Fisher-Price, Inc., a Corporation, Provisional Acceptance of a Settlement Agreement and Order, 10713-10715 [07-1071]

Agencies

• Consumer Product Safety Commission

[Federal Register Volume 72, Number 46 (Friday, March 9, 2007)]
[Notices]
[Pages 10713-10715]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-1071]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 07-C0004]


Fisher-Price, Inc., a Corporation, Provisional Acceptance of a 
Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR 1118.20(e). 
Published below is a provisionally-accepted Settlement Agreement with 
Fisher-Price Inc., a corporation, containing a civil penalty of 
$975,000.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by March 26, 2007.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 07-C0004, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 502, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Ronald G. Yelenik, Trial Attorney, 
Office of Compliance and Field Operations, Consumer Product Safety 
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; 
telephone (301) 504-7582.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: February 28, 2007.
Todd A. Stevenson,
Secretary.

United States of America

Consumer Product Safety Commission

[CPSC Docket No. 07-C0004]

In the Matter of Fisher-Price, Inc. a Corporation

Settlement Agreement and Order

    1. This Settlement Agreement is made by and between the staff 
(the ``staff'') of the U.S.

[[Page 10714]]

Consumer Product Safety Commission (``CPSC'' or the ``Commission'') 
and Fisher-Price, Inc. (``Fisher-Price''), a corporation, in 
accordance with 16 CFR 1118.20 of the Commission's Procedures for 
Investigations, Inspections, and Inquiries under the Consumer 
Product Safety Act (``CPSA''). This Settlement Agreement and the 
incorporated attached Order resolve the staff's allegations set 
forth below.

The Parties

    2. The Commission is an independent federal regulatory agency 
responsible for the enforcement of the CPSA, 15 U.S.C. 2051-2084.
    3. Fisher-Price is a corporation organized and existing under 
the laws of the State of Delaware, with its principal corporate 
office in East Aurora, New York. At all times relevant herein, 
Fisher-Price designed, imported and sold toys and juvenile products.

Staff Allegations

    4. Between June 17, 2002 and July 31, 2002, Fisher-Price 
imported and sold nationwide approximately 67,000 Little 
People[supreg] Animal Sounds Farm toys (the ``Farm(s)'' or 
``products''). The Farms are shaped like a barn and make animal 
sounds when the doors of the cow or horse stall are opened.
    5. The Farms are ``consumer product(s)'' and, at the times 
relevant herein, Fisher-Price was a ``manufacturer'' of ``consumer 
product(s),'' which were ``distributed in commerce'' as those terms 
are defined in sections 3(a)(1), (4), (11) and (12) of the CPSA, 15 
U.S.C. 2052(a)(1), (4), (11) and (12).
    6. The Farms are defective because the ringed nail fasteners 
used to attach the toy ``stall doors'' in place can disengage from 
the product. If this should occur, young children could choke on or 
aspirate the loose nail fastener.
    7. On or about September 11, 2002, Fisher-Price first learned of 
an incident in which a nail fastener disengaged from one of the 
stall doors.
    8. By November 18, 2002, Fisher-Price had become aware of nine 
reports of nail fasteners coming loose from the stall doors, 
including one report from a consumer that a nail fastener came out 
and that her child placed it in her mouth.
    9. By early February of 2003, Fisher-Price was aware of two 
telephone calls in which consumers indicated a concern that this 
problem posed a choking hazard to children.
    10. On February 14, 2003, Fisher-Price learned of a December 30, 
2002 incident in which a 14-month old child aspirated a Farm nail 
fastener into his lung. The child was taken to a hospital where 
emergency surgery was performed to remove the nail fastener.
    11. Despite being aware of the information set forth in 
paragraphs 4 through 10, Fisher-Price did not report to the 
Commission until March 14, 2003. By that time, Fisher-Price was 
aware of at least 33 reports of incidents in which a nail fastener 
came loose from the stall doors. These included four reports of 
children who put a fastener in the mouth (including a report of a 
child who cut the inside of her mouth), and one report of a child 
who required emergency surgery to remove an aspirated nail fastener 
from his lung.
    12. Although Fisher-Price had obtained sufficient information to 
reasonably support the conclusion that the Farms contained a defect 
which could create a substantial product hazard, or created an 
unreasonable risk of serious injury or death, it failed to 
immediately inform the Commission of such defect or risk as required 
by sections 15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and 
(3). In failing to do so, Fisher-Price ``knowingly'' violated 
section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4), as the term 
``knowingly'' is defined in section 20(d) of the CPSA, 15 U.S.C. 
2069(d).
    13. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Fisher-
Price is subject to civil penalties for its failure to make a timely 
report under section 15(b) of the CPSA, 15 U.S.C. 2064(b).

Response of Fisher-Price

    14. Fisher-Price denies that the Farms contain a defect which 
could create a substantial product hazard, or create an unreasonable 
risk of serious injury or death, and denies that it violated the 
reporting requirements of section 15(b) of the CPSA, 15 U.S.C. 
2064(b).
    15. Fisher-Price believes that the Farms do not violate any CPSC 
regulations regarding small parts or otherwise and do not violate 
any applicable safety standards.
    16. Fisher-Price denies any liability or wrongdoing of any kind.
    17. Fisher-Price was not advised of the December 30, 2002 
incident, in which a consumer's child was reported to have aspirated 
a fastener, until February 14, 2003. The consumer advised Fisher-
Price that the incident had been reported to the CPSC. Fisher-Price, 
nevertheless, filed a Full Report with the CPSC pursuant to Section 
15(b) of the CPSA on March 14, 2003 and undertook a Fast Track 
Recall of the product on April 23, 2003.

Agreement of the Parties

    18. The Commission has jurisdiction over this matter and over 
Fisher-Price under the CPSA, 15 U.S.C. 2051-2084.
    19. In settlement of the staff's allegations, Fisher-Price 
agrees to pay a civil penalty of nine hundred seventy five thousand 
dollars ($975,000.00) within twenty (20) calendar days of service of 
the Final Order of the Commission accepting this Settlement 
Agreement. This payment shall be made by check payable to the order 
of the United States Treasury.
    20. The parties enter this Settlement Agreement for settlement 
purposes only. The Settlement Agreement does not constitute an 
admission by Fisher-Price or a determination by the Commission that 
Fisher-Price violated the CPSA's reporting requirements.
    21. Upon provisional acceptance of this Settlement Agreement and 
Order by the Commission, the Commission shall place this Agreement 
and Order on the public record and shall publish it in the Federal 
Register in accordance with the procedure set forth in 16 CFR 
1118.20(e). If the Commission does not receive any written requests 
not to accept the Settlement Agreement and Order within 15 calendar 
days, the Agreement and Order shall be deemed finally accepted on 
the 16th calendar day after the date it is published in the Federal 
Register, in accordance with 16 CFR 1118.20(f).
    22. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, Fisher-Price knowingly, 
voluntarily and completely waives any rights it may have in this 
matter to the following: (i) An administrative or judicial hearing; 
(ii) judicial review or other challenge or consent of the 
Commission's actions; (iii) a determination by the Commission as to 
whether Fisher-Price failed to comply with the CPSA and the 
underlying regulations; (iv) a statement of findings of fact and 
conclusions of law; and (v) any claims under the Equal Access to 
Justice Act.
    23. The Commission may publicize the terms of the Settlement 
Agreement and Order.
    24. This Settlement Agreement shall apply to, and be binding 
upon Fisher-Price and each of its successors and assigns, its parent 
entity, its parent's subsidiaries, and each of their respective 
successors and assigns.
    25. The Commission's Order in this matter is issued under the 
provisions of the CPSA, 15 U.S.C. 2051-2084, and a violation of the 
Order may subject those referenced in paragraph 24 above to 
appropriate legal action.
    26. This Settlement Agreement may be used in interpreting the 
Order. Agreements, understandings, representations, or 
interpretations made outside of this Settlement Agreement and Order 
may not be used to vary or to contradict its terms.
    27. This Settlement Agreement and Order shall not be waived, 
changed, amended, modified, or otherwise altered, without written 
agreement thereto executed by the party against whom such amendment, 
modification, alteration, or waiver is sought to be enforced, and 
approval by the Commission.
    28. If, after the effective date hereof, any provision of this 
Settlement Agreement and Order is held to be illegal, invalid, or 
unenforceable under present or future laws effective during the 
terms of the Settlement Agreement and Order, such provision shall be 
fully severable. The rest of the Settlement Agreement and Order 
shall remain in full effect, unless the Commission and Fisher-Price 
determine that severing the provision materially changes the purpose 
of the Settlement Agreement and Order.

Fisher-Price, Inc.

    Dated:
By:--------------------------------------------------------------------
Neil Friedman
President
By:--------------------------------------------------------------------
Neil A. Goldberg
Goldberg Segalla, LLP
665 Main Street, Suite 400
Buffalo, New York 14203
Counsel for Fisher-Price, Inc.

U.S. Consumer Product Safety Commission

John Gibson Mullan
Assistant Executive Director
Office of Compliance and Field Operations

[[Page 10715]]

    Dated:
By:--------------------------------------------------------------------
Ronald G. Yelenik
Acting Director
Legal Division
Office of Compliance and Field Operations

United States of America

Consumer Product Safety Commission

CPSC Docket No. 07-C0004

In the Matter of Fisher-Price, Inc., a Corporation

Order

    Upon consideration of the Settlement Agreement entered into 
between Fisher-Price, Inc. (``Fisher-Price'') and the staff of the 
U.S. Consumer Product Safety Commission (the ``Commission''), and 
the Commission having jurisdiction over the subject matter and over 
Fisher-Price, and it appearing the Settlement Agreement is in the 
public interest, it is
    Ordered, that the Settlement Agreement be, and hereby is, 
accepted; and it is
    Further ordered, that Fisher-Price shall pay a civil penalty in 
the amount of nine hundred seventy five thousand dollars 
($975,000.00). This payment shall be made payable to the order of 
the United States Treasury within twenty (20) calendar days of 
service of the Final Order of the Commission upon Fisher-Price. Upon 
the failure of Fisher-Price to make full payment in the prescribed 
time, interest on the outstanding balance shall accrue and be paid 
at the federal rate of interest under the provisions of 28 U.S.C. 
1961(a) and (b).
    Provisionally accepted and Provisional Order issued on the 28th 
day of February, 2007.

    By Order of the Commission.
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 07-1071 Filed 3-8-07; 8:45 am]
BILLING CODE 6355-01-M