[Federal Register Volume 60, Number 130 (Friday, July 7, 1995)]
[Notices]
[Pages 35380-35382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16634]



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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 95-C0012]


ABC School Supply, Inc., a Corporation; Provisional Acceptance of 
a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Provisional Acceptance of a Settlement Agreement under the 
Consumer Product Safety Act.

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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 
ABC School Supply, Inc., a corporation.

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 July 24, 1995.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to Comment 95-C0012, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:
Earl A. Gershenow, Trial Attorney, Office of Compliance, Consumer 
Product Safety Commission, Washington, DC 20207; telephone 301-504-
0626.

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

    Dated: June 30, 1995.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.

    In the Matter of ABC School Supply, Inc., a corporation.

Settlement Agreement and Order

    1. ABC School Supply, Inc. (hereinafter, ``ABC School Supply''), a 
corporation, enters into this Settlement Agreement (hereinafter, 
``Agreement'') with the staff of the Consumer Product Safety 
Commission, and agrees to the entry of the Order described herein. The 
purpose of the Agreement and Order is to settle the staff's allegations 
that ABC School Supply knowingly caused the introduction into 
interstate commerce of certain banned hazardous toys, in violation of 
section 4(a) of the Federal Hazardous Substances Act, 15 U.S.C. 
1263(a), and section 19(a)(2) of the Consumer Product Safety Act, 
U.S.C. 2068(a)(2).

I. Jurisdiction

    2. The Commission has jurisdiction over ABC School Supply and the 
subject matter of this Settlement Agreement pursuant to section 3(a)(1) 
of the Consumer Product Safety Act (hereinafter, ``CPSA''), 15 U.S.C. 
2051(a)(1), section 30(a) of the CPSA, 15 U.S.C. 2079(a); section 
20(a)(1) of the CPSA, 15 U.S.C. 2069(a)(1); and sections 2(f)(1)(D), 
4(a), and 5(c) of the Federal Hazardous Substances Act (hereinafter, 
``FHSA''), 15 U.S.C. 1261(f)(1)(D), 1263(a), and 1264(c).

II. The Parties

    3. The ``staff'' is the staff of the Consumer Product Safety 
Commission, an independent regulatory commission of the United States 
established pursuant to section 4 of the CPSA, 15 U.S.C. 2053.
    4. ABC School Supply is a corporation organized and existing under 
the laws of the State of Georgia, since 1952, with its principal 
corporate offices located at 3312 Berkley Lake Road, Duluth, Georgia 
30136. ABC School Supply is an importer and, principally, a mail order 
distributor of various products, including toys, for sale to schools, 
churches, kindergartens, and day care enters.

III. Allegations of the State

A. Toys

    5. On ten occasions between March 5, 1991, and January 7, 1993, ABC 
School Supply, Inc. caused the introduction into interstate commerce of 
18 kinds of toys consisting of approximately 16,108 units intended for 
use by children under 3 years of age. These toys are identified and 
described below:

----------------------------------------------------------------------------------------------------------------
                                                                                    Ship date(*) Entry          
    CPSC samples No.         Product No.           Statute          Description            date         Quantity
----------------------------------------------------------------------------------------------------------------
M-830-0925.............  1901                FHSA                Shovel-Plastic...  03/05/91               3888 

[[Page 35381]]
                                                                                                                
M-830-0926.............  1940                FHSA                Sand Mill........  03/05/91                1200
M-830-0927.............  1945                FHSA                Water Wheel II...  03/05/91                 624
M-830-0928.............  1959                FHSA                Sand-Wheel II....  03/05/91                1200
M-830-0942.............  105-910             FHSA                Delux Alphabet     11/29/90                1200
                                                                  Puzzle with                                   
                                                                  Knobs.                                        
P-830-6102.............  105-281             FHSA                Uncle Bee The      10/23/91                 144
                                                                  Eagle School                                  
                                                                  Pull Toy.                                     
P-830-6205.............  T-804               FHSA                Baby Car.........  12/06/91                 288
P-830-6327.............  1940                FHSA                Sand Mill........  06/04/92                1632
P-830-6328.............  1945                FHSA                Water Wheel II...  06/04/92                1248
P-830-6329.............  1959                FHSA                Sand Wheel II....  06/04/92                1200
P-830-6330.............  8102                FHSA                Dump Car.........  06/04/92                 336
P-830-6331.............  8104                FHSA                Tow Truck........  06/04/92                 336
P-830-6332.............  8106                FHSA                Police Car.......  03/04/92                 336
P-830-6333.............  8107                FHSA                Fire Engine......  06/04/92                 336
P-830-6334.............  8105                FHSA                Royal Minimobile   06/04/92                  14
                                                                  Ambulance.                                    
P-830-6335.............  8101                FHSA                Royal Minimobile   06/04/92                 336
                                                                  Sports Car.                                   
P-830-6857.............  67832               FHSA                Li'l Playmates     08/31/92                 532
                                                                  Farm Play Set.                                
R-830-6002.............  1947                FHSA                Baby Dump Truck..  11/30/92(*)              432
R-830-6003.............  1965                FHSA                Bulldozer........  01/07/93(*)              432
R-830-6006.............  1959                FHSA                Sand Wheel II....  01/07/93(*)              300
R-830-6500.............  KK501WR             FHSA                Little Knob        10/01/92                  48
                                                                  Breakfast Puzzle.                             
R-830-6514.............  5861                FHSA                Little Driver Toy  10/14/92(*)               46
                                                                  Steering Wheel                                
                                                                  and Dash Board.                               
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    6. The toys identified in paragraph 5 above are subject to, but 
failed to comply with, the Commission's Small Parts Regulation, 16 CFR 
Part 1501, in that when tested under the ``use and abuse'' test methods 
specified in 16 CFR 1500.51 and 1500.52, (a) one or more parts of each 
tested toy separated and (b) one or more of the separated parts from 
each of the tested toys fit completely within the small parts test 
cylinder, as set forth in 16 CFR 1501.4.
    7. Because the separated parts fit completely within the test 
cylinder as described in paragraph 6 above, each of the toys identified 
in paragraph 5 above presents a ``mechanical hazard'' within the 
meaning of section 2(s) of the FHSA, 15 U.S.C. 1261(s) (choking, 
aspiration and/or ingestion of small parts).
    8. Each of the toys identified in paragraph 5 above is a 
``hazardous substance'' pursuant to section 2(f)(1)(D) of the FHSA, 15 
U.S.C. 1261(f)(1)(D).
    9. Each of the toys identified in paragraph 5 above is a ``banned 
hazardous substance'' pursuant to (a) section 2(q)(1)(A) of the FHSA, 
15 U.S.C. 1261(q)(1)(A) (any toy or other article intended for use by 
children which bears or contains a hazardous substance); and (b) 16 CFR 
1500.18(a)(9).
    10. ABC School Supply knowingly caused the introduction into 
interstate commerce of the aforesaid banned hazardous toys, in 
violation of section 4(a) of the FHSA, 15 U.S.C. 1263(a), for which a 
civil penalty may be imposed pursuant to section 5(c) of the FHSA, 15 
U.S.C. 1264(c).

B. Lead-Containing Toys

    11. On three occasions between January 3, 1992, and August 24, 
1992, ABC School Supply caused the introduction into interstate 
commerce of 6 kinds of lead-containing toys consisting of approximately 
4,173 units intended for use by children under 3 years of age. These 
toys are identified and described below:

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                            Product                                                 Ship Date(*)Entry           
     CPSC sample No.          No.            Statute             Description              date          Quantity
----------------------------------------------------------------------------------------------------------------
P-830-6122...............    025-261  CPSC                   Mini Traffic Sign    02/07/92                  1200
                                                              Set.                                              
P-830-6123...............    429-806  CPSC                   Color Stacking       02/07/92                   385
                                                              Disks.                                            
P-830-6220...............    109-441  CPSC                   Fruit Play Set.....  01/03/92                   288
P-830-6221...............    109-442  CPSC                   Vegetable Play Set.  01/03/92                   600
P-830-6222...............    109-437  CPSC                   Desc. Geometrical    01/03/92                  1200
                                                              Pegboard.                                         
P-830-6340...............    002-455  CPSC                   Numerical Blocks...  08/24/92(*)                500
----------------------------------------------------------------------------------------------------------------

    12. The lead-containing toys identified in paragraph 11 above were 
subject to, but failed to comply with the Commission's Ban on Lead-
Containing Paint and Certain Consumer Products Bearing Lead-Containing 
Paint, 16 CFR Part 1303, promulgated pursuant to sections 8 and 9 of 
the CPSA, 15 U.S.C. 2057 and 2058, in that each of those toys contained 
lead in excess of 0.06 percent.
    13. ABC School Supply knowingly caused the introduction into 
interstate commerce of the banned hazardous toys identified in 
paragraph 11 above, in violation of section 19(a)(2) of the CPSA, 15 
U.S.C. 2068(a)(2), for which a 

[[Page 35382]]
civil penalty may be imposed pursuant to section 20(a)(1) of the CPSA, 
15 U.S.C. 2069(a)(1).
IV. Response of ABC School Supply, Inc.

    14. ABC School Supply denies the allegations of the staff set forth 
in paragraphs 5 through 13 above that it has knowingly caused the 
introduction into interstate commerce of banned hazardous toys in 
violation of the FHSA, or that it has knowingly caused the introduction 
into commerce of banned hazardous toys in violation of the CPSA, as 
alleged by the staff.

V. Agreement of the Parties

    15. The Consumer Product Safety Commission has jurisdiction over 
ABC School Supply and the subject matter of this Settlement Agreement 
and Order under the following acts: Consumer Product Safety Act, 15 
U.S.C. 2051 et seq., and the Federal Hazardous Substances Act, 15 
U.S.C. 1261 et seq.
    16. Upon final acceptance by the Commission of this Settlement 
Agreement and Order, the Commission shall issue the attached Order 
incorporated herein by this reference.
    17. The Commission does not make any determination that ABC School 
Supply knowingly violated the FHSA or the CPSA. The Commission and ABC 
School Supply agree that this Agreement is entered into for the 
purposes of settlement only.
    18. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, ABC School Supply 
knowingly, voluntarily and completely waives any rights it may have in 
this matter (1) to an administrative or judicial hearing, (2) to 
judicial review or other challenge or contest of the validity of the 
Commission's actions, (3) to a determination by the Commission as to 
whether ABC School Supply failed to comply with the FHSA and the CPSA 
as aforesaid, and (4) to a statement of findings of fact and 
conclusions of law.
    19. For purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b), 
this matter shall be treated as if a complaint had issued; and, the 
Commission may publicize the terms of the Settlement Agreement and 
Order.
    20. Upon provisional acceptance of this Settlement Agreement and 
Order by the Commission, this Settlement Agreement and Order shall be 
placed on the public record and shall be published in the Federal 
Register in accordance with the procedures set forth in 16 CFR 
1118.20(e)-(h). If the Commission does not receive any written request 
not to accept the Settlement Agreement and Order within 15 days, the 
Settlement Agreement and Order will be deemed finally accepted on the 
16th day after the date it is published in the Federal Register.
    21. The parties further agree that the Commission shall issue the 
attached Order incorporated herein by reference; and that a violation 
of the Order shall subject ABC School Supply to appropriate legal 
action.
    22. Agreements, understandings, representations, or interpretations 
made outside of this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.
    23. The provisions of the Settlement Agreement and Order shall 
apply to ABC School Supply, Inc. and each of its successors and 
assigns.

Order

    In the Matter of ABC SCHOOL SUPPLY, INC., a corporation.

    Upon consideration of the Settlement Agreement entered into between 
respondent ABC School Supply, Inc., a corporation, and the staff of the 
Consumer Product Safety Commission; and the Commission having 
jurisdiction over the subject matter and ABC School Supply, Inc.; and 
it appearing that the Settlement Agreement and Order is in the public 
interest, it is
    Ordered, that the Settlement Agreement and Order be and hereby is 
accepted, as indicated below; and it is
    Further Ordered, that upon final acceptance of the Settlement 
Agreement and Order, ABC School Supply, Inc. shall pay to the 
Commission a civil penalty in the amount of Forty-Five Thousand and 00/
100 Dollars ($45,000.00) in three payments: Twenty-Five Thousand and 
00/100 Dollars $25,000.00) within twenty (20) days after service on ABC 
School Supply, Inc. of the Final Order accepting the Settlement 
Agreement, Ten Thousand and 00/100 Dollars ($10,000.00) within one year 
from the date of this first payment, and Ten Thousand Dollars and 00/
100 ($10,000.00) within two years from the date of the first payment. 
Payment of the full amount of the civil penalty shall settle fully the 
staff's allegations set forth in paragraphs 5 through 13 of the 
Settlement Agreement and Order that ABC School Supply, Inc. violated 
the FHSA. Upon failure by ABC School Supply to make payment or upon the 
making of a late payment by ABC School Supply (a) the entire amount of 
the civil penalty shall be due and payable, and (b) interest on the 
outstanding balance shall accrue and be paid at the federal legal rate 
of interest under the provisions of 28 U.S.C. 1961(a) and (b).
    Provisionally accepted and Provisional Order issued on the 30th day 
of June, 1995.

    By Order of the Commission.
Sayde E. Dunn,
Secretary, Consumer Product Safety Commission.
    Finally accepted and Final Order issued on the ________ day of 
________, 1995.

    By order of the Commission.
Sayde E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 95-16634 Filed 7-6-95; 8:45 am]
BILLING CODE 6355-01-M