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.

The magnets posed a serious risk to children playing with the building sets. If small magnets are ingested, they can attract to one another inside the body. If more than one magnet connects while inside the body, they can cause serious damage to internal organs, including perforation or obstruction of the intestines.

In addition to the civil penalties Battat faces for failing to report a known hazard, it could also be subject to liability issues for those who were injured by its product. People who are injured by a consumer product can bring a products liability suit against the manufacturer. Consulting with an experienced products liability attorney is often a wise first step in ensuring the injured party's rights to just compensation are protected.

Source: CPSC, "Battat inc. Agrees to $400,000 Civil Penalty for Failing to Report Children's Magnetic Toy Sets," July 16, 2012.