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April 15, 2009

Mega Brands America agrees to $1.1 Million Civil Penalty Arising from Dangers in Magnetic Building Sets


The Consumer Product Safety Commission announced in an April 14 releasethat Mega Brands America has agreed to pay a $1.1 million civil penalty, which the Commission has provisionally accepted, to settle allegations that Mega Brands America, formerly Rose Art Industries, Inc., failed to provide the government with timely information concerning dangers to children presented by Magnetix magnetic building sets.   The release notes that "[b]y the time Rose Art [the predecessor] agreed to the recall of Magnetix in March 2006, the firm had received more than 1,500 complaints of magnets falling out of plastic pieces in more than 65 different models of Magnetix," and that "[i]n April 2007, Mega Brands America expanded the recall of Magnetix sets for users of any age, after more than 25 children suffered intestinal injuries that required surgery to remove the magnets."

The release also notes that "[i]n agreeing to settle this matter, Mega Brands America and its parent, Mega Brands Inc., of Montreal, Canada contend that 1) Mega Brands Inc. did not know of the Magnetix defect at the time it acquired Rose Art and 2) Rose Art’s prior owners never advised Mega Brands Inc. of the problems of associated with Magnetix."

MKS

April 15, 2009 | Permalink

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