[Federal Register: December 13, 1999 (Volume 64, Number 238)] [Notices] [Page 69511-69512] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr13de99-49] ======================================================================= ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 00-C0002] Baby's Dream Furniture, Inc., Corporation, Provisional Acceptance of a Settlement Agreement and Order AGENCY: Consumer Product Safety Commission. ACTION: Notice. ----------------------------------------------------------------------- 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. Published below is a provisionally-accepted Settlement Agreement with Baby's Dream Furniture, Inc., a corporation, containing a civil penalty of $200,000. 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 December 28, 1999. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 00-C0002, Office of the Secretary, Consumer Product Safety Commission, Washington, D.C. 20207. FOR FURTHER INFORMATION CONTACT: William J. Moore, Trial Attorney, Office of Compliance and Enforcement, Consumer Product Safety Commission, Washington, D.C. 20207; telephone (301) 504-0626, 1348. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. Dated: December 8, 1999. Sadye E. Dunn, Secretary. Settlement Agreement and Order 1. This Agreement, made by and between the staff of the U.S. Consumer Product Safety Commission, (``the staff,'' or ``the CPSC'') and Baby's Dream Furniture, Inc., (``Baby's Dream'') a corporation, in accordance with 16 CFR 1118.20 of the Commission's Procedures for Investigations, Inspections, and Inquiries under the Consumer Product Safety Act (``CPSA''), is a Settlement, a complete resolution of the staff allegations set forth below. I. The Parties 2. The CPSC is an independent federal regulatory agency responsible for the enforcement of the CPSA, 15 U.S.C. 2051-2084. 3. Baby's Dream Furniture, Inc, is a corporation organized and existing under the laws of the State of Georgia. Its principal offices are located at Highway 41 North, Industrial Boulevard, Buena Vista, GA 31803. II. The Product 4. Between December, 1994 and May, 1997 Baby's Dream manufactured approximately 13,000 ``Generation'' model cribs in Georgia and distributed them in the United States. Baby's Dream is, therefore, a manufacturer and distributor of a consumer product in United States commerce. 15 U.S.C. 2052(a)(1), (4), (5) and (11). 5. The Generation crib that is subject of this Agreement has a drop gate mechanism that is attached to the top rail of the front frame using four hinges. This mechanism allowed for opening and closing of the drop gate to permit access inside the crib (rather than the whole frame moving up and down). III. Staff Allegations 6. The heavy weight of the oak gate and the use of four hinges on oak Generation cribs manufactured from December 1994 through May 1997, allow a finger to get seriously injured if caught between the bottom rail of the movable drop gate and the top rail of the stationary front frame while the drop gate is being operated. 7. Between March, 1997 and December, 1997, Baby's Dream received nine reports of injuries that occurred while the Generation crib drop gate was being operated. The injuries, to one adult and eight babies, included avulsion of fingertips, partial amputation of finger tips and crushing of finger tips. On December 30, 1997, Baby's Dream reported the problem to the CPSC. 8. Baby's Dream obtained information which reasonably supported the conclusion that its Generation crib contained a defect which could create a substantial product hazard but failed to report that information in a timely manner as required by section 15(b) of the CPSC, 15 U.S.C. 2064(b). [[Page 69512]] IV. Response of Baby's Dream 9. Baby's Dream denies the allegations of the staff that the Generation cribs contain a defect which could create a substantial product hazard pursuant to section 15(a) of the CPSA, 15 U.S.C. 2064(a), denies that it violated the reporting requirements of section 15(b) of the CPSA, 15 U.S.A. 2064(b), and further denies the other allegations of the CPSA as stated herein. 10. Baby's Dream reported the problem with the Generation cribs described above and voluntarily implemented a recall to repair the cribs under the CPSA fast track program. 11. Baby's Dream is entering into this Settlement Agreement to avoid incurring the additional legal costs associated with contesting a fine action against the CPSA in protracted litigation, and this Agreement does not constitute, and is not evidence of, an admission of liability or wrongdoing by Baby's Dream. V. Agreement of the Parties 12. The Commission has jurisdiction over this matter and Baby's Dream under the Consumer Product Safety Act, 15 U.S.C. 2051 et seq. 13. Baby's Dream knowingly, voluntarily and completely waives any rights it may have to: (1) An administrative or judicial hearing with respect to the staff allegations discussed in paragraphs 4 through 8 above; (2) judicial review or other challenge or contest of the validity of the Commission's Order; (3) 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) a statement of findings of fact and conclusion of law with regard to the staff allegations. 14. Upon provisional acceptance of this Settlement Agreement and Order by the Commission, this Settlement Agreement and Order shall be placed on public record and in the Federal Register in accordance with 16 CFR 1118.20. The Settlement Agreement and Order becomes effective upon final acceptance by the Commission and its service upon Baby's Dream. 15. For purposes of Section 6(b) of the CPSA, 15 U.S.C. 2055(b), upon final acceptance of this Settlement Agreement by the Commission, the parties agree that the Commission may publicize the terms of the Settlement Agreement and Order. 16. Baby's Dream shall pay the Consumer Product Safety Commission a civil penalty in the amount of two hundred thousand dollars ($200,000.00). The payment, by check made out to the United States Treasury, shall be dated on or before December 31, 1999, and placed in the Commission's possession on or before the close of business, December 29, 1999, following final acceptance of the Settlement Agreement and Order. 17. Baby's Dream agrees to entry of the attached Order, which is incorporated herein by reference, and to be bound by its terms. 18. This Settlement Agreement is binding upon Baby's Dream and the assigns or successors of Baby's Dream. 19. Agreements, understandings, representations, or interpretations made outside this Settlement Agreement and Order may not be used to vary or to contradict its terms. Baby's Dream Furniture, Inc. Dated: November 3, 1999. By: Goshtsab (David) Felfeli, President, Baby's Dream Furniture, Inc. U.S. Consumer Product Safety Commission Alan H. Schoem, Assistant Executive Director, Office of Compliance. Eric L. Stone, Director, Legal Division, Office of Compliance. Dated: November 29, 1999. By: William J. Moore, Jr., Attorney, Legal Division, Office of Compliance. Order Upon consideration of the Settlement Agreement entered into between Baby's Dream Furniture, Inc., a corporation, and the staff of the U.S. Consumer Product Safety Commission; and the Commission having jurisdiction over the subject matter and Baby's Dream Furniture, Inc., and it appearing that the Settlement Agreement and Order is in the public interest, it is Ordered, that the Settlement Agreement be, and hereby is, accepted, and it is Further ordered, that Baby's Dream Furniture, Inc. shall pay the Commission a civil penalty in the amount of TWO HUNDRED THOUSAND AND 00/100 dollars, ($200,000.00) by check to the U.S. Treasury dated December 31, 1999, delivered to the Commission on or before the close of business, December 29, 1999, after service of this Final Order upon Baby's Dream Furniture, Inc. Provisionally accepted and Provisional Order issued on the 8th day of December, 1999. By Order of the Commission. Sadye E. Dunn, Secretary, U.S. Consumer Product Safety Commission. [FR Doc. 99-32236 Filed 12-10-99; 8:45 am] BILLING CODE 6355-01-M