Wednesday, March 3, 2010

CPSC issues "consent decree" and $2 million civil penalty to Daiso Holdings

"When you look at where we have been and where we are headed", said CPSC Chairman Inez Tenenbaum, only two weeks ago, "you can see why we are agency on the rise." It seems that these words are beginning to translate into actions.

With the strengthening it received from the 2008 Consumer Product Safety Improvement Act, the U.S. Consumer Product Safety Commission (CPSC) has begun to assert itself. On March 1 the CPSC took resolute measures against Daiso Holding USA Inc., a toy importer and repeated violator of federal safety standards. Besides a $2.05 million civil penalty, CPSC has issued an unprecedented "consent degree", preventing Daiso from importing or selling any of its products until it implements a comprehensive product safety program and all its toys meet federal standards. Daiso has voluntarily withdrawn its products from all retail outlets until the above conditions are met.

"This landmark agreement for an injunction sets a precedent for any firm attempting to distribute hazardous products to our nation's children", said Chairman Tenenbaum. "We are committed to the safety of children's products and we will use the full force of our enforcement powers to prevent the sale of harmful products."

KID welcomes this assertiveness and hopes this is only the beginning of a trend towards more accountability. "This is really a powerful first step, ensuring that no products are sold until they're safe", said Nancy Cowles, executive director of KID, "CPSC is putting manufacturers on notice that they must put safety first."

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