Fisher-Price

THE U.S. CONSUMER Product Safety Commission (CPSC) reported that between 1994 and October 1998, Fisher-Price distributed nationwide, and before 1994, Kransco manufactured and sold nationwide, a total of approximately 10 million battery-powered 6-and 12-volt Power Wheels ride-on children's trucks and cars in almost 100 different models intended for children ages two to seven. Toy and mass-merchandise stores sold the vehicles for $70 to $300.

Between 1995 and July 1998, the Power Wheels vehicles were reported to be involved in 116 fires as well as 1800 incidents of the vehicles' electrical components overheating, shortcircuiting, melting, or failing. These incidents resulted in at least nine minor burn injuries to children, and up to $300,000 in property damage to 22 houses and garages. Additionally, Fisher-Price was aware of at least 71 incidents involving the products' failure to stop, resulting in six minor accidents when the vehicle hit a car, pole, window, or fence. Fisher-Price failed to report these problems until March 1997 and, then, only in response to a February 1997 request from the Commission for a Full Report. According to CPSC Chairman Ann Brown, Fisher-Price knew about these problems for years without reporting to CPSC as they were required by law to do, nor did they voluntarily recall and repair Power Wheel vehicles.

The CPSC settled with Fisher-Price on charges of the company's failure to report serious safety defects of Power Wheels toy vehicles. In agreeing to the settlement and civil penalty of $1,100,000—the largest fine against a toy firm in CPSC's history, Fisher-Price denied that it knowingly violated the Consumer Product Safety Act. Nonetheless, Fisher-Price recalled up to 10 million Power Wheel vehicles on October 22, 1998 including vehicles sold from 1984 to October 1998.