Teavana Corporation, Provisional Acceptance of a Settlement Agreement and Order, 35750-35752 [2016-12944]
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35750
Federal Register / Vol. 81, No. 107 / Friday, June 3, 2016 / Notices
MR 306—Melamine Fruit Plate
MR 307—21oz Melamine Tumbler
MR 308—Bamboo Placemat
MR 1121—Bag, Storage, Vacuum Sealed,
Club Pack
MR 1130—4-Section Tray, Holiday,
Melamine
MR 1131—Serving Tray, Holiday,
Melamine 18’’ x 13’’
MR 1132—Serving Bowl, Holiday,
Melamine
MR 1135—Set, Spreader, 4Pc
MR 1150—Set, Mold, Cupcake, Red, Giant
Cupcake, 3pc
MR 1151—Set, Pan, Bake, Perfect Brownie
Pan, 3pc
MR 1152—Set, Pasta Cooker, Blue, Pasta
Express, 7pc
MR 1153—Basket, Cooking, Steel,
Multipurpose
MR 1155—Glove, Oven, Flexi
MR 1156—Device, Cutting, Multi-Use,
Green, Snip It
MR 1157—Set, Knife and Peeler, Ceramic,
Kitchen Samurai
MR 1158—Set, Meatloaf Pan and Aerated
Tray
MR 1168—Carrier, Cake and Cupcake,
Collapsible
MR 1169—Set, Bowl and Lid, Blue, 4 Piece
Mandatory Source(s) of Supply:
Industries for the Blind, Inc., West Allis,
WI.
MR 1053—Mop, Sponge, Triple Action
MR 1083—Mop, Ratchet, Twist Action,
Cotton
MR 1084—Refill, Mop, Ratchet, Twist
Action, Cotton
Mandatory Source(s) of Supply: LC
Industries, Inc., Durham, NC.
Contracting Activity: Defense Commissary
Agency.
Services:
mstockstill on DSK3G9T082PROD with NOTICES
SERVICE TYPE: Switchboard Operation Service
Mandatory for: US Air Force, Patrick Air
Force Base, 1225 Pershing Place, Patrick
AFB, FL
Mandatory Source(s) of Supply: Brevard
Achievement Center, Inc., Rockledge, FL
Contracting Activity: Dept of the Air Force,
FA252145 CONS LGC, Patrick Air Force
Base, FL
Service Type: Switchboard Operation Service
Mandatory for: Keesler Air Force Base,
Keesler AFB, MS
Mandatory Source(s) of Supply: Mississippi
Goodworks, Inc., Gulfport, MS
Contracting Activity: Dept of the Air Force,
FA7014 AFDW PK, Andrews Air Force
Base, MD
Barry S. Lineback,
Director, Business Operations.
[FR Doc. 2016–13126 Filed 6–2–16; 8:45 am]
BILLING CODE 6353–01–P
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CONSUMER PRODUCT SAFETY
COMMISSION
Dated: May 27, 2016.
Todd A. Stevenson,
Secretary.
[CPSC Docket No. 16–C0003]
UNITED STATES OF AMERICA
CONSUMER PRODUCT SAFETY
COMMISSION
Teavana Corporation, Provisional
Acceptance of a Settlement Agreement
and Order
Consumer Product Safety
Commission.
AGENCY:
ACTION:
Notice.
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 the Consumer Product Safety
Commission’s regulations. Published
below is a provisionally-accepted
Settlement Agreement with Teavana
Corporation containing a civil penalty
in the amount of three million, seven
hundred fifty thousand U.S. dollars (US
$3,750,000) within thirty (30) days of
service of the Commission’s final Order
accepting the Settlement Agreement.
SUMMARY:
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 June 20,
2016.
DATES:
Persons wishing to
comment on this Settlement Agreement
should send written comments to the
Comment 16–C0003, Office of the
Secretary, Consumer Product Safety
Commission, 4330 East West Highway,
Room 820, Bethesda, Maryland 20814–
4408.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Leah Wade, Trial Attorney, Division of
Compliance, Office of the General
Counsel, Consumer Product Safety
Commission, 4330 East West Highway,
Bethesda, Maryland 20814–4408;
telephone (301) 504–7225.
The text of
the Agreement and Order 1 appears
below.
SUPPLEMENTARY INFORMATION:
1 The Commission voted (3–2) to provisionally
accept the Settlement Agreement and Order
regarding Teavana Corporation. Chairman Kaye,
Commissioner Adler, Commissioner Robinson
voted to provisionally accept the Settlement
Agreement and Order. Commissioner Buerkle and
Commissioner Mohorovic voted to reject the
Settlement Agreement and Order. Commissioner
Mohorovic filed a statement regarding this matter.
The statement is available at the Office of the
Secretary or the CPSC Web site, www.cpsc.gov.
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In the Matter of:
TEAVANA CORPORATION, CPSC Docket
No.: 16–C0003
SETTLEMENT AGREEMENT
1. In accordance with the Consumer
Product Safety Act, 15 U.S.C.
2051¥2089 (‘‘CPSA’’) and 16 CFR
1118.20, Teavana Corporation
(‘‘Teavana’’), and the United States
Consumer Product Safety Commission
(‘‘Commission’’), through its staff,
hereby enter into this Settlement
Agreement (‘‘Agreement’’). The
Agreement, and the incorporated
attached Order, resolve staff’s charges
that Teavana is subject to civil penalties
in this matter, under section 20 of the
CPSA, 15 U.S.C. 2069, as set forth
below.
THE PARTIES
2. The Commission is an independent
federal regulatory agency, established
pursuant to, and responsible for, the
enforcement of the CPSA, 15 U.S.C.
2051¥2089. By executing the
Agreement, staff is acting on behalf of
the Commission, pursuant to 16 CFR
1118.20(b). The Commission issues the
Order under the provisions of the CPSA.
3. Teavana Corporation was
incorporated in Georgia, and, at the time
of the matters recited in this Agreement,
its principal place of business was in
Atlanta, Georgia.
STAFF CHARGES
4. Between August 2007 and April
2013, Teavana imported for sale
approximately 445,000 Double-Walled
Glass Tea Tumblers (‘‘Tumblers’’) in the
United States. Most of the models of the
Tumblers are designed to hold hot
beverages, and one model was intended
for cold beverages.
5. The Tumblers are a ‘‘consumer
product’’ that was ‘‘distributed in
commerce,’’ as those terms are defined
or used in sections 3(a)(5) and (8) of the
CPSA, 15 U.S.C. 2052(a)(5) and (8).
Teavana was a ‘‘manufacturer,’’
‘‘distributor’’ and ‘‘retailer’’ of the
Tumblers, as such terms are defined in
sections 3(a)(7), (11) and (13) of the
CPSA, 15 U.S.C. 2052(a)(7), (11) and
(13).
6. Teavana had information
reasonably supporting the conclusion
that the Tumblers are defective or
created an unreasonable risk of serious
injury or death because they can
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Federal Register / Vol. 81, No. 107 / Friday, June 3, 2016 / Notices
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unexpectedly explode, shatter, or break
during normal use, posing a laceration
and burn hazard.
7. Between January 2010 and March
2013, Teavana received numerous
reports of the Tumblers unexpectedly
exploding, shattering or breaking,
including reports of six injuries to
consumers who were cut by broken
glass or burned by hot liquid while
holding a Tumbler that exploded,
shattered, or broke.
8. Despite having information
reasonably supporting the conclusion
that the Tumblers contained a defect
which could create a substantial
product hazard or create an
unreasonable risk of serious injury or
death, Teavana did not notify the
Commission immediately of such defect
or risk, as required by sections 15(b)(3)
and (4) of the CPSA, 15 U.S.C.
2064(b)(3) and (4).
9. In failing to immediately inform the
Commission about the defect or
unreasonable risk associated with the
Tumblers, Teavana 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).
10. Pursuant to section 20 of the
CPSA, 15 U.S.C. 2069, Teavana is
subject to civil penalties for its knowing
violation of section 19(a)(4) of the
CPSA, 15 U.S.C. 2068(a)(4).
RESPONSE OF TEAVANA
11. Teavana’s settlement of this matter
does not constitute an admission of
staff’s charges as set forth in paragraphs
4 through 10 above.
12. In March 2013, Teavana notified
the Commission pursuant to section
15(b) of the CPSA, 15 U.S.C. 2064(b)
concerning Teavana’s receipt of
complaints and incident reports about
the Tumblers.
13. On May 20, 2013, in conjunction
with the Commission, Teavana
voluntarily announced a recall of eleven
different models of double-walled
borosilicate glass Tumblers (made by
three different manufacturers),
including a Tumbler model for which
Teavana had received no complaints or
incident reports, and some Tumbler
models for which only a few complaints
were received.
14. The voluntary recall of the
Tumblers, as well as the section 15(b)
reporting, by Teavana was conducted
out of an abundance of caution and
without Teavana having determined or
concluded that any of the eleven
different models of Tumblers contained
a defect, posed a substantial product
hazard, or created an unreasonable risk
of serious injury or death.
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15. The Tumblers were all wellconstructed using a high quality glass
with superior hardness and resistance to
temperature shock.
AGREEMENT OF THE PARTIES
16. Under the CPSA, the Commission
has jurisdiction over the matter
involving the Tumblers and over
Teavana.
17. The parties enter into the
Agreement for settlement purposes only.
The Agreement does not constitute an
admission by Teavana or a
determination by the Commission that
Teavana violated the CPSA’s reporting
requirements.
18. In settlement of staff’s charges,
and to avoid the cost, distraction, delay,
uncertainty, and inconvenience of
protracted litigation, Teavana shall pay
a civil penalty in the amount of three
million, seven hundred and fifty
thousand U.S. dollars (US $3,750,000)
within thirty (30) calendar days after
receiving service of the Commission’s
final Order accepting the Agreement.
All payments to be made under the
Agreement shall constitute debts owing
to the United States and shall be made
by electronic wire transfer to the United
States via: https://www.pay.gov for
allocation to, and credit against, the
payment obligations of Teavana under
this Agreement. Failure to make such
payment by the date specified in the
Commission’s Order shall constitute
Default.
19. All unpaid amounts, if any, due
and owing under the Agreement, shall
constitute a debt due and immediately
owing by Teavana to the United States,
and interest shall accrue and be paid by
Teavana at the federal legal rate of
interest set forth at 28 U.S.C. 1961(a)
and (b) from the date of Default, until all
amounts due have been paid in full
(hereinafter ‘‘Default Payment Amount’’
and ‘‘Default Interest Balance’’).
Teavana shall consent to a Consent
Judgment in the amount of the Default
Payment Amount and Default Interest
Balance, and the United States, at its
sole option, may collect the entire
Default Payment Amount and Default
Interest Balance, or exercise any other
rights granted by law or in equity,
including, but not limited to, referring
such matters for private collection; and
Teavana agrees not to contest, and
hereby waives and discharges any
defenses, to any collection action
undertaken by the United States, or its
agents or contractors, pursuant to this
paragraph. Teavana shall pay the United
States all reasonable costs of collection
and enforcement under this paragraph,
respectively, including reasonable
attorney’s fees and expenses.
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35751
20. After staff receives this Agreement
executed on behalf of Teavana, staff
shall promptly submit the Agreement to
the Commission for provisional
acceptance. Promptly following
provisional acceptance of the
Agreement by the Commission, 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). 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 16th
calendar day after the date the
Agreement is published in the Federal
Register, in accordance with 16 CFR
1118.20(f).
21. This Agreement is conditioned
upon, and subject to, the Commission’s
final acceptance, as set forth above, and
it is subject to the provisions of 16 CFR
1118.20(h). Upon the later of: (i)
Commission’s final acceptance of this
Agreement and service of the accepted
Agreement upon Teavana, and (ii) the
date of issuance of the final Order, this
Agreement shall be in full force and
effect and shall be binding upon the
parties.
22. Effective upon the later of: (i) The
Commission’s final acceptance of the
Agreement and service of the accepted
Agreement upon Teavana, and (ii) and
the date of issuance of the final Order,
for good and valuable consideration,
Teavana hereby expressly and
irrevocably waives and agrees not to
assert any past, present, or future rights
to the following, in connection with the
matter described in this Agreement: (i)
An administrative or judicial hearing;
(ii) judicial review or other challenge or
contest of the Commission’s actions; (iii)
a determination by the Commission of
whether Teavana 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. Teavana represents and agrees that
it will comply with and maintain the
comprehensive compliance program of
its parent corporation designed to
ensure compliance with the CPSA and
regulations enforced by the
Commission. That program includes
written standards, policies and
procedures to ensure relevant reports
and complaints are sent to compliance
personnel, recalled goods are properly
disposed of, employees have a
confidential process to report
compliance-related issues to officials
with authority to act, CPSA compliance
responsibility is exercised with due care
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35752
Federal Register / Vol. 81, No. 107 / Friday, June 3, 2016 / Notices
by senior management, company
policies are communicated to applicable
personnel, records are retained for five
years, and compliance program
documents will be made available to
staff upon reasonable request.
24. Teavana represents and agrees that
it will comply with and maintain the
comprehensive system of internal
controls and procedures of its parent
corporation. These procedures are
designed to ensure Teavana discloses to
the Commission information in
accordance with applicable law, reports
information in a timely, truthful,
complete and accurate manner as
required by the CPSA, and periodically
evaluates these controls and procedures
to ensure they are adequate to allow
Teavana to report to the Commission in
accordance with applicable law.
25. The parties acknowledge and
agree that the Commission may
publicize the terms of the Agreement
and the Order.
26. Teavana represents that the
Agreement: (i) Is entered into freely and
voluntarily, without any degree of
duress or compulsion whatsoever; (ii)
has been duly authorized; and (iii)
constitutes the valid and binding
obligation of Teavana, enforceable
against Teavana in accordance with its
terms. The individuals signing the
Agreement on behalf of Teavana
represent and warrant that they are duly
authorized by Teavana to execute the
Agreement.
27. The signatories represent that they
are authorized to execute this
Agreement.
28. The Agreement is governed by the
laws of the United States.
29. The Agreement and the Order
shall apply to, and be binding upon,
Teavana and each of its parents,
successors, transferees, and assigns, and
a violation of the Agreement or Order
may subject Teavana, and each of its
parents, successors, transferees, and
assigns, to appropriate legal action.
30. The Agreement and the Order
constitute the complete agreement
between the parties on the subject
matter contained therein.
31. The Agreement may be used in
interpreting 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. For purposes of
construction, the Agreement shall be
deemed to have been drafted by both of
the parties and shall not, therefore, be
construed against any party, for that
reason, in any subsequent dispute.
32. The Agreement may not be
waived, amended, modified, or
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otherwise altered, except as in
accordance with the provisions of 16
CFR 1118.20(h). The Agreement may be
executed in counterparts.
33. If any provision of the Agreement
or 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 Teavana
agree in writing that severing the
provision materially affects the purpose
of the Agreement and the Order.
TEAVANA CORPORATION
Dated: May 19, 2016
By:
llllllllllllllllll
Bernard Acoca
President, Teavana Corporation
Dated: May 19, 2016
By:
llllllllllllllllll
Georgia C. Ravitz
Arent Fox LLP
1717 K Street, NW
Washington, D.C. 20006–5344
Counsel to Teavana Corporation
U.S. CONSUMER PRODUCT SAFETY
COMMISSION
Mary T. Boyle
Acting General Counsel
Mary B. Murphy
Assistant General Counsel
Dated: May 19, 2016
By:
llllllllllllllllll
Leah Wade
Trial Attorney
Division of Compliance
Office of the General Counsel
UNITED STATES OF AMERICA
CONSUMER PRODUCT SAFETY
COMMISSION
In the Matter of: TEAVANA
CORPORATION, CPSC Docket No.: 16–
C0003
ORDER
Upon consideration of the Settlement
Agreement entered into between Teavana
Corporation (‘‘Teavana’’), and the U.S.
Consumer Product Safety Commission
(‘‘Commission’’), and the Commission having
jurisdiction over the subject matter and over
Teavana, and it appearing that the Settlement
Agreement and the Order are in the public
interest, it is:
ORDERED that the Settlement Agreement
be, and is, hereby, accepted; and it is
FURTHER ORDERED that Teavana shall
comply with the terms of the Settlement
Agreement and shall pay a civil penalty in
the amount of three million, seven hundred
fifty thousand U.S. dollars (US $3,750,000)
within thirty (30) days after service of the
Commission’s final Order accepting the
Settlement Agreement. The payment shall be
made by electronic wire transfer to the
Commission via: https://www.pay.gov. Upon
the failure of Teavana to make the foregoing
payment when due, interest on the unpaid
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amount shall accrue and be paid by Teavana
at the federal legal rate of interest set forth
at 28 U.S.C. 1961(a) and (b). If Teavana fails
to make such payment or to comply in full
with any other provision of the Settlement
Agreement, such conduct will be considered
a violation of the Settlement Agreement and
Order.
Provisionally accepted and provisional
Order issued on the 27th day of May, 2016.
BY ORDER OF THE COMMISSION:
Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety
Commission.
[FR Doc. 2016–12944 Filed 6–2–16; 8:45 am]
BILLING CODE 6355–01–P
DEPARTMENT OF DEFENSE
Office of the Secretary
[Docket ID: DoD–2015–OS–0004]
Proposed Collection; Comment
Request
Office of the Under Secretary of
Defense for Personnel and Readiness,
DoD.
ACTION: Notice.
AGENCY:
In compliance with the
Paperwork Reduction Act of 1995, the
Office of the Under Secretary of Defense
for Personnel and Readiness announces
a proposed public information
collection and seeks public comment on
the provisions thereof. Comments are
invited on: Whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information shall have
practical utility; the accuracy of the
agency’s estimate of the burden of the
proposed information collection; ways
to enhance the quality, utility, and
clarity of the information to be
collected; and ways to minimize the
burden of the information collection on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
DATES: Consideration will be given to all
comments received by August 2, 2016.
ADDRESSES: You may submit comments,
identified by docket number and title,
by any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Department of Defense, Office
of the Deputy Chief Management
Officer, Directorate for Oversight and
Compliance, 4800 Mark Center Drive,
Mailbox #24, Alexandria, VA 22350–
1700.
Instructions: All submissions received
must include the agency name, docket
SUMMARY:
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]]>Agencies
[Federal Register Volume 81, Number 107 (Friday, June 3, 2016)]
[Notices]
[Pages 35750-35752]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12944]
=======================================================================
-----------------------------------------------------------------------
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 16-C0003]
Teavana Corporation, 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 the Consumer
Product Safety Commission's regulations. Published below is a
provisionally-accepted Settlement Agreement with Teavana Corporation
containing a civil penalty in the amount of three million, seven
hundred fifty thousand U.S. dollars (US $3,750,000) within thirty (30)
days of service of the Commission's final Order accepting the
Settlement Agreement.
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 June 20, 2016.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 16-C0003, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Room 820, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Leah Wade, Trial Attorney, Division of
Compliance, Office of the General Counsel, Consumer Product Safety
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408;
telephone (301) 504-7225.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order \1\
appears below.
---------------------------------------------------------------------------
\1\ The Commission voted (3-2) to provisionally accept the
Settlement Agreement and Order regarding Teavana Corporation.
Chairman Kaye, Commissioner Adler, Commissioner Robinson voted to
provisionally accept the Settlement Agreement and Order.
Commissioner Buerkle and Commissioner Mohorovic voted to reject the
Settlement Agreement and Order. Commissioner Mohorovic filed a
statement regarding this matter. The statement is available at the
Office of the Secretary or the CPSC Web site, www.cpsc.gov.
Dated: May 27, 2016.
Todd A. Stevenson,
Secretary.
UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION
In the Matter of: TEAVANA CORPORATION, CPSC Docket No.: 16-C0003
SETTLEMENT AGREEMENT
1. In accordance with the Consumer Product Safety Act, 15 U.S.C.
2051-2089 (``CPSA'') and 16 CFR 1118.20, Teavana Corporation
(``Teavana''), and the United States Consumer Product Safety Commission
(``Commission''), through its staff, hereby enter into this Settlement
Agreement (``Agreement''). The Agreement, and the incorporated attached
Order, resolve staff's charges that Teavana is subject to civil
penalties in this matter, under section 20 of the CPSA, 15 U.S.C. 2069,
as set forth below.
THE PARTIES
2. The Commission is an independent federal regulatory agency,
established pursuant to, and responsible for, the enforcement of the
CPSA, 15 U.S.C. 2051-2089. By executing the Agreement, staff is acting
on behalf of the Commission, pursuant to 16 CFR 1118.20(b). The
Commission issues the Order under the provisions of the CPSA.
3. Teavana Corporation was incorporated in Georgia, and, at the
time of the matters recited in this Agreement, its principal place of
business was in Atlanta, Georgia.
STAFF CHARGES
4. Between August 2007 and April 2013, Teavana imported for sale
approximately 445,000 Double-Walled Glass Tea Tumblers (``Tumblers'')
in the United States. Most of the models of the Tumblers are designed
to hold hot beverages, and one model was intended for cold beverages.
5. The Tumblers are a ``consumer product'' that was ``distributed
in commerce,'' as those terms are defined or used in sections 3(a)(5)
and (8) of the CPSA, 15 U.S.C. 2052(a)(5) and (8). Teavana was a
``manufacturer,'' ``distributor'' and ``retailer'' of the Tumblers, as
such terms are defined in sections 3(a)(7), (11) and (13) of the CPSA,
15 U.S.C. 2052(a)(7), (11) and (13).
6. Teavana had information reasonably supporting the conclusion
that the Tumblers are defective or created an unreasonable risk of
serious injury or death because they can
[[Page 35751]]
unexpectedly explode, shatter, or break during normal use, posing a
laceration and burn hazard.
7. Between January 2010 and March 2013, Teavana received numerous
reports of the Tumblers unexpectedly exploding, shattering or breaking,
including reports of six injuries to consumers who were cut by broken
glass or burned by hot liquid while holding a Tumbler that exploded,
shattered, or broke.
8. Despite having information reasonably supporting the conclusion
that the Tumblers contained a defect which could create a substantial
product hazard or create an unreasonable risk of serious injury or
death, Teavana did not notify the Commission immediately of such defect
or risk, as required by sections 15(b)(3) and (4) of the CPSA, 15
U.S.C. 2064(b)(3) and (4).
9. In failing to immediately inform the Commission about the defect
or unreasonable risk associated with the Tumblers, Teavana 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).
10. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Teavana is
subject to civil penalties for its knowing violation of section
19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).
RESPONSE OF TEAVANA
11. Teavana's settlement of this matter does not constitute an
admission of staff's charges as set forth in paragraphs 4 through 10
above.
12. In March 2013, Teavana notified the Commission pursuant to
section 15(b) of the CPSA, 15 U.S.C. 2064(b) concerning Teavana's
receipt of complaints and incident reports about the Tumblers.
13. On May 20, 2013, in conjunction with the Commission, Teavana
voluntarily announced a recall of eleven different models of double-
walled borosilicate glass Tumblers (made by three different
manufacturers), including a Tumbler model for which Teavana had
received no complaints or incident reports, and some Tumbler models for
which only a few complaints were received.
14. The voluntary recall of the Tumblers, as well as the section
15(b) reporting, by Teavana was conducted out of an abundance of
caution and without Teavana having determined or concluded that any of
the eleven different models of Tumblers contained a defect, posed a
substantial product hazard, or created an unreasonable risk of serious
injury or death.
15. The Tumblers were all well-constructed using a high quality
glass with superior hardness and resistance to temperature shock.
AGREEMENT OF THE PARTIES
16. Under the CPSA, the Commission has jurisdiction over the matter
involving the Tumblers and over Teavana.
17. The parties enter into the Agreement for settlement purposes
only. The Agreement does not constitute an admission by Teavana or a
determination by the Commission that Teavana violated the CPSA's
reporting requirements.
18. In settlement of staff's charges, and to avoid the cost,
distraction, delay, uncertainty, and inconvenience of protracted
litigation, Teavana shall pay a civil penalty in the amount of three
million, seven hundred and fifty thousand U.S. dollars (US $3,750,000)
within thirty (30) calendar days after receiving service of the
Commission's final Order accepting the Agreement. All payments to be
made under the Agreement shall constitute debts owing to the United
States and shall be made by electronic wire transfer to the United
States via: https://www.pay.gov for allocation to, and credit against,
the payment obligations of Teavana under this Agreement. Failure to
make such payment by the date specified in the Commission's Order shall
constitute Default.
19. All unpaid amounts, if any, due and owing under the Agreement,
shall constitute a debt due and immediately owing by Teavana to the
United States, and interest shall accrue and be paid by Teavana at the
federal legal rate of interest set forth at 28 U.S.C. 1961(a) and (b)
from the date of Default, until all amounts due have been paid in full
(hereinafter ``Default Payment Amount'' and ``Default Interest
Balance''). Teavana shall consent to a Consent Judgment in the amount
of the Default Payment Amount and Default Interest Balance, and the
United States, at its sole option, may collect the entire Default
Payment Amount and Default Interest Balance, or exercise any other
rights granted by law or in equity, including, but not limited to,
referring such matters for private collection; and Teavana agrees not
to contest, and hereby waives and discharges any defenses, to any
collection action undertaken by the United States, or its agents or
contractors, pursuant to this paragraph. Teavana shall pay the United
States all reasonable costs of collection and enforcement under this
paragraph, respectively, including reasonable attorney's fees and
expenses.
20. After staff receives this Agreement executed on behalf of
Teavana, staff shall promptly submit the Agreement to the Commission
for provisional acceptance. Promptly following provisional acceptance
of the Agreement by the Commission, 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). 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 16th calendar day after the date the Agreement is
published in the Federal Register, in accordance with 16 CFR
1118.20(f).
21. This Agreement is conditioned upon, and subject to, the
Commission's final acceptance, as set forth above, and it is subject to
the provisions of 16 CFR 1118.20(h). Upon the later of: (i)
Commission's final acceptance of this Agreement and service of the
accepted Agreement upon Teavana, and (ii) the date of issuance of the
final Order, this Agreement shall be in full force and effect and shall
be binding upon the parties.
22. Effective upon the later of: (i) The Commission's final
acceptance of the Agreement and service of the accepted Agreement upon
Teavana, and (ii) and the date of issuance of the final Order, for good
and valuable consideration, Teavana hereby expressly and irrevocably
waives and agrees not to assert any past, present, or future rights to
the following, in connection with the matter described in this
Agreement: (i) An administrative or judicial hearing; (ii) judicial
review or other challenge or contest of the Commission's actions; (iii)
a determination by the Commission of whether Teavana 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. Teavana represents and agrees that it will comply with and
maintain the comprehensive compliance program of its parent corporation
designed to ensure compliance with the CPSA and regulations enforced by
the Commission. That program includes written standards, policies and
procedures to ensure relevant reports and complaints are sent to
compliance personnel, recalled goods are properly disposed of,
employees have a confidential process to report compliance-related
issues to officials with authority to act, CPSA compliance
responsibility is exercised with due care
[[Page 35752]]
by senior management, company policies are communicated to applicable
personnel, records are retained for five years, and compliance program
documents will be made available to staff upon reasonable request.
24. Teavana represents and agrees that it will comply with and
maintain the comprehensive system of internal controls and procedures
of its parent corporation. These procedures are designed to ensure
Teavana discloses to the Commission information in accordance with
applicable law, reports information in a timely, truthful, complete and
accurate manner as required by the CPSA, and periodically evaluates
these controls and procedures to ensure they are adequate to allow
Teavana to report to the Commission in accordance with applicable law.
25. The parties acknowledge and agree that the Commission may
publicize the terms of the Agreement and the Order.
26. Teavana represents that the Agreement: (i) Is entered into
freely and voluntarily, without any degree of duress or compulsion
whatsoever; (ii) has been duly authorized; and (iii) constitutes the
valid and binding obligation of Teavana, enforceable against Teavana in
accordance with its terms. The individuals signing the Agreement on
behalf of Teavana represent and warrant that they are duly authorized
by Teavana to execute the Agreement.
27. The signatories represent that they are authorized to execute
this Agreement.
28. The Agreement is governed by the laws of the United States.
29. The Agreement and the Order shall apply to, and be binding
upon, Teavana and each of its parents, successors, transferees, and
assigns, and a violation of the Agreement or Order may subject Teavana,
and each of its parents, successors, transferees, and assigns, to
appropriate legal action.
30. The Agreement and the Order constitute the complete agreement
between the parties on the subject matter contained therein.
31. The Agreement may be used in interpreting 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. For purposes of construction, the
Agreement shall be deemed to have been drafted by both of the parties
and shall not, therefore, be construed against any party, for that
reason, in any subsequent dispute.
32. The Agreement may not be waived, amended, modified, or
otherwise altered, except as in accordance with the provisions of 16
CFR 1118.20(h). The Agreement may be executed in counterparts.
33. If any provision of the Agreement or 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 Teavana agree in writing that severing the provision materially
affects the purpose of the Agreement and the Order.
TEAVANA CORPORATION
Dated: May 19, 2016
By:--------------------------------------------------------------------
Bernard Acoca
President, Teavana Corporation
Dated: May 19, 2016
By:--------------------------------------------------------------------
Georgia C. Ravitz
Arent Fox LLP
1717 K Street, NW
Washington, D.C. 20006-5344
Counsel to Teavana Corporation
U.S. CONSUMER PRODUCT SAFETY COMMISSION
Mary T. Boyle
Acting General Counsel
Mary B. Murphy
Assistant General Counsel
Dated: May 19, 2016
By:--------------------------------------------------------------------
Leah Wade
Trial Attorney
Division of Compliance
Office of the General Counsel
UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION
In the Matter of: TEAVANA CORPORATION, CPSC Docket No.: 16-C0003
ORDER
Upon consideration of the Settlement Agreement entered into
between Teavana Corporation (``Teavana''), and the U.S. Consumer
Product Safety Commission (``Commission''), and the Commission
having jurisdiction over the subject matter and over Teavana, and it
appearing that the Settlement Agreement and the Order are in the
public interest, it is:
ORDERED that the Settlement Agreement be, and is, hereby,
accepted; and it is
FURTHER ORDERED that Teavana shall comply with the terms of the
Settlement Agreement and shall pay a civil penalty in the amount of
three million, seven hundred fifty thousand U.S. dollars (US
$3,750,000) within thirty (30) days after service of the
Commission's final Order accepting the Settlement Agreement. The
payment shall be made by electronic wire transfer to the Commission
via: https://www.pay.gov. Upon the failure of Teavana to make the
foregoing payment when due, interest on the unpaid amount shall
accrue and be paid by Teavana at the federal legal rate of interest
set forth at 28 U.S.C. 1961(a) and (b). If Teavana fails to make
such payment or to comply in full with any other provision of the
Settlement Agreement, such conduct will be considered a violation of
the Settlement Agreement and Order.
Provisionally accepted and provisional Order issued on the 27th
day of May, 2016.
BY ORDER OF THE COMMISSION:
Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 2016-12944 Filed 6-2-16; 8:45 am]
BILLING CODE 6355-01-P
