[Federal Register Volume 64, Number 238 (Monday, December 13, 1999)]
[Notices]
[Pages 69511-69512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32236]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 00-C0002]


Baby's Dream Furniture, Inc., 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 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 
Baby's Dream Furniture, Inc., a corporation, containing a civil penalty 
of $200,000.

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 December 28, 1999.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 00-C0002, Office of the 
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.

FOR FURTHER INFORMATION CONTACT: William J. Moore, Trial Attorney, 
Office of Compliance and Enforcement, Consumer Product Safety 
Commission, Washington, D.C. 20207; telephone (301) 504-0626, 1348.

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

    Dated: December 8, 1999.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. This Agreement, made by and between the staff of the U.S. 
Consumer Product Safety Commission, (``the staff,'' or ``the CPSC'') 
and Baby's Dream Furniture, Inc., (``Baby's Dream'') a corporation, in 
accordance with 16 CFR 1118.20 of the Commission's Procedures for 
Investigations, Inspections, and Inquiries under the Consumer Product 
Safety Act (``CPSA''), is a Settlement, a complete resolution of the 
staff allegations set forth below.

I. The Parties

    2. The CPSC is an independent federal regulatory agency responsible 
for the enforcement of the CPSA, 15 U.S.C. 2051-2084.
    3. Baby's Dream Furniture, Inc, is a corporation organized and 
existing under the laws of the State of Georgia. Its principal offices 
are located at Highway 41 North, Industrial Boulevard, Buena Vista, GA 
31803.

II. The Product

    4. Between December, 1994 and May, 1997 Baby's Dream manufactured 
approximately 13,000 ``Generation'' model cribs in Georgia and 
distributed them in the United States. Baby's Dream is, therefore, a 
manufacturer and distributor of a consumer product in United States 
commerce. 15 U.S.C. 2052(a)(1), (4), (5) and (11).
    5. The Generation crib that is subject of this Agreement has a drop 
gate mechanism that is attached to the top rail of the front frame 
using four hinges. This mechanism allowed for opening and closing of 
the drop gate to permit access inside the crib (rather than the whole 
frame moving up and down).

III. Staff Allegations

    6. The heavy weight of the oak gate and the use of four hinges on 
oak Generation cribs manufactured from December 1994 through May 1997, 
allow a finger to get seriously injured if caught between the bottom 
rail of the movable drop gate and the top rail of the stationary front 
frame while the drop gate is being operated.
    7. Between March, 1997 and December, 1997, Baby's Dream received 
nine reports of injuries that occurred while the Generation crib drop 
gate was being operated. The injuries, to one adult and eight babies, 
included avulsion of fingertips, partial amputation of finger tips and 
crushing of finger tips. On December 30, 1997, Baby's Dream reported 
the problem to the CPSC.
    8. Baby's Dream obtained information which reasonably supported the 
conclusion that its Generation crib contained a defect which could 
create a substantial product hazard but failed to report that 
information in a timely manner as required by section 15(b) of the 
CPSC, 15 U.S.C. 2064(b).

[[Page 69512]]

IV. Response of Baby's Dream

    9. Baby's Dream denies the allegations of the staff that the 
Generation cribs contain a defect which could create a substantial 
product hazard pursuant to section 15(a) of the CPSA, 15 U.S.C. 
2064(a), denies that it violated the reporting requirements of section 
15(b) of the CPSA, 15 U.S.A. 2064(b), and further denies the other 
allegations of the CPSA as stated herein.
    10. Baby's Dream reported the problem with the Generation cribs 
described above and voluntarily implemented a recall to repair the 
cribs under the CPSA fast track program.
    11. Baby's Dream is entering into this Settlement Agreement to 
avoid incurring the additional legal costs associated with contesting a 
fine action against the CPSA in protracted litigation, and this 
Agreement does not constitute, and is not evidence of, an admission of 
liability or wrongdoing by Baby's Dream.

V. Agreement of the Parties

    12. The Commission has jurisdiction over this matter and Baby's 
Dream under the Consumer Product Safety Act, 15 U.S.C. 2051 et seq.
    13. Baby's Dream knowingly, voluntarily and completely waives any 
rights it may have to: (1) An administrative or judicial hearing with 
respect to the staff allegations discussed in paragraphs 4 through 8 
above; (2) judicial review or other challenge or contest of the 
validity of the Commission's Order; (3) 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) a statement of findings of fact 
and conclusion of law with regard to the staff allegations.
    14. Upon provisional acceptance of this Settlement Agreement and 
Order by the Commission, this Settlement Agreement and Order shall be 
placed on public record and in the Federal Register in accordance with 
16 CFR 1118.20. The Settlement Agreement and Order becomes effective 
upon final acceptance by the Commission and its service upon Baby's 
Dream.
    15. For purposes of Section 6(b) of the CPSA, 15 U.S.C. 2055(b), 
upon final acceptance of this Settlement Agreement by the Commission, 
the parties agree that the Commission may publicize the terms of the 
Settlement Agreement and Order.
    16. Baby's Dream shall pay the Consumer Product Safety Commission a 
civil penalty in the amount of two hundred thousand dollars 
($200,000.00). The payment, by check made out to the United States 
Treasury, shall be dated on or before December 31, 1999, and placed in 
the Commission's possession on or before the close of business, 
December 29, 1999, following final acceptance of the Settlement 
Agreement and Order.
    17. Baby's Dream agrees to entry of the attached Order, which is 
incorporated herein by reference, and to be bound by its terms.
    18. This Settlement Agreement is binding upon Baby's Dream and the 
assigns or successors of Baby's Dream.
    19. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.

Baby's Dream Furniture, Inc.

    Dated: November 3, 1999.
    By:
Goshtsab (David) Felfeli,
President, Baby's Dream Furniture, Inc.
U.S. Consumer Product Safety Commission
Alan H. Schoem,
Assistant Executive Director, Office of Compliance.
Eric L. Stone,
Director, Legal Division, Office of Compliance.
    Dated: November 29, 1999.
    By:
William J. Moore, Jr.,
Attorney, Legal Division, Office of Compliance.

Order

    Upon consideration of the Settlement Agreement entered into between 
Baby's Dream Furniture, Inc., a corporation, and the staff of the U.S. 
Consumer Product Safety Commission; and the Commission having 
jurisdiction over the subject matter and Baby's Dream Furniture, 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 Baby's Dream Furniture, Inc. shall pay the 
Commission a civil penalty in the amount of TWO HUNDRED THOUSAND AND 
00/100 dollars, ($200,000.00) by check to the U.S. Treasury dated 
December 31, 1999, delivered to the Commission on or before the close 
of business, December 29, 1999, after service of this Final Order upon 
Baby's Dream Furniture, Inc.

Provisionally accepted and Provisional Order issued on the 8th day 
of December, 1999.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 99-32236 Filed 12-10-99; 8:45 am]
BILLING CODE 6355-01-M