[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)] [Notices] [Pages 14428-14429] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-7672] ======================================================================= ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 98-C0008] In The Matter of Safety 1st, 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. Published below is a provisionally-accepted Settlement Agreement with Safety 1st, Inc., a corporation, containing a civil penalty of $175,000. 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 April 9, 1998. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 98-C0008, Office of the Secretary, Consumer Product Safety Commission, Washington, D.C. 20207. FOR FURTHER INFORMATION CONTACT: William J. Moore, Jr., 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: March 18, 1998. Sadye E. Dunn, Secretary. ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION Settlement Agreement And Order 1. Safety 1st, Inc. (``Safety 1st'') a corporation, enters into this Settlement Agreement and Order with the staff (``the staff'') of the Consumer Product Safety Commission (``the Commission'') in accordance with 16 CFR 1118.20 of the Commission's Procedures for Investigations, Inspections, and Inquiries under the Consumer Product Safety Act (``CPSC''). I. The Parties 2. The Consumer Product Safety Commission is an independent federal [[Page 14429]] regulatory agency responsible for the enforcement of the Consumer Product Safety Act, 15 U.S.C. 2051-2084. 3. Safety 1st is a corporation organized and existing under the laws of the State of Massachusetts. Its principal offices are located at 210 Boylston Street, Chestnut Hill, MA 02167. II. Staff Allegations 4. Between April 1994 and December 1994 Safety 1st manufactured and distributed approximately 191,000 portable Safety 1st Safe Keeper Bed Rails and Flashlight model 177 (hereinafter, ``Bed Rail'') in the United States. Safety 1st is, therefore, a manufacturer, distributor and a private labeler of the Bed Rail in commerce. 5. The Bed Rail is a portable household device intended to keep young children from falling out of bed. The Bed Rail is a consumer product. 6. The plastic support arm(s) of the Bed Rail may break or separate from the rest of the guard rail when children users move against them allowing children to become stuck between rail and bed or to fall out of bed. In addition, a sharp edge along the hard plastic seams of the bed rail may cause cuts and abrasions to children. In 1994 and 1995, Safety 1st admits to receiving 25 injury complaints from consumers describing such Bed Rail incidents. Some of the reported incidents have caused fractures, bruises, lacerations to the face, head, back, chest and otherwise, and one concussion. 7. Safety 1st obtained information which reasonably supported the conclusion that its Bed Rail contained defects which could create a substantial product hazard but failed to report that information to the Commission in a timely manner as required by section 15(b) of the CPSA, 15 U.S.C. 2064(b). III. Response of Safety 1st 8. Safety 1st denies the allegations of the staff that the Safekeeper Bed Rail and Flashlight contains any defect which could create a substantial product hazard pursuant to section 15(a) of the CPSA, 15 U.S.C. 2064(a), and further denies that it violated the reporting requirements of section 15(b) of the CPSA, 15 U.S.C. 2064(b). 9. Safety 1st filed a report as required by Section 15(b) of the CPSC, 15 U.S.C. 2064(b). Such report contained a disclaimer as to product defect and risk of a substantial product hazard. The separation of the support arms from the bed rail resulted from a failure of the installer to properly assemble the bed rail. 10. Safety 1st also contends that the incidents reported did not involve a serious risk of injury to the intended user age group for the bed rail. IV. Agreement of The Parties 11. The Commission has jurisdiction over this matter under the Consumer Product Safety Act (CPSA), 15 U.S.C. 2051 et seq. 12. Safety 1st knowingly, voluntarily and completely waives any rights it may have (1) to an administrative or judicial hearing with respect to the staff allegations cited herein, (2) to judicial review or other challenge or contest of the validity of the Commission's Order, (3) to a determination by the Commission as to whether a violation of section 15(b) of the CPSA, 15 U.S.C. 2064(b), has occurred, and (4) 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 C.F.R. 1118.20. 14. The Settlement Agreement and Order becomes effective upon final acceptance by the Commission and its service upon Safety 1st. 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. Safety 1st agrees to entry of the attached Order, which is incorporated herein by reference, and to be bound by its terms. 17. This Settlement Agreement and Order are entered into for settlement purposes only and shall not constitute an admission or determination arising from the allegations that the guard rails contain a defect which could create a substantial product hazard. 18. This Settlement Agreement is binding upon Safety 1st and the assigns or successors of Safety 1st. 19. Agreements, understandings, representations, or interpretations made outside this Settlement Agreement and Order may not be used to vary or to contradict its terms. Dated: March 9, 1998. Michael Lerner, Chief Executive Officer, Safety 1st, Inc. Dated: March 5, 1998. Alan H. Schoem, Assistant Executive Director, Office of Compliance, The Consumer Product Safety Commission. Eric L. Stone, Director, Legal Division, Office of Compliance, The Consumer Product Safety Commission. William J. Moore, Jr., Attorney, Legal Division, Office of Compliance, Litigation, Office of Compliance, The Consumer Product Safety Commission. Order Upon consideration of the Settlement Agreement entered into between Respondent, Safety 1st, Inc., a corporation, and the staff of the Consumer Product Safety Commission; and the Commission having jurisdiction over the subject matter and Safety 1st, Inc., and it appearing that the Settlement Agreement and Order is in the public interest, it is Ordered, that the Settlement Agreement be and hereby is accepted; and it is Further ordered, that upon final acceptance of the Settlement Agreement and Order, Safety 1st, Inc. shall pay the Commission a civil penalty in the amount of one hundred seventy five thousand and no/100 dollars ($175,000.00), within ten (10) days after service of this Final Order upon the Respondent, Safety 1st, Inc. Provisionally accepted and Provisional Order issued on the 18th day of March, 1998. By order of the commission. Sadye E. Dunn, Secretary, Consumer Product Safety Commission. [FR Doc. 98-7672 Filed 3-24-98; 8:45 am] BILLING CODE 6355-01-M