[Federal Register Volume 63, Number 33 (Thursday, February 19, 1998)]
[Notices]
[Pages 8437-8438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4088]


=======================================================================
-----------------------------------------------------------------------

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 98-C0007]


In the Matter of Binky-Griptight, 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.

-----------------------------------------------------------------------

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 
Binky-Griptight, Inc., a corporation, containing a civil penalty of 
$150,000.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by March 6, 1998.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 98-C0007, Office of the 
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.

FOR FURTHER INFORMATION CONTACT:
Traci J. Williams, 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: February 12, 1998.
Sadye E. Dunn,
Secretary.

In the Matter of Binky-Griptight, Inc. a Corporation; Settlement 
Agreement and Order

    1. Binky-Griptight, Inc. (``Binky-Griptight''). a corporation, 
enters into this Settlement Agreement and Order with the staff of the 
Consumer Product Safety Commission (``Commission'' or CPSC'') under the 
Consumer Product Safety Act (``CPSA''), 15 U.S.C. 2051-2084. The 
Settlement Agreement and Order comply with the procedures set forth in 
the Commission's Procedures for Consent Order Agreements. 16 CFR 
1118.20.

I. The Parties

    2. The ``staff'' is the staff of the Consumer Product Safety 
Commission, an independent regulatory commission of the United States 
of America, established pursuant to section 4 of the CPSA, 15 U.S.C. 
2053.
    3. Binky-Griptight, Inc. is a corporation organized and existing 
under the laws of the State of New Jersey, with its principal corporate 
offices located at 519-523 Paterson Avenue, P.O. Box 3307, Wallington, 
New Jersey 07057.

II. Allegations of the Staff

    4. Between April 1994 and August 1995, Binky-Griptight imported 
defective Binky Soft Latex Nipple Newborn Orthodontic pacifiers (``Li'l 
Binks''). Consequently, Binky-Griptight is a ``manufacturer'' as the 
term is defined in section 3(a)(4) of the CPSA, 15 U.S.C. 2052(a)(4).
    5. The Li'l Binks were sold in retail stores throughout the United 
States. They were used by infants in their homes. As a result, the Li'l 
Binks are `'consumer products'' which were ``distributed in commerce'' 
as those terms are defined in section 3(a) (1) and (11) of the CPSA, 15 
U.S.C. 2052(a) (1) and (11).
    6. The handle of the Li'l Bink, which held the plug and the nipple, 
could crack and, if the cracking were severe, could cause the nipple 
and the plug to separate from the handle. If they separated from the 
handle, a child could choke on either the nipple or the plug. In May 
1995, Binky-Griptight learned that the handle could crack. Also, Binky-
Griptight received complaints about the cracked handles and detached 
plugs and nipples of the Li'l Bink. In September 1995, Binky-Griptight 
recalled the Li'l Binks from its customers.

[[Page 8438]]

    7. Binky-Griptight obtained information which reasonably supported 
the conclusion that the Li'l Binks contained defects which could create 
a substantial product hazard or an unreasonable risk of serious injury 
or death, but failed to report that information to the Commission as 
required by section 15(b) of the CPSA, 15 U.S.C. 2064(b).

III. Response of Binky Griptight, Inc.

    8. Binky-Griptight, Inc. denies the allegations of the staff that 
the Li'l Binks contained any defects which could create a substantial 
product hazard or an unreasonable risk of serious injury or death, 
pursuant to section 15(a) of the CPSA, 15 U.S.C. 2064(a); it denies 
that it violated the reporting requirements of section 15(b) of the 
CPSA, 15 U.S.C. 2064(b).
    9. Binky-Griptight further states that after it identified and 
corrected the cracking problem and conducted a further recall with the 
oversight of Commission staff, it also ceased distribution of the 
affected style of pacifier in 1996. To date, Binky-Griptight has not 
received any claims or allegation of injury from the Li'l Binks covered 
by this settlement.

IV. Agreement of the Parties

    10. The Commission has jurisdiction over this matter under the 
CPSA, 15 U.S.C. 2051-2084.
    11. Binky-Griptight agrees to pay the Commission one hundred and 
fifty thousand and 00/100 dollars ($150,000.00), payable as follows: 
$50,000 twenty days after final acceptance of the Order, $50,000 on the 
one-year anniversary date of the final acceptance of the Order, and 
$50,000 on the two-year anniversary date of the final acceptance of the 
Order.
    2. Binky-Griptight knowingly, voluntarily, and completely waives 
any rights it may have to an administrative or judicial hearing with 
respect to the staff allegations cited herein, to judicial review or 
other challenge or contest of the validity of the Commission's Order, 
to a determination by the Commission as to whether a violation of 
section 15(b) of the CPSA, 15 U.S.C. 2064(b), occurred, and to a 
statement of findings of fact and conclusion of law with regard to the 
staff allegations.
    13. 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 16 CFR Sec. 1118.20(e).
    14. The Settlement Agreement and Order take effect upon final 
acceptance by the Commission and their service upon Binky-Griptight.
    15. Upon final acceptance of this Settlement Agreement by the 
Commission, the Commission will issue a press release to advise the 
public of the civil penalty Settlement Agreement and Order.
    16. Binky-Griptight agrees to entry of the attached Order, which is 
incorporated herein by reference, and agrees to be bound by its terms.
    17. This Settlement Agreement and Order are binding upon Binky-
Griptight and its assigns and successors.
    18. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or contradict its terms.

    Dated: January 12, 1998.

    Binky-Griptight, Inc.

Kurt Jetta,
Binky-Griptight, Inc.
    The Consumer Product Safety Commission.
Alan H. Schoem,
Assistant Executive Director, Office of Compliance.
Eric L. Stone, Director,
Division of Administrative Litigation, Office of Compliance.
    Dated: January 21, 1998.
Traci J. Williams, Trial Attorney,
Division of Administrative Litigation, Office of Compliance.

Order

    Having considered the terms and conditions of the Settlement 
Agreement entered into between Respondent, Binky-Griptight, Inc., a 
corporation, and the staff of the Consumer Product Safety Commission, 
having recognized the Commission's jurisdiction over the subject matter 
and Binky-Griptight, Inc., and having concluded that the Settlement 
Agreement and Order are in the public interest, it is ordered that the 
Settlement Agreement be and hereby is accepted. And it is further 
ordered that Binky-Griptight, Inc. shall pay the Commission a civil 
penalty in the amount of one hundred and fifty thousand and 00/100 
dollars ($150,000.00), payable as follows: $50,000 twenty days after 
final acceptance of the Order, $50,000 on the one-year anniversary date 
of the final acceptance of the Order, and $50,000 on the two-year 
anniversary date of the final acceptance of the Order.
    Upon Failing to make a payment or upon making a late payment, the 
outstanding balance of the civil penalty is due and payable by Binky-
Griptight, Inc., and the 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 12th 
day of February, 1998.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 98-4088 Filed 2-18-98; 8:45 am]
BILLING CODE 6355-01-M