Reebok Agrees to Pay $1 Million Fine to Settle CPSC Allegations it Violated the FHSA
The Consumer Product Safety Commission has issued a notice and press release announcing that it has reached a provisional settlement agreement with Reebok International Ltd. in order to settle allegations that Reebok imported and distributed charm bracelets that contained toxic levels of lead in violation of the Federal Hazardous Substances Act1.
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The CPSC alleges that Reebok knowingly introduced or delivered for introduction into interstate commerce, etc. approximately 300,000 Heart-Shaped Charm Bracelets which were provided as free gifts with the purchase of various styles of children's footwear. The charm bracelets were subsequently subject to a recall announced by CPSC and Reebok in 2006. (See ITT's Online Archives or 04/18/06 news, 06041899 1, for BP summary of the recall.)
Reebok has denied the CPSC's allegations and the CPSC notes that the agreement does not constitute an admission by Reebok or a determination by the CPSC that Reebok knowingly violated the FHSA.
Reebok Agrees to Pay $1 Million, Largest Civil Penalty for a FHSA Violation
As part of the provisional settlement agreement, Reebok agrees to pay a $1 million civil penalty, the largest civil penalty for a FHSA violation.
Requests that CPSC Not Accept the Agreement Due by April 15, 2008
Any interested person may ask the CPSC not to accept the agreement or otherwise comment on its contents by filing a written request by April 15, 2008. If the CPSC does not receive any written request not to accept the agreement within 15 days, the agreement shall be deemed finally accepted on the 16th calendar day after it is published in the Federal Register.
1FHSA bans toxic levels of accessible lead in toys and other childrens' products. CPSC's enforcement policy urges manufacturers of children's metal jewelry to keep lead content below 0.06% by weight.
- requests not to accept agreement and other comments due by 04/15/08
CSPC contact - Dennis Kacoyanis (301) 504-7587
CPSC notice (D/N 08-C0004, FR Pub 03/31/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-6407.pdf.
CPSC press release 08-224, dated 03/18/08, available at http://www.cpsc.gov/cpscpub/prerel/prhtml08/08224.html
Reebok message to customers on the progress it made on its product recall (dated 04/19/06) available at http://corporate.reebok.com/en/local/meta/product_recalls/.
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