[Federal Register Volume 62, Number 80 (Friday, April 25, 1997)]
[Notices]
[Pages 20156-20158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10692]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 97-C0005]
STK International, 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)-
(h). Published below is a provisionally-accepted Settlement Agreement
with STK International, 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 May 10, 1997.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 97-C0005, Office of the
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.
FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney,
Office of Compliance and Enforcement, Consumer Product Safety
Commission, Washington, D.C. 20207; telephone (301) 504-0626.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: April 21, 1997.
Sadye E. Dunn,
Secretary.
In the Matter of: STK International, Inc., a corporation. CPSC
Docket No. 97-C0005.
Settlement Agreement and Order
1. STK International, Inc. (hereinafter, ``STK''), 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 incorporated herein. The purpose of this Agreement
and Order is to settle the staff's allegations that STK knowingly
introduced or caused the introduction into interstate commerce; and
received in interstate commerce and delivered or proffered delivery
thereof for pay or otherwise, certain banned hazardous toys and certain
misbranded hazardous art material products, in violation of sections 4
(a) and (c) of the Federal Hazardous Substances Act (FHSA), 15 U.S.C.
1263 (a) and (c).
I. The Parties
2. 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 Consumer Product Safety Act
(CPSA), 15 U.S.C. 2053.
3. Since 1985, STK has been a corporation organized and existing
under the laws of the State of California. Its principal corporate
offices are located at 2602 East 37th Street, Vernon, CA 90058. STK is
engaged in the import, export, and distribution of general merchandise.
Approximately 15% of STK's sales are in toys and art materials.
II. Allegations of the Staff
A. Toys With Small Parts
4. On eight occasions between May 5, 1994, and April 25, 1996, STK
introduced or caused the introduction into interstate commerce; and
received in interstate commerce and delivered or proffered delivery
thereof for pay or otherwise, eight kinds of toys (88,010 units)
intended for use by children under three years of age. These toys are
identified and described as follows:
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Collect
Sample No. Product date,* Expt./mfg. Quantity
entry date
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S-867-8257, S-867-8279, S-867-8280.... Butterfly Walking Toy.................................. 05/05/94 Hughway...................... 10,512
S-867-8388............................ Plastic Toy............................................ 06/14/94 Hughway...................... 9,504
S-867-8343............................ Wind Up Ducks.......................................... 06/16/94 Hughway...................... 14,400
[[Page 20157]]
T-800-3800............................ Press & Go Cho Cho Train............................... * 11/07/94 Unknown...................... 144
96-860-5035........................... Wind Up Helicopter..................................... 09/21/95 Hughway...................... 2,888
96-800-1100........................... Toy Truck.............................................. * 11/20/95 Unknown...................... 72
96-860-5413........................... Wind Up Tricycle....................................... 02/08/96 Hughway...................... 10,800
96-860-5865........................... My Alphabet Toy........................................ 04/25/96 Gowin........................ 39,690
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5. The toys identified in paragraph 4 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 toys fit completely within the small parts test cylinder,
as set forth in 16 CFR 1501.4.
6. Because the separated parts fit completely within the test
cylinder as described in paragraph 5 above, each of the toys identified
in paragraph 4 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).
7. Each of the toys identified in paragraph 4 above is a
``hazardous substance'' pursuant to section 2(f)(1)(D) of the FHSA, 15
U.S.C. 1261(f)(1)(D).
8. Each of the toys identified in paragraph 4 above is a ``banned
hazardous substance'' pursuant to section 2(q)(1)(A) of the FHSA, 15
U.S.C. 1261(q)(1)(A) and 16 CFR 1500.18(a)(9) because it is intended
for use by children under three years of age and bears or contains a
hazardous substance as described in paragraph 7 above; and because it
presents a mechanical hazard as described in paragraph 6 above.
9. STK knowingly introduced or caused the introduction into
interstate commerce; and received in interstate commerce and delivered
or proffered delivery thereof for pay or otherwise, the aforesaid
banned hazardous toys, identified in paragraph 4 above, in violation of
sections 4 (a) and (c) of the FHSA, 15 U.S.C. 1263 (a) and (c), for
which a civil penalty may be imposed pursuant to section 5(c)(1) of the
FHSA, 15 U.S.C. 1264(c)(1).
B. Art Material
10. On one occasion in 1993, STK introduced or caused the
introduction into interstate commerce; and received in interstate
commerce and delivered or proffered delivery thereof for pay or
otherwise, one type of art material (8,640). This art material product
is identified and described as follows:
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Sample No. Product Entry date Expt./mfg. Quantity
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R-867-8618................... 4 Piece Paint Set................ 09/02/93 Gown................ 8,640
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11. The art material product identified in paragraph 10 is subject
to, but failed to comply with the requirements of the Labeling of Art
Materials Act in that (a) STK did not submit this art material product
for review by a toxicologist as required by section 23(a) of the FHSA,
15 U.S.C. 1277(a) and 16 CFR 1500.14(b)(8)(C)(1); and (b) this art
material product did not bear the statement of conformance with ASTM D-
4236, as required by section 23(a) of the FHSA, 15 U.S.C.
1500.14(b)(8)(C)(7).
12. The art material product identified in paragraph 10 above is a
``misbranded'' hazardous substance'' pursuant to section 3(b) of the
FHSA, 15 U.S.C. 1262(b) and 16 CFR 1500.14(b)(8)(C) (1) and (7).
13. STK knowingly introduced or caused the introduction into
interstate commerce; and received in interstate commerce and delivered
or proffered delivery thereof for pay or otherwise, the aforesaid
misbranded hazardous art material product identified in paragraph 10
above, in violation of sections 4 (a) and (c) of the FHSA, 15 U.S.C.
1263 (a) and (c), for which a civil penalty may be imposed pursuant to
section 5(c)(1) of the FHSA, 15 U.S.C. 1264(c)(1).
III. Response of STK
14. STK denies the allegations of the staff set forth in paragraphs
4 through 13 above that it knowingly introduced or caused the
introduction into interstate commerce; and received in interstate
commerce and delivered or proffered delivery thereof for pay or
otherwise, the banned hazardous toys and misbranded hazardous art
material, identified in paragraphs 4 an 10 above, in violation of
sections 4 (a) and (c) of the FHSA, 15 U.S.C. 1262 (a) and (c).
IV. Agreement of the Parties
15. The Consumer Product Safety Commission has jurisdiction over
STK and the subject matter of this Settlement Agreement and Order under
the 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 reference.
17. The Commission does not make any determination that STK
violated the FHSA. The Commission and STK 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, STK 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 STK failed to comply
with the FHSA as aforesaid, (4) to a statement of findings of fact and
conclusions of law, and (5) to any claims under the Equal Access to
Justice Act.
19. For purposes of section 6(b) of the FHSA, 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
[[Page 20158]]
Order within 15 days, the Settlement Agreement and Order will be deemed
to be 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 which is incorporation herein by reference; and that a
violation of the Order shall subject STK to appropriate legal action.
22. Agreements, understandings, representations, or interpretations
made outside this Settlement Agreement and Order may not be used to
vary or contradict its terms.
23. The provisions of the Settlement Agreement and Order shall
apply to STK and each of its successors and assigns.
Dated: March 13, 1997.
Respondent STK International, Inc.
Stuart Todd Kole,
President, STK International, Inc., 2602 East 37th Street, Vernon, CA
90058.
Commission Staff
Eric L. Stone,
Director, Division of Administrative Litigation, Office of Compliance.
David Schmeltzer,
Assistant Executive Director, Office of Compliance, Consumer Product
Safety Commission, Washington, D.C. 20207-0001.
Dated: March 19, 1997.
Dennis C. Kacoyanis,
Trial Attorney, Division of Administrative Litigation, Office of
Compliance.
Order
Upon consideration of the Settlement Agreement between Respondent
STK International, Inc., a corporation, and the staff of the Consumer
Product Safety Commission; and the Commission having jurisdiction over
the subject matter and STK International, 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, STK International, Inc. shall pay to the
Commission a civil penalty in the amount of EIGHTY THOUSAND AND 00/100
DOLLARS ($80,000.00) in two payments consisting of FORTY THOUSAND AND
00/100 DOLLARS ($40,000.00) each. The first payment of FORTY THOUSAND
AND 00/100 DOLLARS ($40,000.00) shall be due within twenty (20) days
after service upon Respondent of the Final Order of the Commission
accepting the Settlement Agreement and Order (hereinafter, the
anniversary date). The second payment of FORTY THOUSAND AND 00/100
DOLLARS ($40,000.00) shall be paid within one year after service of the
Final Order upon Respondent. Payment of the full amount of the civil
penalty shall settle fully the staff's allegations set forth in
paragraphs 4 through 13 of the Settlement Agreement and Order that STK
International, Inc. violated the FHSA. Upon failure of STK
International, Inc. to make payment or upon the making of a late
payment by STK International, Inc. (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 under the
provisions of 28 U.S.C. Secs. 1961 (a) and (b).
Provisionally accepted and Provisional Order issued on the 21st
day of April, 1997.
By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 97-10692 Filed 4-24-97; 8:45 am]
BILLING CODE 6355-01-M