Graco Faces $4 Million Penalty

March 22, 2005

Graco • Bouncer • Cribs • Crade Swing • Entertainer • Exersaucer • High Chair • Infant Seat • Playpen • Stroller • Walker --- Recalls/Alerts • Graco Snugride Infant Seats Recalled • Toddler Beds • Portable Play Yards • High Chairs • Activity Tray • Activity Trays/Bath Sets • Baby Swings • Tot Wheels Instant Walkers --- News • ‘Killer Cribs’ Study Finds Toxins in Common Baby Products • Graco Fined $4 Million

The U.S. Consumer Product Safety Commission (CPSC) today announced a provisional settlement with one of the nation's largest children's product manufacturers for the largest civil penalty levied in CPSC history.

Graco Children's Products Inc. faces a $4 million fine for failing to inform the government in a timely manner about more than 12 million products that posed a danger to young children nationwide.

CPSC and Graco also are announcing the recall today of about 1.2 million toddler beds, sold between February 1994 and March 2001, because a child's arm or leg can become entrapped in the guard rails or footboard. The company's failure to report the toddler beds is one of the violations leading to today's penalty.

'CPSC is at the forefront of protecting children from products that can cause serious injuries,' stated CPSC Chairman Hal Stratton. 'Today's announcement demonstrates our commitment to protecting American families by holding companies accountable for keeping safety information from us.'

Graco, which acquired the Century brand name in 1998, is now owned by Newell Rubbermaid Inc.

From 1991 through 2002, Graco and Century failed to report defects in juvenile products that the Commission said could create substantial product hazards or unreasonable risks of injury or death to young children.

According to the CPSC, the company failed to report hundreds of incidents and injuries involving 16 different products. The products, all used by young children, include infant carriers, high chairs, infant swings, strollers and toddler beds. The injuries range from contusions and fractures to strangulation (including some fatalities).

The CPSC and Graco are also finalizing corrective action plans for two additional products that were manufactured between 1994 and 2001 and are addressed by today's penalty.

Stratton added, 'We want companies to take their reporting responsibilities very seriously. The action taken by Newell Rubbermaid to identify these critical safety failures by companies they purchased and take the necessary measures to improve product safety is a positive step that other companies should follow.'

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