Fisher-Price $1.1 Million Fine For Not Reporting Defective Power Wheels
NEWS from CPSC
U.S. Consumer Product Safety Commission
Office of Information and Public Affairs
Washington, DC 20207
FOR IMMEDIATE RELEASE
June 7, 2001
Release # 01-167
CPSC Consumer Hotline: (800) 638-2772
CPSC Media Contact: Ken Giles, (301) 504-7052
CPSC Fines Fisher-Price $1.1 Million for Not Reporting Defective Power Wheels
Largest fine against a toy firm in CPSC's history
WASHINGTON, D.C.- The U.S. Consumer Product Safety Commission (CPSC)
announced today that Fisher-Price, of East Aurora, N.Y., has agreed to
pay a civil penalty of $1.1 million to settle CPSC charges that it
failed to report serious safety defects with Power Wheels toy vehicles.
This is the largest fine against a toy firm in CPSC's history.
Under federal law, companies are required to report to CPSC if they
obtain information that reasonably suggests that their products could
present a substantial risk of injury to consumers, or creates an
unreasonable risk of serious injury or death. CPSC charges Fisher-Price
failed to report to CPSC in a timely manner, as required by the Consumer
Product Safety Act, that its "Power Wheels" ride-on toy vehicles
presented fire hazards and failed to stop.
Fisher-Price 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. These
incidents resulted in at least nine minor burn injuries to children, and
up to $300,000 in property damage to 22 houses and garages.
Additionally, 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 began marketing the Power Wheels in 1995. CPSC began an
investigation after receiving consumer reports about Power Wheels
incidents. The firm only fully reported after being requested to do so
by the CPSC staff.
"Firms are required by law to report safety hazards to CPSC so products
can be recalled to prevent serious injuries from occurring," said CPSC
Chairman Ann Brown. "Fisher-Price knew about hundreds of problems with
Power Wheels, yet 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."
"Fisher-Price significantly strengthened its product integrity
organization," Brown added. "I applaud this commitment to turning things
around to ensure the safety of children's toys."
In agreeing to settle this matter, Fisher-Price denies CPSC allegations
and denies it knowingly violated the Consumer Product Safety Act.
In cooperation with CPSC, Fisher-Price recalled up to 10 million Power
Wheels ride-on vehicles on October 22, 1998. The recalled Power Wheels
cars and trucks were sold under nearly 100 model names. Power Wheels
cars and trucks are intended for children 2 to 7 years old. Toy and mass
merchandise stores nationwide sold the recalled vehicles from 1984
through October 1998 for $70 to $300. For more information about the
recall, consumers should call Fisher-Price at (800) 977-7800 anytime.
