[Federal Register Volume 69, Number 47 (Wednesday, March 10, 2004)]
[Notices]
[Pages 11389-11391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-5403]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 04-C0003]


The Lifetime Products, 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

[[Page 11390]]

Federal Register in accordance with the terms of 16 CFR 11118.20(e). 
Published below is a provisionally-accepted Settlement Agreement with 
The Lifetime Products, containing a civil penalty of $800,000.

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 25, 2004.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 04-C0003, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney, 
Office of Compliance, Consumer Product Safety Commission, Washington, 
DC 20207; telephone (301) 504-7587.

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

    Dated: March 5, 2004.
Todd A. Stevenson,
Secretary.

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 04-C0003]

In the Matter of Lifetime Products, Inc.; Settlement Agreement and 
Order

    1. This Settlement Agreement is made by and between the staff 
(``the staff'') of the U.S. Consumer Product Safety Commission 
(``the Commission'') and Lifetime Products, Inc. (``Lifetime'' or 
``Respondent''), a corporation, in accordance with 16 CFR 1118.20 of 
the Commission's Procedures for Investigation, Inspections, and 
Inquiries under the Consumer Products Safety Act (``CPSA''). This 
Settlement Agreement and the incorporated attached Order settle the 
staff's 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 et seq.
    3. Lifetime is a corporation organized and existing under the 
laws of the State of Utah with its principal corporate offices 
located at Clearfield, UT.

II. Allegations of the Staff

    4. Between 1994 and May 2000, Lifetime manufactured and 
distributed nationwide approximately 1.7 million portable basketball 
hoops (``basketball hoop(s)'' or ``product(s)'').
    5. The basketball hoops are sold to and/or are used by consumers 
for use in or around a permanent or temporary household or 
residence, a school, in recreation, or otherwise and are, therefore, 
``consumer products'' as defined in section 3(a)(1) of the Consumer 
Product Safety Act (CPSA), 15 U.S.C. 2052(a)(1). Respon dent is a 
``manufacturer'' or ``distributor'' of the basketball hoops, which 
were ``distributed in commerce'' as those terms are defined in 
sections 3(a)(4), (5), (11), and (12) of the CPSA, 15 U.S.C. 
2052(a)(4), (5), (11), and (12).
    6. In the normal course of assembling the product, the consumer 
must use a 3\3/4\'' bolt to connect the product's pole braces to the 
pole. The instruction for attaching the bolt states, ``Completely 
tighten all base and pole brace hardware at this time.''
    7. Because the consumer has no reference point for determining 
when the bolt is ``tight enough,'' it is reasonable foreseeable that 
the consumer will tighten the 3\3/4\'' bolt until it is difficult to 
turn. When this occurs, the exposed threaded portion of the bolt can 
protrude from the pole.
    8. The portable basketball hoop is defective because it is 
designed so that when the consumer tightens the 3\3/4\'' bolt until 
it is difficult to turn, the exposed threaded portion of the bolt 
can protrude from the pole. If this occurs, a person playing 
basketball can come into contact with the exposed threaded portion 
of the protruding bolt, and suffer serious injury including a 
possible fracture to the leg and/or serious lacerations.
    9. Between March 1999 and March 2000, Lifetime learned of four 
basketball players who had received serious lacerations to their 
legs when they came in contact with the basketball hoop's protruding 
bolt. Also, one of these basketball players broke his leg.
    10. On or about May 23, 2000, Lifetime made changes to its 
product consisting of the following: (a) A cap nut to cover the 
bolt; (b) replacement of the 3\3/4\ bolt; and (c) revision of the 
assembly instructions warning consumers of serious injuries if they 
over-tightened the bolt.
    11. From April 2000 to July 2001, Lifetime learned of 19 
additional reports of basketball players sustaining lacerations to 
their legs when they came in contact with the basketball hoop's 
protruding bolt. Some of these lacerations were quite severe and 
required numerous sutures to close the wounds.
    12. By the time the staff opened its investigation of Lifetime 
in July 2001, Lifetime had obtained information about 23 reports of 
injuries that occurred when basketball players came in contact with 
the product's protruding bolt.
    13. As set forth in more detail in paragraphs 4 through 10 
above, Lifetime obtained information which reasonably supported the 
conclusion that the basketball hoop described in paragraph 4 above 
contained a defect which--given the pattern of the defect, the 
severity of the risk of injury, and the number of products--could 
create a substantial product hazard. Lifetime failed to report such 
information to the Commission as required by section 15(b)(2) of the 
CPSA, 15 U.S.C. 2064(b)(2).
    14. As set forth in more detail in paragraphs 4 through 10 
above, Lifetime obtained information which reasonably supported the 
conclusion that the basketball hoop described in paragraph 4 above 
created an unreasonable risk of serious injury. Lifetime failed to 
report such information to the Commission as required by section 
15(b)(3) of the CPSA, 15 U.S.C. 2064(b)(3).
    15. By failing to provide the information to the Commission as 
required by sections 15(b)(2) and (3) of the CPSA, 15 U.S.C. 
2064(b)(2) and (3), Lifetime violated section 19(a)(4) of the CPSA, 
15 U.S.C. 2068(a)(4).
    16. Lifetime committed this failure to report to the Commission 
``knowingly'' as the term ``knowingly'' is defined in section 20(d) 
of the CPSA, 15 U.S.C. 2069(d), thus, subjecting Lifetime to civil 
penalties under section 20 of the CPSA, 15 U.S.C. 2069.

III. Lifetime's Response

    17. Lifetime denies the staff's allegations that it violated the 
CPSA as set forth in paragraphs 4 through 16 above.
    18. Lifetime denies that the portable basketball hoop contains a 
defect which could create a substantial product hazard, or creates 
an unreasonable reasonable risk of serious injury and further denies 
that it violated the reporting requirements of section 15(b) of the 
CPSA, 15 U.S.C. 2064(b).
    19. Based on an examination of basketball hoops involved in 
consumer injuries and on testing of basketball hoops by Lifetime, 
Lifetime concluded that the bolt protruded from the pole because 
consumers had over-tightened the bolt contrary to the assembly 
instructions. Lifetime believes and has advised the staff that the 
basketball hoop if properly assembled meets the relevant ASTM 
Voluntary Standard.
    20. Lifetime enters this Settlement Agreement and Order for 
settlement purposes only, to avoid incurring additional legal costs 
and expenses. In settling this matter, Lifetime does not admit any 
fault, liability, statutory, or regulatory violation.

IV. Agreement of the Parties

    21. The Consumer Product Safety Commission has jurisdiction over 
this matter and over Lifetime under the Consumer Product Safety Act, 
15 U.S.C. 2051 et seq.
    22. This Agreement is entered into for settlement purposes only 
and does not constitute an admission by Lifetime or a determination 
by the Commission that Lifetime knowingly violated the CPSA's 
reporting requirement.
    23. In settlement of the staff's allegations, Lifetime agrees to 
pay a civil penalty in the amount of eight hundred thousand dollars 
($800,000.00) as set forth in the incorporated Order.
    24. Upon final acceptance of this Agreement by the Commission 
and issuance of the Final Order, Respondent knowingly, voluntarily, 
and completely waives any rights it may have in this matter (1) to 
an administrative or judicial hearing, (2) to judicial review or 
other challenge or contest of the validity of the Commmission's 
actions, (3) to a determination by the Commission as to whether 
respondent failed to comply with the CPSA and the underlying 
regulations, (4) to a statement of findings of fact and conclusions 
of law, and (5) to any claims under the Equal Access to Justice Act.
    25. Upon provisional acceptance of this Agreement by the 
Commission, this Agreement shall be placed on the public

[[Page 11391]]

record and shall be published in the Federal Register in accordance 
with the procedures set forth in 16 CFR 1118.20(e). If the 
Commission does not receive any written objections within 15 days, 
the Agreement will be deemed finally accepted on the 16th day after 
the date it is published in the Federal Register.
    26. The Commission may publicize the terms of this Settlement 
Agreement and Order.
    27. The Commission's Order in this matter is issued under the 
provisions of the CPSA, 15 U.S.C. 2051 et seq. A violation of this 
Order may subject Lifetime to appropriate legal action.
    28. 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.
    29. The provisions of this Settlement Agreement and Order shall 
apply to Lifetime and each of its successors and assigns.

Respondent, Lifetime Products, Inc.

Dated: February 13, 2004.

Barry Mower,

President, Lifetime Products, Inc., PO Box 160010, Freeport Center, 
Building D-11, Clearfield, UT 84016-0010.

Dated: February 13, 2004.

Kelly H. Macfarlane, Esquire,

Christensen & Jensen, Attorneys for Respondent, Lifetime Products, 
Inc., 50 South Main Street, Suite 1500, Salt Lake City, UT 84144.

Commission Staff

Alan H. Schoem,

Assistant Executive Director, Office of Compliance, Consumer Product 
Safety Commission, Washington, DC 20207-0001.

Eric L. Stone,

Legal Division, Office of Compliance.

Dated: February 18, 2004.

Dennis C. Kacoyanis,
Trial Attorney, Legal Division, Office of Compliance.

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 04-C0003]

In the Matter of Lifetime Products, Inc.; Order

    Upon consideration of the Settlement Agreement entered into 
between Respondent Lifetime Products, Inc., and the staff of the 
Consumer Product Safety Commission; and the Commission having 
jurisdiction over the subject matter and Lifetime Products, 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, Lifetime Products, Inc. shall pay to the 
Commission a civil penalty in the amount of eight hundred thousand 
dollars ($800,000.00) in two installment payments of four hundred 
thousand dollars ($400,000.00) each. The first payment of four 
hundred thousand dollars ($400,000.00) is due on or before June 1, 
2004 or within twenty (20) days after service upon Respondent of 
this Final Order of the Commission, whichever is later. The second 
payment of four hundred thousand dollars ($400,000.00) is due on or 
before December 31, 2004. Upon the failure of Respondent Lifetime 
Products, Inc. to make a payment or upon the making of a late 
payment by Respondent Lifetime Products, 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 
(b).
    Provisionally accepted and Provisional Order issued on the 4th 
date of March, 2004.
    By Order of the Commission.

Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.

[FR Doc. 04-5403 Filed 3-9-04; 8:45 am]
BILLING CODE 6355-01-M