On June 2, 2010, the US Consumer Product Safety Commission (CPSC) published a provisionally accepted settlement agreement with Schylling Associates, Inc. (Schylling), a toy importer. Schylling has agreed to pay US$400,000 in civil penalties for knowingly distributing toys with paint that exceeded permissible lead levels under the Consumer Product Safety Act (CPSA), as amended by the Consumer Product Safety Improvement Act (CPSIA).
In a rare move, the CPSC doubled the amount of the penalty initially levied against Schylling. The CPSC explained that the original penalty was too low, given the seriousness of the company’s conduct and the proportionality of the penalty to the company’s size. CPSC further explained that the toys at issue contained paint with very high levels of lead that Schylling failed to report for five years.