$1.3 million civil penalty levied against Aqua Dot toy importers

Consumer Reports News: October 27, 2011 10:38 AM

Spin Master, Inc. of Los Angeles, Calif., and Spin Master Ltd. of Toronto, Canada, have agreed to pay a civil penalty of $1,300,000 for failing to report the dangers of its imported Aqua Dot toys, said the U.S. Consumer Product Safety Commission.

According to the CPSC, today's settlement resolves the agency's allegations that Spin Master in 2007 knowingly imported and sold Aqua Dots, which contained a banned toxic substance, a violation of federal law. The CPSC also alleged the company failed to report the defect and hazard associated with the toy to CPSC immediately, as required by federal law.

Aqua Dots was a children's craft kit and toy that consisted of tiny beads of different colors that stuck together when sprayed with water, allowing children to create various shapes and designs. But 4.2 million Aqua Dots were recalled in November 2007, after the CPSC received two reports of children who became ill and comatose after ingesting the toys.

According to the CPSC, Spin Master had received similar reports of ingestion-related illnesses a month prior. The company also reportedly learned of similar incidents regarding a similar toy which was manufactured by the same overseas factory. Spin Master, however, did not timely report any of the incidents to CPSC according to the agency's press release.

In agreeing to the $1.3 million settlement today, Spin Master denies CPSC staff allegations that it knowingly violated the law.

Spin Master Agrees to $1.3 Million Civil Penalty for Failing to Report Aqua Dots and for Selling a Banned Hazardous Substance [CPSC]

—Paul Eng