[Federal Register Volume 62, Number 250 (Wednesday, December 31, 1997)]
[Notices]
[Pages 68264-68266]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-34088]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 98-C0003]
In the Matter of Century Products Company, a Corporation;
Provisional Acceptance of a Settlement Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Provisional acceptance of a settlement agreement under the
Consumer Product Safety Act.
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SUMMARY: It is the policy of the Commission to publish settlements
which it provisionally accepts under the Consumer Product Safety Act in
the Federal Register in accordance with the terms of 16 CFR 1118.20(e).
Published below is a provisionally-accepted Settlement Agreement with
Century Products Company, a corporation, containing a civil penalty of
$225,000.
DATES: Any interested person may ask the Commission not to accept this
agreement or otherwise comment on its contents by filing a written
request with the Office of the Secretary by January 15, 1998.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 98-C0003, Office of the
Secretary, Consumer Product Safety Commission, Washington, DC 20207.
FOR FURTHER INFORMATION CONTACT: Melvin I. Kramer, Trial Attorney,
Office of Compliance and Enforcement, Consumer Product Safety
Commission, Washington, DC 20207; telephone (301) 504-0626.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
[[Page 68265]]
Dated: December 24, 1997.
Sadye E. Dunn,
Secretary.
Settlement Agreement and Order
1. This Settlement Agreement and Order, entered into between
Century Products Company, a corporation (hereinafter, ``Century''), and
the staff of the Consumer Product Safety Commission (hereinafter,
``staff''), pursuant to the procedures set forth in 16 CFR 1118.20, is
a compromise resolution of the matter described herein, without a
hearing or determination of issues of law and fact.
The Parties
2. The staff is the staff of the Consumer Product Safety Commission
(hereinafter, ``Commission''), an independent federal regulatory agency
of the United States government, established by Congress pursuant to
section 4 of the Consumer Product Safety Act (hereinafter, ``CPSA''),
as amended, 15 U.S.C. Sec. 2053.
3. Respondent Century is a corporation organized and existing under
the laws of the State of Delaware with its principal corporate offices
located at 9600 Valley View Rd., Macedonia, OH 44056. Century has an
operating division named Okla Homer Smith Furniture Manufacturing Co.,
Inc. (hereinafter, ``OHS''), located at 416 South Fifth St., Ft. Smith,
AR 72901, which manufacturers cribs and juvenile furniture.
Staff Allegations
4. Section 15(b) of the CPSA, 15 U.S.C. Sec. 2064(b), requires a
manufacturer of a consumer product who, inter alia, obtains information
that reasonably supports the conclusion that the product contains a
defect which could create a substantial product hazard or creates an
unreasonable risk of serious injury or death, to immediately inform the
Commission of the defect or risk.
A. Wooden Cribs
5. Between April 1992 and December 31, 1993, Century through its
OHS division, manufactured and sold, nationwide, approximately 278,000
wooden cribs of various models.
6. From April 1992 to December 31, 1993, OHS changed its method of
attaching the slats to the side rails of these cribs, by using glue
only. This allowed the slats to loosen, and partially or completely
detach from the rails. If this occurs, a child could become entrapped
in the larger space created by the missing or loosened slat, and could
be asphyxiated.
7. From February 1993 to June 1993, Respondent learned of five non-
fatal entrapment incidents in which an infant became entrapped in the
side rail because of missing or loosened side rail slats.
8. On September 28, 1993, a child became entrapped and was
asphyxiated in one of these wooden cribs where a slat had fallen out.
9. In January 1994, Century changed its method of attaching the
slats to the side rails of these cribs from gluing only to nailing and
gluing, to prevent this kind of an incident.
10. When initially contacted by the staff about the death, OHS
admitted knowing of the fatal incident referenced in paragraph 8 above,
but failed to immediately provide the information sought by the staff
under section 15(b) of the CPSA.
11. Not until June 30, 1994, after repeated attempts by the staff
to obtain this information, did Century, through its OHS division,
provide a ``Full Report'' containing the information required by
section 15(b) of the CPSA and 16 CFR Sec. 1115.13, including a number
of additional incidents.
12. Although Century, through its OHS division had obtained
sufficient information to reasonably support the conclusion that these
wooden cribs contained a defect which could create a substantial
product hazard, or created an unreasonable risk of serious injury or
death, it failed to report such information to the Commission in a
timely manner, as required by section 15(b) of the CPSA. This is a
violation of section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4).
13. Respondent's failure to report to the Commission, as required
by section 15(b) of the CPSA, was committed ``knowingly'', as that term
is defined in Section 20(d) of the CPSA, 15 U.S.C. Sec. 2069(d), and
Century is subject to civil penalties under Section 20 of the CPSA.
B. Strollers
14. Between February 1995 and October 1995, Century manufactured
and sold approximately 166,000 Travelite Sports Strollers (hereinafter,
``Stroller'' and ``Strollers''), models 11-171, 11-181 and 11-191.
15. The Strollers contain two defects: (a) if the front wheels of
the Stroller hit a curb or other stationary object, the fold locks can
break causing the stroller to fold unexpectedly, and (b) the buckle on
the restraint strap may unlatch during normal use. If the fold lock
fails or the restraint buckle unlatches, the child occupant could fall
out of the Stroller and be seriously injured.
16. Between June 1995 and June 1996, Century learned of more than
500 reports of failures involving the Stroller's fold locks, including
29 injuries to children occupying the Stroller.
17. Between June 1995 and November 1996, Century learned of
approximately 60 reports of failures involving the Stroller's restraint
buckle, including approximately 20 injuries to the child occupant.
18. Between August 1995 and October 1995, Century made several
design and materials changes to the fold lock and the restraint buckle
in an attempt to address the problems in question.
19. On June 5, 1996, Century providing a ``Full Report'' regarding
the fold locks, pursuant to section 15(b) of the CPSA and 16 CFR
Sec. 1115.13.
20. On November 1, 1996, Century provided a ``Full Report''
regarding the restraint buckle, pursuant to section 15(b) of the CPSA
and 16 CFR Sec. 1115.13.
21. Although Century had obtained sufficient information to
reasonably support the conclusion that the Stroller contained defects
which could create a substantial product hazard, or created an
unreasonable risk of serious injury or death, it failed to report such
information to the Commission in a timely manner, as required by
section 15(b) of the CPSA. This is a violation of section 19(a)(4) of
the CPSA.
22. Century's failure to report to the Commission, as required by
section 15(b) of the CPSA, was committed ``knowingly'', as that term is
defined in section 20(d) of the CPSA, and Century is subject to civil
penalties under section 20 of the CPSA.
Response of Century
23. Century denies each and all of the staff allegations with
respect to the Wooden Cribs and the Strollers. Century also denies that
the Wooden Cribs or the Strollers contain defects which create or which
could create a substantial product hazard within the meaning of section
15 of the CPSA. In particular, the September 28, 1993 incident
involving a wooden crib was the result of misuse of the product.
Century further denies that it obtained information sufficient to
support an obligation to report nor had any obligation to report the
incidents regarding the Wooden Cribs or the Strollers to the Commission
under section 15(b) of the CPSA, and thus denies that it is subject to
civil penalties under section 20 of the CPSA. Century makes no
admission whatsoever of any fault, liability, or statutory violation.
24. Despite believing that the Wooden Cribs and Strollers contained
no
[[Page 68266]]
substantial product hazard within the meaning of section 15(a) of the
CPSA, 15 U.S.C. Sec. 2064(a), Century voluntarily reported to the CPSC
and voluntarily conducted corrective action programs with respect to
the Wooden Cribs and the Strollers.
25. By entering into the Settlement Agreement and Order, Century
does not admit any liability or wrongdoing. This Settlement Agreement
and Order is agreed to by Century to avoid incurring additional legal
costs and does not constitute, and is not evidence of, an admission of
any liability or wrongdoing by Century.
Agreement of the Parties
26. The Commission has jurisdiction in this matter.
27. Century knowingly, voluntarily and completely waives any rights
it may have (1) to an administrative or judicial hearing with respect
to the Commission's claim for a civil penalty, (2) to judicial review
or other challenge or contest of the validity of the Commission's
action with regard to its claim for a civil penalty, (3) to a
determination by the Commission as to whether a violation of Section
15(b) of the CPSA, has occurred, (4) to a statement of findings of fact
and conclusions of law with regard to the Commission's claim for a
civil penalty, and (5) to any claims under the Equal Access to Justice
Act.
28. This Settlement Agreement and Order settles any allegations of
violation of section 15(b) of the CPSA regarding the products described
in paragraphs 5 and 14 above. In addition, having reviewed all of the
information regarding Century's Fold N' Go Playard, models 10-710 and
10-810, (top rail) and Century's Lil Napper Infant Swings, models 12-
344, 12-345, 12-475, and 12-476, (restraint system), which Century has
disclosed to the staff as of the effective date of this Settlement
Agreement and Order, the Commission agrees that it will not seek any
civil penalty regarding these two products, pursuant to sections
19(a)(4) and 20 of the CPSA, for failure to comply with the reporting
requirements.
Notwithstanding the foregoing provisions of this paragraph, the
CPSC shall not be precluded from seeking action with respect to the
above referenced products on the grounds that Century failed to report
based on information in its possession or control, but not disclosed to
the CPSC as of the effective date of this Settlement Agreement and
Order, or based on information received by it after the effective date
of this Settlement Agreement and Order, unless Century had actual
knowledge that the CPSC had been ``adequately informed'', within the
meaning of section 15(b) of the CPSA and its regulations, 16 CFR
Sec. 1115.
29. Nothing in this Settlement Agreement and Order shall be
construed to preclude the CPSC from pursuing a corrective action or
other relief not described above.
30. This Settlement Agreement and Order becomes effective only upon
its final acceptance by the Commission and service of the incorporated
Order upon Respondent.
31. Upon provisional acceptance of this Settlement Agreement and
Order by the Commission, the Commission shall place this Agreement and
Order on the public record and shall publish it in the Federal Register
in accordance with the procedure set forth in 16 CFR 1118.20(e). If the
Commission does not receive any written request not to accept the
Settlement Agreement and Order within 15 days, the Agreement and Order
shall be deemed finally accepted on the 16th day after the date it is
published in the Federal Register, in accordance with 16 CFR
1118.20(f).
32. Upon final acceptance of this Settlement Agreement and Order,
the Commission shall issue the attached Order, incorporated herein by
reference.
33. The provisions of this Settlement Agreement and Order shall
apply to Century and its successors and assigns.
34. For purposes of section 6(b) of the CPSA, 15 U.S.C.
Sec. 2055(b), this matter shall be treated as if a complaint had
issued, and the Commission may publicize the terms of the Settlement
Agreement and Order.
35. Century agrees to immediately inform the Commission if it
learns of any additional incidents involving the products and alleged
defects identified above.
36. This Agreement may be used in interpreting the Order.
Agreements, understands, representations, or interpretations made
outside of this Settlement Agreement and Order may not be used to vary
or to contradict its terms.
Dated: December 4, 1997.
Century Products Company.
James Connors,
President and CEO of Century Products Company.
Counsel to Century Products Company.
Christopher Smith,
Margo Shatz Block,
Arent Fox Kintner Plotkin & Kahn.
The Consumer Product Safety Commission.
Alan H. Schoem,
Associate Executive Director, Office of Compliance.
Eric L. Stone,
Director, Division of Administrative Litigation, Office of Compliance.
Dated: December 5, 1997.
Melvin I. Kramer,
Trial Attorney, Division of Administrative Litigation, Office of
Compliance.
Ronald G. Yelenik,
Trial Attorney, Division of Administrative Litigation, Office of
Compliance.
Order
Upon consideration of the Settlement Agreement between Respondent
Century Products Company, a corporation, and the staff of the Consumer
Product Safety Commission, and the Commission having jurisdiction over
the subject matter and over Century Products Company, and it appearing
the Settlement Agreement is in the public interest, it is
Ordered, that the Settlement Agreement be and hereby is accepted,
and it is
Ordered, that within 20 days of the service of the Final Order upon
Respondent, Century Products Company shall pay to the order of the U.S.
Treasury a civil penalty in the amount of two hundred and twenty-five
thousand dollars ($225,000).
Further ordered, Century shall immediately inform the Commission if
it learns of any additional incidents involving the products and
alleged defects identified herein.
Provisionally accepted and Provisional Order issued on the 24th day
of December, 1997.
By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 97-34088 Filed 12-30-97; 8:45 am]
BILLING CODE 6355-01-M
