TORONTO – Canadian toy maker Spin Master has reportedly agreed to pay the U.S. government a $1.3 million fine in connection with the sale of popular arts-and-crafts beads that sickened about a dozen children in the U.S.
A U.S. government official, who spoke on condition of anonymity, has told The Associated Press that the announcement is expected Thursday morning.
The Aqua Dots toy beads were imported by the Toronto-based company and its subsidiary in Los Angeles, in 2007.
The toys were recalled after tests showed they were coated with a chemical that, when ingested, can metabolize into the so-called “date-rape” drug gamma hydroxybutyrate (GHB). Children who swallow the beads may become comatose, develop respiratory depression, or have seizures.
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The U.S. commission alleged that Spin Master knowingly failed to report a defect and hazard associated with Aqua Dots. It also accused the company of knowingly importing and selling a banned hazardous substance.
Spin Master has agreed to the settlement, the U.S. official said, but denies allegations that it knowingly violated the law.
About 28,000 Aqua Dots toys were sold in Canada between April and November 2007. Health Canada said at the time it had not received any reports of illness or injury to Canadian children.
The toys consisted of tiny coloured beads that stick together when sprayed with water, forming fun designs and shapes. About four million of the kits were recalled in November 2007 in the U.S. and Canada.
Privately held Spin Master is Canada’s largest toy manufacturer and the fourth largest in North America.
_ With files from The Associated Press.
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