[Federal Register Volume 63, Number 33 (Thursday, February 19, 1998)]
[Notices]
[Pages 8437-8438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4088]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 98-C0007]
In the Matter of Binky-Griptight, Inc., 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
Binky-Griptight, Inc., a corporation, containing a civil penalty of
$150,000.
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 March 6, 1998.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 98-C0007, Office of the
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.
FOR FURTHER INFORMATION CONTACT:
Traci J. Williams, Trial Attorney, Office of Compliance and
Enforcement, Consumer Product Safety Commission, Washington, D.C.
20207; telephone (301) 504-0626.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: February 12, 1998.
Sadye E. Dunn,
Secretary.
In the Matter of Binky-Griptight, Inc. a Corporation; Settlement
Agreement and Order
1. Binky-Griptight, Inc. (``Binky-Griptight''). a corporation,
enters into this Settlement Agreement and Order with the staff of the
Consumer Product Safety Commission (``Commission'' or CPSC'') under the
Consumer Product Safety Act (``CPSA''), 15 U.S.C. 2051-2084. The
Settlement Agreement and Order comply with the procedures set forth in
the Commission's Procedures for Consent Order Agreements. 16 CFR
1118.20.
I. The Parties
2. The ``staff'' is the staff of the Consumer Product Safety
Commission, an independent regulatory commission of the United States
of America, established pursuant to section 4 of the CPSA, 15 U.S.C.
2053.
3. Binky-Griptight, Inc. is a corporation organized and existing
under the laws of the State of New Jersey, with its principal corporate
offices located at 519-523 Paterson Avenue, P.O. Box 3307, Wallington,
New Jersey 07057.
II. Allegations of the Staff
4. Between April 1994 and August 1995, Binky-Griptight imported
defective Binky Soft Latex Nipple Newborn Orthodontic pacifiers (``Li'l
Binks''). Consequently, Binky-Griptight is a ``manufacturer'' as the
term is defined in section 3(a)(4) of the CPSA, 15 U.S.C. 2052(a)(4).
5. The Li'l Binks were sold in retail stores throughout the United
States. They were used by infants in their homes. As a result, the Li'l
Binks are `'consumer products'' which were ``distributed in commerce''
as those terms are defined in section 3(a) (1) and (11) of the CPSA, 15
U.S.C. 2052(a) (1) and (11).
6. The handle of the Li'l Bink, which held the plug and the nipple,
could crack and, if the cracking were severe, could cause the nipple
and the plug to separate from the handle. If they separated from the
handle, a child could choke on either the nipple or the plug. In May
1995, Binky-Griptight learned that the handle could crack. Also, Binky-
Griptight received complaints about the cracked handles and detached
plugs and nipples of the Li'l Bink. In September 1995, Binky-Griptight
recalled the Li'l Binks from its customers.
[[Page 8438]]
7. Binky-Griptight obtained information which reasonably supported
the conclusion that the Li'l Binks contained defects which could create
a substantial product hazard or an unreasonable risk of serious injury
or death, but failed to report that information to the Commission as
required by section 15(b) of the CPSA, 15 U.S.C. 2064(b).
III. Response of Binky Griptight, Inc.
8. Binky-Griptight, Inc. denies the allegations of the staff that
the Li'l Binks contained any defects which could create a substantial
product hazard or an unreasonable risk of serious injury or death,
pursuant to section 15(a) of the CPSA, 15 U.S.C. 2064(a); it denies
that it violated the reporting requirements of section 15(b) of the
CPSA, 15 U.S.C. 2064(b).
9. Binky-Griptight further states that after it identified and
corrected the cracking problem and conducted a further recall with the
oversight of Commission staff, it also ceased distribution of the
affected style of pacifier in 1996. To date, Binky-Griptight has not
received any claims or allegation of injury from the Li'l Binks covered
by this settlement.
IV. Agreement of the Parties
10. The Commission has jurisdiction over this matter under the
CPSA, 15 U.S.C. 2051-2084.
11. Binky-Griptight agrees to pay the Commission one hundred and
fifty thousand and 00/100 dollars ($150,000.00), payable as follows:
$50,000 twenty days after final acceptance of the Order, $50,000 on the
one-year anniversary date of the final acceptance of the Order, and
$50,000 on the two-year anniversary date of the final acceptance of the
Order.
2. Binky-Griptight knowingly, voluntarily, and completely waives
any rights it may have to an administrative or judicial hearing with
respect to the staff allegations cited herein, to judicial review or
other challenge or contest of the validity of the Commission's Order,
to a determination by the Commission as to whether a violation of
section 15(b) of the CPSA, 15 U.S.C. 2064(b), occurred, and to a
statement of findings of fact and conclusion of law with regard to the
staff allegations.
13. Upon provisional acceptance of this Settlement Agreement and
Order by the Commission, this Settlement Agreement and Order shall be
placed on the public record and shall be published in the Federal
Register in accordance with 16 CFR Sec. 1118.20(e).
14. The Settlement Agreement and Order take effect upon final
acceptance by the Commission and their service upon Binky-Griptight.
15. Upon final acceptance of this Settlement Agreement by the
Commission, the Commission will issue a press release to advise the
public of the civil penalty Settlement Agreement and Order.
16. Binky-Griptight agrees to entry of the attached Order, which is
incorporated herein by reference, and agrees to be bound by its terms.
17. This Settlement Agreement and Order are binding upon Binky-
Griptight and its assigns and successors.
18. Agreements, understandings, representations, or interpretations
made outside this Settlement Agreement and Order may not be used to
vary or contradict its terms.
Dated: January 12, 1998.
Binky-Griptight, Inc.
Kurt Jetta,
Binky-Griptight, Inc.
The Consumer Product Safety Commission.
Alan H. Schoem,
Assistant Executive Director, Office of Compliance.
Eric L. Stone, Director,
Division of Administrative Litigation, Office of Compliance.
Dated: January 21, 1998.
Traci J. Williams, Trial Attorney,
Division of Administrative Litigation, Office of Compliance.
Order
Having considered the terms and conditions of the Settlement
Agreement entered into between Respondent, Binky-Griptight, Inc., a
corporation, and the staff of the Consumer Product Safety Commission,
having recognized the Commission's jurisdiction over the subject matter
and Binky-Griptight, Inc., and having concluded that the Settlement
Agreement and Order are in the public interest, it is ordered that the
Settlement Agreement be and hereby is accepted. And it is further
ordered that Binky-Griptight, Inc. shall pay the Commission a civil
penalty in the amount of one hundred and fifty thousand and 00/100
dollars ($150,000.00), payable as follows: $50,000 twenty days after
final acceptance of the Order, $50,000 on the one-year anniversary date
of the final acceptance of the Order, and $50,000 on the two-year
anniversary date of the final acceptance of the Order.
Upon Failing to make a payment or upon making a late payment, the
outstanding balance of the civil penalty is due and payable by Binky-
Griptight, Inc., and the interest on the outstanding balance shall
accrue and be paid at the federal legal rate of interest under the
provisions of 28 U.S.C. 1961 (a) and (b).
Provisionally accepted and Provisional Order issued on the 12th
day of February, 1998.
By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 98-4088 Filed 2-18-98; 8:45 am]
BILLING CODE 6355-01-M
