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Children’s entertainment company agrees to pay $1.3 million penalty after failing to report serious product danger

Spin Master, a Toronto children’s entertainment company, recently agreed to pay a $1.3 million civil penalty to resolve allegations made by the Consumer Product Safety Commission (CPSC).   The company manufactures Aqua Dots, a children’s craft kit containing small beads that stick together when sprayed with water.  The beads contain several banned hazardous, toxic substances.  A number of children (and one dog) received emergency medical treatment after ingesting Aqua Dots.  CPSC alleged that Spin Master learned of these incidents in October 2007, but failed to report them to the Commission, in violation of federal law.

In the next few weeks, Spin Master allegedly continued to receive reports of children harmed by Aqua Dots.  However, no reports were made to CPSC.  In November 2007, CPSC received reports stating that two children had fallen into comas after ingesting Aqua Dots.  CPSC contacted Spin Master and, two days later, a recall was issued.

CPSC noted that Spin Master had hired a company to test the toxicity of the product, but the testing was considered inadequate.

Federal law requires companies like Spin Master to report to CPSC within 24 hours of receiving information on a potential product defect or danger.  Spin Master denied knowingly violating the law.  However, the company has agreed to pay the $1.3 million civil penalty.

Visit CPSC for more details and pictures of the toxic product.

Entry Filed under: Products Liability

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