Toymaker Spin Master deserves every dime of a $1.3 million fine from the Consumer Product Safety Commission.
In 2007, Spin Master recalled 4.2 million of its Aqua Dots bead craft kits. A chemical in the beads would turn into gamma hydroxybutyrate (also known as the date rape drug) when swallowed. The drug can induce unconsciousness, seizures, drowsiness, coma and death. The beads caused two children to fall into comas and others to become sick.
It’s really bad that a toymaker would not properly research the safety of its product. But what makes this Whiner of the Week eligible is the fact that Spin Master did nothing when it learned of the illnesses. By law it must report any incidents within 24 hours.
It was only after the Consumer Product Safety Commission asked about reports of illnesses, that the company took any action.
In business mistakes will happen. But some mistakes can be prevented. And if you make a mistake, it’s your job to make things right.