Grace Children's Products, Inc., a Corporation and Century Products, f/k/a Century Products Company, Provisional Acceptance of a Settlement Agreement and Order., 15842-15847 [05-6066]
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15842
Federal Register / Vol. 70, No. 59 / Tuesday, March 29, 2005 / Notices
COMMODITY FUTURES TRADING
COMMISSION
Commodity Pool Operators and
Commodity Pool Industry Issues;
Meeting
Commodity Futures Trading
Commission.
ACTION: Notice of public meeting.
AGENCY:
SUMMARY: Notice is hereby given that
the Commodity Futures Trading
Commission (‘‘Commission’’) will hold
a public roundtable meeting at which
invited participants will discuss issues
concerning commodity pool operators
and the commodity pool industry. An
agenda and list of participants will be
available on the Commission’s Web site,
https://www.cftc.gov.
DATES: Wednesday, April 6, 2005, from
9 a.m. to 3:15 p.m.
PLACE: Commission Headquarters, 1155
21st Street, NW., Washington, DC.
Lobby Level Hearing Room.
STATUS: Open.
FOR FURTHER INFORMATION CONTACT: Jean
A. Webb, 202–418–5100.
Issued in Washington, DC, this 23rd day of
March, 2005.
By the Commodity Futures Trading
Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 05–6084 Filed 3–28–05; 8:45 am]
BILLING CODE 6351–01–M
CONSUMER PRODUCT SAFETY
COMMISSION
[CPSC Docket No. 05–C0006]
Grace Children’s Products, Inc., a
Corporation and Century Products,
f/k/a Century Products Company,
Provisional Acceptance of a
Settlement Agreement and Order.
Consumer Product Safety
Commission.
ACTION: Notice.
AGENCY:
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 118.20. Published
below is a provisionally-accepted
Settlement Agreement with Graco
Children’s Products, Inc. a corporation
and Century Products, f/k/a Century
Products Company, containing a civil
penalty of $4,000,000.00.
DATES: Any interested person may ask
the Commission not to accept this
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agreement or otherwise comment on its
contents by filing a written request with
the Office of the Secretary by April 13,
2005.
ADDRESSES: Persons wishing to
comment on this Settlement Agreement
should send written comments to the
Comment 05–C0006, Office of the
Secretary, Consumer Product Safety
Commission, Washington, DC 20207.
FOR FURTHER INFORMATION CONTACT:
William J. Moore, Jr., Trial Attorney,
Office of Compliance, Consumer
Product Safety Commission,
Washington, DC 20207; telephone (301)
504–7583.
SUPPLEMENTARY INFORMATION: The text of
the Agreement and Order appears
below.
Dated: March 22, 2005.
Todd A. Stevenson,
Secretary.
Settlement Agreement and Order
1. This Settlement Agreement is made
by and between the staff (‘‘the staff’’ ) of
the United States Consumer Product
Safety Commission (‘‘the Commission’’)
and Graco Children’s Products, Inc.
(‘‘Graco’’) 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.
I. The Parties
2. The United States Consumer
Product Safety Commission is an
independent federal regulatory agency
responsible for the enforcement of the
Consumer Product Safety Act, 15 U.S.C.
2051–2084, the Federal Hazardous
Substances Act, 15 U.S.C. 1261–1278,
and the other transferred Acts identified
in 15 U.S.C. 2079.
3. Graco Children’s Products, Inc. is a
corporation organized and existing
under the laws of the State of
Pennsylvania. Graco is a wholly owned
subsidiary of Newell Rubbermaid, Inc.
Graco’s principal offices are located at
150 Oaklands Boulevard, Exton,
Pennsylvania 19341.
Corporate Background and the Scope of
This Agreement
4. In 1996, Rubbermaid Incorporated
(‘‘Rubbermaid,’’) then an Ohio
corporation, acquired Graco. Graco
retained its separate corporate status.
Until 1998, Century Products Company
(‘‘Century’’) was a separate corporation
organized under the laws of the State of
Delaware. In 1998 Rubbermaid acquired
certain assets and liabilities of Century.
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In 1999, Newell Co., (‘‘Newell,’’ a
Delaware corporation) merged with
Rubbermaid. Rubbermaid became a
wholly owned subsidiary of Newell and
Newell Co. changed its corporate name
to Newell Rubbermaid Inc.
5. By this Agreement, Graco is settling
alleged reporting violations: by Century
before Century’s assets were acquired by
Graco’s parent company Rubbermaid; by
Century during the period that straddled
Century’s status as an independent
corporation and after it was acquired by
Graco’s parent, Rubbermaid; by Graco
when it was a family owned and
operated business, prior to 1997; by
Graco after it was acquired by
Rubbermaid but still operating
independently; and by Graco prior to its
management restructuring by its current
corporate parent, Newell.
II. Staff Allegations: Century Infant
Seat/Carrier
6. Between 1991 and 1997, Century
manufactured and distributed in United
States commerce rear-facing infant seat/
carriers, sometimes known as its
‘‘Assura’’ line. The infant seat/carrier,
when separated from its anchored base
in a motor vehicle, became an infant
carrier for use in the home, during
shopping, in recreation or otherwise.
Century was, therefore, a
‘‘manufacturer’’ of a ‘‘consumer
product’’ ‘‘Distributed in commerce’’ as
those terms are defined in 15 U.S.C.
2052(a)(1), (4), (11) and (12).
7. While using the infant carrier, the
carrying handle could crack and/or
break and/or the handle could fail to
lock the carrier seat securely into place.
These flaws in the carrier handles and
locking mechanisms are defects under
section 15 of the CPSA, 15 U.S.C. 2064.
The babies being carried in the carrier
seats could, and did, fall from defective
carriers and suffered serious injuries.
All injuries occurred while this product
was being used as an infant carrier.
8. Century made several attempts to
strengthen the Assura handle and
redesigned the locking mechanism
between 1993 and 1998. It replaced
between 2,700 and 3,400 handles in
response to consumer complaints.
9. Century never reported this
information to the Commission staff.
Indeed, in 1998, when the staff first
investigated the Assura car seat/carriers,
Century personnel failed to provide the
staff with critically important
information about incidents, injuries
and engineering changes. This failure to
provide a complete report impeded an
effective analysis of the defects and
hazard associated with these products
and unduly delayed implementation of
a safety recall.
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10. Century obtained information that
reasonably supported the conclusion
that its rear facing car seat/carriers,
described above, contained defects
which could create a substantial
product hazard and created an
unreasonable risk of serious injury.
Century failed to report such
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).
11. By failing to report to the
Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C.
2064(b)(2) and (3), Century committed
prohibited acts and violated section
19(a)(4) of the CPSA, 15 U.S.C.
2068(a)(4).
12. Century committed the prohibited
acts set forth above ‘‘knowingly,’’ as that
term is defined in section 20(d) of the
CPSA, 15 U.S.C. 2069(d), and thus
subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15
U.S.C. 2069.
Century Stroller Travel Systems
13. Between 1996 and 1999, Century
and Graco/Century manufactured and
distributed in United States commerce a
series of multi-use products ‘‘travel
systems’’ featuring the seat portion of a
motor vehicle safety care seat. The seat
could be removed and used as a baby
carrier, a baby seat and, when placed in
a stroller frame, a baby stroller. Five
particular travel system models were
known as the Century brand Travelite,
Pioneer, ProSport, Travel Solutions and
Take Two Travel Solutions (hereinafter
the ‘‘Car Seat Strollers’’ or ‘‘Travel
Systems’’). With respect to the non-car
seat components of these travel system,
Century and Graco/Century were
‘‘manufacturers’’ of ‘‘consumer
products’’ ‘‘distributed in commerce’’ as
those terms are defined in 15 U.S.C.
2052(a)(1), (4), (11) and (12).
14. When the baby carrier seat was
used in the five Century stroller frames,
the products’ locking mechanism
designed permitted the seat either to
detach from the stroller frame or
allowed the stroller frame to collapse,
allowing the baby to fall forward, out of
the stroller frame and onto the ground.
The five seat/stroller frame locking
mechanism designed were defective
under section 15 of the CPSA, 15 U.S.C.
2064. These defects generated numerous
consumer complaints alleging many
injuries for the five models, from minor
to serious in nature.
15. Neither Century nor Graco filed a
section 15(b) report until the staff
inquired about the Take 2 Strollers in
2000.
16. Century obtained information
which reasonably supported the
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conclusion that the five travel systems
named above, contained defects which
could create a substantial product
hazard. Century 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).
17. By failing to report to the
Commission as required by section
15(b)(2) of the CPS, 15 U.S.C. 2064(b)(2),
Century committed prohibited acts and
violated section 19(a)(4) of the CPSA, 15
U.S.C. 2068(a)(4).
18. Century committed the prohibited
acts set forth above ‘‘knowingly,’’ as that
term is defined in section 20(d) of the
CPSA, 15 U.S.C. 2069(d), and thus
subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15
U.S.C. 2069.
Graco High Chair Models 3170, 36051
and 74001
19. From January, 1996 through
November, 1997 Graco manufactured
and distributed in United States
commerce children’s High Chair Models
3170, 36051 and 74001 (‘‘High chairs’’).
Graco was, therefore, a ‘‘manufacturer’’
of a ‘‘consumer product’’ ‘‘distributed in
commerce’’ as those terms are defined
in 15 U.S.C. 2052(a)(1), (4), (11) and 12).
20. Graco designed the High Chairs
with four metal supporting legs. Each of
the two front legs is comprised of two
metal tubes, one inserted into the open
end of the other. the two-piece legs were
designed to stay together, mated by
friction and gravity. When the High
Chair was in use, the front supporting
leg pieces could, and did, come apart,
causing the entire High Chair to fall
forward to the ground. In July 1996,
after receiving consumer complaints,
Graco attempted to prevent the legs
from separating by extending the leg
socket rib length. Graco continued to
receive High Chair leg separation
complaints and, in November 1997,
Graco ordered the use of a spring loaded
push button on one section of each leg
designed to fit into a corresponding hole
in the other half of the leg connection.
This design was intended to form a
positive locking mechanism for the High
Chair legs.
21. After the design changed
described in paragraph 20 above, Graco
continued to receive consumer
complaints of front leg separation and
minor to serious child injuries
associated with the friction fit design
units made before November 1997. The
friction fit designs used by Graco were
defects under section 15 of the CPSA, 15
U.S.C. 2064.
22. Graco did not report information
about this product until requested to do
so by CPSC in 2000.
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23. Graco obtained information which
reasonably supported the conclusion
that its High Chairs contained defects
which could create a substantial
product hazard. Graco failed to report to
the Commission as required by section
15(b)(2) of the CPSA, 15 U.S.C.
2064(b)(2).
24. By failing to report to the
Commission as required by section
15(b)(2) of the CPSA, 15 U.S.C.
2064(b)(2), Graco committed a
prohibited act. Graco thereby violated
section 19j(a)(4) of the CPSA, 15 U.S.C.
2068(a)(4).
25. Graco committed the prohibited
act set forth above ‘‘knowingly’’ as that
term is defined in section 20(d) of the
CPSA, 15 U.S.C. 2069(d), and thus
subjected itself to civil penalties, as
provided in section 20 of the CPSC, 15
U.S.C. 2069.
Graco Carrier Cradle Swings
26. From August 1993 through August
1997, Graco manufactured and
distributed in United States commerce
Infant Carriers that could also be used
with a Graco Infant Swing assembly.
These carrier/swings are known as
models 1300, 1301, 1310, 1350, 1501,
1502, 1530, 1723, 2788, 5510, 8108 and
36264 and Graco distributed them
nationwide. Graco was, therefore, a
‘‘manufacturer’’ of a ‘‘consumer
product’’ ‘‘distributed in commerce’’ as
those terms are defined in 15 U.S.C.
2052 (a)(1), (4), (11) and (12).
27. The design of the plastic carrier
seat handle, in connection with the
plastic materials used to fabricate the
seat, can give the consumer the false
impression, through an audible ‘‘click’’
cue, that the carrier handle is in a safely
locked position when it is not. These are
product defects under section 15 of the
CPSA, 15 U.S.C. 2064. From 1993 to
1997, these defects resulted in Graco
receiving consumer complaints citing
injuries, from minor to serious in
nature. The incidents occurred when
the seats fell forward because the handle
was not securely locked. Graco stopped
making the products in 1997.
28. Graco first reported to the staff in
1997. Graco’s original report failed to
provide complete information.
29. Well before 1997, Graco
Children’s Products, Inc. obtained
information which reasonably
supported the conclusion that its
Carriers and Carrier Swing Seats
contained defects which could create a
substantial product hazard and created
an unreasonable risk of serious injury.
Graco failed to report to the Commission
as required by sections 15(b)(2) and (3)
of the CPSA, 15 U.S.C. 2064(b)(2) and
(3).
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30. By failing to report to the
Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C.
2064(b)(2) and (3), Graco committed
prohibited acts and violated section
19(a)(3) of the CPSA, 15 U.S.C.
2068(a)(3).
31. Graco committed the prohibited
acts, set forth above, ‘‘knowingly,’’ as
that term is defined in section 20(d) of
the CPSA, 15 U.S.C. 2069(d), and thus
subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15
U.S.C. 2069.
Graco Infant Swings
32. From approximately 1988 through
1998, Graco manufactured and
distributed in United States commerce
certain infant swings. For the purposes
of this Settlement Agreement, the swing
designs will be designated as Designs
‘‘A,’’ ‘‘B,’’ and ‘‘C.’’ Graco was,
therefore, a ‘‘manufacturer’’ of
‘‘consumer products’’ ‘‘distributed in
commerce’’ as those terms are defined
in 15 U.S.C. 2052(a)(1), (4), (11) and
(12).
33. Design A, made prior to 1988
through 1991, consisted of a cloth seat
with leg holes. A waist belt sometimes
accompanied the Design A swings. A
plastic tray was also available. The tray
could help keep the child from falling
out of the swing. As designed, Design A
required the consumer to remove and
reinstall a screw to hold the tray in
place each time the swing was used.
This design contributed to use of the
swing without the tray screw, thereby
making it easier for the tray to loosen or
fall off the swing and a baby to fall out
of the swing. These design
characteristics are product defects under
section 15 of the CPSA, 15 U.S.C. 2064.
34. During the limited production
period for which Graco incident data
was available, the company had
received reports of dozens of minor to
serious injuries and one death. On or
about November 1991, Graco made tray
design changes that led to what is
designated here as Graco Infant Swing
‘‘Design B.’’
35. From November 1991 through
September 1995, the Graco Infant
Swings, Design B, used a plastic shell
with leg holes for the seat and a waist
belt. Design B also used a tray tube that
could slide into the swing hanger tube.
The hanger tube was equipped with a
spring loaded button on one side only
to secure the restraining tray to the
swing frame tube. The spring loaded
button could pop out through a hole in
the tray tube and, if operated
successfully, better secure the
restraining tray. The product could also
be assembled with the hanger tube
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reversed, however, because the
unassembled U-shaped hanger tube was
symmetrical. In the reversed
configuration, the swing would be
completely operational and the function
of the spring-loaded button (now on the
wrong side), would be negated. The
restraining tray (much like Design A,
above) would be unsecured and could
slide off during swing use. The product
instructions did not address the
potential for reverse assembly. The
design and instructions were defects
under section 15 of the CPSA, 15 U.S.C.
2064.
36. Graco received numerous
consumer complaints regarding the
Design B Infant Swings. Most
complaints reported that babies fell out
of the swing. Graco modified Design B
in November 1995 to incorporate
asymmetrical hanger tubes intended to
protect against reverse assembly.
37. From 1994 through July 1995,
Graco manufactured and distributed
Design C type Infant swings. This swing
also used a molded plastic shell with leg
holes and added a restraining tray with
a T-bar attached. Graco made some
Design C Infant Swings with a waist belt
and a crotch strap, and some without
the crotch strap. Like Design B, Design
C had symmetrical, hanger tubes with a
spring loaded button on one side of the
tube only. Design C was also susceptible
to reverse assembly. As a result,
consumers could have an unsecured
restraining tray. The Design C Infant
Swings were defective under section 15
of the CPSA, 15 U.S.C. 2064.
38. Graco received consumer reports
of incidents and injuries and four
reports of death involving the Design C
Infant Swings. Most alleged that babies
fell out of the swing. Four babies were
found caught by the head and arms or
by the neck. Graco modified Design C in
November 1995.
39. Graco reported the information it
possessed related to the Design A, B,
and C Infant Swings to the Commission
after the staff contacted Graco in 2000.
40. Graco Children’s Products, Inc.
obtained information which reasonably
supported the conclusion that its Design
A, B and C Infant Swings contained
defects which could create a substantial
product hazard and/or created an
unreasonable risk of serious injury or
death. Graco failed to report to the
Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C.
2064(b)(2) and (3).
41. By failing to report to the
Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C.
2064(b)(2) and (3), Graco committed
prohibited acts and violated section
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19(a)(4) of the CPSA, 15 U.S.C.
2068(a)(4).
42. Graco committed the prohibited
acts ‘‘knowingly,’’ as defined in section
20(d) of the CPSA, 15 U.S.C. 2069(d),
and thus subjected itself to civil
penalties, as provided in section 20 of
the CPSA, 15 U.S.C. 2069.
Graco Travel Lite Infant Swing
43. From May to December 2003,
Graco manufactured, sold, and
distributed in United States commerce
the Travel Lite Infant Swing (‘‘Travel
Lite’’ or ‘‘Swing’’), model numbers
1850JJP, 1850JGB and 185055P. Graco
is, therefore, a ‘‘manufacturer’’ of
‘‘consumer products’’ ‘‘distributed in
commerce’’ as those terms are defined
in 15 U.S.C. 2052(a)(1), (4), (11) and
(12).
44. Soon after introducing the Travel
Lite into commerce, Graco began to
receive several consumer complaints of
infants falling forward out of the swing
and infants’ heads falling forward and to
the side of the swing. The Swing’s seat
did not recline sufficiently—the seat
propped infants up too much toward a
vertical position, allowing babies to fall
forward. Contributing to this problem
was the Swing’s restraint system: a
single lap belt. The result of these
design characteristics was that infants
were both: (a) Falling forward and
striking the ground, head or face first,
and/or (b) falling to one side and
striking the edge of the molded plastic
seat shell and/or the bar of the Swing’s
A-frame structural support. Graco also
received consumer complaints of the
carrying handle falling down, hitting or
nearly hitting infants in the head. The
Travel Lite carrying handle design
allowed it to fall or be pushed down
from the carry position. These elements
in the Travel Lite Swing are defects
under section 15 of the CPSA, 15 U.S.C.
2064.
45. Throughout the summer of 2003,
Graco developed and implemented
interim design changes to address some
of the swing defects. Graco continued to
receive complaints alleging minor to
moderate injuries. In November and
December 2003, Graco implemented two
additional, permanent, prospective
design changes to address remaining
defects.
46. Graco reported information about
the Travel Lite swing after staff
contacted Graco in November 2003 to
inquire about these Swings.
47. Graco Children’s Products, Inc.
obtained information which reasonably
supported the conclusion that its Travel
Lite Swings contained defects which
could create a substantial product
hazard. Graco failed to report to the
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Commission as required by section
15(b)(2) of the CPSA, 15 U.S.C.
2064(b)(2).
48. By failing to report to the
Commission as required by section
15(b)(2) of the CPSA, 15 U.S.C.
2064(b)(2), Graco committed prohibited
acts and violated section 19(a)(4) of the
CPSA, 15 U.S.C. 2068(a)(4).
49. Graco committed the prohibited
acts set forth above ‘‘knowingly,’’ as that
term is defined in section 20(d) of the
CPSA, 15 U.S.C. 2069(d), and thus
subjected itself to civil penalties, as
provided in section 20 of the CPSC, 15
U.S.C. 2069.
Graco Pack ’N’ Play Portable Play
Yards
50. From 1988 to 2001, Graco
manufactured, sold, and distributed in
United States commerce the Pack ’N’
Play portable crib/play yard (‘‘Play
Yard’’). Graco is, therefore, a
‘‘manufacturer’’ of ‘‘consumer products’’
‘‘distributed in commerce’’ as those
terms are defined in 15 U.S.C. 2052
(a)(1), (4), (11) and (12).
51. The subject Play Yards, used an
open corner design. Open-ended metal
tubes formed the four top rails and were
secured to four hard plastic top corner
pieces. Babies inserted their fingers into
the space between the metal tubes and
the plastic corner pieces both during
and after Play Yard set up. Their fingers
were severed, lacerated and/or avulsed
between the first joint and the end of the
fingertip. Adults reported pinched and/
or lacerated hands from the open corner
design during Play Yard assembly.
These are product defects under section
15 of the CPSA, 15 U.S.C. 2064.
52. Graco stopped making the
products with the open corner design in
2001 and first reported to the staff in
2004.
53. Well before 2004, Graco received
consumer complaints that reported
pinching, laceration, avulsion and
amputation injuries, to young children
and pinching or cuts to adults. Before
1997, Graco Children’s Products, Inc.
obtained information which reasonably
supported the conclusion that its Play
Yard contained defects which could
create a substantial product hazard and
created an unreasonable risk of serious
injury. Graco failed to report to the
Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C.
2064(b)(2) and (3). By failing to report
to the Commission as required by
sections 15(b)(2) and (3) of the CPSA, 15
U.S.C. 2064(b)(2) and (3), Graco
committed prohibited acts and violated
section 19(a)(3) of the CPSA, 15 U.S.C.
2068(a)(3).
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54. Graco committed the prohibited
acts, set forth above, ‘‘knowingly,’’ as
that term is defined in section 20(d) of
the CPSA, 15 U.S.C. 2069(d), and thus
subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15
U.S.C. 2069.
Graco MetroLite Strollers
55. From 2000 through 2001, Graco
manufactured, sold, and distributed in
United States commerce a line of baby
strollers know as the MetrolLite line
(‘‘MetroLite’’), model numbers 6110DW
and 6113RV. Graco is, therefore, a
‘‘manufacturer’’ of ‘‘consumer products’’
‘‘distributed in commerce’’ as those
terms are defined in 15 U.S.C. 2052
(a)(1), (4), (11) and (12).
56. The MetroLite strollers fold up to
make transport easier. The strollers use
two latches, one on each side, designed
to lock the stroller in a rigid, secure
position when in use. The latches are
covered with molded plastic and are not
visible or accessible to the user. When
set up and in use, however, one or both
of the MetroLite latches may not fully
engage. The stroller may appear to be set
up and secure when it is not. A bump
or jostle during use may allow the
MetroLite to collapse. This is a product
defect under section 15 of the CPSA, 15
U.S.C. 2064.
57. Graco first reported to the staff in
2004.
58. Beginning in 2001 through 2004,
Graco received consumer complaints
that reported numerous collapsing
incidents and minor to moderate
injuries. Graco Children’s Products, Inc.
obtained information which reasonably
supported the conclusion that its
MetroLite contained a defect which
could create a substantial product
hazard. Graco failed to report to the
Commission as required by section
15(b)(2) of the CPSA, 15 U.S.C.
2064(b)(2).
59. By failing to report to the
Commission as required by section
15(b)(2) of the CPSA, 15 U.S.C.
2064(b)(2), Graco committed a
prohibited act and violated section
19(a)(3) of the CPSA, 15 U.S.C.
2068(a)(3).
60. Graco committed the prohibited
act, set forth above, ‘‘knowingly,’’ as
that term is defined in section 20(d) of
the CPSA, 15 U.S.C. 2069(d), and thus
subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15
U.S.C. 2069.
Graco Toddler Bed
61. From 1994 through 2000, Graco
manufactured, sold and distributed in
United States commerce a Graco toddler
bed (‘‘Toddler Bed’’) for children
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15845
making the transition from crib to twin
size bed. Graco is, therefore, a
‘‘manufacturer’’ of ‘‘consumer products’’
‘‘distributed in commerce’’ as those
terms are defined in 15 U.S.C. 2052
(a)(1), (4), (11) and (12).
62. The Toddler Bed has head and
footboards and partial guardrails with
vertical slats. The vertical slat openings
are 23⁄8 inches in width. The size of the
openings permits children’s arms and
legs to become caught. This is a product
defect under section 15 of the CPSA, 15
U.S.C. 2064.
63. Graco first reported to the staff in
2004. From 1995 through 2004, Graco
received consumer complaints that
reported numerous incidents and
injuries, including several broken arms
and legs when children twisted and/or
fell while a limb was in a slat opening.
Graco Children’s Products, Inc. obtained
information which reasonably
supported the conclusion that its
Toddler Beds contained a defect which
could create a substantial product
hazard and created an unreasonable risk
of serious injury. Graco failed to report
to the Commission as required by
sections 15(b)(2) and (3) of the CPSA, 15
U.S.C. 2064(b)(2) and (3).
64. By failing to report to the
Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C.
2064(b)(2) and (3), Graco committed
prohibited acts and violated section
19(a)(3) of the CPSA, 15 U.S.C.
2068(a)(3).
65. Graco committed the prohibited
acts, set forth above, ‘‘knowingly,’’ as
that term is defined in section 20(d) of
the CPSA, 15 U.S.C. 2069(d), and thus
subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15
U.S.C. 2069.
Graco Duo Strollers
66. From 1994 through 2000, Graco
manufactured, sold and distributed in
United States commerce a line of
strollers that seat two children known as
Grace Duo Strollers (‘‘Duo’’). Graco is,
therefore, a ‘‘manufacturer’’ of
‘‘consumer products’’ ‘‘distributed in
commerce’’ as those terms are defined
in 15 U.S.C. 2052(a)(1), (4), (11) and
(12).
67. The Duo latching mechanism
design makes it difficult for the
consumer to set up the stroller in a
secure, fully locked position. Though
not securely locked, the Duo can appear
to be properly set up and ready for use.
When not fully engaged, the Duo can
collapse if bumped or jostled. This is a
product defect under section 15 of the
CPSA, 15 U.S.C. 2064.
68. Graco first reported to the staff in
2004. From 1997 through 2004, Graco
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Federal Register / Vol. 70, No. 59 / Tuesday, March 29, 2005 / Notices
received consumer complaints that
reported numerous collapsing incidents
and moderate to severe injuries. Graco
Children’s Products, Inc. obtained
information which reasonably
supported the conclusion that its Duo
strollers contained a defect which could
create a substantial product hazard and
created an unreasonable risk of serious
injury. Grace failed to report to the
Commission as required by sections
15(b)2) and (3) of the CPSA, 15 U.S.C.
2064(b)(2) and (3).
69. By failing to report to the
Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C.
2064(b)(2) and (3), Graco committed
prohibited acts and violated section
19(a)(3) of the CPSA, 15 U.S.C.
2068(a)(3).
70. Graco committed the prohibited
acts, set forth above, ‘‘knowingly,’’ as
that term is defined in section 20(d) of
the CPSA, 15 U.S.C. 2069(d), and thus
subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15
U.S.C. 2069.
III. Response of Graco Children’s
Products, Inc.
71. On behalf of Century Company,
and, in its own right, Graco denies the
allegations of the staff, set forth in
paragraphs 6–70 above; it denies that
the products named herein, when
assembled, maintained and used
properly, contain any defect which
could create a substantial product
hazard or create a substantial risk of
injury pursuant to section 15(a) of the
CPSA, 15 U.S.C. 2064(a). Graco also
denies that the products, when
assembled, maintained and used
properly, create an unreasonable risk of
serious injury or death pursuant to
section 15(b) of the CPSA, 15 U.S.C.
1064(b).
72. Graco further denies that it
violated the reporting requirements of
section 15(b) of the CPSA, 15 U.S.C.
2064(b), and denies that it violated the
reporting requirements of section
19(a)(4) of the CPSA, 15 U.S.C.
2064(a)(4). Graco denies that the
information available to it and provided
to the Commission reasonably
supported the conclusion that the
products contained a defect which
could create a substantial product
hazard or created an unreasonable risk
of serious injury or death, and therefore,
no report was required under section
15(b) of the CPSA, 15 U.S.C. 2064(b).
73. In settling this matter, Graco does
not admit any fault, liability, or
statutory or regulatory violation.
74. Graco further asserts, as a general
matter, that Century and Graco received
a relatively small percentage of
VerDate jul<14>2003
17:01 Mar 28, 2005
Jkt 205001
complaints concerning the abovementioned products in relation to the
number of products in distribution; that
it developed product improvements to
address the complaints on various
products in question; that it considered
the complaints and the reporting
requirements of the CPSA and it did not
‘‘knowingly’’ violate any reporting
requirements.
75. Graco further asserts that with
respect to the Pack ’N Play, its corner
design was common in the industry
and, with respect to the Graco Toddler
Bed, in the absence of an industry
standard for toddler beds, the Graco
product incorporated vertical slat
openings of 23⁄8 inches in width,
consistent with the federal crib standard
in 16 CFR 1508.
76. In cooperation with the staff,
Graco agreed to undertake corrective
action for each product identified in this
Settlement Agreement for which such
action was requested by CPSC.
77. Graco is entering into this
Settlement Agreement for settlement
purposes only, to resolve outstanding
issues that primarily occurred prior to
Newell’s acquisition of Century and
Graco and to avoid incurring additional
legal costs and expenses. This
settlement does not constitute, nor is it
evidence of, an admission of any fault,
liability, violation of law, or wrongdoing
by Century or Graco.
IV. Agreement of The Parties
78. The Commission has jurisdiction
over this matter and over Graco and
Century pursuant to the Consumer
Product Safety Act (CPSA), 15 U.S.C.
2051 et seq.
79. This Settlement Agreement and
Order is a compromise resolution of the
matters described above and the parties
enter into this Agreement solely for the
purpose of settlement.
80. Graco knowingly, voluntarily and
completely waives any rights it may
have (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 challenge or
contest of the validity of the
Commission’s Order, (4) to a
determination by the Commission as to
whether violations of sections 15(b) and
19(a)(4) of the CPSA, 15 U.S.C. 2064(b)
and 2068(a)(4), have occurred, (5) to a
statement of findings of fact and
conclusions of law with regard to the
staff allegations, and (6) to any claims
under the Equal Access to Justice Act.
81. Upon provisional acceptance of
this Settlement Agreement and Order by
the Commission, this Settlement
Agreement and Order shall be placed on
PO 00000
Frm 00030
Fmt 4703
Sfmt 4703
the public record and shall be published
in the Federal Register in accordance
with 16 CFR 1118.20. 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 Federal Register publication
date.
82. Graco shall pay a civil penalty in
the amount of four million and no/
dollars ($4,000,000.00) as set forth
below and in the incorporated Order.
The payment shall be made in four
equal installments of one million and
no/dollars ($1,000,000.00) each. The
first payment shall be delivered to the
Commission within the (10) calendar
days of final acceptance of the
Settlement Agreement and Order. The
second payment shall be delivered to
the Commission on or before June 15,
2005, the third payment by September
15, 2005 and the fourth and final
payment by December 15, 2005.
83. Upon the failure of Graco to
deliver the first, or any, of its
$1,000,000.00 payments in full to the
Commission by the due dates set forth
above, the entire amount of the civil
penalty, $4,000,000.00 shall be due and
payable and delivered to the
Commission by the seventh calendar
day following the original due date of
the missed payment. Upon the failure
by Graco to deliver any payment in full
to the Commission in accordance with
the terms of this paragraph, 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).
84. Compliance, by this Settlement
Agreement and the attached Order,
resolve the allegations of violations of
sections 15(b) and 19(a)(4) of the CPSA,
15 U.S.C. 2064(b) and 2068(a)(4),
regarding the products named herein.
85. The Commission may publicize
this Settlement Agreement and Order.
86. 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
Graco to appropriate legal action.
87. Graco agrees to entry of the
attached Order, which is incorporated
herein by reference, and agrees to be
bound by its terms.
88. This Settlement Agreement is
binding upon Graco and its assigns and
successors.
89. This Settlement Agreement may
be used in interpreting the
implementing Order. Agreements,
understandings, representations, or
interpretations apart from those
contained in this Settlement Agreement
and Order may not be used to vary or
E:\FR\FM\29MRN1.SGM
29MRN1
Federal Register / Vol. 70, No. 59 / Tuesday, March 29, 2005 / Notices
contradict the terms of this Settlement
Agreement and Order.
Graco Children’s Products, Inc.
Dated: March 14, 2005.
Dale Matschullat,
Vice President, General Counsel and
Corporate Secretary, Newell Rubbermaid,
Inc.
The U.S. Consumer Products Safety
Commission
John Gibson Mullan,
Associate Executive Director, Office of
Compliance.
Eric L. Stone,
Director, Legal Division Office of
Compliance.
Dated: March 15, 2005.
By William J. Moore, Jr.,
Trial Attorney, Legal Division, Office of
Compliance.
Provisionally accepted and Provisional
Order issued on the 22nd day of March,
2005.
By order of the Commission.
Todd Stevenson,
Secretary, U.S. Consumer Product Safety
Commission.
[FR Doc. 05–6066 Filed 3–28–05; 8:45 am]
and Budget (OMB) pursuant to
paragraph 4c of Appendix I to OMB
Circular No. A–130, ‘Federal Agency
Responsibilities for Maintaining
Records About Individuals,’ dated
February 8, 1996 (February 20, 1996, 61
FR 6427).
Dated: March 22, 2005.
L.M. Bynum,
OSD Federal Register Liaison Officer,
Department of Defense.
DHA 12
SYSTEM NAME:
Third Party Outpatient Collection
System.
SYSTEM LOCATION:
BILLING CODE 6355–01–M
Order
Upon consideration of the Settlement
Agreement entered into between Graco
Children’s Products, Inc. (hereinafter,
‘‘Graco’’), a corporation, and the staff of
the Consumer Product Safety
Commission, and the U.S. Consumer
Product Safety Commission (hereinafter,
‘‘Commission’’), having jurisdiction
over the subject matter and Graco, and
it appearing that the Settlement
Agreement and Order is in the public
interest, it is
Ordered, that the subject Settlement
Agreement be, and hereby is accepted;
and it is further
Ordered, that, upon final acceptance
of the Settlement Agreement and Order,
Graco shall pay the Commission a civil
penalty in the amount of Four Million
and no/100 dollars ($4,000,000.00), in
four equal installments of one million
dollars and no/100 ($1,000,000.00) each.
The first installment shall be paid and
delivered to the Commission within ten
(10) calendar days of final acceptance of
the Settlement Agreement and Order.
The second payment of one million and
00/100 dollars ($1,000,000.00) shall be
paid and delivered to the Commission
on or before June 15, 2005, the third
payment of one million and 00/100
dollars ($1,000,000.00) shall be paid and
delivered to the Commission on or
before September 15, 2005, and the
fourth payment of one million and 00/
100 dollars ($1,000,000.00) shall be paid
and delivered to the Commission on or
before December 15, 2005; and it is
further
Ordered, that, upon the failure of
Graco to deliver the first, or any, of its
$1,000,000.00 payments in full to the
Commission by the due dates set forth
in this Order, the entire amount of the
civil penalty, $4,000,000.00, shall be
VerDate jul<14>2003
due and payable and delivered to the
Commission by the seventh calendar
day following the original due date of
the missed payment. Upon the failure
by Graco to deliver any payment in full
to the Commission in accordance with
the terms of the subject Settlement
Agreement and this Order, interest on
the outstanding balance shall accrue
and shall be paid by Graco to the
Commission at the federal legal rate of
interest under the provisions of 28
U.S.C. 1961(a) and (b).
15847
17:01 Mar 28, 2005
Jkt 205001
Resource Information Technology
Program Office, 5205 Leesburg Pike,
Suite 1100, Falls Church, VA 22041–
3891.
DEPARTMENT OF DEFENSE
CATEGORIES OF INDIVIDUALS COVERED BY THE
SYSTEM:
Office of the Secretary
Privacy Act of 1974; System of
Records
Office of the Secretary, DoD.
Notice to add a system of
records; DHA 12-Third Party Outpatient
Collection System.
AGENCY:
ACTION:
SUMMARY: The Office of the Secretary of
Defense proposes to add a system of
records to its inventory of record
systems subject to the Privacy Act of
1974 (5 U.S.C. 552a), as amended.
DATES: The changes will be effective on
April 28, 2005, unless comments are
received that would result in a contrary
determination.
ADDRESSES: Send comments to OSD
Privacy Act Coordinator, Records
Management Section, Washington
Headquarters Services, 1155 Defense
Pentagon, Washington, DC 20301–1155.
FOR FURTHER INFORMATION CONTACT: Ms.
Juanita Irvin at (703) 601–4722,
extension 110.
SUPPLEMENTARY INFORMATION: The Office
of the Secretary of Defense notices for
systems of records subject to the Privacy
Act of 1974 (5 U.S.C. 552a), as amended,
have been published in the Federal
Register and are available from the
address above.
The proposed systems reports, as
required by 5 U.S.C. 552a(r) of the
Privacy Act of 1974, as amended, were
submitted on March 18, 2005, to the
House Committee on Government
Reform, the Senate Committee on
Homeland Security and Governmental
Affairs, and the Office of Management
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Fmt 4703
Sfmt 4703
Members of the uniformed services,
dependents and retired military
members of the Uniformed Services
receiving outpatient health services
approved by the Department of Defense.
All commercial insurance carriers and
parties against whom recovery has been
sought by the Department of Defense
Military Health System. All parties
involved in support of the collection
activities for outpatient health care
approved by the Department of Defense.
CATEGORIES OF RECORDS IN THE SYSTEM:
Insurance Policy Information Data:
This includes policy number, group
number, group name, policy effective
date, policy category, insurance
company, insurance type, policy holder,
whether policy holder is insured
through their employer, drug coverage
data regarding authority to bill for
pharmaceuticals.
EMPLOYER INFORMATION DATA:
This includes employer name,
address, and a contact name for the
policyholder.
BILLING INFORMATION DATA:
This includes bill type (clinic,
pharmacy, laboratory/radiology,
ambulance), date-of-service, patient
identification number, patient name,
policy number, provider code/
description, office visit code
description, Medical Expense and
Performance Reporting System code/
description, diagnosis code/description,
billing amount, user who created the
bill, date bill was created, and status of
bill and source of billing data.
E:\FR\FM\29MRN1.SGM
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Agencies
[Federal Register Volume 70, Number 59 (Tuesday, March 29, 2005)]
[Notices]
[Pages 15842-15847]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-6066]
=======================================================================
-----------------------------------------------------------------------
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 05-C0006]
Grace Children's Products, Inc., a Corporation and Century
Products, f/k/a Century Products Company, 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 118.20.
Published below is a provisionally-accepted Settlement Agreement with
Graco Children's Products, Inc. a corporation and Century Products, f/
k/a Century Products Company, containing a civil penalty of
$4,000,000.00.
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 13, 2005.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 05-C0006, Office of the
Secretary, Consumer Product Safety Commission, Washington, DC 20207.
FOR FURTHER INFORMATION CONTACT: William J. Moore, Jr., Trial Attorney,
Office of Compliance, Consumer Product Safety Commission, Washington,
DC 20207; telephone (301) 504-7583.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: March 22, 2005.
Todd A. Stevenson,
Secretary.
Settlement Agreement and Order
1. This Settlement Agreement is made by and between the staff
(``the staff'' ) of the United States Consumer Product Safety
Commission (``the Commission'') and Graco Children's Products, Inc.
(``Graco'') 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.
I. The Parties
2. The United States Consumer Product Safety Commission is an
independent federal regulatory agency responsible for the enforcement
of the Consumer Product Safety Act, 15 U.S.C. 2051-2084, the Federal
Hazardous Substances Act, 15 U.S.C. 1261-1278, and the other
transferred Acts identified in 15 U.S.C. 2079.
3. Graco Children's Products, Inc. is a corporation organized and
existing under the laws of the State of Pennsylvania. Graco is a wholly
owned subsidiary of Newell Rubbermaid, Inc. Graco's principal offices
are located at 150 Oaklands Boulevard, Exton, Pennsylvania 19341.
Corporate Background and the Scope of This Agreement
4. In 1996, Rubbermaid Incorporated (``Rubbermaid,'') then an Ohio
corporation, acquired Graco. Graco retained its separate corporate
status. Until 1998, Century Products Company (``Century'') was a
separate corporation organized under the laws of the State of Delaware.
In 1998 Rubbermaid acquired certain assets and liabilities of Century.
In 1999, Newell Co., (``Newell,'' a Delaware corporation) merged with
Rubbermaid. Rubbermaid became a wholly owned subsidiary of Newell and
Newell Co. changed its corporate name to Newell Rubbermaid Inc.
5. By this Agreement, Graco is settling alleged reporting
violations: by Century before Century's assets were acquired by Graco's
parent company Rubbermaid; by Century during the period that straddled
Century's status as an independent corporation and after it was
acquired by Graco's parent, Rubbermaid; by Graco when it was a family
owned and operated business, prior to 1997; by Graco after it was
acquired by Rubbermaid but still operating independently; and by Graco
prior to its management restructuring by its current corporate parent,
Newell.
II. Staff Allegations: Century Infant Seat/Carrier
6. Between 1991 and 1997, Century manufactured and distributed in
United States commerce rear-facing infant seat/carriers, sometimes
known as its ``Assura'' line. The infant seat/carrier, when separated
from its anchored base in a motor vehicle, became an infant carrier for
use in the home, during shopping, in recreation or otherwise. Century
was, therefore, a ``manufacturer'' of a ``consumer product''
``Distributed in commerce'' as those terms are defined in 15 U.S.C.
2052(a)(1), (4), (11) and (12).
7. While using the infant carrier, the carrying handle could crack
and/or break and/or the handle could fail to lock the carrier seat
securely into place. These flaws in the carrier handles and locking
mechanisms are defects under section 15 of the CPSA, 15 U.S.C. 2064.
The babies being carried in the carrier seats could, and did, fall from
defective carriers and suffered serious injuries. All injuries occurred
while this product was being used as an infant carrier.
8. Century made several attempts to strengthen the Assura handle
and redesigned the locking mechanism between 1993 and 1998. It replaced
between 2,700 and 3,400 handles in response to consumer complaints.
9. Century never reported this information to the Commission staff.
Indeed, in 1998, when the staff first investigated the Assura car seat/
carriers, Century personnel failed to provide the staff with critically
important information about incidents, injuries and engineering
changes. This failure to provide a complete report impeded an effective
analysis of the defects and hazard associated with these products and
unduly delayed implementation of a safety recall.
[[Page 15843]]
10. Century obtained information that reasonably supported the
conclusion that its rear facing car seat/carriers, described above,
contained defects which could create a substantial product hazard and
created an unreasonable risk of serious injury. Century failed to
report such 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).
11. By failing to report to the Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3), Century
committed prohibited acts and violated section 19(a)(4) of the CPSA, 15
U.S.C. 2068(a)(4).
12. Century committed the prohibited acts set forth above
``knowingly,'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), and thus subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15 U.S.C. 2069.
Century Stroller Travel Systems
13. Between 1996 and 1999, Century and Graco/Century manufactured
and distributed in United States commerce a series of multi-use
products ``travel systems'' featuring the seat portion of a motor
vehicle safety care seat. The seat could be removed and used as a baby
carrier, a baby seat and, when placed in a stroller frame, a baby
stroller. Five particular travel system models were known as the
Century brand Travelite, Pioneer, ProSport, Travel Solutions and Take
Two Travel Solutions (hereinafter the ``Car Seat Strollers'' or
``Travel Systems''). With respect to the non-car seat components of
these travel system, Century and Graco/Century were ``manufacturers''
of ``consumer products'' ``distributed in commerce'' as those terms are
defined in 15 U.S.C. 2052(a)(1), (4), (11) and (12).
14. When the baby carrier seat was used in the five Century
stroller frames, the products' locking mechanism designed permitted the
seat either to detach from the stroller frame or allowed the stroller
frame to collapse, allowing the baby to fall forward, out of the
stroller frame and onto the ground. The five seat/stroller frame
locking mechanism designed were defective under section 15 of the CPSA,
15 U.S.C. 2064. These defects generated numerous consumer complaints
alleging many injuries for the five models, from minor to serious in
nature.
15. Neither Century nor Graco filed a section 15(b) report until
the staff inquired about the Take 2 Strollers in 2000.
16. Century obtained information which reasonably supported the
conclusion that the five travel systems named above, contained defects
which could create a substantial product hazard. Century 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).
17. By failing to report to the Commission as required by section
15(b)(2) of the CPS, 15 U.S.C. 2064(b)(2), Century committed prohibited
acts and violated section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).
18. Century committed the prohibited acts set forth above
``knowingly,'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), and thus subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15 U.S.C. 2069.
Graco High Chair Models 3170, 36051 and 74001
19. From January, 1996 through November, 1997 Graco manufactured
and distributed in United States commerce children's High Chair Models
3170, 36051 and 74001 (``High chairs''). Graco was, therefore, a
``manufacturer'' of a ``consumer product'' ``distributed in commerce''
as those terms are defined in 15 U.S.C. 2052(a)(1), (4), (11) and 12).
20. Graco designed the High Chairs with four metal supporting legs.
Each of the two front legs is comprised of two metal tubes, one
inserted into the open end of the other. the two-piece legs were
designed to stay together, mated by friction and gravity. When the High
Chair was in use, the front supporting leg pieces could, and did, come
apart, causing the entire High Chair to fall forward to the ground. In
July 1996, after receiving consumer complaints, Graco attempted to
prevent the legs from separating by extending the leg socket rib
length. Graco continued to receive High Chair leg separation complaints
and, in November 1997, Graco ordered the use of a spring loaded push
button on one section of each leg designed to fit into a corresponding
hole in the other half of the leg connection. This design was intended
to form a positive locking mechanism for the High Chair legs.
21. After the design changed described in paragraph 20 above, Graco
continued to receive consumer complaints of front leg separation and
minor to serious child injuries associated with the friction fit design
units made before November 1997. The friction fit designs used by Graco
were defects under section 15 of the CPSA, 15 U.S.C. 2064.
22. Graco did not report information about this product until
requested to do so by CPSC in 2000.
23. Graco obtained information which reasonably supported the
conclusion that its High Chairs contained defects which could create a
substantial product hazard. Graco failed to report to the Commission as
required by section 15(b)(2) of the CPSA, 15 U.S.C. 2064(b)(2).
24. By failing to report to the Commission as required by section
15(b)(2) of the CPSA, 15 U.S.C. 2064(b)(2), Graco committed a
prohibited act. Graco thereby violated section 19j(a)(4) of the CPSA,
15 U.S.C. 2068(a)(4).
25. Graco committed the prohibited act set forth above
``knowingly'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), and thus subjected itself to civil penalties, as
provided in section 20 of the CPSC, 15 U.S.C. 2069.
Graco Carrier Cradle Swings
26. From August 1993 through August 1997, Graco manufactured and
distributed in United States commerce Infant Carriers that could also
be used with a Graco Infant Swing assembly. These carrier/swings are
known as models 1300, 1301, 1310, 1350, 1501, 1502, 1530, 1723, 2788,
5510, 8108 and 36264 and Graco distributed them nationwide. Graco was,
therefore, a ``manufacturer'' of a ``consumer product'' ``distributed
in commerce'' as those terms are defined in 15 U.S.C. 2052 (a)(1), (4),
(11) and (12).
27. The design of the plastic carrier seat handle, in connection
with the plastic materials used to fabricate the seat, can give the
consumer the false impression, through an audible ``click'' cue, that
the carrier handle is in a safely locked position when it is not. These
are product defects under section 15 of the CPSA, 15 U.S.C. 2064. From
1993 to 1997, these defects resulted in Graco receiving consumer
complaints citing injuries, from minor to serious in nature. The
incidents occurred when the seats fell forward because the handle was
not securely locked. Graco stopped making the products in 1997.
28. Graco first reported to the staff in 1997. Graco's original
report failed to provide complete information.
29. Well before 1997, Graco Children's Products, Inc. obtained
information which reasonably supported the conclusion that its Carriers
and Carrier Swing Seats contained defects which could create a
substantial product hazard and created an unreasonable risk of serious
injury. Graco failed to report to the Commission as required by
sections 15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3).
[[Page 15844]]
30. By failing to report to the Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3), Graco
committed prohibited acts and violated section 19(a)(3) of the CPSA, 15
U.S.C. 2068(a)(3).
31. Graco committed the prohibited acts, set forth above,
``knowingly,'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), and thus subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15 U.S.C. 2069.
Graco Infant Swings
32. From approximately 1988 through 1998, Graco manufactured and
distributed in United States commerce certain infant swings. For the
purposes of this Settlement Agreement, the swing designs will be
designated as Designs ``A,'' ``B,'' and ``C.'' Graco was, therefore, a
``manufacturer'' of ``consumer products'' ``distributed in commerce''
as those terms are defined in 15 U.S.C. 2052(a)(1), (4), (11) and (12).
33. Design A, made prior to 1988 through 1991, consisted of a cloth
seat with leg holes. A waist belt sometimes accompanied the Design A
swings. A plastic tray was also available. The tray could help keep the
child from falling out of the swing. As designed, Design A required the
consumer to remove and reinstall a screw to hold the tray in place each
time the swing was used. This design contributed to use of the swing
without the tray screw, thereby making it easier for the tray to loosen
or fall off the swing and a baby to fall out of the swing. These design
characteristics are product defects under section 15 of the CPSA, 15
U.S.C. 2064.
34. During the limited production period for which Graco incident
data was available, the company had received reports of dozens of minor
to serious injuries and one death. On or about November 1991, Graco
made tray design changes that led to what is designated here as Graco
Infant Swing ``Design B.''
35. From November 1991 through September 1995, the Graco Infant
Swings, Design B, used a plastic shell with leg holes for the seat and
a waist belt. Design B also used a tray tube that could slide into the
swing hanger tube. The hanger tube was equipped with a spring loaded
button on one side only to secure the restraining tray to the swing
frame tube. The spring loaded button could pop out through a hole in
the tray tube and, if operated successfully, better secure the
restraining tray. The product could also be assembled with the hanger
tube reversed, however, because the unassembled U-shaped hanger tube
was symmetrical. In the reversed configuration, the swing would be
completely operational and the function of the spring-loaded button
(now on the wrong side), would be negated. The restraining tray (much
like Design A, above) would be unsecured and could slide off during
swing use. The product instructions did not address the potential for
reverse assembly. The design and instructions were defects under
section 15 of the CPSA, 15 U.S.C. 2064.
36. Graco received numerous consumer complaints regarding the
Design B Infant Swings. Most complaints reported that babies fell out
of the swing. Graco modified Design B in November 1995 to incorporate
asymmetrical hanger tubes intended to protect against reverse assembly.
37. From 1994 through July 1995, Graco manufactured and distributed
Design C type Infant swings. This swing also used a molded plastic
shell with leg holes and added a restraining tray with a T-bar
attached. Graco made some Design C Infant Swings with a waist belt and
a crotch strap, and some without the crotch strap. Like Design B,
Design C had symmetrical, hanger tubes with a spring loaded button on
one side of the tube only. Design C was also susceptible to reverse
assembly. As a result, consumers could have an unsecured restraining
tray. The Design C Infant Swings were defective under section 15 of the
CPSA, 15 U.S.C. 2064.
38. Graco received consumer reports of incidents and injuries and
four reports of death involving the Design C Infant Swings. Most
alleged that babies fell out of the swing. Four babies were found
caught by the head and arms or by the neck. Graco modified Design C in
November 1995.
39. Graco reported the information it possessed related to the
Design A, B, and C Infant Swings to the Commission after the staff
contacted Graco in 2000.
40. Graco Children's Products, Inc. obtained information which
reasonably supported the conclusion that its Design A, B and C Infant
Swings contained defects which could create a substantial product
hazard and/or created an unreasonable risk of serious injury or death.
Graco failed to report to the Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3).
41. By failing to report to the Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3), Graco
committed prohibited acts and violated section 19(a)(4) of the CPSA, 15
U.S.C. 2068(a)(4).
42. Graco committed the prohibited acts ``knowingly,'' as defined
in section 20(d) of the CPSA, 15 U.S.C. 2069(d), and thus subjected
itself to civil penalties, as provided in section 20 of the CPSA, 15
U.S.C. 2069.
Graco Travel Lite Infant Swing
43. From May to December 2003, Graco manufactured, sold, and
distributed in United States commerce the Travel Lite Infant Swing
(``Travel Lite'' or ``Swing''), model numbers 1850JJP, 1850JGB and
185055P. Graco is, therefore, a ``manufacturer'' of ``consumer
products'' ``distributed in commerce'' as those terms are defined in 15
U.S.C. 2052(a)(1), (4), (11) and (12).
44. Soon after introducing the Travel Lite into commerce, Graco
began to receive several consumer complaints of infants falling forward
out of the swing and infants' heads falling forward and to the side of
the swing. The Swing's seat did not recline sufficiently--the seat
propped infants up too much toward a vertical position, allowing babies
to fall forward. Contributing to this problem was the Swing's restraint
system: a single lap belt. The result of these design characteristics
was that infants were both: (a) Falling forward and striking the
ground, head or face first, and/or (b) falling to one side and striking
the edge of the molded plastic seat shell and/or the bar of the Swing's
A-frame structural support. Graco also received consumer complaints of
the carrying handle falling down, hitting or nearly hitting infants in
the head. The Travel Lite carrying handle design allowed it to fall or
be pushed down from the carry position. These elements in the Travel
Lite Swing are defects under section 15 of the CPSA, 15 U.S.C. 2064.
45. Throughout the summer of 2003, Graco developed and implemented
interim design changes to address some of the swing defects. Graco
continued to receive complaints alleging minor to moderate injuries. In
November and December 2003, Graco implemented two additional,
permanent, prospective design changes to address remaining defects.
46. Graco reported information about the Travel Lite swing after
staff contacted Graco in November 2003 to inquire about these Swings.
47. Graco Children's Products, Inc. obtained information which
reasonably supported the conclusion that its Travel Lite Swings
contained defects which could create a substantial product hazard.
Graco failed to report to the
[[Page 15845]]
Commission as required by section 15(b)(2) of the CPSA, 15 U.S.C.
2064(b)(2).
48. By failing to report to the Commission as required by section
15(b)(2) of the CPSA, 15 U.S.C. 2064(b)(2), Graco committed prohibited
acts and violated section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).
49. Graco committed the prohibited acts set forth above
``knowingly,'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), and thus subjected itself to civil penalties, as
provided in section 20 of the CPSC, 15 U.S.C. 2069.
Graco Pack 'N' Play Portable Play Yards
50. From 1988 to 2001, Graco manufactured, sold, and distributed in
United States commerce the Pack 'N' Play portable crib/play yard
(``Play Yard''). Graco is, therefore, a ``manufacturer'' of ``consumer
products'' ``distributed in commerce'' as those terms are defined in 15
U.S.C. 2052 (a)(1), (4), (11) and (12).
51. The subject Play Yards, used an open corner design. Open-ended
metal tubes formed the four top rails and were secured to four hard
plastic top corner pieces. Babies inserted their fingers into the space
between the metal tubes and the plastic corner pieces both during and
after Play Yard set up. Their fingers were severed, lacerated and/or
avulsed between the first joint and the end of the fingertip. Adults
reported pinched and/or lacerated hands from the open corner design
during Play Yard assembly. These are product defects under section 15
of the CPSA, 15 U.S.C. 2064.
52. Graco stopped making the products with the open corner design
in 2001 and first reported to the staff in 2004.
53. Well before 2004, Graco received consumer complaints that
reported pinching, laceration, avulsion and amputation injuries, to
young children and pinching or cuts to adults. Before 1997, Graco
Children's Products, Inc. obtained information which reasonably
supported the conclusion that its Play Yard contained defects which
could create a substantial product hazard and created an unreasonable
risk of serious injury. Graco failed to report to the Commission as
required by sections 15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2)
and (3). By failing to report to the Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3), Graco
committed prohibited acts and violated section 19(a)(3) of the CPSA, 15
U.S.C. 2068(a)(3).
54. Graco committed the prohibited acts, set forth above,
``knowingly,'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), and thus subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15 U.S.C. 2069.
Graco MetroLite Strollers
55. From 2000 through 2001, Graco manufactured, sold, and
distributed in United States commerce a line of baby strollers know as
the MetrolLite line (``MetroLite''), model numbers 6110DW and 6113RV.
Graco is, therefore, a ``manufacturer'' of ``consumer products''
``distributed in commerce'' as those terms are defined in 15 U.S.C.
2052 (a)(1), (4), (11) and (12).
56. The MetroLite strollers fold up to make transport easier. The
strollers use two latches, one on each side, designed to lock the
stroller in a rigid, secure position when in use. The latches are
covered with molded plastic and are not visible or accessible to the
user. When set up and in use, however, one or both of the MetroLite
latches may not fully engage. The stroller may appear to be set up and
secure when it is not. A bump or jostle during use may allow the
MetroLite to collapse. This is a product defect under section 15 of the
CPSA, 15 U.S.C. 2064.
57. Graco first reported to the staff in 2004.
58. Beginning in 2001 through 2004, Graco received consumer
complaints that reported numerous collapsing incidents and minor to
moderate injuries. Graco Children's Products, Inc. obtained information
which reasonably supported the conclusion that its MetroLite contained
a defect which could create a substantial product hazard. Graco failed
to report to the Commission as required by section 15(b)(2) of the
CPSA, 15 U.S.C. 2064(b)(2).
59. By failing to report to the Commission as required by section
15(b)(2) of the CPSA, 15 U.S.C. 2064(b)(2), Graco committed a
prohibited act and violated section 19(a)(3) of the CPSA, 15 U.S.C.
2068(a)(3).
60. Graco committed the prohibited act, set forth above,
``knowingly,'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), and thus subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15 U.S.C. 2069.
Graco Toddler Bed
61. From 1994 through 2000, Graco manufactured, sold and
distributed in United States commerce a Graco toddler bed (``Toddler
Bed'') for children making the transition from crib to twin size bed.
Graco is, therefore, a ``manufacturer'' of ``consumer products''
``distributed in commerce'' as those terms are defined in 15 U.S.C.
2052 (a)(1), (4), (11) and (12).
62. The Toddler Bed has head and footboards and partial guardrails
with vertical slats. The vertical slat openings are 2\3/8\ inches in
width. The size of the openings permits children's arms and legs to
become caught. This is a product defect under section 15 of the CPSA,
15 U.S.C. 2064.
63. Graco first reported to the staff in 2004. From 1995 through
2004, Graco received consumer complaints that reported numerous
incidents and injuries, including several broken arms and legs when
children twisted and/or fell while a limb was in a slat opening. Graco
Children's Products, Inc. obtained information which reasonably
supported the conclusion that its Toddler Beds contained a defect which
could create a substantial product hazard and created an unreasonable
risk of serious injury. Graco failed to report to the Commission as
required by sections 15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2)
and (3).
64. By failing to report to the Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3), Graco
committed prohibited acts and violated section 19(a)(3) of the CPSA, 15
U.S.C. 2068(a)(3).
65. Graco committed the prohibited acts, set forth above,
``knowingly,'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), and thus subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15 U.S.C. 2069.
Graco Duo Strollers
66. From 1994 through 2000, Graco manufactured, sold and
distributed in United States commerce a line of strollers that seat two
children known as Grace Duo Strollers (``Duo''). Graco is, therefore, a
``manufacturer'' of ``consumer products'' ``distributed in commerce''
as those terms are defined in 15 U.S.C. 2052(a)(1), (4), (11) and (12).
67. The Duo latching mechanism design makes it difficult for the
consumer to set up the stroller in a secure, fully locked position.
Though not securely locked, the Duo can appear to be properly set up
and ready for use. When not fully engaged, the Duo can collapse if
bumped or jostled. This is a product defect under section 15 of the
CPSA, 15 U.S.C. 2064.
68. Graco first reported to the staff in 2004. From 1997 through
2004, Graco
[[Page 15846]]
received consumer complaints that reported numerous collapsing
incidents and moderate to severe injuries. Graco Children's Products,
Inc. obtained information which reasonably supported the conclusion
that its Duo strollers contained a defect which could create a
substantial product hazard and created an unreasonable risk of serious
injury. Grace failed to report to the Commission as required by
sections 15(b)2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3).
69. By failing to report to the Commission as required by sections
15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3), Graco
committed prohibited acts and violated section 19(a)(3) of the CPSA, 15
U.S.C. 2068(a)(3).
70. Graco committed the prohibited acts, set forth above,
``knowingly,'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), and thus subjected itself to civil penalties, as
provided in section 20 of the CPSA, 15 U.S.C. 2069.
III. Response of Graco Children's Products, Inc.
71. On behalf of Century Company, and, in its own right, Graco
denies the allegations of the staff, set forth in paragraphs 6-70
above; it denies that the products named herein, when assembled,
maintained and used properly, contain any defect which could create a
substantial product hazard or create a substantial risk of injury
pursuant to section 15(a) of the CPSA, 15 U.S.C. 2064(a). Graco also
denies that the products, when assembled, maintained and used properly,
create an unreasonable risk of serious injury or death pursuant to
section 15(b) of the CPSA, 15 U.S.C. 1064(b).
72. Graco further denies that it violated the reporting
requirements of section 15(b) of the CPSA, 15 U.S.C. 2064(b), and
denies that it violated the reporting requirements of section 19(a)(4)
of the CPSA, 15 U.S.C. 2064(a)(4). Graco denies that the information
available to it and provided to the Commission reasonably supported the
conclusion that the products contained a defect which could create a
substantial product hazard or created an unreasonable risk of serious
injury or death, and therefore, no report was required under section
15(b) of the CPSA, 15 U.S.C. 2064(b).
73. In settling this matter, Graco does not admit any fault,
liability, or statutory or regulatory violation.
74. Graco further asserts, as a general matter, that Century and
Graco received a relatively small percentage of complaints concerning
the above-mentioned products in relation to the number of products in
distribution; that it developed product improvements to address the
complaints on various products in question; that it considered the
complaints and the reporting requirements of the CPSA and it did not
``knowingly'' violate any reporting requirements.
75. Graco further asserts that with respect to the Pack 'N Play,
its corner design was common in the industry and, with respect to the
Graco Toddler Bed, in the absence of an industry standard for toddler
beds, the Graco product incorporated vertical slat openings of 2\3/8\
inches in width, consistent with the federal crib standard in 16 CFR
1508.
76. In cooperation with the staff, Graco agreed to undertake
corrective action for each product identified in this Settlement
Agreement for which such action was requested by CPSC.
77. Graco is entering into this Settlement Agreement for settlement
purposes only, to resolve outstanding issues that primarily occurred
prior to Newell's acquisition of Century and Graco and to avoid
incurring additional legal costs and expenses. This settlement does not
constitute, nor is it evidence of, an admission of any fault,
liability, violation of law, or wrongdoing by Century or Graco.
IV. Agreement of The Parties
78. The Commission has jurisdiction over this matter and over Graco
and Century pursuant to the Consumer Product Safety Act (CPSA), 15
U.S.C. 2051 et seq.
79. This Settlement Agreement and Order is a compromise resolution
of the matters described above and the parties enter into this
Agreement solely for the purpose of settlement.
80. Graco knowingly, voluntarily and completely waives any rights
it may have (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 challenge or
contest of the validity of the Commission's Order, (4) to a
determination by the Commission as to whether violations of sections
15(b) and 19(a)(4) of the CPSA, 15 U.S.C. 2064(b) and 2068(a)(4), have
occurred, (5) to a statement of findings of fact and conclusions of law
with regard to the staff allegations, and (6) to any claims under the
Equal Access to Justice Act.
81. 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. 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 Federal Register
publication date.
82. Graco shall pay a civil penalty in the amount of four million
and no/dollars ($4,000,000.00) as set forth below and in the
incorporated Order. The payment shall be made in four equal
installments of one million and no/dollars ($1,000,000.00) each. The
first payment shall be delivered to the Commission within the (10)
calendar days of final acceptance of the Settlement Agreement and
Order. The second payment shall be delivered to the Commission on or
before June 15, 2005, the third payment by September 15, 2005 and the
fourth and final payment by December 15, 2005.
83. Upon the failure of Graco to deliver the first, or any, of its
$1,000,000.00 payments in full to the Commission by the due dates set
forth above, the entire amount of the civil penalty, $4,000,000.00
shall be due and payable and delivered to the Commission by the seventh
calendar day following the original due date of the missed payment.
Upon the failure by Graco to deliver any payment in full to the
Commission in accordance with the terms of this paragraph, 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).
84. Compliance, by this Settlement Agreement and the attached
Order, resolve the allegations of violations of sections 15(b) and
19(a)(4) of the CPSA, 15 U.S.C. 2064(b) and 2068(a)(4), regarding the
products named herein.
85. The Commission may publicize this Settlement Agreement and
Order.
86. 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 Graco to appropriate legal action.
87. Graco agrees to entry of the attached Order, which is
incorporated herein by reference, and agrees to be bound by its terms.
88. This Settlement Agreement is binding upon Graco and its assigns
and successors.
89. This Settlement Agreement may be used in interpreting the
implementing Order. Agreements, understandings, representations, or
interpretations apart from those contained in this Settlement Agreement
and Order may not be used to vary or
[[Page 15847]]
contradict the terms of this Settlement Agreement and Order.
Graco Children's Products, Inc.
Dated: March 14, 2005.
Dale Matschullat,
Vice President, General Counsel and Corporate Secretary, Newell
Rubbermaid, Inc.
The U.S. Consumer Products Safety Commission
John Gibson Mullan,
Associate Executive Director, Office of Compliance.
Eric L. Stone,
Director, Legal Division Office of Compliance.
Dated: March 15, 2005.
By William J. Moore, Jr.,
Trial Attorney, Legal Division, Office of Compliance.
Order
Upon consideration of the Settlement Agreement entered into between
Graco Children's Products, Inc. (hereinafter, ``Graco''), a
corporation, and the staff of the Consumer Product Safety Commission,
and the U.S. Consumer Product Safety Commission (hereinafter,
``Commission''), having jurisdiction over the subject matter and Graco,
and it appearing that the Settlement Agreement and Order is in the
public interest, it is
Ordered, that the subject Settlement Agreement be, and hereby is
accepted; and it is further
Ordered, that, upon final acceptance of the Settlement Agreement
and Order, Graco shall pay the Commission a civil penalty in the amount
of Four Million and no/100 dollars ($4,000,000.00), in four equal
installments of one million dollars and no/100 ($1,000,000.00) each.
The first installment shall be paid and delivered to the Commission
within ten (10) calendar days of final acceptance of the Settlement
Agreement and Order. The second payment of one million and 00/100
dollars ($1,000,000.00) shall be paid and delivered to the Commission
on or before June 15, 2005, the third payment of one million and 00/100
dollars ($1,000,000.00) shall be paid and delivered to the Commission
on or before September 15, 2005, and the fourth payment of one million
and 00/100 dollars ($1,000,000.00) shall be paid and delivered to the
Commission on or before December 15, 2005; and it is further
Ordered, that, upon the failure of Graco to deliver the first, or
any, of its $1,000,000.00 payments in full to the Commission by the due
dates set forth in this Order, the entire amount of the civil penalty,
$4,000,000.00, shall be due and payable and delivered to the Commission
by the seventh calendar day following the original due date of the
missed payment. Upon the failure by Graco to deliver any payment in
full to the Commission in accordance with the terms of the subject
Settlement Agreement and this Order, interest on the outstanding
balance shall accrue and shall be paid by Graco to the Commission 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 22nd
day of March, 2005.
By order of the Commission.
Todd Stevenson,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 05-6066 Filed 3-28-05; 8:45 am]
BILLING CODE 6355-01-M