On October 17, 2012, the Consumer Product Safety Commission (CPSC) announced that Aqua-Leisure Industries, Inc, in Avon, Massachusetts, will have to pay a $650,000 civil penalty.  The CPSC agreed to the penalty agreement by a 4-0 vote.  

The CPSC alleged that Aqua-Leisure knew of a defect in their inflatable baby boats but failed to immediately report the defect to the CPSC.  The leg strap for the seat had a risk of tearing for products that were manufactured between August 2002 and July of 2008.  The risk can result in the child to fall into water.  

Aqua-Leisure and the CPSC issued a recall for “Sun Smart” inflatable baby boats in 2001 after 12 reports were filed that stated the seats tore and caused the children to fall in water.  Although no injuries were reported, a total of four children were completely submerged in water before their caregiver could reach them.  

After the recall in 2001, the company still produced different models of the inflatable baby boats.  Then, between July of 2003 and July of 2006, 17 more incidents were reported where the seats fell out, failed, tore, split or separated.  The company was aware of 24 incidents that occurred after the recall in 2001, but they failed to report to the CPSC until May of 2009.  

Another recall of 4 million inflatable baby boats was issued on July 2, 2009.  By that date, 31 reports were issued where the inflatable boats malfunctioned.  

The CPSC states that manufacturers, distributors, and retailers must send information about reports on defected products within 24 hours of receiving the information.  Aqua-Leisure failed to contact the CPSC in time after the second wave of reports.  They directly violated the requirements set forth in the Consumer Product Safety Act.  

Sources: U.S. Consumer Product Safety Commission