[Federal Register Volume 74, Number 147 (Monday, August 3, 2009)]
[Notices]
[Pages 38409-38411]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18522]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 09-C0021]


Raymond Geddes & Co., 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(e). 
Published below is a provisionally-accepted Settlement Agreement with 
Raymond Geddes & Co., containing a civil penalty of $40,000.00.

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 August 18, 2009.

[[Page 38410]]


ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 09-C0021, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 502, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Sean Ward, Trial Attorney, Division of 
Compliance, Office of the General Counsel, Consumer Product Safety 
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; 
telephone (301) 504-7602.

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

    Dated: July 28, 2009.
Todd A. Stevenson,
Secretary.

United States of America--Consumer Product Safety Commission

    In the Matter of Raymond Geddes & Co., Provisional Acceptance of 
a Settlement Agreement and Order CPSC Docket No. 09-C0021.

Settlement Agreement and Order

    1. In accordance with 16 CFR 1118.20, Raymond Geddes & Co. 
(``Geddes'') and the staff (``Staff'') of the United States Consumer 
Product Safety Commission (``CPSC'' or the ``Commission'') enter 
into this Settlement Agreement (``Agreement''). The Agreement and 
the incorporated attached Order (``Order'') settle the Staff's 
allegations set forth below.

Parties

    2. The Commission is an independent Federal regulatory agency 
established pursuant to the Consumer Product Safety Act, 15 U.S.C. 
2051-2089 (``CPSA''). The Commission is responsible for the 
enforcement of the CPSA.
    3. Geddes is a corporation organized and existing under the laws 
of Maryland, with its principal offices located in Baltimore, 
Maryland. At all times relevant hereto, Geddes imported, distributed 
and sold pencil pouches to school supply distributors.

Staff Allegations

    4. From September 1997 through October 2007, Geddes imported and 
sold about 84,200 units of pencil pouches, consisting of ``Stuff 
Keepers'' pencil pouches, Style 63525, and ``Bear Pencil 
Pouches,'' Style 67221 (collectively, the ``Children's 
Pencil Pouches''). The Children's Pencil Pouches were supplied by 
and purchased from Getco Toys Nanjing Co., LTD (``Getco''), of 
China. Geddes sold the Children's Pencil Pouches to school supply 
distributors nationwide.
    5. The Children's Pencil Pouches are ``consumer product(s),'' 
and, at all times relevant hereto, Geddes was a ``manufacturer'' of 
those consumer product(s), which were ``distributed in commerce,'' 
as those terms are defined in CPSA sections 3(a)(3), (5), (8), and 
(11), 15 U.S.C. 2052(a)(3), (5), (8), and (11).
    6. The Children's Pencil Pouches are articles intended to be 
entrusted to or for use by children, and, therefore, are subject to 
the requirements of the Commission's Ban of Lead-Containing Paint 
and Certain Consumer Products Bearing Lead-Containing Paint, 16 CFR 
part 1303 (the ``Ban''). Under the Ban, toys and other children's 
articles must not bear or contain ``lead-containing paint,'' defined 
as paint or other surface coating materials whose lead content is 
more than 0.06 percent of the weight of the total nonvolatile 
content of the paint or the weight of the dried paint film. 16 CFR 
1303.2(b)(1).
    7. On October 24, 2007, Intertek Testing Services (``Intertek'') 
conducted follow-up testing for total lead content on samples of 
metal zippers on the Stuff Keepers pencil pouches. The test results 
demonstrated that the surface paint on two of the metal zipper 
samples had a total lead content from 0.277 percent to 0.314 
percent. These levels of lead are in excess of the permissible 0.06 
percent limit set forth in the Ban. On October 30, 2007, Intertek 
tested the zipper pull on a Bear Pencil Pouch sample for the 
presence of lead. The test result demonstrated that the surface 
paint on the sample had a total lead content above the permissible 
0.06 percent limit set forth in the Ban.
    8. On November 21, 2007, the Commission and Geddes announced a 
consumer-level recall of about 84,200 units of the Children's Pencil 
Pouches because ``[t]he paint on the pencil pouches' zipper pulls 
contains excessive levels of lead, violating the Federal lead paint 
standard.''
    9. Although Geddes reported no incidents or injuries from the 
Children's Pencil Pouches, it failed to take adequate action to 
ensure that they did not bear or contain lead-containing paint, 
thereby creating a risk of lead poisoning and adverse health effects 
to children.
    10. The Children's Pencil Pouches constitute ``banned hazardous 
products'' under CPSA section 8 and the Ban, 15 U.S.C. 2057 and 16 
CFR 1303.1(a)(1), 1303.4(b), in that they bear or contain paint or 
other surface coating materials whose lead content exceeds the 
permissible limit of 0.06 percent of the weight of the total 
nonvolatile content of the paint or the weight of the dried paint 
film.
    11. From September 1997 through October 2007, Geddes sold, 
manufactured for sale, offered for sale, distributed in commerce, or 
imported into the United States, or caused one or more of such acts, 
with respect to the Children's Pencil Pouches, in violation of 
section 19(a)(1) of the CPSA, 15 U.S.C. 2068(a)(1). Geddes committed 
these prohibited acts ``knowingly,'' as that term is defined in 
section 20(d) of the CPSA, 15 U.S.C. 2069(d).
    12. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Geddes 
is subject to civil penalties for the aforementioned violations.

Geddes Response

    13. Geddes denies the Staff's allegations set forth above that 
Geddes knowingly violated the CPSA.

Agreement of the Parties

    14. Under the CPSA, the Commission has jurisdiction over this 
matter and over Geddes.
    15. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Geddes, or a 
determination by the Commission, that Geddes has knowingly violated 
the CPSA.
    16. In settlement of the Staff's allegations, Geddes shall pay a 
civil penalty in the amount of forty thousand dollars ($40,000.00) 
within twenty (20) calendar days of service of the Commission's 
final Order accepting the Agreement. The payment shall be by check 
payable to the order of the United States Treasury.
    17. Upon the Commission's provisional acceptance of the 
Agreement, the Agreement shall be placed on the public record and 
published in the Federal Register in accordance with the procedures 
set forth in 16 CFR 1118.20(e). In accordance with 16 CFR 
1118.20(f), if the Commission does not receive any written request 
not to accept the Agreement within fifteen (15) days, the Agreement 
shall be deemed finally accepted on the sixteenth (16th) day after 
the date it is published in the Federal Register.
    18. Upon the Commission's final acceptance of the Agreement and 
issuance of the final Order, Geddes knowingly, voluntarily, and 
completely waives any rights it may have in this matter to the 
following: (1) An administrative or judicial hearing; (2) judicial 
review or other challenge or contest of the validity of the 
Commission's Order or actions; (3) a determination by the Commission 
of whether Geddes failed to comply with the CPSA and its underlying 
regulations; (4) a statement of findings of fact and conclusions of 
law; and (5) any claims under the Equal Access to Justice Act.
    19. The Commission may publicize the terms of the Agreement and 
Order.
    20. The Agreement and Order shall apply to, and be binding upon, 
Geddes and each of its successors and assigns.
    21. The Commission issues the Order under the provisions of the 
CPSA, and violation of the Order may subject Geddes to appropriate 
legal action.
    22. The Agreement may be used in interpreting the Order. 
Understandings, agreements, representations, or interpretations 
apart from those contained in the Agreement and Order may not be 
used to vary or contradict its terms. The Agreement shall not be 
waived, amended, modified, or otherwise altered, except in a writing 
that is executed by the party against whom such waiver, amendment, 
modification, or alteration is sought to be enforced.
    23. If after the effective date hereof, any provision of the 
Agreement and Order is held to be illegal, invalid, or unenforceable 
under present or future laws effective during the terms of the 
Agreement and Order, such provision shall be fully severable. The 
balance of the Agreement and Order shall remain in full force and 
effect, unless the Commission and Geddes agree that severing the 
provision materially affects the purpose of the Agreement and Order.

Raymond Geddes & Co.

    Dated: 12/2/08.


[[Page 38411]]


By:--------------------------------------------------------------------
Will Geddes,
President, 8901 Yellow Brick Rd., Baltimore, MD 21237-2303.

    Dated: 12/8/08.
By:--------------------------------------------------------------------
John Scaldara, Esq.,
Offit Kurman, 8 Park Center Court, Suite 200, Owings Mill, MD 21117, 
Counsel for Raymond Geddes & Co.

U.S. Consumer Product Safety Commission Staff

Cheryl A. Falvey,
General Counsel, Office of the General Counsel.

Ronald G. Yelenik,
Assistant General Counsel, Division of Compliance, Office of the 
General Counsel.

    Dated: 11/25/08.
By:--------------------------------------------------------------------
Sean R. Ward,
Trial Attorney, Division of Compliance, Office of the General 
Counsel.

United States of America--Consumer Product Safety Commission

    In the Matter of Raymond Geddes & Co., CPSC Docket No. 09-C0021.

Order

    Upon consideration of the Settlement Agreement entered into 
between Raymond Geddes & Co. (``Geddes'') and the U.S. Consumer 
Product Safety Commission (``Commission'') staff, and the Commission 
having jurisdiction over the subject matter and over Geddes, and it 
appearing that the Settlement Agreement and Order are in the public 
interest, it is
    Ordered, that the Settlement Agreement be, and hereby is, 
accepted; and it is
    Further ordered, that Geddes shall pay a civil penalty in the 
amount of forty thousand dollars ($40,000.00) within twenty (20) 
calendar days of service of the Commission's final Order accepting 
the Agreement. The payment shall be made by check payable to the 
order of the United States Treasury. Upon the failure of Geddes to 
make any of the foregoing payments when due, interest on the unpaid 
amount shall accrue and be paid by Geddes at the Federal legal rate 
of interest set forth at 28 U.S.C. 1961(a) and (b).

    Provisionally accepted and provisional Order issued on the 8th 
day of July, 2009.

    By Order of the Commission.

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

[FR Doc. E9-18522 Filed 7-31-09; 8:45 am]
BILLING CODE 6355-01-P