Manufacturers of consumer products are required to ensure their products meet certain safety regulations and will not cause harm. When a company is aware of flaws or hazards in its products, the law compels the company to report the problem to the U.S. Consumer Product Safety Commission. The CPSC can then evaluate the situation and, if warranted, issue a recall of the product.
Recently, Battat Inc. agreed to pay a $400,000 civil penalty for failing to report a known hazard in one of its products, the Magnabild Magnetic Building Sets. This children's toy, meant for children ages three and older, included plastic pieces with magnets attached that could be used to build structures. These small magnets should have stayed connected to the plastic pieces; however, Battat was aware, as early as October of 2005, that the magnets were falling off of the pieces.
