![]() ![]() Subsequently, a number of lawsuits appeared involving other children who had suffered bowel complications. Consumer Products Safety Commission (CPSC) had issued a product recall in March 2006. One reason for the fall was that a child, who had swallowed a magnet that had fallen out of a toy, had died in the late fall of 2005. In 2006, Mega Brands had over $547 million in revenue, including over $100 from magnetic toys, but its share price fell approximately $27 to $20.30 in mid-July 2007. It also sells Mega Bloks, construction toys based on Spider-Man, Pirates of the Caribbean, as well as other products in over 100 countries. Mega Brands has been selling Magnetix toys for many years. Questions If the CEO didn’t pay any attention, what would you do? … Get solutions Get solutions Get solutions done loading Looking for the textbook? A new product, supposedly improved, has been introduced with new labeling that indicates the suitable minimum age to be six instead of three. ![]() Mega Brands asserted that they had to search through warehouses to gather the data, because they lacked an organized comprehensive reporting system. Finally, on December 1, 2007, after failing to respond on time to a subpoena, data was submitted covering 1,500 complaint reports made to Mega Brands or to Rose Art Industries, the toy’s manufacturer. Even then, at a hearing on June 18, 2007, Senator Robert Durban stated: “The company did everything in its power to derail the commission’s effort to take the product off the shelf.” In frustration, Senator Durban commented: “When a company is selling dangerous products in America and refuses to co-operate with the CPSC, we have few laws and few tools to use to protect consumers.” In addition, the company did not quickly comply with CPSC requests for information and violated the terms of one recall. Defective merchandise was still found on store shelves by CPSC investigators in April. After refusing twice, Mega Brands engaged in two voluntary recalls at the request of the Commission in March 2006 and April 2007. Complex surgery is required for extraction and complications can continue afterward. They are so strong that they do not pass through the child’s digestive system instead, the magnets rip through tissue as they are attracted to each other. The consequences can be much worse if a child swallows more than one magnet, particularly if they are the super-powerful magnets like those in Magnetix toys. The symptoms resulting from a child swallowing a magnet are similar to those of a stomach ache, cold or flu, and so the problem is sometimes misdiagnosed. This problem has been solved: Solutions for Chapter 1.EC Problem 2MTQ: Mega Brands has been selling Magnetix toys for many years. ![]()
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