Build-A-Bear Workshop has agreed to pay a civil penalty of $600,000 to resolve allegations by Consumer Product Safety Commission staff that the company did not immediately report defective toy beach chairs that resulted in consumer injuries.

The sharp edges of the chair’s folding wooden frame can pinch, lacerate or amputate a child’s fingertip if the finger is caught within the frame as the chair is folded, the CPSC reported.

In agreeing to the settlement, Build-A-Bear denies CPSC staff allegations as to the existence of a defect or hazard, or that the company violated the law.

Build-A-Bear sold the beach chairs through its website and at Build-A-Bear stores from March 2001 to October 2008. According to the CPSC, the company was aware of 10 injury reports between July 2007 and January 2009, but did not report the incidents to the CPSC until March 2009.

In announcing the settlement, the CPSC stated that: "Federal law requires manufacturers, distributors and retailers to report to CPSC within 24 hours after obtaining information reasonably supporting the conclusion that a product contains a defect, which could create a substantial product hazard, creates an unreasonable risk of serious injury or death, or fails to comply with any consumer product safety rule or any other rule, regulation, standard or ban enforced by CPSC."

In May of 2009, the CPSC and Build-A-Bear announced the recall of about 260,000 toy beach chairs.

Other Build-A-Bear recalls (unrelated) within the past year:
Recall: Build-A-Bear swimsuit and inner tube—strangulation hazard
Build-A-Bear Workshop recalls lapel pins for lead paint

Build-A-Bear Agrees to $600,000 Civil Penalty for Failing to Report Defective Toy Beach Chairs [CPSC]