March 1, 2007 - WASHINGTON , D.C. - The U.S. Consumer Product Safety Commission (CPSC) announced today that Fisher-Price Inc., of East Aurora, N.Y., has agreed to pay a $975,000 civil penalty. The penalty, which the Commission has provisionally accepted (.pdf file), settles allegations that the company failed to report to the government that a nail fastener in the Little People® Animal Sounds Farm could separate from the toy and pose a serious choking or aspiration hazard to young children.

About 67,000 Little People® Animal Sounds Farms were sold nationwide by Fisher-Price from June 2002 through July 2002. In September 2002, the company received its first report of a nail fastener coming loose from one of the toy barn's stall doors. Over the next two months, Fisher-Price received nine additional reports, including one case of a child placing the nail fastener in her mouth.

By February 2003, Fisher-Price had received two reports of parents concerned that this problem posed a choking hazard to children and a report of a December 30, 2002 incident in which a 14-month old child aspirated a nail fastener into his lung. The child was taken to the hospital and underwent an emergency surgical procedure to have the metal nail fastener removed.

It was not until March 2003 that the company reported the safety hazard with the Little People® Animal Farm to the Commission. By that time, Fisher-Price was aware of at least 33 reports in which the nail fastener came loose from the stall doors. These included four reports of children who put the metal nail fastener in their mouths and the one case of the child who aspirated the nail fastener.

Federal law requires firms to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect which could create a substantial risk of injury to the public, presents an unreasonable risk of serious injury or death, or violates a federal safety standard.

In April 2003, CPSC and Fisher-Price announced the recall of the Little People® Animal Sounds Farms and recommended that consumers take the toy away from young children immediately and contact the company to receive a free repair kit. Consumers can still call Fisher-Price anytime at (866) 259-7873 or order the repair kit online at www.service.mattel.com.

In agreeing to settle the matter, Fisher-Price Inc. denies CPSC's allegations that the company knowingly violated the law.

Prior to the loss of quorum, the Commission delegated authority to the Office of Compliance and Field Operations to settle this matter with Fisher-Price before March 1, 2007.

The U.S. Consumer Product Safety Commission is charged with protecting the public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products under the agency's jurisdiction. Deaths, injuries and property damage from consumer product incidents cost the nation more than $700 billion annually. The CPSC is committed to protecting consumers and families from products that pose a fire, electrical, chemical, or mechanical hazard or can injure children. The CPSC's work to ensure the safety of consumer products - such as toys, cribs, power tools, cigarette lighters, and household chemicals - contributed significantly to the 30 percent decline in the rate of deaths and injuries associated with consumer products over the past 30 years.

To report a dangerous product or a product-related injury, call CPSC's hotline at (800) 638-2772 or CPSC's teletypewriter at (800) 638-8270, or visit CPSC's web site at www.cpsc.gov/talk.html. To join a CPSC email subscription list, please go to www.cpsc.gov/cpsclist.asp. Consumers can obtain this release and recall information at CPSC's Web site at www.cpsc.gov.