[Federal Register Volume 59, Number 188 (Thursday, September 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24025]
[[Page Unknown]]
[Federal Register: September 29, 1994]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 94-C0016]
KIDS II, INC., (Formerly Pansy Ellen Products, 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(f).
Published below is a provisionally-accepted Settlement Agreement with
KIDS II, INC., (formerly Pansy Ellen Products, Inc.) 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 October 14, 1994.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 94-C0016, Office of the
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.
FOR FURTHER INFORMATION CONTACT: William J. Moore, Jr., 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: September 22, 1994.
Sadye E. Dunn,
Secretary.
Settlement Agreement and Order
1. This Settlement Agreement and Order, entered into between KIDS
II, INC. (formerly Pansy Ellen Products, Inc.), a corporation,
(hereinafter ``KIDS II''), and the staff of the Consumer Product Safety
Commission (hereinafter, ``staff''), is a compromise resolution of the
matter described 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''), which is an independent
federal regulatory agency of the United States of America, established
by Congress pursuant to Section 4 of the Consumer Product Safety Act
(CPSA), as amended, 15 U.S.C. 2053.
3. KIDS II is a corporation organized and existing under the laws
of the State of Georgia, with its principal corporate offices located
at 1245 Old Alpharetta Road, Alpharetta, Georgia.
II. Jurisdiction
4. KIDS II manufactured and distributed a juvenile product known as
``Graduate Booster Seat I,'' models 4155 and 4156, (hereinafter
``Booster Seat''). The Booster Seat is a ``consumer product'' within
the meaning of section 3(a)(1) of the CPSA, 15 U.S.C. 2052(a)(1).
5. KIDS II manufactured and distributed the Booster Seat for sale
to consumers throughout the United States. KIDS II is a
``manufacturer'' and ``distributor'' of a ``consumer product'' which is
``distributed in commerce,'' as those terms are defined in sections
3(a) (1), (4), (5), and (11) of the CPSA, 15 U.S.C. 2052(a) (1), (4),
(5) and (11).
III. The Product
6. KIDS II manufactured approximately 680,000 Booster Seats from
1987 through 1991. The Booster Seat is a children's product which, when
placed on an adult sized chair, brings toddlers and young children
closer to a table, counter or other eating or play surface while
seated. The KIDS II Booster Seat features a detachable, adjustable seat
that allows consumers to adjust the seat to any one of four heights.
IV. Staff Allegations
7. The staff alleges KIDS II failed to meet its obligations to
report information to the Commission under Section 15(b) of the CPSA,
15 U.S.C. 2064(b). Certain Booster Seats manufactured from 1987 through
1991 provide insufficient engagement between the adjustable seat and
the base. When occupied by a child, this condition allows the seat
either to slide forward and out of the base or to fall straight down
onto the chair or other surface upon which the Booster Seat is placed.
Between 1988 and 1992, KIDS II received complaints from consumers
alleging Booster Seat failure in the manner explained above, but never
reported that information to the Commission. Some of the reported
incidents have resulted in bumps, cuts and bruises to the children.
8. The staff contends that KIDS II obtained information which
reasonably supported the conclusion that its Booster Seats contained
defects which could create a substantial product hazard but failed to
report that information to the Commission as required by section 15(b)
of the CPSA, 15 U.S.C. 2064(b).
V. Response of KIDS II
9. KIDS II denies each and all of the staff's allegations with
respect to its Booster Seat, including that KIDS II at any time
possessed information which reasonably supported the conclusion that
its Booster Seats contained defects which could create a substantial
product hazard within the meaning of Section 15(a) of the CPSA, 15
U.S.C. 2064(a); and therefore, denies that it failed to meet its
obligation to report the information concerning the Booster Seats to
the Commission under Section 15(b) of the CPSA, 15 U.S.C. 2064(b).
VI. Agreement of the Parties
10. KIDS II and the staff agree the Commission has jurisdiction in
this matter for purposes of entry and enforcement of this Settlement
Agreement and Order.
11. KIDS II knowingly, voluntarily and completely waives any rights
it may have (1) to an administrative or judicial hearing with respect
to the staff allegations cited herein, (2) to judicial review or other
challenge or contest of the validity of the Commissions Order, (3) to a
determination by the Commission as to whether a violation of section
15(b) of the CPSA, 15 U.S.C. 2064(b), has occurred, and (4) to a
statement of findings of fact and conclusion of law with regard to the
staff allegations.
12. Nothing in this Settlement Agreement and Order shall be deemed
by the Commission as an admission by KIDS II of any fault, liability,
or statutory violation.
13. KIDS II agrees to pay the Commission a civil penalty in the
amount of $85,000 within 10 days after service of the Final Order upon
KIDS II. This payment is made in full settlement of the staff's
allegations that KIDS II knowingly violated the reporting requirements
of section 15(b) of the CPSA, 15 U.S.C. 2064(b), by failing to notify
the Commission of the allegedly defective Booster Seat. The Commission
specifically waives its right to pursue any further payment from KIDS
II and its shareholders, partners, officers, directors, employees, and
agents with respect to the matters covered by this Settlement Agreement
and Order.
14. 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 C.F.R. 1118.20(f).
15. The Settlement Agreement and Order becomes effective upon final
acceptance by the Commission and its service upon KIDS II.
16. Upon final acceptance of this Settlement Agreement by the
Commission, the Commission will issue a press release to advise the
public of the Settlement Agreement and Order.
17. This Settlement Agreement is binding upon the Commission and
KIDS II, and the assigns or successors of KIDS II.
18. The parties further agree that the incorporated Order be issued
under the CPSA, 15 U.S.C. 2051 et. seq. KIDS II shall comply with the
provisions of the Settlement Agreement and Order and a violation of the
Order will subject KIDS II to appropriate legal action. In the event of
a default of payment, which default continues for ten (10) calendar
days beyond the due date of the payment, KIDS II agrees it shall pay
the Commission interest on the $85,000 owing at a rate computed
pursuant to 28 U.S.C. 1961(a). In addition, in the event of a default,
KIDS II agrees that it shall raise no defense or objection to such
collection action as the Commission deems appropriate and shall pay all
costs incurred in such action.
19. The requirements of the Settlement Agreement and Order are in
addition to, and not to the exclusion of, other remedies of laws
administered by the Commission.
20. No agreement, understanding, representation, or interpretation
not contained in this Settlement Agreement and Order may be used to
vary or to contradict its terms.
Dated: July 19, 1994.
KIDS II, INC.
J. Dwaine Clarke,
Vice President, Finance.
The Consumer Product Safety Commission.
David Schmeltzer,
Associate Executive Director, Office of Compliance and Enforcement.
Eric L. Stone,
Acting Director, Division of Administrative Litigation, Office of
Compliance and Enforcement.
Dated: June 29, 1994.
William J. Moore, Jr.,
Trial Attorney, Division of Administrative Litigation, Office of
Compliance and Enforcement.
Order
Upon consideration of the Settlement Agreement of the parties, it
is hereby
Ordered, that KIDS II shall pay, within 10 days of final acceptance
of this Settlement Agreement and service of this order, civil penalty
in the amount of $85,000 to the Consumer Product Safety Commission.
Provisionally accepted on the 22nd day of September 1994.
By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 94-24025 Filed 9-28-94; 8:45 am]
BILLING CODE 6355-01-M
