[Federal Register Volume 65, Number 38 (Friday, February 25, 2000)]
[Notices]
[Pages 10055-10057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4383]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 00-C0005]


Hasbro, Inc., 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 
Hasbro, Inc., a corporation, containing a civil penalty of $400,000.

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 13, 2000.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 00-C0005, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

[[Page 10056]]


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

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

    Dated: February 17, 2000.
Sadye E. Dunn,
Secretary.
    In the Matter of Hasbro, Inc., a corporation.

Settlement Agreement and Order

    1. This Settlement Agreement, made by and between the staff (``the 
staff'') of the U.S. Consumer Product Safety Commission (``the 
Commission'') and Hasbro, Inc., (``Hasbro''), 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 Commission is an independent federal regulatory agency 
responsible for the enforcement of the Consumer Product Safety Act, 15 
U.S.C. 2051-2084.
    3. Hasbro is a corporation organized and existing under the laws of 
the State of Rhode Island. Its principal offices are located at 1027 
Newport Avenue, Pawtucket, Rhode Island 02861. Playskool is a division 
of Hasbro.

II. Staff Allegations

    4. Hasbro manufactured the Playskool ``Fold `n' Travel'' Infant 
Carrier (Infant Carrier) and sold and distributed into United States 
commerce approximately 38,500 units beginning in April 1991. Hasbro is, 
therefore, a manufacturer and distributor of a consumer product in U.S. 
commerce pursuant to 15 U.S.C. 2052(a)(1), (4), (5) and (6).
    5. The Infant Carrier incorporated a handle-locking system that 
failed to stay locked during use, allowing the child to fall out of the 
carrier and onto the surface below.
    6. Hasbro began to receive injury claims and complaints alleging 
handle-lock failure. Between May 1992 and December 1995, Hasbro learned 
of nine incidents of handle failure resulting in seven skull fractures 
and one baby falling on her face. Hasbro learned of three more such 
incidents in 1996.
    7. On July 19, 1996, Hasbro filed a telephone report with the 
Commission. The firm voluntarily conducted a recall of the Infant 
Carrier soon thereafter.
    8. Hasbro obtained information which reasonably supported the 
conclusion that the Playskool Fold `n' Travel Infant Carrier contained 
defects which could create a substantial product hazard but failed to 
report 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 HASBRO

    9. Hasbro denies each and every staff allegation set forth in 
paragraphs 4, 5, 6 and 8, above; it further denies that the Playskool 
Fold `n' Travel Infant Carrier 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) or 16 CFR 
part 1115.
    10. In July, 1996 information concerning the Infant Carrier became 
apparent to Hasbro. Promptly thereafter, Hasbro, of its own initiative, 
filed a report under Section 15 of the CPSA and worked cooperatively 
with the staff to conduct a comprehensive recall plan under the 
Commission's Fast Track program.
    11. Hasbro enters this Settlement Agreement and Order for 
settlement purposes only, to avoid incurring additional legal costs and 
expenses.

IV. Agreement of the Parties

    12. The Commission has jurisdiction over this matter and over 
Hasbro under the Consumer Product Safety Act (CPSA), 15 U.S.C. 2051 et 
seq.
    13. Hasbro knowingly, voluntarily and completely waives any rights 
it may have in the above captioned case (1) to the issuance of a 
Complaint in this matter, (2) to an administrative or judicial hearing 
with respect to the staff allegations cited herein, (3) to judicial 
review or other challenge or contest of the validity of the 
Commission's Order, (4) 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 (5) to a statement of findings of fact and 
conclusions 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 the public record and shall be published in the Federal 
Register in accordance with 16 CFR 1118.20.
    15. The Settlement Agreement and Order becomes effective upon final 
acceptance by the Commission and its service upon Hasbro. Hasbro shall 
pay a civil penalty in the amount of four hundred thousand and no/
dollars ($400,000.00) within 10 calendar days of receiving service of 
such final Settlement Agreement and Order.
    16. This Settlement Agreement and Order is not deemed or construed 
as an admission by Hasbro (a) of any liability or wrongdoing by Hasbro; 
(b) that Hasbro violated any law or regulation; (c) that the Infant 
Carrier is defective or creates a substantial product hazard, or is 
unreasonably dangerous; (d) that the Infant Carrier or Hasbro has 
caused any injuries; (e) of the truth of any claims or other matters 
alleged or otherwise stated by the Commission or any other person 
either against Hasbro or with respect to the Infant Carrier. Nothing 
contained in this Settlement Agreement and Order precludes Hasbro from 
raising any defenses in any future litigation not arising out of the 
terms of this Settlement Agreement and Order.
    17. Upon final acceptance of this Settlement Agreement by the 
Commission, the issuance of the Order, and the full and timely payment 
by Hasbro to the United States Treasury a civil penalty in the amount 
of four hundred thousand dollars ($400,000.00), the Commission 
specifically waives its right to initiate, either by referral to the 
Department of Justice or bringing in its own name, any action for civil 
or criminal penalties relating to any of the events that gave rise to 
the staff's allegations in paragraphs four through eight, supra, 
against (a) Hasbro; (b) any of Hasbro's current or former subsidiaries, 
affiliates, divisions or related entities; (c) any shareholder, 
director, officer, employee, agent or attorney of any entity referenced 
in (a) or (b); and (d) any successor, heir, or assign of the persons 
described in (a), (b) or (c) above.
    18. For purposes of Section 6(b) of the CPSA, 15 U.S.C. 2055(b), 
upon final acceptance by the Commission, the parties agree that the 
Commission may publicize the terms of the Settlement Agreement and 
Order.
    19. Hasbro agrees to the entry of the attached Order, which is 
incorporated herein by reference, and agrees to be bound by its terms.
    20. The Commission's Order in this matter is issued under the 
provisions of the CPSA, 15 U.S.C. 2051 et seq., and a violation of this 
Order may subject Hasbro to appropriate legal action.
    21. This Settlement Agreement and Order is binding upon and shall 
inure to the benefit of Hasbro and the assigns or successors of Hasbro.
    22. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.



[[Page 10057]]


    Hasbro, Inc.,
    Dated: January 25, 2000.
By: Alfred J. Verrecchia, 
Executive Vice President.
    The 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: January 11, 2000.
By: William J. Moore, Jr.,
Attorney, Legal Division, Office of Compliance.
    In the Matter of Hasbro, Inc. a corporation.

Order

    Upon consideration of the Settlement Agreement entered into between 
Hasbro, Inc., a corporation, and the staff of the U.S. Consumer Product 
Safety Commission; and the Commission having jurisdiction over the 
subject matter and Hasbro, 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, Hasbro, Inc. shall pay the Commission a civil 
penalty in the amount of four hundred thousand and no/100 dollars, 
($400,000.000) within ten (10) calendar days after service of this 
Final Order upon Hasbro, Inc.
    Provisionally accepted and Provisional Order issued on the 17th day 
of February, 2000.

By Order of the Commission.
Sadye E. Dunn,
Secretary, U.S. Consumer Product Safety Commission.
 [FR Doc. 00-4383 Filed 2-24-00; 8:45 am]
BILLING CODE 6355-01-M