Stamina Products, Inc., a Corporation, Provisional Acceptance of a Settlement Agreement and Order, 3238-3240 [08-153]

Agencies

• Consumer Product Safety Commission

[Federal Register Volume 73, Number 12 (Thursday, January 17, 2008)]
[Notices]
[Pages 3238-3240]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-153]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 08-C0002]


Stamina Products, 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 
Stamina Products, Inc., a corporation, containing a civil penalty of 
$105,000.

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 February 1, 2008.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 08-0002, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 502, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis; Trial Attorney, 
Office of Compliance and Field Operations, Consumer Product Safety 
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; 
telephone (301) 504-7587.

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

    Dated: January 14, 2008.
Todd A. Stevenson,
Secretary.
In the Matter of Stamina Products, Inc., a corporation.

CPSC Docket No. 08-C0002

I. Settlement Agreement and Order

    1. This Settlement Agreement is made by and between the staff 
(``the staff'') of the U.S. Consumer Product Safety Commission (``the 
Commission'') and Stamina Products, Inc. (``Stamina''), a corporation, 
in accordance with the Commission's Procedures for Investigations, 
Inspections, and Inquiries under the Consumer Product Safety Act 
(``CPSA''), 16 CFR 1118.20. This Settlement Agreement and the 
incorporated attached Order settle the staff's allegations set forth 
below.

II. 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. Stamina is a corporation organized and existing under the laws 
of the State of Missouri, with its principal corporate office located 
in Springfield, MO. At all times relevant, Stamina imported and/or 
distributed exercise equipment and sporting and recreational products.

II. Allegations of the Staff

    4. Between August 2000 and March 2006, Stamina imported for sale 
nationwide approximately 668,000 In-Motion Trampolines 
(``trampolines''), Model Numbers 35-1625, 35-1625A-LC, 35-1625AW, and 
36-1625AW-LC.
    5. The trampolines are ``consumer products'' and, at the times 
relevant herein, Stamina was a ``manufacturer'' of those consumer 
products, 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 trampolines are defective because the trampoline's folding/
unfolding instructions did not adequately warn consumers of the hazards 
resulting from use of the product.
    7. On or about April 11, 2002, Stamina received a report from a

[[Page 3239]]

consumer who alleged that while folding/unfolding the trampoline, it 
popped up and hit her in the mouth knocking a veneer off her tooth.
    8. On or about January 2, 2004, Stamina received another report 
from a consumer who alleged chin lacerations requiring nine sutures 
when the trampoline sprang back during the folding/unfolding process.
    9. From September 2004 through June 2005, Stamina received seven 
additional complaints from consumers who alleged that the trampoline 
sprang back during the folding/unfolding process. In six of these 
complaints, consumers alleged serious injuries consisting of facial 
lacerations requiring sutures, bruises, headaches, neck pain, broken 
facial bones, loss of mouth sensation, and blurred vision.
    10. All but one of the injuries described in paragraphs 7-9, above 
constitute `serious' injuries as that term is defined in 16 CFR 
1115.6(c).
    11. Although Stamina obtained sufficient information to reasonably 
support the conclusion that the trampolines contained a defect which 
could create a substantial product hazard or created an unreasonable 
risk of serious injury or death, Stamina 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).
    12. By failing to furnish information in a timely manner as 
required by section 15(b) of the CPSA, 15 U.S.C. 2064(b), Stamina 
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, Stamina 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).

III. Stamina's Response

    14. Stamina denies the staff's allegations set forth in paragraphs 
4 through 13 above.
    15. Stamina denies that the trampoline product contained a defect 
which could create a substantial product hazard, or created 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).
    16. Stamina reported to the Commission on July 11, 2005.
    17. The trampoline's folding/unfolding instructions adequately 
warned consumers of the hazards that could result from misuse or 
misassembly of the product.
    18. The trampoline product contained assembly and disassembly 
instructions that Stamina contends, if followed, would have prevented 
the alleged incidents identified in paragraphs 7 through 9.
    19. Stamina contends the incidents identified in paragraphs 7 
through 9 were the result of consumer misuse or misassembly.
    20. Stamina denies the alleged injuries were `serious' injuries as 
that term is defined in 16 CFR 1115.6(c).

IV. Agreement of the Parties

    21. The Commission has jurisdiction over this matter and over 
Stamina under the Consumer Product Safety Act, 15 U.S.C. 2051-2084.
    22. In settlement of the staff's allegations, Stamina agrees to pay 
a civil penalty in the amount of $105,000.00 as set forth in the 
attached incorporated Order.
    23. The parties enter this Settlement Agreement for settlement 
purposes only. Neither the Settlement Agreement nor the Order 
constitute an admission by Stamina or a determination by the Commission 
that Stamina violated the CPSA's reporting requirements or that the 
trampoline contained a defect.
    24. Upon provisional acceptance of this Settlement Agreement 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 procedures set forth in 16 CFR. 1118.20(e). If the 
Commission does not receive any written request not to accept the 
Settlement Agreement and Order within 15 calendar days, the Agreement 
shall be deemed finally accepted on the 16th calendar day after the 
date it is published in the Federal Register in accordance with 16 CFR 
1118.20(f).
    25. This Settlement Agreement and Order resolves the alleged 
violations of the CPSA set forth in paragraphs 4 through 12, above.
    26. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, Stamina knowingly, 
voluntarily, and completely waives any rights it may have in this 
matter to the following: (i) An administrative or judicial hearing; 
(ii) judicial review or other challenge or contest of the validity of 
the Commission's actions, (iii) a determination by the Commission as to 
whether Stamina failed to comply with the CPSA and the underlying 
regulations; (iv) a statement of findings of fact or conclusions of 
law; and (v) any claims under the Equal Access to Justice Act.
    27. The Commission may publicize the terms of the Settlement 
Agreement and Order.
    28. This Settlement Agreement and Order shall apply to, and be 
binding upon Stamina and each of its successors and assigns.
    29. 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 this 
Order may subject those referenced in paragraph 24 to appropriate legal 
action.
    30. 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 contradict its terms.
    31. 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.
    32. 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 provisions shall be fully 
severable. The rest of the Settlement Agreement and Order shall remain 
in full effect, unless the Commission and Stamina jointly determine 
that severing the provision materially changes the purpose of the 
Settlement Agreement Order

Stamina Products, Inc.

Dated: November 29, 2007

Kevin Gerschefske,
Vice-President & Secretary,
Stamina Products, Inc.,
2040 N. Alliance,
Springfield, MO 65803.

Dated: November 30, 2007

Randall E. Hindricks, Esquire,
Brandon J.B. Boulware, Esquire,
Rouse, Hendricks, German May, P.C.,
Attorneys for Stamina Products, Inc.,
1010 Walnut, Suite 400,
Kansas City, MO 64106.

Consumer Product Safety Commission

John Gibson Mullan,
Assistant Executive Director,
Office of Compliance and Field Operations,
Consumer Product Safety Commission,
4330 East West Highway,
Bethesda, MD 20814.

Ronald G. Yelenik,
Acting Director,
Legal Division,
Office of Compliance and Field Operations.

Dated: November 30, 2007


[[Page 3240]]


Dennis C. Kacoyanis,
Trial Attorney,
Office of Compliance and Field Operations.
In the Matter of Stamina Products, Inc., a corporation

[CPSC DOCKET NO. 08-C0002]

Order

     Upon consideration of the Settlement Agreement entered into 
between Stamina Products, Inc. (``Stamina'') and the staff of the 
Consumer Product Safety Commission (``the Commission''); and the 
Commission having jurisdiction over the subject matter and Stamina; and 
it appearing that 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 Stamina shall pay a civil penalty of one 
hundred five-thousand dollars ($105,000.00) to the order of the United 
States Treasury within twenty (20) calendar days of service of the 
Final Order of the Commission upon Stamina. Upon the failure of Stamina 
to make full payment in the prescribed time, interest on the 
outstanding balance shall accrue and be paid of 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 11th 
day of January, 2008.
    By order of the Commission.

Todd A. Stevenson, Secretary,
Consumer Product Safety Commission.
[FR Doc. 08-153 Filed 1-16-08; 8:45 am]
BILLING CODE 6355-01-M