Legal News

Last week, the CPSC announced that it had entered into a settlement with Daiso Holding USA Inc., Daiso Seattle LLC, of Seattle, Wash. and Daiso California LLC, of Hayward, Calif. The companies have agreed under a consent decree to pay a fine of $2.05 million and stop importing children's products and toys into the United States. Daiso may not resume importing its products into the U.S. until it demonstrates it has knowledge of the regulations regarding toy safety and testing standards. Daiso products include small wooden toys, stuffed animals, purses and ponchos that were sold in Daiso stores in California and Washington for under $5.

Daiso was cited by the CPSC for importing children's products containing levels of lead, lead paint and phthalates that exceeded federal standards. The company was also cited for toys lacking necessary warning labels and toys with small parts intended for children under 3, which present a choking hazard.

To meet the new safety standards, Daiso will put in place a product safety coordinator to assist in the creation of a comprehensive product safety program, conduct a product audit of merchandise to determine testing and certification requirements and develop procedures for compliance and reporting. Daiso voluntarily withdrew all toys and children's products from its stores before signing the decree.

The consent decree was filed on March 2 in the U.S. District Court for the Northern District of California by the Office of Consumer Litigation of the Justice Department's Civil Division, on behalf of CPSC. In signing the decree, the company does not admit any violation of law. The consent decree is subject to court approval.

"This landmark agreement for an injunction sets a precedent for any firm attempting to distribute hazardous products to our nation's children," said CPSC Chairman Inez 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."

Related Resources:

• Daiso To Pay $2 Million Civil Penalty for Violations of Federal Safety Laws and Must Stop Importing Children's Products and Toys Into U.S. (CPSC)
• Daiso hit with big fine for lead-laden toys (AP)
• New Toy Safety Policies for Disney, Toys 'R' Us (FindLaw's Common Law)
• CPSC Settles with Toy Co Over Lead Paint Violation (FindLaw's Common Law)
• Defective Products (provided by Monsees, Miller, Mayer, Presley & Amick)
• Lead Paint Poisoning (provided by Sakkas & Cahn, LLP)