Spin Master Agrees to $1.3M Fine for Importing Toxic "Dots," Not Reporting to CPSC
The Consumer Product Safety Commission has announced a provisionally accepted settlement agreement with a penalty of $1.3 million against Spin Master, Inc. of Los Angeles, California, and Spin Master Ltd. of Toronto, Canada. The agreement would settle allegations that the company failed to immediately report a defect and hazard associated with its Aqua Dots product, as required by federal law. It would also resolve allegations that the company knowingly imported and sold Aqua Dots, which were toxic and a banned hazardous substance, in violation of federal law.
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CPSC's practice is to next seek public comments on whether it should accept the agreement. In agreeing to the settlement, Spin Master denies CPSC staff allegations that it knowingly violated the law.
(Aqua Dots was a children's craft kit that consisted of tiny beads of different colors that stuck together when sprayed with water, allowing children to create various shapes.)
Spin Master Received Reports of Illness, Learned Product Had Toxic Ingredient
CPSC staff alleges that by the middle of October 2007, Spin Master had received reports that children, and a dog, had become ill and received emergency medical treatment after ingesting Aqua Dots. During this time Spin Master also learned that Aqua Dots contained 1,4-butylene glycol (TMG), which upon ingestion, metabolizes to the controlled substance gamma hydroxybutyrate (GHB) that targets the kidneys and central nervous system.
CPSC staff also alleges that in the ensuing weeks, Spin Master continued to receive reports of children falling ill after ingesting Aqua Dots and learned that children who ingested a similar product containing TMG, which was manufactured by the same overseas factory, also had become ill.
CPSC Heard of Two Hospitalizations, Notified Spin Master, and Announced Recall
In early November 2007, CPSC received two reports of children who had ingested the product, become ill, fallen into comas, and required hospitalization. CPSC staff notified Spin Master and two days later, Spin Master and CPSC announced a voluntary recall of about 4.2 million units of Aqua Dots.
Says Company Did not Immediately Report Hazard or Incidents of Illness
Staff alleges that Spin Master did not immediately report (within 24 hours) any of the incidents or the hazards to CPSC as required by Federal law, despite obtaining information reasonably supporting the conclusion that its product contained a defect which could create a substantial product hazard; create an unreasonable risk of serious injury or death; or fail to comply with a consumer product safety rule, ban, etc.
Says Composition Made “Dots” Banned Hazardous Substance & Illegal to Import
In addition, staff alleges that the chemical composition of Aqua Dots rendered the product a banned hazardous substance, and federal law prohibits the importation and sale of banned hazardous substances.
Testing Done by Company Inadequate as Human Experience Suggested Toxicity
CPSC adds that while Spin Master had enlisted an outside testing company to evaluate the toxicity of the product, the testing was inadequate since incident data reflective of human experience suggested that the product was toxic.