[Federal Register Volume 61, Number 55 (Wednesday, March 20, 1996)]
[Notices]
[Pages 11384-11386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6736]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 96-C0003]
Taito America Corporation, 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 C.F.R. Section
1118.20(e). Published below is a provisionally-accepted Settlement
Agreement with Taito America Corporation, a corporation.
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 April 4, 1996.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 96-C0002, Office of the
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.
FOR FURTHER INFORMATION CONTACT:
Ronald G. Yelenik, 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: March 14, 1996.
Sadye E. Dunn,
Secretary.
Settlement Agreement and Order
1. This Settlement Agreement and Order, entered into between Taito
America Corporation, a corporation (hereinafter, ``Taito''), and the
staff of the Consumer Product Safety Commission (hereinafter,
``staff''), pursuant to the procedures set forth in 16 C.F.R.
Sec. 1118.20, is a compromise resolution of the matter described
[[Page 11385]]
herein, without a hearing or determination of issues of law and fact.
I. 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 Taito is a corporation organized and existing under
the laws of the State of Delaware with its principal corporate offices
located in Buffalo Grove, Illinois.
II. Jurisdiction
4. Taito manufactured certain Super Sonic Blastman Arcade Boxing
Games, (hereinafter, ``Blastman(men)'' or ``the game(s)''). The
Blastman is a ``consumer product'' within the meaning of section
3(a)(1) of the CPSA, 15 U.S.C. Sec. 2052(a)(1).
5. Taito manufactured and distributed these games to arcades,
amusement parks, and other similar locations nationwide. Taito is a
``manufacturer'' of a ``consumer product'' which is ``distributed in
commerce'', as those terms are defined in sections 3(a)(1), (4), and
(11) of the CPSA, 15 U.S.C. Secs. 2052(a)(1), (4) and (11).
III. The Product
6. The Blastman is a coin operated video arcade boxing game
consisting of a video screen, a punching pad and a pair of boxing
gloves. The objective of the game is to punch a foam filled circular
pad which is attached to a three foot metal arm as hard as possible in
an attempt to knock the pad/arm back to a flat position. Taito
manufactured approximately 320 Blastmen in the United States between
1991 and 1992.
IV. Staff Allegations Concerning the Blastman and of a Failure by Taito
to Comply With the Reporting Requirements of Section 15(b) of the CPSA
7. The Blastman contains a defect which could create a substantial
product hazard and creates an unreasonable risk of serious injury in
that the potential for serious injury is inherent in the use of the
game and users are unlikely to perceive this risk.
8. On or about October 21, 1991, Taito first became aware of an
injury involving the Blastman. In succeeding years, Taito learned of
many other Blastman incidents with resulting injuries.
9. Between 1991 and 1994, Taito learned of a total of approximately
seventy incidents involving the game, the majority of which resulted in
fractured arms and wrists.
10. Both prior to and during the period in which Taito received
notice of the Blastman injuries, the company implemented several design
and material changes involving the Blastman.
11. Although Taito obtained sufficient information to reasonably
support the conclusion that the Blastman, described in paragraph 6
above, 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 as required by
section 15(b) of the CPSA, 15 U.S.C. Sec. 2064(b). This is a violation
of section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4).
12. Taito knowingly failed to report to the Commission as required
by section 15(b) of the CPSA, 15 U.S.C. Sec. 2064(b), and is subject to
civil penalties under section 20 of the CPSA, 15 U.S.C. Sec. 2069.
V. Response of Taito
13. Taito denies that its Blastman contains a defect which creates
or which could create a substantial product hazard within the meaning
of section 15(a) of the CPSA, 15 U.S.C. Sec. 2064(a), or creates an
unreasonable risk of serious injury or death.
14. Taito initially imported approximately fifty Blastman to test
the market in the United States. When the test units received a
favorable response, Taito implemented certain design changes to improve
the safety of the gloves and the pad. Subsequently, Taito manufactured
and distributed approximately 320 games in the United States.
15. Between 1991 and 1994, Taito learned of a total of
approximately sixty incidents involving the Blastman.
16. Taito denies that the information it received as to these
incidents reasonably supported the conclusion that the Blastman
contained a defect which could create a substantial product hazard, or
create an unreasonable risk of serious injury or death, and therefore,
denies it had an obligation to report this information to the
Commission under section 15(b) of the CPSA, 15 U.S.C. Sec. 2064(b).
17. Since Taito believes that it had no obligation to report the
incidents of injury regarding the Blastman to the Commission, it did
not knowingly fail to report these incidents to the Commission as
required by section 15(b) of the CPSA, 15 U.S.C. Sec. 2064(b), and thus
denies it is subject to civil penalties under section 20 of the CPSA,
15 U.S.C. Sec. 2069.
18. Based upon the Commission's preliminary determination that the
Blastman presents a substantial product hazard, Taito agreed to conduct
a voluntary recall of the Blastman to avoid incurring legal costs and
adverse publicity.
19. By entering into this Settlement Agreement and Order, Taito
does not admit any liability or wrongdoing, and this Settlement
Agreement and Order does not constitute, and is not evidence of, or an
admission of, any liability or wrongdoing by Taito.
VI. Agreement of the Parties
20. The Commission has jurisdiction in this matter for purposes of
entry and enforcement of this Settlement Agreement and Order.
21. Taito knowingly, voluntarily and completely waives, in this
section 15(b) matter only, 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, 15 U.S.C.
Sec. 2064(b), has occurred, (4) to a statement of finding 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.
22. This Settlement Agreement and Order becomes effective only upon
its final acceptance by the Commission and service of the incorporated
order upon Respondent.
23. 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 is the Federal Register
in accordance with the procedure set forth in 16 C.F.R.
Sec. 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 C.F.R. Sec. 1118.20(f).
24. Upon final acceptance of this Settlement Agreement and Order,
the Commission shall issue the attached Order.
25. The provisions of this Settlement Agreement and Order shall
apply to Taito and its successors and assigns.
[[Page 11386]]
26. 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.
27. Taito agrees to inform the Commission if it learns of any
additional Blastman incidents or any other relevant information
affecting the safety of the Blastman.
28. This Agreement may be used in interpreting the Order.
Agreements, understandings, representations, or interpretations made
outside of this Settlement Agreement and order may not be used to vary
or to contradict its terms.
TAITO America Corporation.
Dated: February 6, 1996.
By:
Reginald Winter,
Secretary, Taito America Corporation.
The Consumer Product Safety Commission.
David Schmeltzer,
Associate Executive Director, Office of Compliance.
Eric L. Stone,
Acting Director, Division of Administrative Litigation, Office of
Compliance.
Dated: February 9, 1996.
By:
Ronald G. Yelenik,
Trial Attorney, Division of Administrative Litigation, Office of
Compliance.
Order
Upon consideration of the Settlement Agreement between Respondent
Taito America Corporation, a corporation, and the staff of the Consumer
Product Safety Commission, and the Commission having jurisdiction over
the subject matter and Taito America Corporation, and it appearing the
Settlement Agreement is in the public interest, it is
Ordered, that the Settlement Agreement be and hereby is accepted,
as indicated below, and it is
Further ordered, that within ten days of the service of the Final
Order upon Respondent, Taito America Corporation shall pay to the order
of the U.S. Treasury a civil penalty in the amount of fifty thousand
dollars ($50,000).
Provisionally accepted and Provisional Order issued on the 14th day
of March, 1996.
By Order of the Commission:
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 96-6736 Filed 3-19-96; 8:45 am]
BILLING CODE 6355-01-M
