even toy cars are at risk
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Fisher-Price Is Hit with a Record Fine
Thursday June 7, 9:55 AM EDT
By Sue Pleming
WASHINGTON (Reuters) - U.S. safety regulators said on Thursday Fisher-Price would pay a $1.1 million fine to settle charges it did not report a fire hazard risk with a toy vehicle, the biggest civil penalty imposed by regulators on a toy company.
The Consumer Product Safety Commission (CPSC) said the East Aurora, New York, company had agreed to pay the fine in connection with CPSC charges involving safety defects in the toymaker's Power Wheels toy vehicles, which were recalled in 1998.
"This is the largest fine against a toy firm in the CPSC's history," the CPSC said in a statement.
The CPSC said Fisher-Price, in agreeing to settle the case, denied the CPSC allegations and also denied it knowingly violated the Consumer Product Safety Act.
Fisher-Price, the world's largest preschool toy company and a unit of Mattel Inc (MAT), failed to report 116 fires involving the vehicles and reports of more than 1,800 incidents of the vehicles' electrical components overheating, short-circuiting, melting or failing, the CPSC said.
"Fisher-Price knew about hundreds of problems with PowerWheels, they did nothing for years. This fine is a loud and clear message to all firms that failing to report product defects will not be tolerated," said CPSC chairman Ann Brown.
These incidents resulted in at least nine minor burns to children and up to $300,000 in property damage to 22 houses and garages.
The CPSC said Fisher-Price was aware of at least 71 incidents involving the products' failure to stop, resulting in six minor injuries when the vehicles hit a car, truck, pole, window or fence.
Fisher-Price could not be reached to comment on the fine.
CPSC REACTED TO CONSUMER COMPLAINTS
The CPSC said it began investigating the cars after it received consumer reports about incidents involving the Power Wheels. The firm only fully reported problems after being requested to do so by CPSC staff, regulators said.
Under federal law, companies are required to report to the CPSC if they obtain information that "reasonably suggests" their products could present a substantial risk of injury to consumers or an unreasonable risk of serious injury or death.
Brown applauded Fisher-Price for settling the case, saying it had "significantly strengthened its product integrity organization."
"I applaud their commitment to turning things around to ensure the safety of children's toys," she said.
Fisher-Price, in cooperation with the CPSC, recalled up to 10 million Power Wheels ride-on vehicles on Oct. 22, 1998.
The vehicles were sold under nearly 100 model names and were intended for children aged 2 to 7 years old, for $70 to $300 each.
For more information about the recall, consumers should call Fisher-Price at 1800-977-7800.
Thursday June 7, 9:55 AM EDT
By Sue Pleming
WASHINGTON (Reuters) - U.S. safety regulators said on Thursday Fisher-Price would pay a $1.1 million fine to settle charges it did not report a fire hazard risk with a toy vehicle, the biggest civil penalty imposed by regulators on a toy company.
The Consumer Product Safety Commission (CPSC) said the East Aurora, New York, company had agreed to pay the fine in connection with CPSC charges involving safety defects in the toymaker's Power Wheels toy vehicles, which were recalled in 1998.
"This is the largest fine against a toy firm in the CPSC's history," the CPSC said in a statement.
The CPSC said Fisher-Price, in agreeing to settle the case, denied the CPSC allegations and also denied it knowingly violated the Consumer Product Safety Act.
Fisher-Price, the world's largest preschool toy company and a unit of Mattel Inc (MAT), failed to report 116 fires involving the vehicles and reports of more than 1,800 incidents of the vehicles' electrical components overheating, short-circuiting, melting or failing, the CPSC said.
"Fisher-Price knew about hundreds of problems with PowerWheels, they did nothing for years. This fine is a loud and clear message to all firms that failing to report product defects will not be tolerated," said CPSC chairman Ann Brown.
These incidents resulted in at least nine minor burns to children and up to $300,000 in property damage to 22 houses and garages.
The CPSC said Fisher-Price was aware of at least 71 incidents involving the products' failure to stop, resulting in six minor injuries when the vehicles hit a car, truck, pole, window or fence.
Fisher-Price could not be reached to comment on the fine.
CPSC REACTED TO CONSUMER COMPLAINTS
The CPSC said it began investigating the cars after it received consumer reports about incidents involving the Power Wheels. The firm only fully reported problems after being requested to do so by CPSC staff, regulators said.
Under federal law, companies are required to report to the CPSC if they obtain information that "reasonably suggests" their products could present a substantial risk of injury to consumers or an unreasonable risk of serious injury or death.
Brown applauded Fisher-Price for settling the case, saying it had "significantly strengthened its product integrity organization."
"I applaud their commitment to turning things around to ensure the safety of children's toys," she said.
Fisher-Price, in cooperation with the CPSC, recalled up to 10 million Power Wheels ride-on vehicles on Oct. 22, 1998.
The vehicles were sold under nearly 100 model names and were intended for children aged 2 to 7 years old, for $70 to $300 each.
For more information about the recall, consumers should call Fisher-Price at 1800-977-7800.
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