[Federal Register: March 9, 2007 (Volume 72, Number 46)]
[Notices]
[Page 10713-10715]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09mr07-54]
=======================================================================
-----------------------------------------------------------------------
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 07-C0004]
Fisher-Price, Inc., a 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(e).
Published below is a provisionally-accepted Settlement Agreement with
Fisher-Price Inc., a corporation, containing a civil penalty of
$975,000.
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 26, 2007.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 07-C0004, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Room 502, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Ronald G. Yelenik, Trial Attorney,
Office of Compliance and Field Operations, Consumer Product Safety
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408;
telephone (301) 504-7582.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: February 28, 2007.
Todd A. Stevenson,
Secretary.
United States of America
Consumer Product Safety Commission
[CPSC Docket No. 07-C0004]
In the Matter of Fisher-Price, Inc. a Corporation
Settlement Agreement and Order
1. This Settlement Agreement is made by and between the staff
(the ``staff'') of the U.S.
[[Page 10714]]
Consumer Product Safety Commission (``CPSC'' or the ``Commission'')
and Fisher-Price, Inc. (``Fisher-Price''), 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''). This Settlement Agreement and the
incorporated attached Order resolve the staff's allegations set
forth below.
The Parties
2. The Commission is an independent federal regulatory agency
responsible for the enforcement of the CPSA, 15 U.S.C. 2051-2084.
3. Fisher-Price is a corporation organized and existing under
the laws of the State of Delaware, with its principal corporate
office in East Aurora, New York. At all times relevant herein,
Fisher-Price designed, imported and sold toys and juvenile products.
Staff Allegations
4. Between June 17, 2002 and July 31, 2002, Fisher-Price
imported and sold nationwide approximately 67,000 Little
People[supreg] Animal Sounds Farm toys (the ``Farm(s)'' or
``products''). The Farms are shaped like a barn and make animal
sounds when the doors of the cow or horse stall are opened.
5. The Farms are ``consumer product(s)'' and, at the times
relevant herein, Fisher-Price was a ``manufacturer'' of ``consumer
product(s),'' which were ``distributed in commerce'' as those terms
are defined in sections 3(a)(1), (4), (11) and (12) of the CPSA, 15
U.S.C. 2052(a)(1), (4), (11) and (12).
6. The Farms are defective because the ringed nail fasteners
used to attach the toy ``stall doors'' in place can disengage from
the product. If this should occur, young children could choke on or
aspirate the loose nail fastener.
7. On or about September 11, 2002, Fisher-Price first learned of
an incident in which a nail fastener disengaged from one of the
stall doors.
8. By November 18, 2002, Fisher-Price had become aware of nine
reports of nail fasteners coming loose from the stall doors,
including one report from a consumer that a nail fastener came out
and that her child placed it in her mouth.
9. By early February of 2003, Fisher-Price was aware of two
telephone calls in which consumers indicated a concern that this
problem posed a choking hazard to children.
10. On February 14, 2003, Fisher-Price learned of a December 30,
2002 incident in which a 14-month old child aspirated a Farm nail
fastener into his lung. The child was taken to a hospital where
emergency surgery was performed to remove the nail fastener.
11. Despite being aware of the information set forth in
paragraphs 4 through 10, Fisher-Price did not report to the
Commission until March 14, 2003. By that time, Fisher-Price was
aware of at least 33 reports of incidents in which a nail fastener
came loose from the stall doors. These included four reports of
children who put a fastener in the mouth (including a report of a
child who cut the inside of her mouth), and one report of a child
who required emergency surgery to remove an aspirated nail fastener
from his lung.
12. Although Fisher-Price had obtained sufficient information to
reasonably support the conclusion that the Farms contained a defect
which could create a substantial product hazard, or created an
unreasonable risk of serious injury or death, it failed to
immediately inform the Commission of such defect or risk as required
by sections 15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and
(3). In failing to do so, Fisher-Price ``knowingly'' violated
section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4), as the term
``knowingly'' is defined in section 20(d) of the CPSA, 15 U.S.C.
2069(d).
13. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Fisher-
Price is subject to civil penalties for its failure to make a timely
report under section 15(b) of the CPSA, 15 U.S.C. 2064(b).
Response of Fisher-Price
14. Fisher-Price denies that the Farms contain a defect which
could create a substantial product hazard, or create an unreasonable
risk of serious injury or death, and denies that it violated the
reporting requirements of section 15(b) of the CPSA, 15 U.S.C.
2064(b).
15. Fisher-Price believes that the Farms do not violate any CPSC
regulations regarding small parts or otherwise and do not violate
any applicable safety standards.
16. Fisher-Price denies any liability or wrongdoing of any kind.
17. Fisher-Price was not advised of the December 30, 2002
incident, in which a consumer's child was reported to have aspirated
a fastener, until February 14, 2003. The consumer advised Fisher-
Price that the incident had been reported to the CPSC. Fisher-Price,
nevertheless, filed a Full Report with the CPSC pursuant to Section
15(b) of the CPSA on March 14, 2003 and undertook a Fast Track
Recall of the product on April 23, 2003.
Agreement of the Parties
18. The Commission has jurisdiction over this matter and over
Fisher-Price under the CPSA, 15 U.S.C. 2051-2084.
19. In settlement of the staff's allegations, Fisher-Price
agrees to pay a civil penalty of nine hundred seventy five thousand
dollars ($975,000.00) within twenty (20) calendar days of service of
the Final Order of the Commission accepting this Settlement
Agreement. This payment shall be made by check payable to the order
of the United States Treasury.
20. The parties enter this Settlement Agreement for settlement
purposes only. The Settlement Agreement does not constitute an
admission by Fisher-Price or a determination by the Commission that
Fisher-Price violated the CPSA's reporting requirements.
21. 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 in the Federal
Register in accordance with the procedure set forth in 16 CFR
1118.20(e). If the Commission does not receive any written requests
not to accept the Settlement Agreement and Order within 15 calendar
days, the Agreement and Order shall be deemed finally accepted on
the 16th calendar day after the date it is published in the Federal
Register, in accordance with 16 CFR 1118.20(f).
22. Upon final acceptance of this Settlement Agreement by the
Commission and issuance of the Final Order, Fisher-Price knowingly,
voluntarily and completely waives any rights it may have in this
matter to the following: (i) An administrative or judicial hearing;
(ii) judicial review or other challenge or consent of the
Commission's actions; (iii) a determination by the Commission as to
whether Fisher-Price failed to comply with the CPSA and the
underlying regulations; (iv) a statement of findings of fact and
conclusions of law; and (v) any claims under the Equal Access to
Justice Act.
23. The Commission may publicize the terms of the Settlement
Agreement and Order.
24. This Settlement Agreement shall apply to, and be binding
upon Fisher-Price and each of its successors and assigns, its parent
entity, its parent's subsidiaries, and each of their respective
successors and assigns.
25. The Commission's Order in this matter is issued under the
provisions of the CPSA, 15 U.S.C. 2051-2084, and a violation of the
Order may subject those referenced in paragraph 24 above to
appropriate legal action.
26. This Settlement 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.
27. This Settlement Agreement and Order shall not be waived,
changed, amended, modified, or otherwise altered, without written
agreement thereto executed by the party against whom such amendment,
modification, alteration, or waiver is sought to be enforced, and
approval by the Commission.
28. If, after the effective date hereof, any provision of this
Settlement Agreement and Order is held to be illegal, invalid, or
unenforceable under present or future laws effective during the
terms of the Settlement Agreement and Order, such provision shall be
fully severable. The rest of the Settlement Agreement and Order
shall remain in full effect, unless the Commission and Fisher-Price
determine that severing the provision materially changes the purpose
of the Settlement Agreement and Order.
Fisher-Price, Inc.
Dated:
By:--------------------------------------------------------------------
Neil Friedman
President
By:--------------------------------------------------------------------
Neil A. Goldberg
Goldberg Segalla, LLP
665 Main Street, Suite 400
Buffalo, New York 14203
Counsel for Fisher-Price, Inc.
U.S. Consumer Product Safety Commission
John Gibson Mullan
Assistant Executive Director
Office of Compliance and Field Operations
[[Page 10715]]
Dated:
By:--------------------------------------------------------------------
Ronald G. Yelenik
Acting Director
Legal Division
Office of Compliance and Field Operations
United States of America
Consumer Product Safety Commission
CPSC Docket No. 07-C0004
In the Matter of Fisher-Price, Inc., a Corporation
Order
Upon consideration of the Settlement Agreement entered into
between Fisher-Price, Inc. (``Fisher-Price'') and the staff of the
U.S. Consumer Product Safety Commission (the ``Commission''), and
the Commission having jurisdiction over the subject matter and over
Fisher-Price, and it appearing the Settlement Agreement is in the
public interest, it is
Ordered, that the Settlement Agreement be, and hereby is,
accepted; and it is
Further ordered, that Fisher-Price shall pay a civil penalty in
the amount of nine hundred seventy five thousand dollars
($975,000.00). This payment shall be made payable to the order of
the United States Treasury within twenty (20) calendar days of
service of the Final Order of the Commission upon Fisher-Price. Upon
the failure of Fisher-Price to make full payment in the prescribed
time, interest on the outstanding balance shall accrue and be paid
at the federal rate of interest under the provisions of 28 U.S.C.
1961(a) and (b).
Provisionally accepted and Provisional Order issued on the 28th
day of February, 2007.
By Order of the Commission.
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 07-1071 Filed 3-8-07; 8:45 am]
BILLING CODE 6355-01-M