Reebok settles consumer products case for $1m

Bracelets distributed by Reebok contained high levels of lead. (Associated Press)

WASHINGTON - Athletic shoe and apparel maker Reebok has agreed to pay a $1 million fine for importing and distributing charm bracelets that contained toxic levels of lead and resulted in the death of a 4-year-old boy.

The civil penalty is the largest ever for a violation of the Federal Hazardous Substances Act and follows a 2006 recall of 300,000 of the Chinese made bracelets, the Consumer Product Safety Commission said yesterday.

The previous record fine of $600,000 was paid by Winco Fireworks in 2005 for importing dangerous fireworks from China, according to an agency spokeswoman.

The bracelets were provided as gifts by Reebok International Ltd. with the purchase of various styles of children's footwear.

In March 2006, the company learned that a 4-year-old boy from Minneapolis died after swallowing the bracelet's heart-shaped pendant. There were no other deaths or injuries reported, a CPSC spokeswoman said.

"This civil penalty sends a clear message that the CPSC will not allow companies to put children's safety at risk," acting CPSC chairwoman Nancy Nord said in a release.

Reebok denied violating federal law in the settlement agreement signed last week.

Reebok chief executive Paul Harrington said in a statement that, since the recall, the company has put in place procedures "which ensure all gift-with-purchase and promotional items and premium products associated with our brand meet or exceed the highest quality and safety standards."

The Canton, Mass., company issued a notice in April 2006 recalling about 510,000 pendants that were distributed worldwide beginning in May 2004.

Reebok also yesterday disclosed a partnership with Dick's Sporting Goods, which includes the launch of a men's and women's sports apparel collection featured throughout all 340 Dick's stores in the United States.

While the Reebok recall was made public two years ago, problems with Chinese exports continued in 2007. There were a number of high-profile recalls of potentially deadly products made in China last year including toothpaste, other toys tainted with lead, and pet food that contained a toxic chemical.

Adidas AG acquired Reebok in 2006 in a $3.8 billion deal that helped the German company expand in the United States to better compete with Nike Inc. and Puma AG.