The manufacturer of many popular children's products has agreed to pay $3.5 million in fines to settle a case in which federal authorities alleged the company failed to report to federal regulators on a dangerous defect on one of its high chairs.
The U.S. Consumer Product Safety Commission (CPSC) reported that phil&teds created an unreasonable risk of serious injury to children with its MeToo high chair. Not only was the product defective, the agency stated, the company intentionally made claims that were false or misrepresentations when the CPSC investigators first launched an inquiry in 2011.
But despite that hefty figure, it's likely the company will only be forced to pay a $200,000 penalty. That's because all but this much of the fine has been suspended, based on sworn depositions by company leaders that the firm can't afford to pay any more than this without closing shop.