Spin Master, Inc. and Spin Master, Ltd., Provisional Acceptance of a Settlement Agreement and Order, 68167-68170 [2011-28558]
Download as PDF
<![CDATA[
Federal Register / Vol. 76, No. 213 / Thursday, November 3, 2011 / Notices
owner Scripps Research Institute, timely
filed an application under 35 U.S.C.
156(d)(5) for an additional interim
extension of the term of U.S. Patent No.
5,407,914. The patent claims the human
drug product, SURFAXIN®
(lucinactant), and a method of using
SURFAXIN® (lucinactant). The
application indicates that a New Drug
Application, NDA No. 21–746, for the
human drug product SURFAXIN®
(lucinactant) has been filed, and is
currently undergoing regulatory review
before the Food and Drug
Administration for permission to market
or use the product commercially.
Review of the application indicates
that, except for permission to market or
use the product commercially, the
subject patent would be eligible for an
extension of the patent term under 35
U.S.C. 156, and that the patent should
be extended for an additional one year
as required by 35 U.S.C. 156(d)(5)(B).
Because it is apparent that the
regulatory review period will continue
beyond the extended expiration date of
the patent, November 17, 2011, interim
extension of the patent term under 35
U.S.C. 156(d)(5) is appropriate.
An interim extension under 35 U.S.C.
156(d)(5) of the term of U.S. Patent No.
5,407,914 is granted for a period of one
additional year from the extended
expiration date of the patent, i.e., until
November 17, 2012.
Dated: October 28, 2011.
Robert W. Bahr,
Acting Associate Commissioner for Patent
Examination Policy, United States Patent and
Trademark Office.
[FR Doc. 2011–28499 Filed 11–2–11; 8:45 am]
BILLING CODE 3510–16–P
DEPARTMENT OF COMMERCE
United States Patent and Trademark
Office
[Docket No. PTO–C–2011–0069]
National Medal of Technology and
Innovation Nomination Evaluation
Committee Meeting
United States Patent and
Trademark Office.
ACTION: Notice of closed meeting.
AGENCY:
The National Medal of
Technology and Innovation (NMTI)
Nomination Evaluation Committee will
meet in closed session on Friday,
November 18, 2011. The primary
purpose of the meeting is to discuss the
relative merits of persons, teams and
companies nominated for the 2011
NMTI Medal.
srobinson on DSK4SPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
16:50 Nov 02, 2011
Jkt 226001
The meeting will convene
Friday, November 18, 2011, at
approximately 9 a.m., and adjourn at
approximately 5 p.m.
ADDRESSES: The meeting will be held at
the United States Patent and Trademark
Office, 600 Dulany Street, Alexandria,
VA 22314.
FOR FURTHER INFORMATION CONTACT:
Vikrum Aiyer, Program Manager,
National Medal of Technology and
Innovation Program, United States
Patent and Trademark Office, 600
Dulany Street, Alexandria, VA 22314;
telephone (571) 272–8818, or by
electronic mail: nmti@uspto.gov.
SUPPLEMENTARY INFORMATION: Pursuant
to the Federal Advisory Committee Act,
5 U.S.C. app. 2, notice is hereby given
that the NMTI Nomination Evaluation
Committee, chartered to the United
States Department of Commerce, will
meet at the United States Patent and
Trademark Office campus in
Alexandria, Virginia.
The Secretary of Commerce is
responsible for recommending to the
President prospective NMTI Medal
recipients. The NMTI Nomination
Evaluation Committee evaluates the
nominations received pursuant to
public solicitation and makes its
recommendations for the Medal to the
Secretary. Committee members are
distinguished experts in the fields of
science, technology, business and patent
law drawn from both the public and
private sectors and are appointed by the
Secretary for three-year terms.
The NMTI Nomination Evaluation
Committee was established in
accordance with the Federal Advisory
Committee Act (FACA). The Committee
meeting will be closed to the public in
accordance with FACA and 5 U.S.C.
552b(c)(4), (6) and (9)(B), because the
discussion of the relative merit of the
Medal nominations is likely to disclose
information of a personal nature that
would constitute a clearly unwarranted
invasion of personal privacy; premature
disclosure of the Committee’s
recommendations would be likely to
significantly frustrate implementation of
the Medal Program; and the meeting
will include a Department of Commerce
Ethics Division presentation and
question and answer session which may
be closed to protect the privileged and
confidential personal financial
information of Committee members.
The Chief Financial Officer and
Assistant Secretary for Administration,
United States Department of Commerce,
formally determined on October 26,
2011, pursuant to Section 10(d) of the
Federal Advisory Committee Act, that
the meeting may be closed because
DATES:
PO 00000
Frm 00042
Fmt 4703
Sfmt 4703
68167
Committee members are concerned with
matters that are within the purview of
5 U.S.C. 552b(c)(4), (6) and (9)(B). Due
to closure of this meeting, copies of any
minutes of the meeting will not be
available. A copy of the determination
is available for public inspection at the
United States Patent and Trademark
Office.
Dated: October 28, 2011.
Teresa Stanek Rea,
Deputy Under Secretary of Commerce for
Intellectual Property and Deputy Director of
the United States Patent and Trademark
Office.
[FR Doc. 2011–28500 Filed 11–2–11; 8:45 am]
BILLING CODE 3510–16–P
COMMODITY FUTURES TRADING
COMMISSION
Sunshine Act Meeting—Emergency
Meeting Notice
This notice that an emergency
meeting was held is published pursuant
to the provisions of the Government in
the Sunshine Act, Public Law 94–409,
5 U.S.C. 552b.
AGENCY HOLDING THE MEETING:
Commodity Futures Trading
Commission.
TIME AND DATE: The Commission held an
emergency closed meeting on October
31, 2011 at 12 p.m. The Commission, by
a recorded unanimous vote, determined
that the agency business required that
business of the agency required that the
meeting be held at that time.
PLACE: Three Lafayette Center, 1155
21st St. NW., Washington, DC, 9th Floor
Commission Conference Room.
STATUS: Closed.
MATTERS TO BE CONSIDERED: Registrant
Financial Matters.
CONTACT PERSON FOR MORE INFORMATION:
Sauntia S. Warfield, Assistant Secretary
of the Commission, 202–418–5084.
Sauntia S. Warfield,
Assistant Secretary of the Commission.
[FR Doc. 2011–28607 Filed 11–1–11; 11:15 am]
BILLING CODE 6351–01–P
CONSUMER PRODUCT SAFETY
COMMISSION
[CPSC Docket No. 12–C0003]
Spin Master, Inc. and Spin Master, Ltd.,
Provisional Acceptance of a
Settlement Agreement and Order
Consumer Product Safety
Commission.
ACTION: Notice.
AGENCY:
E:\FR\FM\03NON1.SGM
03NON1
68168
Federal Register / Vol. 76, No. 213 / Thursday, November 3, 2011 / Notices
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 Spin
Master, Inc. and Spin Master, Ltd.,
containing a civil penalty of
$1,300,000.00.
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 November
18, 2011.
ADDRESSES: Persons wishing to
comment on this Settlement Agreement
should send written comments to the
Comment 12–C0003, Office of the
Secretary, Consumer Product Safety
Commission, 4330 East West Highway,
Room 820, Bethesda, Maryland 20814–
4408.
FOR FURTHER INFORMATION CONTACT: Seth
B. Popkin, Lead Trial Attorney, Division
of Compliance, Office of the General
Counsel, Consumer Product Safety
Commission, 4330 East West Highway,
Bethesda, Maryland 20814–4408;
telephone (301) 504–7612.
SUPPLEMENTARY INFORMATION: The text of
the Agreement and Order appears
below.
SUMMARY:
Dated: October 26, 2011.
Todd A. Stevenson,
Secretary.
srobinson on DSK4SPTVN1PROD with NOTICES
Settlement Agreement
1. In accordance with 16 CFR 1118.20,
Spin Master, Inc. (‘‘SMI’’) and Spin Master
Ltd. (‘‘SML’’) (collectively ‘‘Spin Master’’),
and U.S. Consumer Product Safety
Commission (‘‘Commission’’) staff (‘‘Staff’’),
enter into this Settlement Agreement
(‘‘Agreement’’). The Agreement and the
incorporated attached Order (‘‘Order’’) settle
staff’s allegations set forth below.
Parties
2. Staff is the staff of the Commission, an
independent federal regulatory agency
established pursuant to, and responsible for,
the enforcement of the Consumer Product
Safety Act, 15 U.S.C. 2051–2089 (‘‘CPSA’’).
3. SMI is a corporation, organized and
existing under the laws of Delaware, with its
principal offices located in Los Angeles,
California. At all relevant times, SMI
imported and sold toys.
4. SML is a corporation, organized and
existing under the laws of Canada, with its
principal offices located in Toronto, Ontario,
Canada. At all relevant times, SML
developed and marketed toys.
5. At all relevant times, SMI was and is a
wholly-owned subsidiary of Spin Master US
Holdings, Inc., which is a wholly-owned
subsidiary of SML.
VerDate Mar<15>2010
16:50 Nov 02, 2011
Jkt 226001
Staff Allegations
6. From on or about April 16, 2007, to on
or about November 7, 2007, SMI imported
into the United States, sold to U.S.
consumers, and sold to U.S. retailers,
approximately 750,000 units of Aqua Dots.
Aqua Dots were children’s arts and crafts
toys that consisted of tiny beads of different
colors that stuck together when sprayed with
water, allowing children to create various
shapes and designs. Aqua Dots were
marketed and sold in different kits with
various accessories.
7. Aqua Dots are ‘‘consumer product[s],’’
and, at all relevant times, SMI was a
‘‘manufacturer’’ and ‘‘retailer’’ of those
consumer products, and SML was a
‘‘manufacturer’’ of those consumer products,
which were ‘‘distributed in commerce,’’ as
those terms are defined in CPSA sections
3(a)(5), (8), (11), and (13), 15 U.S.C.
2052(a)(5), (8), (11), and (13).
8. By mid-October 2007, Spin Master had
received reports that children and a dog had
become ill and received emergency medical
treatment after ingesting Aqua Dots; however,
Spin Master failed to report to the
Commission.
9. On October 18, 2007, Spin Master
learned that Aqua Dots contained 1,4butylene glycol (‘‘TMG’’). TMG is a chemical
that, upon ingestion, metabolizes to gamma
hydroxybutyrate (GHB), a Schedule I
controlled substance. On October 19, 2007,
Spin Master received information that TMG
is harmful if swallowed, and that, upon
ingestion, it targets the kidneys and central
nervous system.
10. In the days and weeks that followed,
Spin Master continued to receive reports of
children falling ill after ingesting Aqua Dots.
The firm also received reports of children
falling ill after ingesting a similar product
manufactured by the same overseas factory
using the same ingredients list containing
TMG.
11. On November 2, 2007, Spin Master
received a report that a child became ill after
ingesting Aqua Dots. On November 5, 2007,
Commission staff contacted Spin Master and
notified them of that ingestion incident,
which had occurred in October 2007.
12. On November 7, 2007, Spin Master, in
cooperation with the Commission,
voluntarily recalled the product.
13. In the press release announcing the
recall, Spin Master acknowledged that
‘‘[c]hildren who swallow the beads can
become comatose, develop respiratory
depression, or have seizures.’’
14. While the firm had enlisted an outside
testing agency to evaluate the toxicity of the
product, the testing was inadequate.
Notwithstanding the testing results, the
incident data reflective of human experience
suggested that the product was toxic.
15. During the relevant time, Spin Master
obtained information that reasonably
supported the conclusion that Aqua Dots
contained a defect or possible defect that
could create a substantial product hazard, or
that Aqua Dots created an unreasonable risk
of serious injury or death. Accordingly, CPSA
sections 15(b)(3) and (4), 15 U.S.C. 2064(b)(3)
and (4), required Spin Master to inform the
Commission immediately of the defect and
risk.
PO 00000
Frm 00043
Fmt 4703
Sfmt 4703
16. Spin Master knowingly failed to inform
the Commission immediately about Aqua
Dots, as required by CPSA sections 15(b)(3)
and (4), 15 U.S.C. 2064(b)(3) and (4), and as
the term ‘‘knowingly’’ is defined in CPSA
section 20(d), 15 U.S.C. 2069(d). Under CPSA
section 19(a)(4), 15 U.S.C. 2068(a)(4), these
failures constituted prohibited acts, and
pursuant to CPSA section 20, 15 U.S.C. 2069,
subjected Spin Master to civil penalties.
17. Aqua Dots are ‘‘toxic’’ within the
meaning of FHSA section 2(g), 15 U.S.C.
1261(g), and are a ‘‘hazardous substance’’
within the meaning of FHSA section
2(f)(1)(A), 15 U.S.C. 1261(f)(1)(A).
18. As a toy or other article intended for
use by children that is a hazardous
substance, or that contains a hazardous
substance that is susceptible to access by a
child to whom such toy or article is
entrusted, Aqua Dots are a ‘‘banned
hazardous substance’’ within the meaning of
FHSA section 2(q)(1)(A), 15 U.S.C.
1261(q)(1)(A).
19. During the relevant time, under FHSA
§ 5(c)(5), 15 U.S.C. 1264(c)(5), Spin Master
acquired knowledge that Aqua Dots were
toxic and constituted a banned hazardous
substance, and were prohibited from being
imported and sold. Pursuant to FHSA section
5(c)(1), 15 U.S.C. 1264(c)(1), Spin Master’s
prohibited acts subjected it to civil penalties.
Spin Master’s Responsive Allegations
20. Spin Master denies staff’s allegations
that Spin Master knowingly violated the
CPSA and FHSA; and Spin Master denies
any liability and wrongdoing.
21. Spin Master desires to settle this matter
without the expense of litigation.
22. The Agreement and the payments made
thereunder are made in compromise of
disputed and unproven allegations and are
not admissions of liability of any kind,
whether legal or factual.
23. Spin Master, Inc. was the distributor of
Aqua Dots in the United States, and was not
involved in the design or manufacture, nor
was it the creator or inventor, of Aqua Dots.
Spin Master Ltd., located in Toronto, Canada,
was the parent of Spin Master, Inc.
24. Spin Master had no involvement in the
production of the product and was not given
any insight into the chemical composition of
the product, which at all times remained a
closely guarded trade secret by the
manufacturer.
25. Spin Master ensured the product
underwent all legally required testing under
FHSA regulations, CPSC lead content
requirements, Canadian Hazardous Products
regulations, and ASTM labeling standards
before distribution of the product began, and
the product passed all such testing. The
distributor, SMI, began distributing the
product in the United States in April 2007.
Approximately 1,335,151 units of Aqua Dots
were sold.
26. Spin Master went above and beyond all
legally required testing and engaged a highly
regarded independent testing agency to
conduct live animal acute toxicity testing
(‘‘live animal testing’’) on the product on
June 6, 2007.
27. On August 10, 2007, Spin Master
received and reasonably relied upon the
E:\FR\FM\03NON1.SGM
03NON1
Federal Register / Vol. 76, No. 213 / Thursday, November 3, 2011 / Notices
srobinson on DSK4SPTVN1PROD with NOTICES
official live animal testing results from the
independent testing agency that stated: ‘‘[the
product] MEETS the following
requirement(s): Classification of not being
toxic as defined in and tested per 16 CFR
1500.3(c)(2)(i)(A), ‘Acute oral toxicity’ (FHSA
regulations.)’’ SMI received oral confirmation
of this test result as early as August 1, 2007.
28. It became apparent only after the
November 7, 2007 recall that the live animal
toxicity testing conducted by independent
testing agencies was not performed at an
appropriate standard of professional care.
29. In October 2007, Spin Master was
advised of ingestion incidents arising from
the ingestion of large quantities of a similar
product and that governmental authorities in
countries other than the United States had
investigated those incidents and found that
product to be safe.
30. On October 18, 2007, Spin Master was
advised that the manufacturer of the product
had switched the chemical formulation from
1,5 Pentamethylene Glycol to contain 1,4–
Butylene Glycol (‘‘TMG’’). Upon being
advised of the chemical switch, the
distributor began investigating the product.
On October 19, 2007, the distributor received
a Material Safety Data Sheet (‘‘MSDS’’) for
TMG.
31. On October 25, 2007, Spin Master was
advised of the results of a Toxicological Risk
Assessment performed by a board-certified
toxicologist, which stated that none of the
ingredients in the product were banned or
restricted for use in consumer products in the
United States, and that the product
containing TMG would be safe under the
FHSA regulations when used as intended or
under circumstances involving reasonably
foreseeable misuse, assuming that as many as
50 beads would be ingested in a single event.
The distributor was also advised that 4 grams
of the product, or 50 beads, would have to
be consumed to cause significant harm by
ingestion.
32. In early November 2007, Spin Master
received a detailed report of an ingestion
incident involving the product.
33. On November 7, 2007, Spin Master
voluntarily recalled the product in
conjunction and cooperation with the
Commission.
Agreement of the Parties
34. Under the CPSA and FHSA, the
Commission has jurisdiction over this matter
and, for purposes of this agreement only,
over Spin Master.
35. The parties enter into the Agreement
for settlement purposes only. The Agreement
does not constitute an admission by Spin
Master, nor does it constitute a determination
by the Commission, that Spin Master
knowingly violated the CPSA and FHSA, or
a concession by either party of the accuracy
of the representations set forth in the other
party’s Responsive Allegations.
36. In settlement of staff’s allegations, Spin
Master shall pay a civil penalty in the total
amount of one million three hundred
thousand dollars ($1,300,000.00). The civil
penalty shall be paid in two (2) installments
as follows: six hundred fifty thousand dollars
($650,000.00) shall be paid on or before
January 10, 2012; and six hundred fifty
VerDate Mar<15>2010
16:50 Nov 02, 2011
Jkt 226001
thousand dollars ($650,000.00) shall be paid
on or before January 10, 2013. Both payments
shall be made electronically to the
Commission via: https://www.pay.gov.
37. Upon provisional acceptance of the
Agreement, the Agreement shall be placed on
the public record and published in the
Federal Register, in accordance with the
procedures set forth in 16 CFR 1118.20(e). In
accordance with 16 C.F.R. § 1118.20(f), if the
Commission does not receive any written
request not to accept the Agreement within
fifteen (15) calendar days, the Agreement
shall be deemed finally accepted on the
sixteenth (16th) calendar day after the date it
is published in the Federal Register.
38. Upon the Commission’s final
acceptance of the Agreement and issuance of
the final Order, Spin Master knowingly,
voluntarily, and completely waives any
rights it may have in this matter to the
following: (1) An administrative or judicial
hearing; (2) judicial review or other challenge
or contest of the validity of the Order or of
the Commission’s actions; (3) a
determination by the Commission of whether
Spin Master failed to comply with the CPSA,
the FHSA, and their underlying regulations;
(4) a statement of findings of fact and
conclusions of law; and (5) any claims under
the Equal Access to Justice Act.
39. The parties may publicize the terms of
the Agreement and the Order.
40. The Agreement and the Order shall
apply to, and be binding upon, Spin Master
and each of its successors and assigns.
41. The Commission issues the Order
under the provisions of the CPSA and FHSA,
and violation of the Order may subject Spin
Master and each of its successors and assigns
to appropriate legal action.
42. The Agreement may be used in
interpreting the Order. The Agreement
constitutes the entire agreement and
understanding between the parties related to
the subject matter contained herein and is
subject to the terms of the Order.
Understandings, agreements, representations,
or interpretations apart from those contained
in the Agreement and the Order may not be
used to vary or contradict their terms. The
Agreement shall not be waived, amended,
modified, or otherwise altered without
written agreement thereto, executed by the
party against whom such waiver,
amendment, modification, or alteration is
sought to be enforced.
43. If any provision of the Agreement and
the Order is held to be illegal, invalid, or
unenforceable under present or future laws
effective during the terms of the Agreement
and the Order, such provision shall be fully
severable. The balance of the Agreement and
the Order shall remain in full force and
effect, unless the Commission and Spin
Master agree that severing the provision
materially affects the purpose of the
Agreement and the Order.
SPIN MASTER, INC.
Dated: October 19, 2011 by:
lllllllllllllllllllll
Ronnen Harary,
Director and CEO, 5890 West Jefferson
Boulevard, Suite E, Los Angeles, CA 90116.
SPIN MASTER LTD.
PO 00000
Frm 00044
Fmt 4703
Sfmt 4703
68169
Dated: October 19, 2011 by:
lllllllllllllllllllll
Ronnen Harary,
Director and CEO, 450 Front Street West,
Toronto, Ontario.
Dated: October 19, 2011 by:
lllllllllllllllllllll
Ronald Y. Rothstein, Esq.,
Winston & Strawn LLP, 35 West Wacker
Drive, Chicago, IL 60601, Counsel for Spin
Master, Inc., and Spin Master Ltd.
Dated: October 19, 2011 by:
lllllllllllllllllllll
Frederick B. Locker, Esq.,
Locker, Greenberg & Brainin, 420 5th
Avenue, Suite 2602, New York, NY 10018,
Counsel for Spin Master, Inc., and Spin
Master Ltd.
U.S. CONSUMER PRODUCT SAFETY
COMMISSION STAFF
Office of the General Counsel.
Cheryl A. Falvey,
General Counsel.
Mary B. Murphy,
Assistant General Counsel.
Dated: October 19, 2011 by:
lllllllllllllllllllll
Seth B. Popkin,
Lead Trial Attorney.
lllllllllllllllllllll
Renee McCune,
Attorney.
Order
Upon consideration of the Settlement
Agreement entered into among Spin Master,
Inc. and Spin Master Ltd. (collectively ‘‘Spin
Master’’), and the U.S. Consumer Product
Safety Commission (‘‘Commission’’) staff,
and the Commission having jurisdiction over
the subject matter and, for purposes of this
agreement only, over Spin Master, and it
appearing that the Settlement Agreement and
the Order are in the public interest, it is
Ordered, that the Settlement Agreement be,
and hereby is, accepted; and it is
Further ordered, that Spin Master shall pay
a civil penalty in the total amount of one
million three hundred thousand dollars
($1,300,000.00). The civil penalty shall be
paid in two (2) installments as follows: Six
hundred fifty thousand dollars ($650,000.00)
shall be paid on or before January 10, 2012;
and six hundred fifty thousand dollars
($650,000.00) shall be paid on or before
January 10, 2013. Both payments shall be
made electronically to the Commission via:
https://www.pay.gov. Upon the failure of Spin
Master to make any of the foregoing
payments when due, the total amount of the
civil penalty shall become due and payable
immediately, and interest on the unpaid
amount shall accrue and be paid by Spin
Master at the federal legal rate of interest set
forth at 28 U.S.C. 1961(a) and (b).
Provisionally accepted and provisional
Order issued on the 26th day of October,
2011.
BY ORDER OF THE COMMISSION:
lllllllllllllllllllll
Todd A. Stevenson,
E:\FR\FM\03NON1.SGM
03NON1
68170
Federal Register / Vol. 76, No. 213 / Thursday, November 3, 2011 / Notices
Secretary, U.S. Consumer Product Safety
Commission.
DEPARTMENT OF DEFENSE
[FR Doc. 2011–28558 Filed 11–2–11; 8:45 am]
https://www.whitehouse.gov/
administration/eop/ceq/sustainability/
sustainable-locations.
BILLING CODE 6355–01–P
DATES:
The Instructions for
Implementing Sustainable Locations for
Federal Facilities were issued on
September 15, 2011.
Revised Non-Foreign Overseas Per
Diem Rates
COUNCIL ON ENVIRONMENTAL
QUALITY
The Instructions for
Implementing Sustainable Locations for
Federal Facilities are available at: https://
www.whitehouse.gov/administration/
eop/ceq/sustainability/sustainablelocations.
ADDRESSES:
Instructions for Implementing
Sustainable Locations for Federal
Facilities in Accordance With
Executive Order 13514
Council on Environmental
Quality.
ACTION: Notice of availability of
sustainable locations for Federal
facilities implementing instructions.
AGENCY:
FOR FURTHER INFORMATION CONTACT:
The Chair of the Council on
Environmental Quality (CEQ) has issued
instructions to Federal agencies for
integrating sustainable facility location
decision-making principles into agency
policies and practices, as required under
Executive Order 13514 (‘‘E.O. 13514’’),
‘‘Federal Leadership in Environmental,
Energy, and Economic Performance,’’
signed by President Obama on October
5, 2009. 74 FR 52117, Oct. 8, 2009. The
purpose of the Executive Order is to
establish an integrated strategy toward
sustainability in the Federal
Government including, efforts to operate
high performance sustainable buildings
in sustainable locations, and strengthen
the vitality and livability of the
communities for Federal agencies.
Section 2(f) of the E.O. 13514 directs
agencies to ‘‘advance regional and local
integrated planning by * * *
participating in regional transportation
planning and recognizing existing
community transportation
infrastructure; * * * ensuring that
planning for new Federal facilities or
new leases includes consideration of
sites that are pedestrian friendly, near
existing employment centers, and
accessible to public transit, and
emphasizes existing central cities and,
in rural communities, existing or
planned town centers.’’ Section 5(b) of
E.O. 13514 directs the Chair of CEQ to
issue instructions to implement the
Executive Order. The Instructions for
Implementing Sustainable Locations for
Federal Facilities are now available at:
srobinson on DSK4SPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
16:50 Nov 02, 2011
Jkt 226001
Michelle Moore, Federal Environmental
Executive, Office of the Federal
Environmental Executive, (202) 395–
5750.
Section
5(b) of E.O. 13514 authorizes the Chair
of the Council on Environmental
Quality (CEQ) to issue instructions to
implement the Executive Order. The
‘‘Instructions for Implementing
Sustainable Locations for Federal
Facilities’’ provide formal direction
from the Chair of CEQ to Federal
agencies to improve sustainability
performance by ensuring a balanced
consideration and evaluation of land
use, the built environment, cost,
security, mission need and competition
on facility location decision-making.
The Instructions ensure that agencies
make responsible choices in the siting of
facilities that are owned or leased by the
Federal government, striking an
appropriate balance among cost,
security and sustainability, while
meeting agency mission need and
ensuring competition. The Instructions
apply only to Federal agencies,
operations, and programs. Agencies are
expected to implement the Instructions
as part of their compliance with E.O.
13514.
SUPPLEMENTARY INFORMATION:
Authority: E.O. 13514, 74 FR 52117
Dated: October 28, 2011.
Nancy H. Sutley,
Chair.
[FR Doc. 2011–28474 Filed 11–2–11; 8:45 am]
BILLING CODE 3125–W0–P
PO 00000
Frm 00045
Fmt 4703
Sfmt 4703
Office of the Secretary
DoD, Per Diem, Travel and
Transportation Allowance Committee.
ACTION: Notice of Revised Non-Foreign
Overseas Per Diem Rates.
AGENCY:
The Per Diem, Travel and
Transportation Allowance Committee is
publishing Civilian Personnel Per Diem
Bulletin Number 278. This bulletin lists
revisions in the per diem rates
prescribed for U.S. Government
employees for official travel in Alaska,
Hawaii, Puerto Rico, the Northern
Mariana Islands and Possessions of the
United States. Actual Expense
Allowance (AEA) changes announced in
Bulletin Number 194 remain in effect.
Bulletin Number 278 is being published
in the Federal Register to assure that
travelers are paid per diem at the most
current rates.
DATES: Effective Date: November 1,
2011.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Mrs. Allison Lovelady, (571) 372–1271.
This
document gives notice of revisions in
per diem rates prescribed by the Per
Diem Travel and Transportation
Allowance Committee for non-foreign
areas outside the continental United
States. It supersedes Civilian Personnel
Per Diem Bulletin Number 277.
Distribution of Civilian Personnel Per
Diem Bulletins by mail was
discontinued. Per Diem Bulletins
published periodically in the Federal
Register now constitute the only
notification of revisions in per diem
rates to agencies and establishments
outside the Department of Defense. For
more information or questions about per
diem rates, please contact your local
travel office. The text of the Bulletin
follows: The changes in Civilian
Bulletin 278 are updated rates for
Alaska.
SUPPLEMENTARY INFORMATION:
Dated: October 31, 2011.
Aaron Siegel,
Alternate OSD Federal Register Liaison
Officer, Department of Defense.
E:\FR\FM\03NON1.SGM
03NON1
]]>Agencies
[Federal Register Volume 76, Number 213 (Thursday, November 3, 2011)]
[Notices]
[Pages 68167-68170]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-28558]
=======================================================================
-----------------------------------------------------------------------
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 12-C0003]
Spin Master, Inc. and Spin Master, Ltd., Provisional Acceptance
of a Settlement Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
-----------------------------------------------------------------------
[[Page 68168]]
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
Spin Master, Inc. and Spin Master, Ltd., containing a civil penalty of
$1,300,000.00.
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 November 18, 2011.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 12-C0003, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Room 820, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Seth B. Popkin, Lead Trial Attorney,
Division of Compliance, Office of the General Counsel, Consumer Product
Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-7612.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: October 26, 2011.
Todd A. Stevenson,
Secretary.
Settlement Agreement
1. In accordance with 16 CFR 1118.20, Spin Master, Inc.
(``SMI'') and Spin Master Ltd. (``SML'') (collectively ``Spin
Master''), and U.S. Consumer Product Safety Commission
(``Commission'') staff (``Staff''), enter into this Settlement
Agreement (``Agreement''). The Agreement and the incorporated
attached Order (``Order'') settle staff's allegations set forth
below.
Parties
2. Staff is the staff of the Commission, an independent federal
regulatory agency established pursuant to, and responsible for, the
enforcement of the Consumer Product Safety Act, 15 U.S.C. 2051-2089
(``CPSA'').
3. SMI is a corporation, organized and existing under the laws
of Delaware, with its principal offices located in Los Angeles,
California. At all relevant times, SMI imported and sold toys.
4. SML is a corporation, organized and existing under the laws
of Canada, with its principal offices located in Toronto, Ontario,
Canada. At all relevant times, SML developed and marketed toys.
5. At all relevant times, SMI was and is a wholly-owned
subsidiary of Spin Master US Holdings, Inc., which is a wholly-owned
subsidiary of SML.
Staff Allegations
6. From on or about April 16, 2007, to on or about November 7,
2007, SMI imported into the United States, sold to U.S. consumers,
and sold to U.S. retailers, approximately 750,000 units of Aqua
Dots. Aqua Dots were children's arts and crafts toys that consisted
of tiny beads of different colors that stuck together when sprayed
with water, allowing children to create various shapes and designs.
Aqua Dots were marketed and sold in different kits with various
accessories.
7. Aqua Dots are ``consumer product[s],'' and, at all relevant
times, SMI was a ``manufacturer'' and ``retailer'' of those consumer
products, and SML was a ``manufacturer'' of those consumer products,
which were ``distributed in commerce,'' as those terms are defined
in CPSA sections 3(a)(5), (8), (11), and (13), 15 U.S.C. 2052(a)(5),
(8), (11), and (13).
8. By mid-October 2007, Spin Master had received reports that
children and a dog had become ill and received emergency medical
treatment after ingesting Aqua Dots; however, Spin Master failed to
report to the Commission.
9. On October 18, 2007, Spin Master learned that Aqua Dots
contained 1,4-butylene glycol (``TMG''). TMG is a chemical that,
upon ingestion, metabolizes to gamma hydroxybutyrate (GHB), a
Schedule I controlled substance. On October 19, 2007, Spin Master
received information that TMG is harmful if swallowed, and that,
upon ingestion, it targets the kidneys and central nervous system.
10. In the days and weeks that followed, Spin Master continued
to receive reports of children falling ill after ingesting Aqua
Dots. The firm also received reports of children falling ill after
ingesting a similar product manufactured by the same overseas
factory using the same ingredients list containing TMG.
11. On November 2, 2007, Spin Master received a report that a
child became ill after ingesting Aqua Dots. On November 5, 2007,
Commission staff contacted Spin Master and notified them of that
ingestion incident, which had occurred in October 2007.
12. On November 7, 2007, Spin Master, in cooperation with the
Commission, voluntarily recalled the product.
13. In the press release announcing the recall, Spin Master
acknowledged that ``[c]hildren who swallow the beads can become
comatose, develop respiratory depression, or have seizures.''
14. While the firm had enlisted an outside testing agency to
evaluate the toxicity of the product, the testing was inadequate.
Notwithstanding the testing results, the incident data reflective of
human experience suggested that the product was toxic.
15. During the relevant time, Spin Master obtained information
that reasonably supported the conclusion that Aqua Dots contained a
defect or possible defect that could create a substantial product
hazard, or that Aqua Dots created an unreasonable risk of serious
injury or death. Accordingly, CPSA sections 15(b)(3) and (4), 15
U.S.C. 2064(b)(3) and (4), required Spin Master to inform the
Commission immediately of the defect and risk.
16. Spin Master knowingly failed to inform the Commission
immediately about Aqua Dots, as required by CPSA sections 15(b)(3)
and (4), 15 U.S.C. 2064(b)(3) and (4), and as the term ``knowingly''
is defined in CPSA section 20(d), 15 U.S.C. 2069(d). Under CPSA
section 19(a)(4), 15 U.S.C. 2068(a)(4), these failures constituted
prohibited acts, and pursuant to CPSA section 20, 15 U.S.C. 2069,
subjected Spin Master to civil penalties.
17. Aqua Dots are ``toxic'' within the meaning of FHSA section
2(g), 15 U.S.C. 1261(g), and are a ``hazardous substance'' within
the meaning of FHSA section 2(f)(1)(A), 15 U.S.C. 1261(f)(1)(A).
18. As a toy or other article intended for use by children that
is a hazardous substance, or that contains a hazardous substance
that is susceptible to access by a child to whom such toy or article
is entrusted, Aqua Dots are a ``banned hazardous substance'' within
the meaning of FHSA section 2(q)(1)(A), 15 U.S.C. 1261(q)(1)(A).
19. During the relevant time, under FHSA Sec. 5(c)(5), 15
U.S.C. 1264(c)(5), Spin Master acquired knowledge that Aqua Dots
were toxic and constituted a banned hazardous substance, and were
prohibited from being imported and sold. Pursuant to FHSA section
5(c)(1), 15 U.S.C. 1264(c)(1), Spin Master's prohibited acts
subjected it to civil penalties.
Spin Master's Responsive Allegations
20. Spin Master denies staff's allegations that Spin Master
knowingly violated the CPSA and FHSA; and Spin Master denies any
liability and wrongdoing.
21. Spin Master desires to settle this matter without the
expense of litigation.
22. The Agreement and the payments made thereunder are made in
compromise of disputed and unproven allegations and are not
admissions of liability of any kind, whether legal or factual.
23. Spin Master, Inc. was the distributor of Aqua Dots in the
United States, and was not involved in the design or manufacture,
nor was it the creator or inventor, of Aqua Dots. Spin Master Ltd.,
located in Toronto, Canada, was the parent of Spin Master, Inc.
24. Spin Master had no involvement in the production of the
product and was not given any insight into the chemical composition
of the product, which at all times remained a closely guarded trade
secret by the manufacturer.
25. Spin Master ensured the product underwent all legally
required testing under FHSA regulations, CPSC lead content
requirements, Canadian Hazardous Products regulations, and ASTM
labeling standards before distribution of the product began, and the
product passed all such testing. The distributor, SMI, began
distributing the product in the United States in April 2007.
Approximately 1,335,151 units of Aqua Dots were sold.
26. Spin Master went above and beyond all legally required
testing and engaged a highly regarded independent testing agency to
conduct live animal acute toxicity testing (``live animal testing'')
on the product on June 6, 2007.
27. On August 10, 2007, Spin Master received and reasonably
relied upon the
[[Page 68169]]
official live animal testing results from the independent testing
agency that stated: ``[the product] MEETS the following
requirement(s): Classification of not being toxic as defined in and
tested per 16 CFR 1500.3(c)(2)(i)(A), `Acute oral toxicity' (FHSA
regulations.)'' SMI received oral confirmation of this test result
as early as August 1, 2007.
28. It became apparent only after the November 7, 2007 recall
that the live animal toxicity testing conducted by independent
testing agencies was not performed at an appropriate standard of
professional care.
29. In October 2007, Spin Master was advised of ingestion
incidents arising from the ingestion of large quantities of a
similar product and that governmental authorities in countries other
than the United States had investigated those incidents and found
that product to be safe.
30. On October 18, 2007, Spin Master was advised that the
manufacturer of the product had switched the chemical formulation
from 1,5 Pentamethylene Glycol to contain 1,4-Butylene Glycol
(``TMG''). Upon being advised of the chemical switch, the
distributor began investigating the product. On October 19, 2007,
the distributor received a Material Safety Data Sheet (``MSDS'') for
TMG.
31. On October 25, 2007, Spin Master was advised of the results
of a Toxicological Risk Assessment performed by a board-certified
toxicologist, which stated that none of the ingredients in the
product were banned or restricted for use in consumer products in
the United States, and that the product containing TMG would be safe
under the FHSA regulations when used as intended or under
circumstances involving reasonably foreseeable misuse, assuming that
as many as 50 beads would be ingested in a single event. The
distributor was also advised that 4 grams of the product, or 50
beads, would have to be consumed to cause significant harm by
ingestion.
32. In early November 2007, Spin Master received a detailed
report of an ingestion incident involving the product.
33. On November 7, 2007, Spin Master voluntarily recalled the
product in conjunction and cooperation with the Commission.
Agreement of the Parties
34. Under the CPSA and FHSA, the Commission has jurisdiction
over this matter and, for purposes of this agreement only, over Spin
Master.
35. The parties enter into the Agreement for settlement purposes
only. The Agreement does not constitute an admission by Spin Master,
nor does it constitute a determination by the Commission, that Spin
Master knowingly violated the CPSA and FHSA, or a concession by
either party of the accuracy of the representations set forth in the
other party's Responsive Allegations.
36. In settlement of staff's allegations, Spin Master shall pay
a civil penalty in the total amount of one million three hundred
thousand dollars ($1,300,000.00). The civil penalty shall be paid in
two (2) installments as follows: six hundred fifty thousand dollars
($650,000.00) shall be paid on or before January 10, 2012; and six
hundred fifty thousand dollars ($650,000.00) shall be paid on or
before January 10, 2013. Both payments shall be made electronically
to the Commission via: https://www.pay.gov.
37. Upon provisional acceptance of the Agreement, the Agreement
shall be placed on the public record and published in the Federal
Register, in accordance with the procedures set forth in 16 CFR
1118.20(e). In accordance with 16 C.F.R. Sec. 1118.20(f), if the
Commission does not receive any written request not to accept the
Agreement within fifteen (15) calendar days, the Agreement shall be
deemed finally accepted on the sixteenth (16th) calendar day after
the date it is published in the Federal Register.
38. Upon the Commission's final acceptance of the Agreement and
issuance of the final Order, Spin Master knowingly, voluntarily, and
completely waives any rights it may have in this matter to the
following: (1) An administrative or judicial hearing; (2) judicial
review or other challenge or contest of the validity of the Order or
of the Commission's actions; (3) a determination by the Commission
of whether Spin Master failed to comply with the CPSA, the FHSA, and
their underlying regulations; (4) a statement of findings of fact
and conclusions of law; and (5) any claims under the Equal Access to
Justice Act.
39. The parties may publicize the terms of the Agreement and the
Order.
40. The Agreement and the Order shall apply to, and be binding
upon, Spin Master and each of its successors and assigns.
41. The Commission issues the Order under the provisions of the
CPSA and FHSA, and violation of the Order may subject Spin Master
and each of its successors and assigns to appropriate legal action.
42. The Agreement may be used in interpreting the Order. The
Agreement constitutes the entire agreement and understanding between
the parties related to the subject matter contained herein and is
subject to the terms of the Order. Understandings, agreements,
representations, or interpretations apart from those contained in
the Agreement and the Order may not be used to vary or contradict
their terms. The Agreement shall not be waived, amended, modified,
or otherwise altered without written agreement thereto, executed by
the party against whom such waiver, amendment, modification, or
alteration is sought to be enforced.
43. If any provision of the Agreement and the Order is held to
be illegal, invalid, or unenforceable under present or future laws
effective during the terms of the Agreement and the Order, such
provision shall be fully severable. The balance of the Agreement and
the Order shall remain in full force and effect, unless the
Commission and Spin Master agree that severing the provision
materially affects the purpose of the Agreement and the Order.
SPIN MASTER, INC.
Dated: October 19, 2011 by:
-----------------------------------------------------------------------
Ronnen Harary,
Director and CEO, 5890 West Jefferson Boulevard, Suite E, Los
Angeles, CA 90116.
SPIN MASTER LTD.
Dated: October 19, 2011 by:
-----------------------------------------------------------------------
Ronnen Harary,
Director and CEO, 450 Front Street West, Toronto, Ontario.
Dated: October 19, 2011 by:
-----------------------------------------------------------------------
Ronald Y. Rothstein, Esq.,
Winston & Strawn LLP, 35 West Wacker Drive, Chicago, IL 60601,
Counsel for Spin Master, Inc., and Spin Master Ltd.
Dated: October 19, 2011 by:
-----------------------------------------------------------------------
Frederick B. Locker, Esq.,
Locker, Greenberg & Brainin, 420 5th Avenue, Suite 2602, New York,
NY 10018, Counsel for Spin Master, Inc., and Spin Master Ltd.
U.S. CONSUMER PRODUCT SAFETY COMMISSION STAFF
Office of the General Counsel.
Cheryl A. Falvey,
General Counsel.
Mary B. Murphy,
Assistant General Counsel.
Dated: October 19, 2011 by:
-----------------------------------------------------------------------
Seth B. Popkin,
Lead Trial Attorney.
-----------------------------------------------------------------------
Renee McCune,
Attorney.
Order
Upon consideration of the Settlement Agreement entered into
among Spin Master, Inc. and Spin Master Ltd. (collectively ``Spin
Master''), and the U.S. Consumer Product Safety Commission
(``Commission'') staff, and the Commission having jurisdiction over
the subject matter and, for purposes of this agreement only, over
Spin Master, and it appearing that the Settlement Agreement and the
Order are in the public interest, it is
Ordered, that the Settlement Agreement be, and hereby is,
accepted; and it is
Further ordered, that Spin Master shall pay a civil penalty in
the total amount of one million three hundred thousand dollars
($1,300,000.00). The civil penalty shall be paid in two (2)
installments as follows: Six hundred fifty thousand dollars
($650,000.00) shall be paid on or before January 10, 2012; and six
hundred fifty thousand dollars ($650,000.00) shall be paid on or
before January 10, 2013. Both payments shall be made electronically
to the Commission via: https://www.pay.gov. Upon the failure of Spin
Master to make any of the foregoing payments when due, the total
amount of the civil penalty shall become due and payable
immediately, and interest on the unpaid amount shall accrue and be
paid by Spin Master at the federal legal rate of interest set forth
at 28 U.S.C. 1961(a) and (b).
Provisionally accepted and provisional Order issued on the 26th
day of October, 2011.
BY ORDER OF THE COMMISSION:
-----------------------------------------------------------------------
Todd A. Stevenson,
[[Page 68170]]
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 2011-28558 Filed 11-2-11; 8:45 am]
BILLING CODE 6355-01-P
