[Federal Register: March 10, 2004 (Volume 69, Number 47)]
[Notices]
[Page 11389-11391]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10mr04-45]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 04-C0003]
The Lifetime Products, Inc., 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
[[Page 11390]]
Federal Register in accordance with the terms of 16 CFR 11118.20(e).
Published below is a provisionally-accepted Settlement Agreement with
The Lifetime Products, containing a civil penalty of $800,000.
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 25, 2004.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 04-C0003, Office of the
Secretary, Consumer Product Safety Commission, Washington, DC 20207.
FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney,
Office of Compliance, Consumer Product Safety Commission, Washington,
DC 20207; telephone (301) 504-7587.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: March 5, 2004.
Todd A. Stevenson,
Secretary.
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 04-C0003]
In the Matter of Lifetime Products, Inc.; Settlement Agreement and
Order
1. This Settlement Agreement is made by and between the staff
(``the staff'') of the U.S. Consumer Product Safety Commission
(``the Commission'') and Lifetime Products, Inc. (``Lifetime'' or
``Respondent''), a corporation, in accordance with 16 CFR 1118.20 of
the Commission's Procedures for Investigation, Inspections, and
Inquiries under the Consumer Products Safety Act (``CPSA''). This
Settlement Agreement and the incorporated attached Order settle the
staff's allegations set forth below.
I. The Parties
2. The Commission is an independent federal regulatory agency
responsible for the enforcement of the Consumer Product Safety Act,
15 U.S.C. 2051 et seq.
3. Lifetime is a corporation organized and existing under the
laws of the State of Utah with its principal corporate offices
located at Clearfield, UT.
II. Allegations of the Staff
4. Between 1994 and May 2000, Lifetime manufactured and
distributed nationwide approximately 1.7 million portable basketball
hoops (``basketball hoop(s)'' or ``product(s)'').
5. The basketball hoops are sold to and/or are used by consumers
for use in or around a permanent or temporary household or
residence, a school, in recreation, or otherwise and are, therefore,
``consumer products'' as defined in section 3(a)(1) of the Consumer
Product Safety Act (CPSA), 15 U.S.C. 2052(a)(1). Respon dent is a
``manufacturer'' or ``distributor'' of the basketball hoops, which
were ``distributed in commerce'' as those terms are defined in
sections 3(a)(4), (5), (11), and (12) of the CPSA, 15 U.S.C.
2052(a)(4), (5), (11), and (12).
6. In the normal course of assembling the product, the consumer
must use a 3\3/4\'' bolt to connect the product's pole braces to the
pole. The instruction for attaching the bolt states, ``Completely
tighten all base and pole brace hardware at this time.''
7. Because the consumer has no reference point for determining
when the bolt is ``tight enough,'' it is reasonable foreseeable that
the consumer will tighten the 3\3/4\'' bolt until it is difficult to
turn. When this occurs, the exposed threaded portion of the bolt can
protrude from the pole.
8. The portable basketball hoop is defective because it is
designed so that when the consumer tightens the 3\3/4\'' bolt until
it is difficult to turn, the exposed threaded portion of the bolt
can protrude from the pole. If this occurs, a person playing
basketball can come into contact with the exposed threaded portion
of the protruding bolt, and suffer serious injury including a
possible fracture to the leg and/or serious lacerations.
9. Between March 1999 and March 2000, Lifetime learned of four
basketball players who had received serious lacerations to their
legs when they came in contact with the basketball hoop's protruding
bolt. Also, one of these basketball players broke his leg.
10. On or about May 23, 2000, Lifetime made changes to its
product consisting of the following: (a) A cap nut to cover the
bolt; (b) replacement of the 3\3/4\ bolt; and (c) revision of the
assembly instructions warning consumers of serious injuries if they
over-tightened the bolt.
11. From April 2000 to July 2001, Lifetime learned of 19
additional reports of basketball players sustaining lacerations to
their legs when they came in contact with the basketball hoop's
protruding bolt. Some of these lacerations were quite severe and
required numerous sutures to close the wounds.
12. By the time the staff opened its investigation of Lifetime
in July 2001, Lifetime had obtained information about 23 reports of
injuries that occurred when basketball players came in contact with
the product's protruding bolt.
13. As set forth in more detail in paragraphs 4 through 10
above, Lifetime obtained information which reasonably supported the
conclusion that the basketball hoop described in paragraph 4 above
contained a defect which--given the pattern of the defect, the
severity of the risk of injury, and the number of products--could
create a substantial product hazard. Lifetime failed to report such
information to the Commission as required by section 15(b)(2) of the
CPSA, 15 U.S.C. 2064(b)(2).
14. As set forth in more detail in paragraphs 4 through 10
above, Lifetime obtained information which reasonably supported the
conclusion that the basketball hoop described in paragraph 4 above
created an unreasonable risk of serious injury. Lifetime failed to
report such information to the Commission as required by section
15(b)(3) of the CPSA, 15 U.S.C. 2064(b)(3).
15. By failing to provide the information to the Commission as
required by sections 15(b)(2) and (3) of the CPSA, 15 U.S.C.
2064(b)(2) and (3), Lifetime violated section 19(a)(4) of the CPSA,
15 U.S.C. 2068(a)(4).
16. Lifetime committed this failure to report to the Commission
``knowingly'' as the term ``knowingly'' is defined in section 20(d)
of the CPSA, 15 U.S.C. 2069(d), thus, subjecting Lifetime to civil
penalties under section 20 of the CPSA, 15 U.S.C. 2069.
III. Lifetime's Response
17. Lifetime denies the staff's allegations that it violated the
CPSA as set forth in paragraphs 4 through 16 above.
18. Lifetime denies that the portable basketball hoop contains a
defect which could create a substantial product hazard, or creates
an unreasonable reasonable risk of serious injury and further denies
that it violated the reporting requirements of section 15(b) of the
CPSA, 15 U.S.C. 2064(b).
19. Based on an examination of basketball hoops involved in
consumer injuries and on testing of basketball hoops by Lifetime,
Lifetime concluded that the bolt protruded from the pole because
consumers had over-tightened the bolt contrary to the assembly
instructions. Lifetime believes and has advised the staff that the
basketball hoop if properly assembled meets the relevant ASTM
Voluntary Standard.
20. Lifetime enters this Settlement Agreement and Order for
settlement purposes only, to avoid incurring additional legal costs
and expenses. In settling this matter, Lifetime does not admit any
fault, liability, statutory, or regulatory violation.
IV. Agreement of the Parties
21. The Consumer Product Safety Commission has jurisdiction over
this matter and over Lifetime under the Consumer Product Safety Act,
15 U.S.C. 2051 et seq.
22. This Agreement is entered into for settlement purposes only
and does not constitute an admission by Lifetime or a determination
by the Commission that Lifetime knowingly violated the CPSA's
reporting requirement.
23. In settlement of the staff's allegations, Lifetime agrees to
pay a civil penalty in the amount of eight hundred thousand dollars
($800,000.00) as set forth in the incorporated Order.
24. Upon final acceptance of this Agreement by the Commission
and issuance of the Final Order, Respondent knowingly, voluntarily,
and completely waives any rights it may have in this matter (1) to
an administrative or judicial hearing, (2) to judicial review or
other challenge or contest of the validity of the Commmission's
actions, (3) to a determination by the Commission as to whether
respondent failed to comply with the CPSA and the underlying
regulations, (4) to a statement of findings of fact and conclusions
of law, and (5) to any claims under the Equal Access to Justice Act.
25. Upon provisional acceptance of this Agreement by the
Commission, this Agreement shall be placed on the public
[[Page 11391]]
record and shall be published in the Federal Register in accordance
with the procedures set forth in 16 CFR 1118.20(e). If the
Commission does not receive any written objections within 15 days,
the Agreement will be deemed finally accepted on the 16th day after
the date it is published in the Federal Register.
26. The Commission may publicize the terms of this Settlement
Agreement and Order.
27. The Commission's Order in this matter is issued under the
provisions of the CPSA, 15 U.S.C. 2051 et seq. A violation of this
Order may subject Lifetime to appropriate legal action.
28. This Settlement Agreement may be used in interpreting the
Order. Agreements, understandings, representations, or
interpretations apart from those contained in this Settlement
Agreement and Order may not be used to vary or contradict its terms.
29. The provisions of this Settlement Agreement and Order shall
apply to Lifetime and each of its successors and assigns.
Respondent, Lifetime Products, Inc.
Dated: February 13, 2004.
Barry Mower,
President, Lifetime Products, Inc., PO Box 160010, Freeport Center,
Building D-11, Clearfield, UT 84016-0010.
Dated: February 13, 2004.
Kelly H. Macfarlane, Esquire,
Christensen & Jensen, Attorneys for Respondent, Lifetime Products,
Inc., 50 South Main Street, Suite 1500, Salt Lake City, UT 84144.
Commission Staff
Alan H. Schoem,
Assistant Executive Director, Office of Compliance, Consumer Product
Safety Commission, Washington, DC 20207-0001.
Eric L. Stone,
Legal Division, Office of Compliance.
Dated: February 18, 2004.
Dennis C. Kacoyanis,
Trial Attorney, Legal Division, Office of Compliance.
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 04-C0003]
In the Matter of Lifetime Products, Inc.; Order
Upon consideration of the Settlement Agreement entered into
between Respondent Lifetime Products, Inc., and the staff of the
Consumer Product Safety Commission; and the Commission having
jurisdiction over the subject matter and Lifetime Products, 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, Lifetime Products, Inc. shall pay to the
Commission a civil penalty in the amount of eight hundred thousand
dollars ($800,000.00) in two installment payments of four hundred
thousand dollars ($400,000.00) each. The first payment of four
hundred thousand dollars ($400,000.00) is due on or before June 1,
2004 or within twenty (20) days after service upon Respondent of
this Final Order of the Commission, whichever is later. The second
payment of four hundred thousand dollars ($400,000.00) is due on or
before December 31, 2004. Upon the failure of Respondent Lifetime
Products, Inc. to make a payment or upon the making of a late
payment by Respondent Lifetime Products, Inc. (a) the entire amount
of the civil penalty shall be due and payable, and (b) 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 4th
date of March, 2004.
By Order of the Commission.
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 04-5403 Filed 3-9-04; 8:45 am]
BILLING CODE 6355-01-M