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RCA: phil&teds USA, Inc. – Proposed Civil Penalty Settlement of $3.5 Million, with $3.3 million to be suspended and $200,000 to be paid in full

September 04, 2015

Final

Record of Commission Action

(Briefing Package August 13, 2015, OS No. 5213)

Decision

The Commission voted (4-1) to provisionally accept a Settlement Agreement  and Order, which orders phil&teds USA to pay a civil penalty of $3.5 million, with $3.3 million of that sum suspended
and the remaining $200,000 immediately due and payable and to address compliance measures.  The provisional Settlement Agreement and Final Order will be announced in a Federal Register Notice. Chairman Kaye, Commissioner Adler, Commissioner Robinson and Commissioner Buerkle voted to provisionally accept the Settlement Agreement  and Order. Commissioner Mohorovic voted to take other action and reject the Settlement  Agreement and Order and return to staff to seek higher
payment.

The Commission's Compliance  Division staff of the Office of General Counsel negotiated the proposed Settlement Agreement and Order to settle staff allegations that phil&teds USA knowingly violated
19(a)(4) of the Consumer Product Safety Act ("CPSA"), 15 U.S.C. §
2068(a)(4), by failing to report information under section 15(b) of the CPSA, 15 U.S.C. § 2064(b), with respect to clip-on high chairs ("Chairs"), and knowingly violated 19(a)(l3) of the CPSA, 15 U.S.C. § 2068(a)(13),  by making a material misrepresentation to the staff during the course of the staffs investigation concerning the Chairs. The Chairs contained  a defect which could create a substantial product hazard or created an unreasonable risk of serious injury or death. Section 20(a)(l) ofthe CPSA, 15 U.S.C. § 2069(a)(l), permits the imposition of civil penalties for any person who knowingly violates section 19 of the CPSA.

Commissioners Voting

Ballot vote due September 4, 2015

(The Commission agreed to extend the vote due date from August 25 and September 1, 2015.)
(Commissioner Adler extended the vote due date from August 20 to August 25, 2015.)

  • Chairman Elliot F. Kaye
  • Commissioner Robert S. Adler
  • Commissioner Ann Marie Buerkle
  • Commissioner Joseph P. Mohorovic
  • Commissioner Marietta S. Robinson
Type
Records of Commission Action and Commission Meeting Minutes
Date
Report an unsafe product