Federal Register, Volume 63 Issue 218 (Thursday, November 12, 1998)

[Federal Register Volume 63, Number 218 (Thursday, November 12, 1998)]
[Notices]
[Pages 63298-63303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30163]

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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 99-C0003]

Small World Toys, Inc., a Domestic Corporation; Provisional
Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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SUMMARY: It is the policy of the Commission to publish settlements
which it provisionally accepts under the Federal Hazardous Substance
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 Small World Toys, Inc., a domestic corporation,
containing a civil penalty of $225,000.

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 November 27, 1998.

ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to Comment 99-C0003, 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, 1346.

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

Dated: November 4, 1998.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

1. Small World Toys, Inc. (hereinafter, ``Small World''), 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 Small World violated the Consent Decree of Permanent Injunction
and the Federal Hazardous Substances Act (FHSA).

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. Small World is a corporation organized and existing under the
laws of the State of California. Small World's address is 5711
Buckingham Parkway, Culver City, CA 90231. Small World is an importer
and wholesaler of children's toys.

II. Allegations of the Staff

A. Violation of the Consent Decree

4. On July 31, 1986, the United States Department of Justice on
behalf of the Commission and Small World entered into a Consent Decree
of Permanent Injunction, hereinafter, ``Consent Decree'' (Consent
Decree, Attachment A) to resolve allegations that Small World
introduced or caused the introduction in interstate commerce; and
received in interstate commerce and delivered or proffered delivery
thereof for pay or otherwise, toys and other articles intended for use
by children under three years of age that failed to comply with the
Commission's Small Parts Regulation at 16 CFR Part 1501, in violation
of sections 4 (a) and (c) of the FHSA, 15 U.S.C. 1263 (a) and (c).
5. The Consent Decree requires Small World to test six (6) units of
a toy or other article intended for children under three years old for
small parts pursuant to the use and abuse procedures set forth in 16
CFR 1501.4 and 1500.51 and .52 twice per calendar year unless Small
World receives only one shipment of the particular toy during the
calendar year. If any unit of a toy fails use and abuse procedures,
Small World is prohibited from distributing the toy in interstate
commerce and must notify the Commission in writing within three (3)
days of the failure.
6. Small World has not complied with the testing and reporting
requirements of the Consent Decree.
7. Small World's failure to comply with the testing and reporting
requirements of the Consent Decree constitutes a violation of the
Consent Decree.

[[Page 63299]]

B. Toys With Small Parts

8. On four occasions between October 12, 1994, and December 1,
1995, Small World 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
(23,604 retail units) intended for use by children under three years
old. These toys are identified and described as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
Collect. date *
Sample No. Product entry date Expt/Mfg. Quantity
--------------------------------------------------------------------------------------------------------------------------------------------------------
T-867-8045.............................. Necklace........................ 10/12/94 Fishel....................................... 3,456
T-867-8046.............................. Necklace........................ 10/12/94 Fishel....................................... 2,304
T-867-8178.............................. Bracelet........................ * 01/27/95 Fishel....................................... 4,320
T-867-8179.............................. Bracelet........................ * 01/27/95 Fishel....................................... 4,320
T-867-8180.............................. Locomotive...................... * 01/27/95 Supertoys.................................... 576
T-867-8181.............................. Car............................. * 01/27/95 Golden Bell.................................. 2,448
T-867-8338.............................. Gazoobo......................... * 09/12/95 Caben........................................ 6,168
96-860-5154............................. Simba Doll...................... * 12/01/95 Unknown...................................... 12
--------------------------------------------------------------------------------------------------------------------------------------------------------

9. The toys identified in paragraph 8 above are intended for
children under three years old and are subject to the Commission's
Small Parts Regulation, 16 CFR Part 1501.
10. The toys identified in paragraph 8 above 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 .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.
11. Because the separated parts fit completely within the test
cylinder as described in paragraph 10 above, each of the toys
identified in paragraph 8 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).
12. Each of the toys identified in paragraph 8 above is a
``hazardous substance'' pursuant to section 2(f)(1)(D) of the FHSA, 15
U.S.C. 1261(f)(1)(D).
13. Each of the toys identified in paragraph 8 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 12 above; and because it
presents a mechanical hazard as described in paragraph 11 above.
14. Small World 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 8 above, in
violation of sections 4(a) and (c) of the FHSA, 15 U.S.C. 1263 (a) and
(c).

C. Rattles With Small Parts

15. On one occasion in 1994, Small World introduced or caused the
introduction into interstate commerce; and received in interstate
commerce and delivered or proffered delivery thereof for pay or
otherwise, one kind of rattle (3,456 units) intended for use by
children. This rattle is identified and described as follows:

16. The rattle identified in paragraph 15 above is subject to, but
failed to comply with the Commission's Rattle Regulations, 16 CFR Part
1510, in that when tested under the procedures set forth in 16 CFR
1510.4, the rattle penetrated the full depth of the test fixture.
17. Because the rattle identified in paragraph 15 above penetrated
the full depth of the cavity of the test fixture as specified in 16 CFR
1510.4, it presents a ``mechanical hazard'' within the meaning of
section 2(s) of the FHSA, 15 U.S.C. 1261(s) (choking) and is,
therefore, a ``hazardous substance'' pursuant to section 2(f)(1)(D) of
the FHSA, 15 U.S.C. 1261(f)(1)(D).
18. The rattle identified in paragraph 15 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)(15) because it is intended
for use by children and bears or contains a hazardous substance; and
because it presents a mechanical hazard as defined in paragraph 17
above.
19. Small World 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 rattle identified in paragraph 15 above, in
violation of sections 4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and
(c).

D. Art Material

20. On three occasions between August 31, 1993, and September 13,
1993, Small World introduced or caused the introduction into interstate
commerce; and received in interstate commerce and delivered or
proffered delivery thereof for pay or otherwise, eight (8) different
types of art material products (8,592 units). These art material
products are identified and described as follows:

[[Page 63300]]

R-867-8515.............................. Water Color Paint Set........... 09/01/93 Weghorn...................................... 480
R-867-8516.............................. Water Color Paint Set........... 09/01/93 Weghorn...................................... 2,592
R-867-8517.............................. Color Paint Set................. 09/01/93 Weghorn...................................... 312
R-867-8518.............................. Water Color Paint Set........... 09/01/93 Weghorn...................................... 480
R-867-8579.............................. Mini Crayons.................... 09/13/93 Aims......................................... 2,880
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21. The art material products identified in paragraph 20 above are
subject to, but failed to comply with the requirements for the Labeling
of Art Materials Act in that (a) Small World did not submit these art
material products 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) these art material products 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).
22. The art material products identified in paragraph 20 above are
``misbranded hazardous substances'' 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).
23. Small World 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 materials identified in paragraph 20
above, in violation of sections 4(a) and (c) of the FHSA, 15 U.S.C.
1263(a) and (c).

E. Failure to Follow Export Notification Requirements

24. On ten occasions between April 8, 1997, and November 24, 1997,
Small World exported 10 different kinds of toys (9,291 units) intended
for use by children under three years old that failed to comply with
the Commission's Small Parts Regulations 16 CFR Part 1501 without
submitting a ``notification of intent to export'' to the Commission
pursuant to section 14(d) of the FHSA, 15 U.S.C. 1273(d) and the
Commission's Procedures For Export of Noncomplying Products, 16 CFR
Part 1019. These toys are described and identified as follows:

------------------------------------------------------------------------
Product Expt./Mfg. Quantity
------------------------------------------------------------------------
Pull-Along Dog................. Ambi....................... 2,847
Sand Boat...................... Ambi....................... 882
Animal Trains.................. Caben...................... 714
Ambulance...................... Golden Bell................ 888
Bear Trumpet................... Hong Kong Toy Ctr.......... 624
Cement Mixer................... Kodomo..................... 600
Water Wheel.................... Kodomo..................... 1,188
Shape Sorter................... Megcos..................... 720
Crane Truck.................... Golden Bell................ 600
Bank........................... Caben...................... 228
------------------------------------------------------------------------

25. Small World knowingly failed to file the required notification
informing the Commission of its intent to export the toys identified in
paragraph 24 above, in violation of section 4(i) of the FHSA, 15 U.S.C.
1263(j).

III. Response of Small World

26. Small World denies the allegations of the staff set forth in
paragraphs 4 through 25 above. Small World denies the allegations that
it violated the testing and reporting provisions of the Consent Decree
and that it knowingly introduced or caused the introduction in
interstate commerce and delivered or proffered delivery thereof for pay
or otherwise any banned hazardous toys and rattles and any misbranded
hazardous art material products.
27. Small World contends the necklaces, bracelets, locomotive and
car listed in paragraph 8 are not intended or promoted for use by
children under three years old and therefore are not subject to the
CPSC Small Parts Regulation. The Gazoobo toy is intended and promoted
for ages above 18 months through 5 years and it meets CPSC's Small
Parts requirement for that age group. The Simba Doll sold by Small
World met the CPSC Small Parts Regulation.
28. Small World did not knowingly introduce or cause the
introduction into interstate commerce or receive or deliver or proffer
delivery of any banned hazardous rattles as alleged in paragraph 15.
29. Small World never received in interstate commerce the art
materials listed in paragraph 20 and never introduced them into
interstate commerce. They were stopped before entry into the United
States and before Small World had any opportunity to inspect them to
determine if they were properly labeled under the Labeling of Art
Materials Act. Two products, Dino Puzzle and Mini Crayons, were
returned to the manufacturer before they entered the United States. The
Color Paint Sets were properly labeled after SWT was informed that they
had arrived at the port without labels.

IV. Agreement of the Parties

30. The Consumer Product Safety Commission has jurisdiction over
Small World 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.
31. Upon final acceptance by the Commission of this Settlement
Agreement and Order, Small World knowingly, voluntarily, and completely
waives any rights it may have in this matter (a) to an administrative
or judicial hearing, (b) to judicial review or other challenge or
contest of the validity of the Commission's actions, (c) to a
determination by the Commission whether Small World failed to comply
with the testing and reporting requirements of the Consent Decree and
the FHSA, (d) to a statement of findings of facts and conclusions of
law, and (e) to any claims under the Equal Access to Justice Act.
32. In settlement of the staff's allegations, Small World agrees to
pay a civil penalty of $225,000.00 as set forth in the incorporated
Order.
33. In settlement of the staff's allegations, Small World agrees to
comply with the testing and reporting requirements of the Consent
Decree.
34. 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.
35. Upon provisional acceptance of this Settlement Agreement by the
Commission, the Commission will place the Settlement Agreement and the
Provisional Order on the public record, and publish it 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 requests
not to accept the Settlement Agreement within 15 days, the Settlement
Agreement shall be deemed finally accepted and the Final Order issued
on the 16th day.

[[Page 63301]]

36. This Settlement Agreement may be used in interpreting the
Order. Agreements, understandings, representations, or interpretations
apart from those contained in this Settlement Agreement and Order may
not be used to vary or contradict its terms.
37. The provisions of this Settlement Agreement and Order shall
apply to Small World and each of its successors and assigns.
38. Small World shall notify the CPSC in writing at least thirty
(30) calendar days prior to any reorganization, dissolution,
assignment, or sale resulting in the emergence of a successor
corporation, the creation or dissolution of any subsidiaries, or any
other changes in the corporate structure of Small World that may affect
compliance obligations arising out of this Settlement Agreement and
Order. Such notice shall be sent by certified mail, return receipt
requested to: Assistant Executive Director for Compliance, Consumer
Product Safety Commission, Washington, D.C. 20207-0001.
39. Upon final acceptance of this Agreement, the Commission shall
issue the attached Final Order.
Respondent Small World Toys, Inc.
Dated: October 6, 1998.
Edward M. Goldwasser,
President, Small World Toys, Inc., 5711 Buckingham Parkway, Culver
City, CA 90231.

Dated: October 7, 1998.
Michael A. Brown,
Esquire,
Margaret A. Freeston,
Esquire, Brown & Freeston, P.C., 3201 New Mexico Avenue, N.W., Suite
242, Washington, D.C. 20016-2756.
Commission Staff
Alan H. Schoem,
Assistant Executive Director, Office of Compliance, Consumer Product
Safety Commission, Washington, D.C. 20207-0001.
Eric L. Stone,
Director, Legal Division, Office of Compliance.

Dated: October 8, 1998.
Dennis C. Kacoyanis,
Trial Attorney, Legal Division, Office of Compliance.

Order

Upon consideration of the Settlement Agreement entered into between
Respondent Small World Toys, Inc., a corporation, and the staff of the
Consumer Product Safety Commission; and the Commission having
jurisdiction over the subject matter and Small World Toys, 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, Small World Toys, Inc. shall pay to the Commission
a civil penalty in the amount of TWO HUNDRED TWENTY-FIVE THOUSAND AND
00/100 DOLLARS ($225,000.00) in three (3) payments. The first payment
of SEVENTY-FIVE THOUSAND AND 00/100 DOLLARS ($75,000.00) shall be due
within twenty (20) days after service upon Respondent of the Final
Order of the Commission accepting the attached Settlement Agreement or
December 20, 1998 whichever is later. The second payment of SEVENTY-
FIVE THOUSAND AND 00/100 DOLLARS ($75,000.00) shall be due on December
20, 1999. The third payment of SEVENTY-FIVE THOUSAND AND 00/100 DOLLARS
($75,000.00) shall be due on December 20, 2000. Upon the failure by
Small World Toys, Inc. to make a payment or upon the making of a late
payment by Small World Toys, 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 of interest
under the provisions of 28 U.S.C. 1961 (a) and (c).
Provisionally accepted and Provisional Order issued on the 4th date
of November, 1998.

By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.

Consent Decree of Permanent Injunction

The United States of America, on behalf of the Consumer Product
Safety Commission, having filed on the 29th day of July, 1986, a
complaint seeking to enjoin permanently the defendant from directly or
indirectly doing or causing to be done any act in violation of sections
4(a) and (c) of the Federal Hazardous Substances Act (FHSA) 15 U.S.C.
1263(a) and (c) by introducing, delivering for introduction or
receiving in interstate commerce any toy or other article intended for
use by children under 3 years of age which is a banned hazardous
substance pursuant to 15 U.S.C. 1261(q)(1)(A), and the regulations
issued thereunder, 16 CFR 1500.18(a)(9) and 16 CFR Part 1501, 16 CFR
Part 1510, 16 CFR 1500.48 and .49; and from directly or indirectly
doing or causing to be done any act or violation of section 19(a)(2) of
the Consumer Product Safety Act (CPSA), 15 U.S.C. 2068(a)(2), by
manufacturing for sale, offering for sale; distributing in commerce or
importing into the United States any toy or other article intended for
use by children that are banned under 16 CFR Part 1303, regarding
articles bearing lead containing paint. The defendant, Small World
Toys, a corporation, having consented to the entry of this decree and
to each and every provision hereof, without contest and before any
testimony has been taken, and the United States having moved this Court
for this permanent injunction:
Now, therefore, it is ordered, adjudged and decreed that:
1. This Court has jurisdiction over the subject matter of this
action pursuant to 28 U.S.C. Secs. 1331, 1337 and 1345 and 15 U.S.C.
1267(a) and has personal jurisdiction over the defendant.
2. Small World Toys, (``Small World''), a corporation organized and
existing under the laws of the State of California, with its principal
place of business located at 5711 Buckingham Parkway, Culver City,
California 90230, is in the business of importing and distributing toys
that are subject to the requirements of the FHSA and the regulations
issued thereunder.
3. Defendant has introduced, delivered for introduction or received
in interstate commerce, children's toys called Ambi ``Funhouse,'' Model
No. E71; Ambi ``Jack in the Ball,'' Model No. E153; Ambi ``Mini-
Racer,'' Model No. E666; Royal Company Ltd., ``Water Wheel,'' Model No.
1928; Jimson, ``Super Air Bus,'' Model No. 349; Jimson ``Elephant
Boat,'' Model No. 376; Jimson, ``See Thru Locomotive,'' Model No. 270T;
Discovery World/Small World Toys ``Lift & Learn Puzzles,'' Model Nos.
2501, 2502, 2503, 2504, 2505 and 2506; Discovery World/Small World Toys
``Scratch & Sniff Puzzles,'' Model Nos. 2507, 2508, 2509, 2510, and
2512; Hermann Eichhorn Gmb. Hu. Co., K6, ``Wooden Train,'' Model No.
2037 and Hans Clemens Co., ``Stuffed Bears,'' Model No. 51250.
4. The Commission believes the toys referred to in paragraph 3 are
toys intended for use by children under three and are subject to the
requirements of the FHSA and its regulations.
5. The Commission believes the children's toys referred to in
paragraph 3 above are banned hazardous substances pursuant to section
2(q)(1)(A) of the FHSA, 15 U.S.C. 1261(q)(1)(A), and the regulations
issued thereunder, 16 CFR 1500.18(a)(9) and 1501 because they exhibit
small parts which present choking, aspiration or ingestion hazards when
subject to the

[[Page 63302]]

test requirements of 16 CFR 1500.51 and 1500.52 and 1501.4.
6. The defendant voluntarily agreed to the Commission's request to
stop distributing the Ambi ``Funhouse,'' Royal Company ``Water Wheel,''
Jimson ``Super Air Bus,'' Jimson ``Elephant Boat,'' Herman Eichorn Gm.
Hu. Co. ``Wooden Train'', Hans Clemens Co. ``Stuffed Bear,'' and Jimson
``See Thru Locomotive'' until such time as they have been changed and
complied with the requirements of the FHSA. The defendant also agreed
to recall the Ambi ``Jack in the Ball,'' and agreed to a limited recall
from the retail level of the Discovery World/Small World Toys ``Lift &
Learn Puzzles'' and ``Scratch & Sniff Puzzles,'' and a limited recall
of the hat of the Ambi ``Mini-Racer,'' including an incentive program
to encourage consumers to return the hat, and agreed not to sell such
products until such time as the products were or have been
appropriately modified.
7. The defendant, and each and all of its directors, officers,
agents, servants, representatives, employees, successors or assigns,
and any and all persons in active concert or participation with it, are
hereby enjoined from directly or indirectly doing or causing the
introduction, delivery for introduction or receipt in interstate
commerce, of:
(a) Any toy or other article intended for use by children under
three years of age that presents a choking, aspiration or ingestion
hazard because of small parts as defined in 16 CFR Part 1501 or which
when tested in accordance with 16 CFR 1501.4 and 1500.51 and .52,
presents a choking, aspiration or ingestion hazard because of small
parts as defined in 16 CFR Part 1501.
(b) Any toy or article intended for use by children that does not
comply with the requirements of 16 CFR 1500.48 and .49, regarding sharp
points and edges.
(c) Any rattle which does not comply with the requirements of 16
CFR Part 1510.
(d) Any toy or other article intended for use by children that does
not comply with the requirements of 16 CFR Part 1303, regarding
articles bearing lead containing paint.
8. Although the FHSA does not require manufacturers, distributors
or importers to test any products, the defendant agrees to conduct, or
have conducted on its behalf, the tests described in 16 CFR 1501.4 and
1500.51 and .52 to detect any banned hazardous toys or other articles
intended for use by children under three years of age. The testing
shall be as follows:
(a) Samples of each model of toy or other article intended for use
by children shall be tested at least twice each calendar year. However,
if only one shipment of a model is received during the calendar year,
samples of the model shall be tested only one time during the calendar
year. The samples shall be tested before items from the shipment(s)
involved are introduced or delivered for introduction into interstate
commerce by defendant or its agents.
(b) A sample shall consist of at least six items of a model, but
the Commission encourages defendant to use 12 or more items. The number
of items used shall be divided evenly between each of the tests
required under this paragraph, except that the torque and tension
tests, 16 CFR 1500.51 (e) and (f) and .52 (e) and (f), shall be
conducted on the same items.
(c) The items in each sample shall be selected at random from as
many cartons as possible and from more than one shipment if possible.
(d) Each item in the sample shall be tested in accordance with 16
CFR 1501.4, 1500.51 and .52. If any items from the sample fail the
testing requirements, the shipment(s) from which these items were
selected shall not be released into interstate commerce until such time
as the products have been appropriately modified or a remedial plan
under subsection (e) is implemented. The defendant shall notify the
Commission within three (3) working days of defendant's actual or
constructive receipt of such test results and shall provide CPSC with a
copy of any written failing test reports. Such notification shall be
sent by certified mail, return receipt requested, to the following
address: Consumer Product Safety Commission, Western Regional Office,
555 Battery Street, Room 401, San Francisco, California 94111.
(a) Upon receipt of such notification, the Commission will then
discuss with defendant what remedial action may be necessary.
9. The Commission agrees that defendant has 30 days from the
effective date of this consent decree to complete the initial testing
required by paragraph eight (8) of all toys intended for children under
three subject to the decree which are in their possession or control on
the effective date of the decree. For those toys or articles
distributed by defendant which are age labeled for children over three
years or which are not age labeled, but which defendant believes may be
subject to this consent decree because they are toys or other articles
intended for use by children under three years of age, defendant shall
seek guidance from the Commission within 10 days of entry of this
consent decree on whether the Commission believes these toys or other
articles are subject to this consent decree. Defendant has 30 days from
the receipt of such guidance in which to complete the initial testing
required by paragraph eight (8) of this consent decree.
10. For the purpose of complying with the terms of this consent
decree, the tests required by 16 CFR 1500.51(b)(2) and .52(b)(2) may be
conducted using resilient non-textile floor Type IV tiles that conform
to federal specification SS-T-312B.
11. Defendant agrees to maintain records of the tests conducted
pursuant to paragraph eight (8) for a period of 3 years. Such records
shall include, but not be limited to, the date of the test, the
procedure used, the citation of the Code of Federal Regulations of each
test used, the number of samples tested, and the results.
12. CPSC, its agents and duly authorized representatives shall be
permitted to enter any of defendant's facilities at reasonable times to
inspect defendant's business premises and defendant's business records
relating to the matters that are the subject of this Consent Decree; to
collect any samples; and to conduct any tests which the Consumer
Product Safety Commission believes are necessary to ensure that the
purposes of this decree are implemented.
13. Defendant shall notify the Consumer Product Safety Commission,
in writing, at least 30 days before any changes such as dissolution,
assignment, or sale resulting in the emergence of a successor
corporation, the creation or dissolution of subsidiaries, or any other
change in the corporate structure of Small World Toys that may affect
compliance obligations arising out of this Consent Decree. Such notice
shall be sent, certified mail, return receipt requested, to the address
in paragraph eight (8) above.
14. Defendant shall conduct an immediate limited recall of the hat
of the Ambi ``Mini-Racer,'' combined with an incentive program approved
by the Consumer Product Safety Commission, to encourage consumers to
return the hat. The defendant shall also conduct an immediate limited
recall from the retail level of the Discovery World/Small World Toys
``Lift & Learn Puzzles'' and ``Scratch & Sniff Puzzles.'' The recalls
shall, at a minimum, consist of written notification approved by the
Commission to each of defendant's customers, such as retailers and
distributors, who obtained the toys from the defendant. All aspects of
the recall shall be approved by the Commission. Defendant shall also
stop distribution of the Ambi ``Funhouse,'' Royal Company ``Water
Wheel,'' Jimson ``Super Air

[[Page 63303]]

Bus,'' Jimson ``Elephant Boat,'' Hermann Eichorn Gm. Hu. Co. ``Wooden
Train,'' Hans Clemens Co. ``Stuffed Bear'' and Jimson ``See Thru
Locomotive,'' until such time as they have been changed and comply with
the requirements of the FHSA.
15. The parties to this consent decree agree that the Court retains
jurisdiction of these matters for the purpose of enabling any party to
the consent decree to apply for any further orders that may be needed
to construe, carry out, modify, terminate or enforce compliance with
the terms of this agreement.
16. By signing this consent decree, the defendant does not admit
any violation of the FHSA and does not admit that any of its actions
described in paragraphs six (6) and fourteen (14) above were taken to
correct any violations of the FHSA.

Dated: Los Angeles, California, July 30, 1986.
Small World Toys
Edward M. Goldwasser,
President.
Michael A. Brown,
Counsel for Small World Toys.
Schmeltzer, Aptaker & Sheppard, P.C.,
1800 Massachusetts Avenue, NW., Suite 500, Washington, DC 20036, (202)
828-1000.
Approved and so ordered:
John G. Davies
Dated: July 31, 1986.
For the United States
Richard K. Willard,
Assistant Attorney General, Civil Division.
Robert C. Bonner,
United States Attorney for the Central District of California.
----------------------------------------------------------------------
Assistant United States Attorney.
----------------------------------------------------------------------
Attorney, Civil Division, Office of Consumer Litigation, Department
of Justice.
[FR Doc. 98-30163 Filed 11-10-98; 8:45 am]
BILLING CODE 6355-01-M