From: CPSC

The U.S. Consumer Product Safety Commission (CPSC) announced today that Spin Master, Inc. of Los Angeles, California, and Spin Master Ltd. of Toronto, Canada, (“Spin Master”) have agreed to pay a civil penalty of $1,300,000.

The settlement resolves staff allegations that Spin Master knowingly failed to report the defect and hazard associated with Aqua Dots to CPSC immediately, as required by federal law. The settlement also resolves CPSC staff allegations that Spin Master knowingly imported and sold Aqua Dots, which were toxic and a banned hazardous substance, in violation of federal law.

CPSC staff alleges that by the middle of October 2007, Spin Master had received reports that children, and a dog, had become ill and received emergency medical treatment after ingesting Aqua Dots. On October 18, 2007, Spin Master learned that Aqua Dots contained 1,4-butylene glycol (TMG), which, upon ingestion, metabolizes to the controlled substance gamma hydroxybutyrate (GHB). The following day, Spin Master learned that TMG is harmful if swallowed, and upon ingestion, targets the kidneys and central nervous system.

The recall announcement noted that children who swallow the beads can become comatose, develop respiratory depression, or have seizures.

Click on the link above for more information on this recall.