Baby product makers hit with $1.75 million in fines

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From CNN's Julie Vallese

WASHINGTON (CNN) -- Failure to report product defects to the Consumer Product Safety Commission will cost juvenile product manufacturers Cosco Inc., and Safety 1st $1.75 million in civil penalties.

The CPSC charged that Cosco, based in Columbus, Indiana, was aware of defects with its cribs, strollers, car seat carriers and high chairs. Canton, Massachusetts-based Safety 1st, the commission said, knew about defects with a baby walker and wipe warmer. All products already have been recalled.

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Cosco will pay a total of $1.3 million. Safety 1st is being charged $450,000.

The CPSC has charged Cosco with five separate incidents of failing to report consumer complaints to the commission.

"This is the largest fine against a manufacturer of children's products in CPSC history," said CPSC Chairman Ann Brown. "The law is here to help catch problems quickly so products can be recalled before a child is injured or, as in this case, killed. I want this fine to send a message that we won't tolerate companies that hide safety information from the public."

"This is a global resolution of all pending matters with the CPSC," said Martin Schwartz, president and CEO of Dorel Incorporated in Montreal, Canada, which owns both companies. "We now have a much clearer understanding of reporting obligations and we will improve on how we report information to the Commission."

An official statement from the company said, "There is no question that the Consumer Product Safety Commission plays an essential role in protecting public safety. That is why we have pledged to improve our reporting practices and to continue to fully cooperate with the Commission. But we strongly object to the implication that we don't care about the safety of our products or the consumers who use them."

Many complaints

The CPSC says Cosco knew of 24 cases of children becoming entrapped in its full-sized metal cribs over a 2-year period. One 8-month-old died of suffocation in June 1997. It was recalled a month later.

There were 10 consumer complaints involving the mattresses sold with Cosco cribs. Some mattresses could compress and trap a child. One 11-month-old baby died when he fell feet first through the mattress and became entrapped at the neck. There were 10 reports of non-fatal entrapment. The mattress was recalled in February 1999.

In both cases, Cosco made design or label changes to the products after receiving complaints from consumers. None of the incidents were reported to the commission.

Cosco knew of 3,000 complaints with their Two Ways Tandem Strollers but failed to report the problem to the commission. Instead, they issued a "silent recall" after they learned the folding strollers were collapsing with children in them.

After a retailer complaint, Cosco offered a locking mechanism to all strollers in their inventory. A repair kit containing the lock was only offered to consumers "upon request." The stroller was recalled in February 1999 after more than 200 reports of injury.

In July 1999, Cosco recalled 670,000 car seat/carriers because the handle could unexpectedly release, causing the seat to flip forward. Cosco received 53 complaints, 23 resulting in injuries. The CPSC received 151 additional complaints and recorded 29 injuries overall.

One million Cosco Options 5 High Chairs were recalled in November 2000 because the seat could separate from the frame and slip from the set height, or the restraint system could slip from the seat. Cosco received 93 complaints. Thirty-seven injuries were reported. Combined with the complaints to the CPSC, there were a total of 168 incident reports and 57 injuries.

Other fines

Safety 1st failed to report six injuries associated with their Mobile 4 Wheelin Walkers. The walkers were recalled in August 2000.

They also failed to report problems with their baby wipe warmers although no one was injured. There were 17 reports to the company that the warmer delivered a low-level electric shock.

Cosco has had 12 of their products recalled by the commission. In 1996, Cosco paid $725,000 in fines to the government for failing to report problems with their toddler beds. Safety 1st has had five of its products recalled. A $175,000 civil penalty was paid by Safety 1st in 1998 for failing to report problems with its Safe keeper toddler beds.

Although they deny the charges, both companies have agreed to pay the fines. Parent company Dorel has pledged to make their process for reporting problems better and to improve the quality of their products.

Baby products recalled
March 29, 2001
Company recalls high chairs criticized as 'booby trap for babies'
November 27, 2000

Consumer Product Safety Commission
Dorel Industries Inc.
Cosco Inc, Juvenile and Housewares Products
Safety 1st

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