Penalty for Failing to Report a Product Hazard
California Firm Fined $300,000 After Waiting Months to Report Defective Juicers
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC)
announced today a court ruling imposing a $300,000 civil penalty against
a firm for not reporting a serious product hazard - the first time such
a penalty ever has been awarded by a court for a company's failure to
report. The ruling was made in a civil penalty action brought on CPSC's
behalf by the Department of Justice's Office of Consumer Litigation
against Mirama Enterprises Inc., which does business as Aroma Housewares
Co., in San Diego, Calif., a small importer and distributor of juice
extractors (juicers) and other household appliances.
"Whenever a company fails to report its knowledge of a hazardous
product to CPSC, it will pay a civil penalty that hurts," said CPSC
Acting Chairman Thomas Moore. "If the company refuses to settle, we'll
get the penalty in court."
U.S. District Court Judge Judith N. Keep, of the Southern District
of California, also stressed the deterrent value of civil penalties,
saying that there "has to be teeth to the [Consumer Product Safety]
Act." Judge Keep noted that not knowing about the statutory requirement,
not understanding the defect, or blaming the problem on consumer misuse
do not excuse a company from the requirement to report a hazardous
product.
Aroma received telephone calls and letters beginning early in 1998
that the juicers were breaking apart and injuring consumers. By the time
Aroma reported to CPSC in November 1998, the firm had at least 23
reports of incidents of juicers breaking apart, including reports of
injuries to at least 22 consumers. Five of these injuries required
stitches and one required surgery for lacerated arteries.
In January 2002, Judge Keep held the company liable before trial,
based on the existing evidence and legal arguments. The judge imposed
the fine following a separate three-day hearing on an appropriate
amount. She heard evidence on several factors including the severity of
the risk of injury, Aroma's ability to pay, and Aroma's behavior.
This was the first time ever that a federal court found that a
company had violated the reporting statute and ordered a civil penalty.
CPSC civil penalties previously collected from companies that failed to
report product hazards were paid as a result of voluntary settlements.
Aroma Housewares Co. conducted a joint recall with CPSC of about
40,000 of these juice extractors in June 1999. For more information on
the recall, call Aroma at (800) 276-6286 or go the press release at
https://www.cpsc.gov/
Jail term for lying to the government.
January 23, 2002 - Release # 02-091
Houston Businessman Pleads Guilty To Making False Statements To
Government Officials
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC)
announced today that a 49-year-old Houston, Texas, businessman pleaded
guilty to felony charges that he made a false statement to a CPSC
investigator and he imported merchandise into the United States by means of false statements.
Chuck Bai-Fun Chen operated three businesses in Houston: Wholesale
World Inc., Texas Tech Mart Inc., and USA Maxam Inc., which imported and distributed various consumer products into the United States, including household extension cords and Christmas tree lights. During a CPSC inspection, Chen falsely told a CPSC investigator that he did not import or sell any Christmas tree lights in 1999. At the time he made the statement Chen's company had such lights in inventory. The lights that he imported in 1999 were tested by the CPSC and were found to be substandard. An indictment against Chen, which was filed in October 2001, came about as a result of a CPSC investigation into the safety of
products sold by Chen's businesses.
Chen also pleaded guilty to submitting fake invoices to the U.S.
Customs Service to understate the value of products he imported to
reduce the amount he had to pay on importation duties.
Chen could face up to seven years imprisonment and up to $500,000
in fines when sentenced by U.S. District Judge Ewing Werlein in May
2002.
"We take seriously instances in which an individual provides false
information to CPSC investigators," said CPSC Acting Chairman Thomas Moore. "CPSC will take strong action to protect the integrity of our investigations and deter this kind of illegal conduct."
The charges against Mr. Chen were prosecuted by the Office of
Consumer Litigation of the U.S. Department of Justice and the U.S.
Attorney's Office for the Southern District of Texas.
Fined for importing a product violating CPSC regulations
January 25, 2002 - Release # 02-092
Court Upholds Fireworks Penalty Against Shelton Wholesale Inc.
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC) announced today that the U.S. Court of Appeals for the Eighth Circuit upheld a $100,000 penalty against Shelton Wholesale Inc., of Eagleton, Mo., for importing fireworks that violated CPSC regulations.
Greg Shelton and his fireworks companies, including Shelton
Wholesale, unsuccessfully appealed the district court's finding that CPSC has jurisdiction to regulate consumer fireworks. Mr. Shelton and his companies also failed to convince the appellate court that CPSC denied them their due process rights, that CPSC's evidence had been improperly admitted in court, and that the Shelton companies were entitled to a jury trial. The appellate court agreed with the district court - and with CPSC - on all of these legal issues.
The appellate court also ruled that the case brought by the
National Fireworks Association (NFA) against CPSC, making the same assertions as Shelton in the civil penalty case, lacked merit. The district court had ruled for CPSC in the NFA case.
"We're extremely gratified that the federal courts have endorsed
CPSC's fireworks program," said CPSC Acting Chairman Thomas Moore. "Our statutory authority and the validity of our enforcement methods can no longer be questioned."
CPSC had charged Shelton with importing fireworks that violated
federal regulations because they could malfunction or explode
unexpectedly while people are standing nearby, causing injury or death. The U.S. Department of Justice's Office of Consumer Litigation represented CPSC in the Shelton cases.
The courts affirm reporting requirements
January 29, 2002 - Release # 02-094
Court Affirms that Companies Must Report Hazardous Products Immediately to CPSC
WASHINGTON, D.C. - A U.S. district judge has affirmed that companies must report immediately to the U.S. Consumer Product Safety Commission (CPSC) certain information that their products could cause injury or death. The ruling was made in a civil penalty action by the U.S. government against Mirama Enterprises Inc., which does business as Aroma Housewares Co., in San Diego, Calif., an importer of juice extractors (or juicers).
Aroma received telephone calls and letters beginning early in 1998
that the juicers were breaking apart and injuring consumers. By the time Aroma reported to CPSC in November 1998, it had at least 23 reports of incidents of juicers breaking apart, including reports of injuries to at least 22 consumers. Five of these injuries required stitches and one required surgery.
Judge Judith N. Keep in the U.S. District Court for the Southern
District of California held the company liable before trial, based on the existing evidence and legal arguments. The judge noted that
"companies are specifically advised to over-report rather than under-report." She added that the thrust of the Consumer Product Safety Act "is to impose on companies in the consumer product business a duty to report fully and immediately so that the Commission might protect the public safety."
The court found that the incidents reported to Aroma were "enough
for a reasonable person to be able to conclude that the juicer posed an unreasonable risk of serious injury or death. ... The standard is a 'reasonable person' standard, not a 'reasonable expert' standard."
"The court's ruling strongly supports what the CPSC has been
telling companies for years," said CPSC Acting Chairman Thomas Moore.
"The sooner we learn of a problem, the sooner we can inform consumers and protect them from further injury and death."
The court will now consider the amount of penalty that Aroma must
pay for failing to report the unsafe juicers. The Department of
Justice's Office of Consumer Litigation is representing CPSC in the
case.
Aroma Housewares Co. conducted a joint recall with CPSC of about
40,000 of these juice extractors in June 1999. For more information on the recall, call Aroma at (800) 276-6286 or go the press release at https://www.cpsc.gov/.
Fined for not reporting injuries to children
February 13, 2002 - Release # 02-102
California Company Agrees To Pay $75,000 Fine For Failure To Report
Infant Carrier Defect
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission announced today that MTS Products Inc., of Northridge, Calif., has agreed to pay a civil penalty of $75,000 to settle allegations that the company failed to report serious defects with its infant carriers. Under the Consumer Product Safety Act, manufacturers, distributors, and retailers must immediately report product defects to the Commission.
In March 1996, MTS manufactured and distributed over 18,000 infant
carriers under the brand names "J. Mason Infant Carriers" (Model number 12502), "Squiggles" (Model number 12505), and "Aurora Dreams" (Model number 12506). Between June 6, 1996 and February 24, 1997, MTS received seven reports of the infant carrier's handle breaking during use, causing infants to fall to the ground or floor. Several children suffered injuries, including bruises, cuts and abrasions to their faces.
MTS failed to report these injuries to the Commission.
In agreeing to settle this matter, MTS denies that it violated the
Commission's reporting requirements.
CPSC and MTS Products announced the recall of the infant carriers
in December 1997. The white plastic infant carrier comes with a fabric seat pad and matching removable sun shade canopy. The fabric comes in the following designs: 1) multicolored fabric (pink, blue, white and green) with a geometric pattern, 2) light blue fabric with white squiggly lines, or 3)light blue fabric with pink and purple patterns. "J. MASON" is imprinted on the carrier's handle, which can be used to convert the carrier to a rocking or feeding position. "MADE IN U.S.A." is imprinted on the bottom of the carrier and there is a red sticker on the bottom of the carrier
that reads, "Warning: Do Not Use As A Car Seat."
Consumers who have the recalled carrier should call MTS at (800)
242-1922 to receive a free replacement infant carrier.
Jailed just for lying to the US government!
April 21, 2000 - Release # 00-101
Tennessee Man Sentenced to Prison for Making False Statements to CPSC in Cigarette Lighter Case
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC)
announced today that a 51-year-old Memphis, Tenn., man was sentenced on
federal charges for making a false statement to a CPSC investigator. The
U.S. District Court for the Western District of Tennessee sentenced
Donald M. Anthony, a former distributor of cigarette lighters, to 2
years in prison for lying to a CPSC investigator about removing child-
resistant mechanisms from disposable cigarette lighters.
Anthony operated National Marketing, a now-defunct Memphis business that
distributed cigarette lighters to convenience stores and other
distributors nationwide. Anthony made false statements about whether
National Marketing was removing the child-resistant mechanisms from
lighters and then reselling them.
"This case will alert companies that CPSC aggressively enforces our
safety standards and will pursue individuals and companies who undermine
our investigations," said CPSC Chairman Ann Brown. "The cigarette
lighter standard prevents fires and saves lives - especially the lives
of children."
Before cigarette lighters were required to be child-resistant, an
average of 150 persons were killed and nearly 1,100 injured each year as
a result of residential fires started by children younger than 5 who
were playing with lighters. Average annual property damage from such
fires totaled almost $70 million. The child-resistant standard is
expected to prevent about 100 deaths annually.
The CPSC has launched investigations across the country in the
past two years to recall lighters that do not meet federal standards and
to prosecute companies and individuals that disable the child-resistant
mechanisms.
Jail sentence for reselling recalled products
April 9, 1999 - Release # 99-093
Toy Importer Sentenced in Criminal Case
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC)
announced today that Dan Dee International Inc., of Jersey City, N.J.,
was sentenced to pay a criminal penalty of $40,000, after pleading
guilty to four counts of selling banned children's toys. After recalling
thousands of Teddy Precious Collectible Bears, Dan Dee resold
approximately 8,000 of them in 1996 to another company that later sold
them to consumers. Sales of banned products violate the Federal
Hazardous Substances Act.
The teddy bears, which have not been sold since 1996, contained
small removable parts and presented the risk that young children could
choke to death on the parts. The U.S. District Court for the Northern
District of Ohio sentenced Dan Dee, immediately after accepting its
guilty plea.
CPSC Chairman Ann Brown said, "Once again, CPSC is putting
companies on notice that it violates the criminal law to sell dangerous
children's products. We will aggressively pursue actions like this one
to protect the safety of American children."
Acting Assistant Attorney General David W. Ogden commented, "Our
efforts in prosecuting this case will send a message to companies that
sell toys - we are very serious about the safety of children." The Civil
Division's Office of Consumer Litigation, in the Department of Justice,
handled the prosecution of this case, which is the first to arise out of
CPSC's investigation of these matters.
Fined for knowingly selling dangerous cribs
February 17, 1998 - Release # 98-068
Coaster Company of America to Pay $300,000 Civil Penalty
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission
(CPSC) announced today that COA Inc., d/b/a Coaster Company of
America, of Santa Fe Springs, Calif., has agreed to pay a civil
penalty of $300,000 to settle allegations that it violated the
Federal Hazardous Substances Act (FHSA) and the Consumer Product
Safety Act (CPSA).
Cribs the company sold pose entrapment and choking hazards
to babies that could lead to serious injury or death.
CPSC alleges that from January 1993 through December 1996,
the Coaster Company of America imported and sold approximately
940 of its model 2368 full-size, metal baby cribs, and from June
1996 through April 1997, imported and sold approximately 900 of
its model 2364 full-size, metal baby cribs, both of which
violated the Requirements for Full-Sized Baby Cribs under the
FHSA. Additionally, the firm was in possession of independent
laboratory test results which showed that model 2364 had a design
defect which should have been reported to the Commission
in accordance with the CPSA. The Coaster Company of America not
only failed to report this matter to the Commission, but it
continued to sell the cribs.
Jailed for not labeling hazardous product
January 28, 1998 - Release # 98-059
Company President Sentenced to Jail for CPSC Violations
WASHINGTON, D.C. - The U.S. Consumer Product Safety
Commission (CPSC) announced today that John D'Angelo, owner
and president of Utility Free Inc., a Colorado-based
distributor of alternative energy products, was sentenced to
nearly two years in jail for violating two laws enforced by
CPSC. Mr. D'Angelo pled guilty to 15 counts of improperly
shipping hazardous substances, including a highly corrosive,
clear electrolyte solution. In December 1993, 15-year-old
Justin Pulliam mistook the solution for water because Mr.
D'Angelo had shipped it in a reused plastic one-gallon milk
container that lacked appropriate warnings. The teenager
drank it and died two weeks later from severe internal
injuries.
The Federal Hazardous Substances Act prohibits the
shipment of hazardous substances in reused food containers
and without proper warning labels that contain safety
information. The Poison Prevention Packaging Act requires
that certain chemicals be marketed in child-resistant
packaging. Mr. D'Angelo violated both laws. His sentence
is the longest jail time ever imposed for violations of laws
enforced by CPSC.
CPSC Chairman Ann Brown said, "These important federal
laws are intended to prevent exactly the kind of tragedy
that killed Justin. We will vigorously pursue everyone
who flouts our laws and puts consumers at risk." Chairman
Brown also noted that the Colorado Department of Public
Health and Environment first brought Mr. D'Angelo's
violations to CPSC's attention. "This was a perfect example
of how state and federal authorities working together can
protect the public," she said.
Mr. D'Angelo also shipped improperly labeled potassium
hydroxide and lithium hydroxide in solid form. In addition,
he kept selling the potassium hydroxide in non-child-
resistant containers (plastic bags with twist-tie or
resealable plastic bags), even after CPSC told him that such
sales violated federal law.
The U.S. District Court for the District of Colorado
sentenced Mr. D'Angelo to 700 days in jail (approximately 23
months), to be followed by one year of supervised release,
in the case of U.S. v. Utility Free Inc. and John D'Angelo
(No. 97-CR-312).
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