[Federal Register Volume 77, Number 247 (Wednesday, December 26, 2012)]
[Notices]
[Pages 76006-76011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30828]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 13-2]


Star Networks USA, LLC; Complaint

AGENCY: Consumer Product Safety Commission

ACTION: Publication of a Complaint under the Consumer Product Safety 
Act.

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SUMMARY: Under provisions of its Rules of Practice for Adjudicative 
Proceeding (16 CFR part 1025), the Consumer Product Safety Commission 
must publish in the Federal Register Complaints which it issues. 
Published below is a Complaint: In the Matter of Star Networks USA, 
LLC.\1\
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    \1\ Chairman Inez M. Tenenbaum and Commissioner Robert S. Adler 
voted to authorize the Complaint. Commissioner Nancy A. Nord voted 
to not authorize the Complaint.

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SUPPLEMENTARY INFORMATION: The text of the Complaint appears below.

    Dated: December 18, 2012.
Todd A. Stevenson,
Secretary.

UNITED STATES OF AMERICA

CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of STAR NETWORKS USA, LLC, Respondent

CPSC DOCKET NO. 13-2

COMPLAINT

Nature of Proceedings

    1. This is an administrative enforcement proceeding pursuant to 
Section 15 of the Consumer Product Safety Act (``CPSA''), as amended, 
15 U.S.C. Sec.  2064, for public notification and remedial action to 
protect the public from the substantial risk of injury presented by 
aggregated masses of high-powered, small rare earth magnets known as 
Magnicube Magnet Balls (``Magnicube Spheres'') and Magnet Cubes 
(``Magnicube Cubes'') (collectively the ``Subject Products''), imported 
and distributed by STAR NETWORKS USA, LLC (``Star'' or ``Respondent'').
    2. This proceeding is governed by the Rules of Practice for 
Adjudicative Proceedings before the Consumer Product Safety Commission 
(``Commission''), 16 C.F.R. part 1025.

Jurisdiction

    3. This proceeding is instituted pursuant to the authority 
contained in Sections 15(c), (d), and (f) of the CPSA, 15 U.S.C. Sec.  
2064 (c), (d), and (f).

[[Page 76007]]

Parties

    4. Complaint Counsel is the staff of the Division of Compliance 
within the Office of the General Counsel of the Commission (``Complaint 
Counsel''). The Commission is an independent federal regulatory agency 
established pursuant to Section 4 of the CPSA, 15 U.S.C. Sec.  2053.
    5. Upon information and belief, Star is a New Jersey corporation 
with its principal place of business located at 26 Commerce Road, Suite 
B, Fairfield, New Jersey, 07004.
    6. Respondent is an importer and distributor of the Subject 
Products.
    7. As an importer and distributor of the Subject Products, 
Respondent is a ``manufacturer'' and ``distributor'' of a ``consumer 
product'' that is ``distributed in commerce,'' as those terms are 
defined in CPSA sections 3(a)(5),(7), (8), and (11) of the CPSA, 15 
U.S.C. Sec. Sec.  2052(a)(5),(7), (8), and (11).

The Consumer Product

    8. Respondent imported and distributed the Subject Products in U.S. 
commerce and offered them for sale to consumers for their personal use 
in or around a permanent or temporary household or residence, a school, 
and in recreation or otherwise.
    9. Upon information and belief, the Subject Products consist of 
small, individual magnets that are packaged as aggregated masses in 
different sized containers holding 125, 216, 250, 343 or 1,027 small 
magnets, ranging in size from approximately 5.0 mm to 6.0 mm, with a 
variety of coatings, and a flux index greater than 50.
    10. Upon information and belief, the flux index of the Magnicube 
Spheres ranges from 435.1 to 876.5 kg\2\mm.\2\
    11. Upon information and belief, the flux index of the Magnicube 
Cubes ranges from 441.9 to 496.4 kg\2\mm.\2\
    12. Upon information and belief, Magnicubes Spheres were introduced 
into U.S. commerce sometime after August 2010.
    13. Upon information and belief, Magnicubes Cubes were introduced 
into U.S. commerce sometime after August 2010.
    14. Upon information and belief, the Subject Products are 
manufactured by Dongyang Huale Electronics, LTD, Hengdian Industrial 
Area, Dongyang Zheijiang, China.
    15. Upon information and belief, the Subject Products are sold in 
velvet-lined boxes or foam-lined tins.
    16. Upon information and belief, the Subject Products range in 
retail price from approximately $19.95 to $79.95.
    17. Upon information and belief, more than 21,000 sets of Magnicube 
Spheres have been sold to consumers in the United States.
    18. Upon information and belief, more than 480 sets of Magnicube 
Cubes have been sold to consumers in the United States.
    19. Upon information and belief, approximately 17 mixed sets of 125 
Magnicube Spheres and 125 Magnicube Cubes marketed as the Magnicube Duo 
Edition have been sold to consumers in the United States.

COUNT I

The Subject Products are Substantial Product Hazards Under Section 
15(a)(2) of the CPSA, 15 U.S.C. Sec.  2064(a)(2), Because They Contain 
Product Defects That Create a Substantial Risk of Injury to the Public

The Subject Products are Defective Because Their Instructions, 
Packaging, and Warnings Are Inadequate

    20. Paragraphs 1 through 19 are hereby realleged and incorporated 
by reference as though fully set forth herein.
    21. A defect can occur in a product's contents, construction, 
finish, packaging, warnings and/or instructions. 16 C.F.R. Sec.  1115.4
    22. A defect can occur when reasonably foreseeable consumer use or 
misuse, based in part on lack of adequate instructions and safety 
warnings, could result in injury, even where there are no reports of 
injury. 16 C.F.R. Sec.  1115.4
    23. Upon information and belief, Star offered the Subject Products 
for sale sometime after August 2010 through December 2012 on its 
direct-sales Web site, www.magnicube.com.
    24. Upon information and belief, sometime after August 2010 through 
December 2012, Star's U.S. Direct sales Web site contained the 
following warning regarding the Subject Products: ``Keep Away from All 
Children! This product is NOT intended to be inhaled or swallowed, 
magnets should not be put in those nose or mouth. Magnets that are 
inhaled or swallowed may stick to intestines, which may lead to serious 
injury or death. Immediate medical attention is required if magnets are 
inhaled or swallowed. Recommended age 14+.''
    25. Upon information and belief, from sometime after August 2010 
through December 2012, the ``Safety Notice'' page of Star's Direct 
sales Web site contained the following warning regarding the Subject 
Products: ``Magnicube products are NOT toys for children[.] Recommended 
age 14+. Magnicube Magnet Balls and Magnet Cubes are not manufactured, 
distributed, promoted, labeled, or intended for children. Ingestion 
Hazard--This product represents an ingestion Hazard, DO NOT ingest 
magnets. Magnets that are inhaled or swallowed may stick to intestines, 
which may lead to serious injury or death. Immediate medical attention 
is required if magnets are inhaled or swallowed.''
    26. Upon information and belief, Star offered the Subject Products 
for sale from November 2011 through July 2012, on Amazon.com, Inc.'s 
Web site www.amazon.com.
    27. Upon information and belief, from November 2011 through July 
2012 Star's product listing for the Subject Products on the Amazon.com, 
Inc.'s Web site contained the following warning: WARNING: CHOKING 
HAZARD--WARNING: KEEP AWAY FROM ALL CHILDREN. Do not put in mouth or 
nose. This product contains small magnets. Swallowed magnets can stick 
together across intestines causing serious infections and death. Seek 
immediate medical attention if magnets or swallowed or inhaled. CHOKING 
HAZARD--This toy is a marble. Not for children under 3 yrs. CHOKING 
HAZARD--This toy is a small ball. Not for children under 3 yrs. CHOKING 
HAZARD--Small parts. Not for children under 3 yrs. CHOKING HAZARD--Toy 
contains a small ball. Not for children under 3 yrs.''
    28. Upon information and belief, on or about June 14, 2012, Star 
authorized online discount retailer Groupon, Inc. to issue an internet 
offer for the sale of the Subject Products on Groupon, Inc.'s Web site, 
www.groupon.com.
    29. Upon information and belief, the Groupon internet offer 
contained the following warning: ``Recommended for ages 14 and up. Keep 
out of reach of children.''
    30. Upon information and belief, sets of the Subject Products are 
currently sold in tins with the following warning printed on a sticker 
on the underside of the tin:
    WARNING: Keep Away From All Children! This product is NOT intended 
to be inhaled or swallowed, magnets [sic] should not be put in nose or 
mouth. Magnets that are inhaled or swallowed may stick to intestines, 
which may lead to serious injury or death. Immediate medical attention 
is required if magents are inhaled or swallowed. Recommended age 14+.''
    31. Upon information and belief, sets of the Subject Products are 
currently sold in boxes with following warning printed on the underside 
of a cardboard sleeve that wraps around the box:

[[Page 76008]]

    WARNING: Keep Away From All Children! This product is NOT intended 
to be inhaled or swallowed, magnets [sic] should not be put in nose or 
mouth. Magnets that are inhaled or swallowed may stick to intestines, 
which may lead to serious injury or death. Immediate medical attention 
is required if magents are inhaled or swallowed. Recommended age 14+.''
    32. Upon information and belief, the Subject Products are packaged 
without any instructions.
    33. Before and after the Subject Products were introduced into 
commerce sometime after August 2010, many children under the age of 14 
have ingested products (the ``Ingested Products'') that are almost 
identical in form, substance, and content to the Subject Products.
    34. Upon information and belief, the Ingested Products are marketed 
and used in substantially similar ways to the Subject Products.
    35. Upon information and belief, on or about January 28, 2010, a 9-
year-old boy used high-powered, small, spherically-shaped magnets 
almost identical in form, substance, and content to the Subject 
Products to mimic tongue and lip piercings, and accidentally ingested 
seven magnets. He was treated at an emergency room.
    36. Upon information and belief, on or about September 5, 2010, a 
12-year-old girl accidentally swallowed two high-powered, small, 
spherically-shaped magnets almost identical in form, substance, and 
content to the Subject Products. She sought medical treatment at a 
hospital, including x-rays and monitoring for infection and damage to 
her gastrointestinal tract.
    37. Upon information and belief, on or about December 23, 2010, a 
3-year-old girl ingested eight high-powered, small, spherically-shaped 
magnets almost identical in form, substance, and content to the Subject 
Products that she found on a refrigerator in her home. She required 
surgery to remove the magnets. The magnets caused intestinal and 
stomach perforations, and had also become embedded in the girl's 
trachea and esophagus.
    38. Upon information and belief, on or about January 6, 2011, a 4-
year-old boy suffered intestinal perforations after ingesting three 
high-powered, small, spherically-shaped magnets almost identical in 
form, substance, and content to the Subject Products that he thought 
were chocolate candy because they looked like the decorations on his 
mother's wedding cake.
    39. By November 2011, the Commission was aware of approximately 22 
reports of ingestions of high-powered, small, spherically-shaped 
magnets almost identical in form, substance, and content to the Subject 
Products.
    40. On November 11, 2011, the Commission issued a public safety 
alert warning the public of the dangers of the ingestion of rare earth 
magnets like the Subject Products.
    41. Ingestion incidents, however, continue to occur.
    42. Since the safety alert, the Commission has received dozens of 
reports of children ingesting high-powered, small, spherically-shaped 
magnets that are almost identical in form, substance, and content to 
the Subject Products, but may be manufactured and/or sold by firms 
other than the Respondent.
    43. Upon information and belief, on or about January 17, 2012, a 
10-year-old girl accidentally ingested two high-powered, small, 
spherically-shaped magnets almost identical in form, substance, and 
content to the Subject Products after using them to mimic a tongue 
piercing. The magnets became embedded in her large intestine, and she 
underwent x-rays, CT scans, endoscopy, and an appendectomy to remove 
them. The girl's father had purchased the magnets for her at the local 
mall.
    44. All warnings on the Subject Products and/or on the Web sites 
where the Subject Products are or were offered for sale are inadequate 
and defective because they do not and cannot effectively communicate to 
consumers, including parents and caregivers, the hazard associated with 
the Subject Products and magnet ingestions.
    45. Because the warnings on the Subject Products and/or on the Web 
sites where the Subject Products are or were offered for sale are 
inadequate and defective, parents will continue to give children the 
Subject Products or allow children to have access to the Subject 
Products.
    46. Parents and caregivers are unlikely to appreciate the hazard 
associated with the product because the product warnings refer to the 
product as a ``marble'' and as a ``small ball.'' This product 
description suggests that the potential health risk posed by the 
Subject Products is from choking, rather than intestinal perforations 
or other gastrointestinal injuries that can result if more than one 
magnet ball is swallowed.
    47. Children cannot and do not appreciate the hazard, and it is 
foreseeable that they will mouth the items, swallow them, or, in the 
case of adolescents and teens, use them to mimic body piercings. These 
uses can and do result in injury.
    48. All warnings on the packaging of the Subject Products are 
inadequate and defective because the font-size of the warnings hinders 
legibility and may discourage consumers from reading the warning 
message, making it less likely that consumers will review the warnings 
on the packaging prior to foreseeable uses of the Subject Products. 
These uses can and do result in injury.
    49. All warnings on the packaging and/or carrying cases of the 
Subject Products are inadequate and defective because the placement of 
the warnings only on the underside of the packaging and/or carrying 
case renders the warnings inconspicuous such that consumers likely will 
not review the warnings prior to foreseeable uses of the Subject 
Products. These uses can and do result in injury.
    50. All warnings on the Subject Products that are packaged in boxes 
are inadequate and defective because the cardboard sleeve on which the 
warnings are written is not necessary for use of the Subject Products 
and is often discarded. Because the cardboard sleeve is unnecessary and 
is often discarded, consumers likely will not review the warnings on 
the packaging prior to foreseeable uses of the Subject Products. These 
uses can and do result in injury.
    51. All warnings on the Subject Products are inadequate and 
defective because once the Subject Products are removed from the 
packaging and/or the carrying case prior to foreseeable uses of the 
Subject Products, the magnets themselves display no warnings, and the 
small size of the individual magnets precludes the addition of 
warnings. These uses can and do result in injury.
    52. All warnings on the Subject Products are inadequate and 
defective because the magnets are shared and used among various 
consumers, including children, after the packaging is discarded; thus, 
many consumers of the Subject Products will have no exposure to any 
warnings prior to using the Subject Products. These uses can and do 
result in injury.
    53. All warnings displayed on the carrying cases, if any, are 
inadequate and defective because consumers are unlikely to disassemble 
configurations made with the Subject Products after each use, many of 
which are elaborate and time-consuming to create, to return the Subject 
Products to the carrying case or to put the Subject Products out of the 
reach of children.
    54. The effectiveness of the warnings on the Subject Products is 
further diminished by the advertising and marketing of the Subject 
Products.
    55. Upon information and belief, as late as May 2012, Star was 
aware that

[[Page 76009]]

the Subject Products were displayed with other toys on the Amazon.com, 
Inc.'s Web site.
    56. Upon information and belief, as of November 2012, Respondent 
advertised the Subject Products on its direct sale Web site as a 
``toy,'' encouraging consumers to ``get out of your daze with your new 
toy.''
    57. Upon information and belief, the Subject Products are described 
on Star's direct sales Web site as a magnetic puzzle, a 3d puzzle, and 
magnetic puzzle gift items that are typically considered playthings for 
children under the age of 14.
    58. The advertising and marketing of the Subject Products conflict 
with the claimed 14+ age grade label on the Subject Products.
    59. Because the advertising and marketing of the Subject Products 
conflict with the age label, the effectiveness of the age label is 
diminished.
    60. The advertising and marketing of Subject Products conflict with 
the stated warnings on the Subject Products.
    61. Because the advertising and marketing conflict with the stated 
warnings, the effectiveness of the warnings is diminished.
    62. No warnings or instructions could be devised that would 
effectively communicate the hazard in a way that would be understood 
and heeded by consumers and would reduce the incidences of magnet 
ingestions.
    63. Because of the lack of adequate instructions and safety 
warnings, a substantial risk of injury occurs as a result of the 
foreseeable use and misuse of the Subject Products.

The Subject Products Are Defective Because the Risk of Injury Occurs as 
a Result of Its Operation and Use and the Failure of the Subject 
Products to Operate as Intended

    1. A design defect can be present if the risk of injury occurs as a 
result of the operation or use of the product or a failure of the 
product to operate as intended. 16 C.F.R. Sec.  1115.4.
    2. The Subject Products contain a design defect because they 
present a risk of injury as a result of their operation and/or use.
    3. Upon information and belief, the Subject Products have been 
advertised and marketed by the Respondent to both children and adults.
    4. As a direct result of such marketing and promotion, the Subject 
Products have been, and are currently used by, both children and 
adults.
    5. The risk of injury occurs as a result of the use of the Subject 
Products by adults, who give the Subject Products to children or allow 
children to have access to the Subject Products.
    6. The risk of injury occurs as a result of the foreseeable use 
and/or misuse of the Subject Products by children.
    7. The Subject Products contain a design defect because they fail 
to operate as intended and present a substantial risk of injury to the 
public.
    8. Upon information and belief, Respondent contends that the 
Subject Products are manipulatives that provide stress relief and other 
benefits to adults only.
    9. The Subject Products are intensely appealing to children due to 
their tactile features, their small size, and their highly reflective, 
shiny metallic and colorful coatings.
    10. Certain sets of the Subject Products come in bright color 
combinations which are likely to add to the perception that the magnets 
are intended to appeal to children because they offer creative value as 
puzzles, models, or art by combining magnetism and color.
    11. The Subject Products are also appealing to children because 
they are smooth, unique, and make a soft snapping sound as they are 
manipulated.
    12. The Subject Products also move in unexpected, incongruous ways 
as the poles on the magnets move to align properly, which can evoke a 
degree of awe and amusement among children enticing them to play with 
the Subject Products.
    13. Despite the Respondent's current age label and asserted use of 
the Subject Products, they do not operate as intended because they are 
intensely appealing to and are often played with by children.
    14. This defective design of the Subject Products poses a risk of 
injury because parents and caregivers buy the Subject Products for 
children and/or allow children to play with the Subject Products.

The Type of the Risk of Injury Renders the Subject Products Defective

    15. The risk of injury associated with a product may render the 
product defective. 16 C.F.R. Sec.  1115.4.
    16. Upon information and belief, the Subject Products have low 
utility to consumers.
    17. Upon information and belief, the Subject Products are not 
necessary to consumers.
    18. The nature of the risk of injury includes serious, life-
threatening, and long-term health conditions that can result when 
magnets attract to each other through intestinal walls, causing harmful 
tissue compression that can lead to perforations, fistulas, and other 
gastrointestinal injuries.
    19. Children, a vulnerable population protected by the CPSA, are 
exposed to risk of injury by the Subject Products.
    20. The risk of injury associated with the ingestion of the Subject 
Products is neither obvious nor intuitive.
    21. Warnings and instructions cannot adequately mitigate the risk 
of injury associated with ingesting the Subject Products.
    22. Children mouthing and ingesting the Subject Products is 
foreseeable.
    23. Children using the Subject Products for body art, including 
mimicking tongue piercings, is foreseeable.
    24. The type of the risk of injury renders the Subject Products 
defective.

The Subject Products Create a Substantial Risk of Injury to the Public

    25. The Subject Products pose a risk of magnet ingestion by 
children below the age of 14, who may, consistent with developmentally 
appropriate behavior, place a single magnet or numerous magnets in 
their mouth.
    26. The risk of ingestion also exists when adolescents and teens 
use the Subject Products to mimic piercings of the mouth, tongue, and 
cheek and accidentally swallow the magnets.
    27. If two or more of the magnets are ingested and the magnetic 
forces of the magnets pull them together, the magnets can pinch or trap 
the intestinal walls or other digestive tissue between them, resulting 
in acute and long-term health consequences. Magnets that attract 
through the walls of the intestines result in progressive tissue 
injury, beginning with local inflammation and ulceration, progressing 
to tissue death, then perforation or fistula formation. Such conditions 
can lead to infection, sepsis, and death.
    28. Ingestion of more than one magnet often requires medical 
intervention, including endoscopic or surgical procedures.
    29. Because the initial symptoms of injury from magnet ingestion 
are nonspecific and may include nausea, vomiting, and abdominal pain, 
caretakers, parents, and medical professionals may easily mistake these 
nonspecific symptoms for other common gastrointestinal upsets, and 
erroneously believe that medical treatment is not immediately required, 
thereby delaying potentially critical treatment.
    30. Medical professionals may not be aware of the dangers posed by 
ingestion of the Subject Products and the corresponding need for 
immediate evaluation and monitoring. A delay of

[[Page 76010]]

surgical intervention or other medical treatment due to the 
presentation of nonspecific symptoms and/or a lack of awareness by 
medical personnel of the dangers posed by multiple magnet ingestion can 
exacerbate life-threatening internal injuries.
    31. Magnets that become affixed through the gastrointestinal walls 
and are not surgically removed may result in intestinal perforations 
which can lead to necrosis, the formation of fistulas, or ultimately, 
perforation of the bowel and leakage of toxic bowel contents into the 
abdominal cavity. These conditions can lead to serious injury and 
possibly even death.
    32. Endoscopic and surgical procedures may also be complicated in 
cases of multiple magnet ingestion due to the attraction of the magnets 
to the metal equipment used to retrieve the magnets.
    33. Children who undergo surgery to remove multiple magnets from 
their gastrointestinal tract are also at risk for long-term health 
consequences, including intestinal scarring, nutritional deficiencies 
due to loss of portions of the bowel, and, in the case of girls, 
fertility problems.
    34. The Subject Products contain defects in packaging, warnings, 
and instructions, that create a substantial risk of injury to the 
public.
    35. The Subject Products contain defects in design that pose a 
substantial risk of injury.
    36. The type of the risk of injury posed by the Subject Products 
creates a substantial risk of injury.
    37. Therefore, because the Subject Products are defective and 
create a substantial risk of injury, the Subject Products present a 
substantial product hazard within the meaning of Section 15(a)(2) of 
the CPSA, 15 U.S.C. Sec.  2064(a)(2).

COUNT II

The Subject Products Are Substantial Product Hazards Under Section 
15(a)(1) of the CPSA, 15 U.S.C. Sec.  2064(a)(1)

    38. Paragraphs 1 through 100 are hereby realleged and incorporated 
by reference as though fully set forth herein.
    39. Upon information and belief, each of the Subject Products is an 
object designed and/or manufactured as a plaything for children under 
14 years of age, and, therefore, each of the Subject Products that was 
imported and/or otherwise distributed in commerce after August 16, 
2009, is a ``toy'' as that term is defined in ASTM International 
Standard F963-08, Standard Consumer Safety Specification for Toy 
Safety, section 3.1.72 and its most recent version, ASTM 963-11 section 
3.1.81 (``the Toy Standard'').
    40. As toys, and as toys intended for use by children under 14 
years of age as addressed in the Toy Standard, the Subject Products 
that were imported and/or otherwise distributed in commerce after 
August 16, 2009, were and are covered by the Toy Standard.
    41. Pursuant to the Toy Standard, a magnet that has a flux index 
greater than 50 and that is a small object as determined by the Toy 
Standard is a ``hazardous magnet.''
    42. The Toy Standard prohibits toys from containing a loose as-
received hazardous magnet.
    43. The Subject Products that were imported and/or otherwise 
distributed in commerce after August 16, 2009 consist of and contain 
loose as-received hazardous magnets. As a result, the Subject Products 
that were imported and/or otherwise distributed in commerce after 
August 16, 2009 fail to comply with the Toy Standard.
    44. The Subject Products that were imported and/or otherwise 
distributed in commerce after August 16, 2009 create a substantial risk 
of injury to the public.
    45. Because the Subject Products that were imported and/or 
otherwise distributed in commerce after August 16, 2009 fail to comply 
with the Toy Standard and create a substantial risk of injury to the 
public, they are substantial product hazards as the term ``substantial 
product hazard'' is defined in Section 15(a)(1) of the CPSA, 15 U.S.C. 
Sec.  2064(a)(1).

Relief Sought

    Wherefore, in the public interest, Complaint Counsel requests that 
the Commission:
    A. Determine that the Subject Products present a ``substantial 
product hazard'' within the meaning of Section 15(a)(2) of the CPSA, 15 
U.S.C. Sec.  2064(a)(2), and/or presents a ``substantial product 
hazard'' within the meaning of Section 15(a)(1) of the CPSA, 15 U.S.C. 
Sec.  2064(a)(1).
    B. Determine that extensive and effective public notification under 
Section 15(c) of the CPSA, 15 U.S.C. Sec.  2064(c), is required to 
adequately protect children from the substantial product hazard 
presented by the Subject Products, and order Respondents under Section 
15(c) of the CPSA, 15 U.S.C. Sec.  2064(c) to:
    (1) Cease importation and distribution of the Subject Products;
    (2) Notify all persons that transport, store, distribute or 
otherwise handle the Subject Products, or to whom such product has been 
transported, sold, distributed or otherwise handled, to immediately 
cease distribution of the products;
    (3) Notify appropriate state and local public health officials;
    (4) Give prompt public notice of the defects in the Subject 
Products, including the incidents and injuries associated with 
ingestion including posting clear and conspicuous notice on 
Respondent's Web site, and providing notice to any third party Web site 
on which Respondent has placed the Subject Products for sale, and 
provide further announcements in languages other than English and on 
radio and television;
    (5) Mail notice to each distributor or retailer of the Subject 
Products; and
    (6) Mail notice to every person to whom the Subject Products were 
delivered or sold;
    C. Determine that action under Section 15(d) of the CPSA, 15 U.S.C. 
Sec.  2064(d), is in the public interest and additionally order 
Respondent to:
    (1) Refund consumers the purchase price of the Subject Products;
    (2) Make no charge to consumers and to reimburse consumers for any 
reasonable and foreseeable expenses incurred in availing themselves of 
any remedy provided under any Commission Order issued in this matter, 
as provided by Section 15 U.S.C. Sec.  2064(e)(1);
    (3) Reimburse retailers for expenses in connection with carrying 
out any Commission Order issued in this matter, including the costs of 
returns, refunds and/or replacements, as provided by Section 15(e)(2) 
of the CPSA, 15 U.S.C. Sec.  2064(e)(2);
    (4) Submit a plan satisfactory to the Commission, within ten (10) 
days of service of the Final Order, directing that actions specified in 
Paragraphs B(1) through (6) and C(1) through (3) above be taken in a 
timely manner;
    (5) To submit monthly reports, in a format satisfactory to the 
Commission, documenting the progress of the corrective action program;
    (6) For a period of five (5) years after issuance of the Final 
Order in this matter, to keep records of its actions taken to comply 
with Paragraphs B(1) through (6) and C(1) through (4) above, and supply 
these records to the Commission for the purpose of monitoring 
compliance with the Final Order;
    (7) For a period of five (5) years after issuance of the Final 
Order in this matter, to notify the Commission at least sixty (60) days 
prior to any change in its business (such as incorporation, 
dissolution, assignment, sale, or petition

[[Page 76011]]

for bankruptcy) that results in, or is intended to result in, the 
emergence of a successor corporation, going out of business, or any 
other change that might affect compliance obligations under a Final 
Order issued by the Commission in this matter; and
    D. Order that Respondent shall take other and further actions as 
the Commission deems necessary to protect the public health and safety 
and to comply with the CPSA.

ISSUED BY ORDER OF THE COMMISSION:

Dated this 17th day of December, 2012

BY: Kenneth R. Hinson
Executive Director
U.S. Consumer Product Safety Commission
Bethesda, MD 20814
Tel: (301) 504-7854

Mary B. Murphy, Assistant General Counsel
Division of Compliance, Office of General Counsel
U.S. Consumer Product Safety Commission
Bethesda, MD 20814
Tel: (301) 504-7809

Jennifer Argabright, Trial Attorney
Richa Shyam Dasgupta, Trial Attorney
Leah Wade, Trial Attorney
Complaint Counsel
Division of Compliance
Office of the General Counsel
U.S. Consumer Product Safety Commission
Bethesda, MD 20814
Tel: (301) 504-7808

CERTIFICATE OF SERVICE

    I hereby certify that on December 17, 2012, I served the foregoing 
Complaint and List and Summary of Documentary Evidence upon all parties 
of record in these proceedings by mailing, certified mail, postage 
prepaid, a copy to each at their principal place of business, and 
emailing a courtesy copy, as follows:
David C. Japha, Esquire
Counsel to Respondent Star Networks USA, LLC
The Law Offices of David C. Japha, P.C.
950 S. Cherry Street, Ste. 912
Denver, CO 80246
Email: [email protected].

Complaint Counsel for U.S. Consumer Product Safety Commission

[FR Doc. 2012-30828 Filed 12-21-12; 8:45 am]
BILLING CODE 6355-01-P