RoseArt to pay $300,000 to settle charges it hid product defect

Monday, June 27th 2005, 12:43 pm

By: News On 6

WASHINGTON (AP) _ An arts and crafts company has agreed to pay $300,000 to settle charges it belatedly reported problems with soap-making kits that resulted in burns to 10 children, the government announced Monday.

The Glamour Gear Soap Making Kits, sold by RoseArt Industries Inc. for children age 8 and older, included soap, molds and a plastic cup to microwave the soap. But heat could deform the cup or create a hole in the bottom, according to the Consumer Product Safety Commission.

Between January 1998 and January 2002, the Livingston, N.J., company received 10 reports of children suffering burns from hot soap when they picked up the cup, but the company did not tell the government of the problems and ensuing civil litigation until February 2002, the safety agency said.

Federal law requires that companies immediately inform the CPSC after discovering any product defects that pose injury risks or violate federal safety standards, a time limit typically interpreted as 24 hours.

Toy and discount stores nationwide sold about 125,000 of the soap kits from August 1997 through 2001. They were recalled in March 2002.

By agreeing to the penalty, RoseArt denied any problems with its kits or that it violated reporting rules, the CPSC said. The company did not immediately return a call seeking comment.

Canada's largest toy maker, Mega Bloks Inc., announced earlier this month it was acquiring RoseArt for $350 million.