Build-A-Bear Agrees to $600K Fine for not Reporting Imported Toy Chair Defect
The Consumer Product Safety Commission is seeking comments on a provisionally-accepted Settlement Agreement with Build-A-Bear Workshop, Inc., that includes a civil penalty of $600,000. The agreement would settle staff allegations that Build-A-Bear failed to immediately notify CPSC of a defect in certain of its wooden frame toy beach chairs, as required by federal law.
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Any interested person may ask CPSC not to accept this agreement or otherwise comment on its contents by filing a written request by December 30, 2011.
Did not Immediately Report Pinch/Amputation Defect Despite Injury Complaints
Staff alleges that between March 2001 and October 2008, Build-A-Bear imported and sold to consumers approximately 260,000 folding wooden frame toy beach chairs. According to CPSC, the chairs were defective because the sharp edges of their folding wooden frames could pinch, lacerate, or amputate a child’s fingertip if the finger was caught in the frame during folding.
In July 2007, Build-A-Bear received its first complaint of injury involving the chairs’ folding wooden frame, and 15 months later it stopped the sale of the chairs. Between July 2007 and January 2009, Build-A-Bear became aware of 10 injury complaints caused by the chairs. Despite this knowledge, Build-A-Bear did not report the defect to CPSC until March 10, 2009, when if filed a report initiating a voluntary recall.
In failing to inform the Commission about the defect immediately, staff alleges that Build-A-Bear knowingly1 violated the reporting requirements of sections 15(b)(3) and (4) of the Consumer Product Safety Act.
Settlement Becomes Final Dec 31 if no Adverse Comments Received
If CPSC does not receive any written request not to accept the Agreement within 15 calendar days, the Agreement shall be deemed finally accepted on the 16th calendar day after the date it is published or on December 31, 2011.
(The settlement would not constitute an admission of guilt by Build-A-Bear or a determination by CPSC that Build-A-Bear violated the reporting requirements.)
1Under CPSC’s statute, the term "knowingly" means: (1) the having of actual knowledge, or (2) the presumed having of knowledge deemed to be possessed by a reasonable man who acts in the circumstances, including knowledge obtainable upon the exercise of due care to ascertain the truth of representations.
(See ITT’s Online Archives 10051729 for summary of the Center for Environmental Health finding high levels of lead in charms sold by Build-A-Bear.)
CPSC press release, dated 12/16/11, available here.
CPSC contact -- Belinda Bell (301) 504-7592
(FR Pub 12/15/11, D/N 12-C0004)