[Federal Register: September 1, 2000 (Volume 65, Number 171)]
[Notices]               
[Page 53271-53273]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01se00-89]                         

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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 00-C0012]

 
L. L. Bean, Inc., a Corporation, Provisional Acceptance of a 
Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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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 1115.20. 
Published below is a provisionally-accepted Settlement Agreement with 
L. L. Bean, Inc., containing a civil penalty of $750,000.

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 September 18, 2000.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to ``Comment 00-C0012'', Office of the 
Secretary, U.S. Consumer Product Safety Commission, Washington, DC 
20207.

FOR FURTHER INFORMATION CONTACT: Anthony Murawski, Trial Attorney, 
Office of Compliance, U.S. Consumer Product Safety Commission, 
Washington, DC 20207; telephone (301) 504-0626, ext. 1207.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: August 29, 2000.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. L.L. Bean, Inc. (``L.L. Bean''), a corporation, enters into this 
Settlement Agreement and Order with the United States Consumer Product 
Safety Commission (``the CPSC'') in accordance with 16 CFR 1118.20 of 
the Commission's Procedures for Investigations, Inspections, and 
Inquiries under the Consumer Product Safety Act (``CPSA'').

I. The Parties

    2. The Commission is an independent Federal regulatory agency 
responsible for the enforcement of the Consumer Product Safety Act 
(``CPSA''), 15 U.S.C. 2051-2084.
    3. L.L. Bean is a corporation organized and existing under the laws 
of the State of Maine. Its principal offices are located at Casco 
Street, Freeport, Maine 04033.

II. Staff Allegations

The AC25 Backpack Child Carrier
    4. The AC25 Backpack Child Carrier (``the AC25'') is a backpack 
used by adults to carry small children. As an importer and catalog 
retail seller of the AC25, L.L. Bean imported and, through its catalog, 
sold approximately 13,000 units of this carrier from January 1997 
through October 1998. The AC25 is used in or around a household or 
residence, or in recreation, and is a ``consumer product'' as that term 
is defined in section 3(a) of the CPSA, 15 U.S.C. 2052(a), and L.L. 
Bean is a manufacturer and retailer of this consumer product, 
distributed in commerce, pursuant to sections 3(a)(1), (4), and (6) of 
the CPSA, 15 U.S.C. 2052(a)(1), (4), and (6).
    5. Some children who were carried in the AC25 were able to remove 
the unit's shoulder straps and stand up, allowing them to fall out of 
the top of the AC25. In addition, some children who were carried in the 
AC25 were able to slip a leg out of one leg hole and into the opposite 
leg hole of the unit, which allowed them (a) to slide out of a leg hole 
and strike the ground, or (b) to slide out of a leg hole and become 
entangled in the unit's shoulder straps, creating a risk of 
strangulation.
    6. From October 1997 through August 1998, L.L. Bean learned of 
approximately twelve incidents in which children fell out of the top or 
slid through a leg hole in the AC25. Seven children fell out of the 
carrier and landed on the ground. Two of these children suffered 
bruises, or minor facial abrasions, contusions, or lacerations. In 
addition, two children became entangled in the unit's shoulder straps, 
creating a risk of strangulation.
    7. As a result of these incidents, from September 2 to September 
16, 1998, L.L. Bean sent supplemental warnings and instructions 
concerning proper adjustment of the straps in the AC25 to customers who 
had purchased the unit.
    8. From early September through October 1998, after the 
supplemental instructions were sent, L.L. Bean received eleven more 
customer reports of children falling out of the AC25, which resulted in 
bruises and three

[[Page 53272]]

children becoming entangled in the unit's shoulder straps.
    9. On November 10, 1998, L.L. Bean reported the AC25 to the 
Commission.
    10. Before November 10, 1998, L.L. Bean obtained information which 
reasonably supported the conclusion that (a) the AC25 contained a 
defect or defects that could create a substantial product hazard, or 
that (b) the AC25 created an unreasonable risk of serious injury or 
death, but L.L. Bean failed to report such information to the 
Commission in a timely manner, as required by section 15(b) of the 
CPSA, 15 U.S.C. 2064(b).
    11. Based on the information is possessed before November 10, 1998, 
L.L. Bean knew or should have known that it was failing to provide 
information about the AC25 to the Commission in a timely manner, as 
required by section 15(b) of the CPSA, 15 U.S.C. 2065(b). Therefore, 
L.L. Bean ``knowingly'' failed to report under section 20(a) and (d) of 
the CPSA, 15 U.S.C. 2069(a) and (d), and is subject to civil penalties 
under section 20(a) of the CPSA, 15. U.S.C 2069(a).
W695 Backpack Child Carrier
    12. The W695 Backpack Child Carrier (``the W695'') is a backpack 
used by adults to carry children. L.L. Bean imported and, through its 
catalog, sold approximately 13,000 units of this carrier from January 
1993 through March 1995. The W695 is used in or around a household or 
residence, or in recreation, and is a ``consumer product'' as that term 
is defined in section 3(a) of the CPSA, 15 U.S.C. 2052(a), and L.L. 
Bean is a manufacturer and retailer of this consumer product, 
distributed in commerce, pursuant to sections 3(a)(1), (4), and (6) of 
the CPSA, 15 U.S.C. 2052(a)(1), (4), and (6).
    13. Some children who were carried in the W695 were able to remove 
the unit's shoulder straps and stand up, allowing them to fall out of 
the top of the W695. In addition, some children who were carried in the 
W695 were able to slip a leg out of one leg hole and into the opposite 
leg hole of the unit, which allowed them (a) to slide out of a leg hole 
and strike the ground, or (b) to slide out of leg hole and become 
entangled in the unit's shoulder straps, creating a risk of 
strangulation.
    14. From July 1993 through October 1997, L.L. Bean learned of 
approximately sixteen incidents in which children slipped through a leg 
hole or fell from the top of the W695. Three of these incidents 
resulted in a concussion and fractured wrist, a contusion, and a bump 
on the head/
    15. In early November of 1998, L.L. Bean reported the AC25 to the 
Commission.
    16. In November 1998, Commission staff met with L.L. Bean's 
representatives to discuss the recall of the AC25. Commission staff 
asked whether the company had received reports from customers of 
similar problems with its other backpack child carriers. During that 
meeting, an L.L. Bean representative told the staff that he did not 
know of such problems.
    17. Between December 10, 1998 and February 19, 1999, following the 
recall of the AC25, L.L. Bean received eight more customer reports of 
children falling out of the W695.
    18. On February 19, 1999, L.L. Bean reported the incidents 
described in paragraphs 14 and 17 to the Commission.
    19. Before February 19, 1999, L.L. Bean obtained information which 
reasonably supported the conclusion that (a) the W695 contained a 
defect or defects that could create a substantial product hazard, or 
that (b) the W695 created an unreasonable risk of serious injury or 
death, but L.L. Bean failed to report such information to the 
Commission in a timely manner, as required by section 15(b) of the 
CPSA, 15 U.S.C. 2064(b).
    20. Based on the information it possessed before February 19, 1999, 
L.L. Bean knew or should have known that it was failing to provide 
information about the W695 to the Commission in a timely manner, as 
required by section 15(b) of the CPSA, 15 U.S.C. 2065(b). Therefore, 
L.L. Bean ``knowingly'' failed to report under section 20(a) and (d) of 
the CPSA, 15 U.S.C. 2069(a) and(d) is subject to civil penalties under 
section 20(a) of the CPSA, 15 U.S.C. 2069(a).

III. Response of L.L. Bean

    21. L.L. Bean denies the allegation of the staff that the W695 and 
the AC35 contain defects which could create a substantial product 
hazard pursuant to section 15(a) of the CPSA, 15 U.S.C. 2064(a), and 
unreasonable risk of serious injury or death, or that L.L. Bean 
violated the reporting requirements of section 15(b) of the CPSA, 15 
U.S.C. 2064(b).
    22. In November 1998, information concerning the AC25 became 
apparent to L.L. Bean. Promptly thereafter, L.L. Bean voluntarily 
reported the AC25 to the Commission and proposed a recall. L.L. Bean 
voluntarily implemented, in cooperation with the Commission, a 
comprehensive recall under the Commission's Fast Track Program. In 
February 1999, information concerning the W695 became apparent to L.L. 
Bean asa result of the recall of the AC25. Promptly thereafter, L.L. 
Bean voluntarily reported the W695 to the Commission and proposed a 
recall. L.L. Bean voluntarily implemented, in cooperation with the 
Commission, a comprehensive recall of the W695 under the Commission's 
Fast Track Program. The reports received as a result of the recall of 
the AC25 and described in Paragraph 17 all related to incidents that 
occurred prior to the meeting between L.L. Bean attorneys and 
Commission staffe described in paragraph 16.
    23. L.L. Bean is entering into this Settlement Agreement for 
settlement purposes only, to avoid incurring additional legal costs, 
and denies any liability or wrongdoing related to the W695 or the AC25.

IV. Agreement of the Parties

    24. The Commission has jurisdiction over this matter and over L.L. 
Bean under the Consumer Product Safety Act (CPSA), 15 U.S.C. 2501 et 
seq.
    25. L.L. Bean knowingly, voluntarily and completely waives any 
rights it may have in the above captioned case (1) to the issuance of a 
Complaint in this matter, (2) to an administrative or judicial hearing 
with respect to the staff allegations cited herein, (3) to judicial 
review or other challenges or contest of the validity of the 
Commission's Order, (4) 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 (5) to a statement of findings of fact and 
conclusions of law with regard to the staff allegations.
    26. 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 1118.20.
    27. The Settlement Agreement and Order becomes effective upon final 
acceptance by the Commission and its service upon L.L. Bean. L.L. Bean 
shall pay a civil penalty in the amount of seven hundred fifty thousand 
($750,000.00) within 10 calendar days of service of such final 
Settlement Agreement and Order.
    28. Upon provisional acceptance by the Commission, the Commission 
may publicize the terms of the Settlement Agreement and Order.
    29. L.L. Bean agrees to the entry of the attached Order, which is 
incorporated herein by reference, and agrees to be bound by its terms.
    30. This Settlement Agreement and Order is not deemed or construed 
as an admission by L.L. Bean or a

[[Page 53273]]

determination by the Commission (a) of any liability or wrongdoing by 
L.L. Bean; (b) that L.L. Bean knowingly or otherwise violated any law 
or regulation; (c) that the AC25 and W695 Child Carriers are defective 
or create a substantial product hazard, or are unreasonably dangerous; 
(d) that either of the Child Carriers or L.L. Bean has caused any 
injuries; (e) of the truth of any claims or other matters alleged or 
otherwise stated by the Commission or any other person either against 
L.L. Bean or with respect to the Child Carrier. Nothing contained in 
this Settlement Agreement and Order precludes L.L. Bean from raising 
any defense in my future litigation not arising out of the terms of 
this Settlement Agreement and Order.
    31. Compliance by L.L. Bean with the Final Settlement and Order in 
the above-captioned case fully resolves and settles the allegations of 
violations of section 15(b) of the CPSA set out above.
    32. The Commission's Order in this matter is issued under the 
provisions of the CPSA, 15 U.S.C. 2051 et seq., and a violation of this 
Order may subject L.L. Bean to appropriate legal action.
    33. This Settlement Agreement and Order is binding upon L.L. Bean 
and the assigns or successors of L.L. Bean.
    34. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.

L.L. Bean, Inc.,
    Dated: August 24, 2000.
Christopher J. McCormick,
Senior Vice President, Chief Marketing Officer.
    The U.S. Consumer Product Safety Commission.
Alan H. Schoem,
Assostamt Executive Director, Office of Compliance.
Eric L. Stone,
Director, Legal Division, Office of Compliance.
    Dated: August 25, 2000.
Anthony Murawski,
Attorney, Legal Division, Office of Compliance.

Order

    Upon consideration of the Settlement Agreement entered into between 
L.L. Bean, Inc., a corporation, and the staff of the U.S. Consumer 
Produce Safety Commission; and the Commission having jurisdiction over 
the subject matter and L.L. Bean, 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, upon final acceptance of the Settlement 
Agreement and Order, L.L. Bean, Inc. shall pay the Commission a civil 
penalty in the amount of seven hundred fifty thousand dollars 
($750,000) within ten (10) calendar days after service of this Final 
Order upon L.L. Bean, Inc.

    Provisionally accepted and Provisional Order issued on the 29th 
day of August, 2000.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 00-22471 Filed 8-31-00; 8:45 am]
BILLING CODE 6355-01-M