[Federal Register: March 31, 2008 (Volume 73, Number 62)]
[Notices]
[Page 16842-16844]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31mr08-45]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 08-C0004]
Reebok International Ltd., 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 Federal Hazardous Substances
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 Reebok International Ltd., a corporation, containing a
civil penalty of $1,000,000.00.
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 April 15, 2008.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 08-C0004, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
[[Page 16843]]
Room 502, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney,
Office of Compliance and Field Operations, Consumer Product Safety
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408;
telephone (301) 504-7587.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: March 17. 2008.
Todd A. Stevenson,
Secretary.
United States of America Consumer Product Safety Commission
[CPSC DOCKET NO. 08-C0084]
In the Matter of Reebok International Ltd., a Corporation
Settlement Agreement
1. This Settlement Agreement (``Agreement'') is made by and between
the staff (``the staff'') of the United States Consumer Product Safety
Commission (``the Commission'') and Reebok International Ltd.
(``Reebok''), a corporation. This Agreement and the incorporated
attached Order (``Order'') settle the staff's allegations set forth
below.
The Parties
2. The Commission is an independent federal regulatory agency
responsible for the enforcement of the Federal Hazardous Substances
Act, 15 U.S.C. 1261-1278, (``FHSA'').
3. Reebok is a corporation organized and existing under the laws of
the Commonwealth of Massachusetts, with its principal corporate office
located at 1895 J. W. Foster Boulevard, Canton, MA 02021. Reebok is a
manufacturer of athletic footwear and apparel.
Staff Allegations
4. Between May 2004 and March 2006, Reebok introduced or caused the
introduction into interstate commerce, or received in interstate
commerce and delivered or proffered delivery thereof for pay or
otherwise approximately 300,000 Heart-Shaped Charm Bracelets (``charm
bracelets''). The charm bracelets were provided as free gifts with the
purchase of various styles of children's footwear.
5. Reebok failed to take action to ensure that the charm bracelets
did not contain toxic levels of lead, thereby creating a risk of lead
poisoning and adverse health effects to children.
6. In March 2006, Reebok received a report of the death of a four-
year-old child allegedly caused by lead poisoning. The child reportedly
swallowed the charm bracelet's heart-shaped pendant. Reebok immediately
reported to the Commission.
7. In March 2006, the Commission staff obtained samples of the
charm bracelets, which were tested at the CPSC Laboratory. The test
results demonstrated that certain components of the charm bracelets
contained a total lead content from 78 to 93 percent and accessible
lead from 3,441 to 9,856 micrograms of lead. These levels of lead are
``toxic'' within the meaning of the FHSA.
8. The charm bracelets are a hazardous substance because they are
toxic and may cause substantial personal injury or substantial illness
during or as a proximate result of any customary foreseeable handling
or use, including reasonably foreseeable ingestion by children.
Accordingly, the charm bracelets are hazardous substances under section
2(f)(l)(A) of the FHSA, 15 U.S.C. 1261(f)(l)(A).
9. The charm bracelets were marketed with children's footwear and
were intended for use by children. Therefore, the charm bracelets
constitute banned hazardous substances under section 2(q)(1)(A) of the
FHSA, 15 U.S.C. 1261(q)(1)(A).
10. Reebok knowingly introduced or delivered for introduction into
interstate commerce, or caused such acts, or received in interstate
commerce and delivered or proffered delivery thereof for pay or
otherwise or caused such acts, with respect to the aforesaid banned
hazardous charm bracelets, as the term ``knowingly'' is defined in
section 5(c)(5) of the FHSA, 15 U.S.C. 1264(c)(5), in violation of
section 4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and (c).
11. Pursuant to section 5(c)(1) of the FHSA, 15 U.S.C. 1264(c)(1),
Reebok is subject to civil penalties for the aforementioned violation.
Reebok's Response
12. Reebok denies the staff's allegations that it violated the FHSA
as set forth in paragraphs 4 through 11 above.
Agreement of the Parties
13. Under the FHSA, the Commission has jurisdiction over this
matter and over Reebok.
14. In settlement of the staff's allegations, Reebok shall pay a
civil penalty in the amount of one million dollars ($1,000,000.00)
within twenty (20) calendar days of service of the final Order of the
Commission. This payment shall be made by check payable to the order of
the United States Treasury.
15. The parties enter into this Agreement for settlement purposes
only. The Agreement does not constitute an admission by Reebok or a
determination by the Commission that Reebok knowingly violated the
FHSA.
16. Upon provisional acceptance of this Agreement, the Agreement
shall be placed on the public record and 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 request not
to accept the Agreement within 15 days, the Agreement 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).
17. Upon the Commission's final acceptance of the Agreement and
issuance of the final Order, Reebok 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 contest of the validity of the
Commission's actions, (iii) a determination by the Commission as to
whether Reebok failed to comply with the FHSA, (iv) a statement of
findings of fact or conclusions of law, and (v) any claims under the
Equal Access to Justice Act.
18. This Agreement and Order resolves the staffs allegations
contained in paragraphs 4 through 11 herein. Upon final acceptance of
this Agreement by the Commission and issuance of the final Order, the
Commission and those acting on its behalf agree not to initiate any
civil penalty action against Reebok based on the aforementioned
allegations under the FHSA, 15 U.S.C. 1261-1278 or the Consumer Product
Safety Act, 15 U.S.C. 2051-2084.
19. The Commission may publicize the terms of the Agreement and
Order.
20. The Agreement and Order shall apply to, and be binding upon
Reebok and each of its successors and assigns.
21. The Commission issues the Order under the provisions of the
FHSA, 15 U.S.C. 1264(c)(4), and a violation of this Order may subject
Reebok to appropriate legal action.
22. This Agreement may be used in interpreting the Order.
Agreements, understandings, representations, or interpretations made
outside of this Agreement and Order may not be used to vary or
contradict its terms.
23. This Agreement shall not be waived, changed, amended, modified,
or otherwise altered without written agreement thereto executed by the
party
[[Page 16844]]
against whom such amendment, modification, alteration, or waiver is
sought to be enforced.
24. 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 Agreement and Order, such provision shall be fully severable.
The balance of the Agreement and Order shall remain in full effect,
unless the Commission and Reebok agree that severing the provision
materially changes the purpose of the Settlement Agreement and Order.
25. Pursuant to section 6(b) of the Interim Delegation of Authority
ordered by the Commission on February 1, 2008, the Commission delegated
to the Assistant Executive Director for Compliance and Field Operations
the authority to act, with the concurrence of the General Counsel, for
the Commission under 16 CFR 1118.20 with respect to Staff allegations
that Reebok and affiliated entities violated 15 U.S.C. 1263 and are
therefore subject to civil penalties under 15 U.S.C. 1264.
Reebok International Ltd.
Dated: March 12, 2008.
Joseph W. Keane, Chief Financial Officer Reebok International
Ltd., 1895 J. W. Foster Boulevard Canton, MA 02021.
Dated: March 12, 2008.
Peter L. Winik, Esquire, Latham & Watkins LLP, 555 Eleventh
Street, NW., Washington, DC 20004-1304 Attorneys for Reebok
International Ltd.
U.S. Consumer Product Safety Commission.
John Gibson Mullan, Assistant Executive Director, Office of
Compliance and Field Operations U. S. Consumer Product, Safety
Commission, 4330 East West Highway Bethesda, MD 20814,
Ronald O. Yelenik, Acting Director, Legal Division.
Office of Compliance and Field Operations.
Dated: March 12, 2008.
Dennis C. Kacoyanis, Trial Attorney, Legal Division, Office of
Compliance and Field Operations.
United States of America Consumer Product Safety Commission
[CPSC DOCKET NO. 08-C0004]
In the Matter of Reebok International Ltd., a Corporation
Order
Upon consideration of the Settlement Agreement entered into between
Reebok International Ltd. (``Reebok'') and the staff of the Consumer
Product Safety Commission (``the Commission''); and the Commission
having jurisdiction over the subject matter and Reebok; and pursuant to
the authority delegated in section 6(b) of the Interim Delegation of
Authority ordered by the Commission on February 1, 200; 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 Reebok shall pay a civil
penalty of one million dollars ($1,000,000.00). This payment shall be
made by check payable to the order of the United States Treasury within
(20) calendar days of service of the final Order of the Commission upon
Reebok. Upon the failure of Reebok 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 17th
day of March, 2008.
By Order of the Commission.
Todd A. Stevenson,
Secretary Consumer Product Safety Commission.
[FR Doc. E8-6407 Filed 3-28-08; 8:45 am]
BILLING CODE 6355-01-M