CPSC Obtains Record Penalty Against Shelton Wholesale for Importing Illegal Fireworks

The U.S. Consumer Product Safety Commission (CPSC) announced today that a federal court fined Shelton Wholesale Inc., of Eagleton, Mo., $100,000 for importing fireworks that violated CPSC regulations. This is the highest penalty ever paid by a fireworks company for CPSC violations. In a companion case, the court also rejected challenges by Shelton and the National Fireworks Association, an industry group, to CPSC's authority over fireworks and the validity of its regulations.

The agency charged Shelton with importing fireworks that could malfunction or explode unexpectedly while people are standing nearby. Although CPSC has settled dozens of cases for civil penalties, this was the first penalty in a litigated case.

U.S. District Judge Howard F. Sachs of the Western District of Missouri held that "Shelton failed to take any steps to comply with the law." The court enjoined Shelton and a related company, Polaris Fireworks Inc., from importing violative fireworks in the future, ruling that "the threat of recurrent violations is apparent in the recalcitrance of Shelton after repeated notifications of violations by the CPSC."

"If CPSC cannot settle cases with companies that violate our laws, we are fully prepared to litigate to obtain the safety that American consumers deserve," said CPSC Chairman Ann Brown. "Certainly no company will be permitted to profit by marketing unreasonably dangerous products."

The government, represented by the U.S. Department of Justice, charged Shelton and Polaris with importing or distributing more than 3.5 million banned or mislabeled fireworks between 1992 and 1996. Importing such fireworks violates the Federal Hazardous Substances Act.