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AP source: Gov't to levy $1.3M penalty in toy caseAP source: CPSC to levy $1.3M civil penalty for Aqua Dots toy beads that sickened children
WASHINGTON (AP) ' Federal regulators are expected to announce a $1.3 million civil penalty Thursday related to popular toy beads that sickened about a dozen children in 2007.
A government official says the fine would be the third largest toy-related penalty issued by the Consumer Product Safety Commission.
The penalty settles CPSC allegations that Spin Master, based in Toronto with a subsidiary in Los Angeles, knowingly failed to report a hazard associated with its Aqua Dots beads.
The popular toys were recalled in the United States in November 2007 after tests showed they were coated with an industrial chemical that, when ingested, can metabolize into the "date-rape" drug gamma hydroxyl butyrate (GHB).
Spin Master agreed to the settlement, but denies allegations that it knowingly violated the law.
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