A & A Global Industries, Inc. – Provisional Acceptance of a Settlement Agreement and Order, CSPC Docket

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38408 Federal Register/Vol. 74, No. 147/Monday, August 3, 2009/Notices Secretary and Director, First Learning Parties CONSUMER PRODUCT SAFETY Company Limited, Room 401, 4th Floor, COMMISSION 2. The Commission is an independent Block A, Sun Fung Centre, 88 Kwok Shui federal regulatory agency established Road, Kwai Hing, Hong Kong. pursuant to, and responsible for the [CPSC Docket No. 09–C0027] Dated: 12/12/2008. enforcement of, the Consumer Product Safety Act, 15 U.S.C. 2051–2089 (‘‘CPSA’’). By: lllllllllllllllllll A&A Global Industries, Inc., 3. A&A is a corporation organized and Bob Casey, Esq., Provisional Acceptance of a existing under the laws of Maryland, with its 1205 NW 25th Avenue, Portland, OR 97210– Settlement Agreement and Order principal office located in Cockeysville, 2422, Counsel for First Learning Company Maryland. At all times relevant hereto, A&A Limited. AGENCY: Consumer Product Safety imported and/or distributed in commerce toy U.S. Consumer Product Safety Commission Commission. jewelry. Staff. ACTION: Notice. Cheryl A. Falvey, Staff Allegations General Counsel, Office of the General 4. From approximately January 2005 to Counsel. SUMMARY: It is the policy of the March 2007, A&A imported and/or Commission to publish settlements Ronald G. Yelenik, distributed about 3.95 million units of Assistant General Counsel, Division of which it provisionally accepts under the children’s ‘‘Groovy Grabber’’ bracelets Compliance, Office of the ...

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38408

Federal Register/ NoticesAugust 3, 2009/ Monday,74, No. 147/ Vol.

Secretary and Director, First LearningParties CONSUMER PRODUCT SAFETY Company Limited, Room 401, 4th Floor, COMMISSION 2. The Commission is an independent Block A, Sun Fung Centre, 88 Kwok Shui federal regulatory agency established Road, Kwai Hing, Hong Kong. pursuant to, and responsible for the [CPSC Docket No. 09–C0027] Dated: 12/12/2008. enforcement of, the Consumer Product Safety By:lllllllllllllllllll Act, 15 U.S.C. 2051–2089 (‘‘CPSA’’). A&A Global Industries, Inc., Bob Casey, Esq., 3. A&A is a corporation organized and Provisional Acceptance of a 1205 NW 25th Avenue, Portland, OR 97210– existing under the laws of Maryland, with its Settlement Agreement and Order 2422, Counsel for First Learning Company principal office located in Cockeysville, Limited. Maryland. At all times relevant hereto, A&A AGENCY :Consumer Product Safety imported and/or distributed in commerce toy U.S. Consumer Product Safety Commission Commission. jewelry. Staff. ACTION :Notice. Staff Allegations Cheryl A. Falvey, General Counsel, Office of the General 4. From approximately January 2005 to Counsel. SUMMARY :It is the policy of the March 2007, A&A imported and/or Ronald G. Yelenik, Commission to publish settlements distributed about 3.95 million units of Assistant General Counsel, Division of which it provisionally accepts under the children’s ‘‘Groovy Grabber’’ bracelets Compliance, Office of the General Counsel. Consumer Product Safety Act in the (‘‘Bracelets’’), which ultimately were sold to consumers in vending machines located in Dated: 3/6/09. Federal Registerin accordance with the malls, discount, department and grocery By:lllllllllllllllllll terms of 16 CFR 1118.20(e). Published stores nationwide from November 2005 to M. Reza Malihi, below is a provisionallyaccepted March 2007 for $.25 per unit. Trial Attorney, Division of Compliance, Settlement Agreement with A&A Global 5. The Bracelets are ‘‘consumer Office of the General Counsel. Industries, Inc., containing a civil product(s),’’ and, at all times relevant hereto, penalty of $40,000.00. United States of America—Consumer A&A was an ‘‘importer’’ and/or ‘‘distributor’’ Product Safety Commission of those consumer product(s), which were DATES :Any interested person may ask ‘‘distributed in commerce,’’ as those terms In the Matter of First Learning Company the Commission not to accept this are defined in CPSA sections 3(a)(5), (7), (8), Limited, CPSC Docket No.09–C0026. agreement or otherwise comment on its (9), and (11), 15 U.S.C. 2052(a)(5), (7), (8), (9), contents by filing a written request with Order and (11). the Office of the Secretary by August 18, 6. The Bracelets are articles intended to be Upon consideration of the Settlement 2009. entrusted to or for use by children, and, Agreement entered into between First therefore, are subject to the requirements of Learning Company Limited (‘‘First ADDRESSES :Persons wishing to the Commission’s Ban of LeadContaining Learning’’) and the U.S. Consumer Product comment on this Settlement Agreement Paint and Certain Consumer Products Safety Commission (‘‘Commission’’) staff, should send written comments to the Bearing LeadContaining Paint, 16 CFR Part and the Commission having jurisdiction over Comment 09–C0027, Office of the 1303 (the ‘‘Ban’’). Under the Ban, toys and the subject matter and over First Learning, Secretary, Consumer Product Safety other children’s articles must not bear ‘‘lead and it appearing that the Settlement Agreement and Order are in the public Commission, 4330 East West Highway, containing paint,’’ defined as paint or other surface coating materials whose lead content interest, it is Room 502, Bethesda, Maryland 20814– is more than 0.06 percent of the weight of the Ordered,that the Settlement Agreement be, 4408. total nonvolatile content of the paint or the and hereby is, accepted; and it is FOR FURTHER INFORMATION CONTACT :M. Further ordered, weight of the dried paint film. 16 CFR that First Learning shall Reza Malihi, Trial Attorney, Division of pay a civil penalty in the amount of fifty 1303.2(b)(1) thousand dollars ($50,000.00). The civil Compliance, Office of the General 7. On February 2, 2007, the Staff obtained penalty shall be paid in three (3) installments Counsel, Consumer Product Safety Bracelet samples from one of A&A’s as follows: $10,000.00 shall be paid within customers based in New York, which Commission, 4330 East West Highway, thirty (30) calendar days of service of the subsequently were tested at the CPSC Bethesda, Maryland 20814–4408; Commission’s final Order accepting the Laboratory for the presence of lead. The test telephone [phone] or Renee K. Agreement; $15,000.00 shall be paid within results demonstrated that the yellow paint on Haslett, Trial Attorney, (same address); one hundred and twenty (120) calendar days certain Bracelet samples contained a total telephone [phone]. of service of the Commission’s final Order lead content from 7.114 percent to 7.742 percent. These levels of lead are in excess of accepting the Agreement; and $25,000.00 SUPPLEMENTARY INFORMATION :The text of shall be paid within one hundred and eighty the permissible 0.06 percent limit set forth in the Agreement and Order appears (180) calendar days of service of the the Ban. below. Commission’s final Order accepting the 8. On April 3, 2007, the Commission and Dated: July 28, 2009. Agreement. Each payment shall be made by A&A announced a consumerlevel recall of check payable to the order of the United Todd A. Stevenson,about four million units of the Bracelets States Treasury. Upon the failure of First because ‘‘[t]he paint on the metallic band Secretary. Learning to make any of the foregoing beneath the decorative cover contains high United States of America, Consumer Product payments when due, (i) the entire amount of levels of lead. Lead is toxic if ingested by Safety Commission the civil penalty shall become due and young children and can cause adverse health payable, and (ii) interest on the outstanding In the Matter of A&A Global Industries, effects.’’ balance shall accrue and be paid by First Inc. 9.Although A&A reported no incidents or Learning at the Federal legal rate of interest injuries associated with the Bracelets, it Settlement Agreement and Order set forth at 28 U.S.C. 1961(a) and (b). failed to take adequate action to ensure that Provisionally accepted and provisional 1. In accordance with 16 CFR 1118.20,none would bear or contain leadcontaining Order issued on the8thday ofJuly, Global Industries, Inc. (‘‘2009. A&AA&Apaint, thereby creating a risk of lead’’) and the staff (‘‘Staff’’) of the United States Consumerpoisoning and adverse health effects to By Order of the Commission. Product Safety Commission (‘‘CPSCchildren.’’ or the Todd A. Stevenson, ‘‘Commission10. The Bracelets constitute ‘‘banned’’) enter into this Settlement Secretary, U.S. Consumer Product Safety Agreement (‘‘Agreementhazardous products’’ under CPSA section 8’’). The Agreement Commission. and the incorporated attached Orderand the Ban, 15 U.S.C. 2057 and 16 CFR [FR Doc. E9–18514 Filed 7–31–09; 8:45 am] (‘‘Order1303.1(a)(1), 1303.4(b), in that they bear or’’) settle the Staff’s allegations set BILLING CODE 6355–01–P contain paint or other surface coatingforth below.

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Federal Register74, No. 147/ Vol./ NoticesAugust 3, 2009/ Monday,

38409

materials whose lead content exceeds the16 CFR 1118.20(e). In accordance with 16By:lllllllllllllllllll permissible limit of 0.06 percent of the CFR 1118.20(f), if the Commission does notBy:lllllllllllllllllll weight of the total nonvolatile content of the receive any written request not to accept theM. Reza Malihi, paint or the weight of the dried paint film. Agreement within fifteen (15) days, theTrial Attorney, Renee K. Haslett, Trial 11. From January 2005 to March 2007, Agreement shall be deemed finally acceptedAttorney, Division of Compliance, Office of A&A sold, manufactured for sale, offered for on the sixteenth (16th) day after the date itthe General Counsel. sale, distributed in commerce, or imported is published in theFederal Register. In the Matter of A&A Global Industries, into the United States, or caused one or more 21. Upon the Commission’s final Inc. of such acts, with respect to the aforesaid acceptance of the Agreement and issuance of Order banned hazards Bracelets in violation of the final Order, A&A knowingly, voluntarily, section 19(a)(1) of the CPSA, 15 U.S.C. and completely waives any rights it may have Upon consideration of the Settlement in this matter to the following: (1) An 2068(a)(1) (which acts at the time were in Agreement entered into between A&A Global administrative or judicial hearing; (2) judicial violation of 19(a)(2) of the CPSA, 15 U.S.C. Industries, Inc. (‘‘A&A’’) and the U.S. review or other challenge or contest of the 2068(a)(2), as the Consumer Product Safety Consumer Product Safety Commission validity of the Commission’s Order or Improvement Act of 2008, Public Law 110– (‘‘Commission’’) staff, and the Commission actions; (3) a determination by the 314, had yet to be enacted). A&A committed having jurisdiction over the subject matter Commission of whether A&A failed to these prohibited acts ‘‘knowingly,’’ as that and over A&A, and it appearing that the comply with the CPSA and its underlying term is defined in section 20(d) of the CPSA, Settlement Agreement and Order are in the regulations; (4) a statement of findings of fact 15 U.S.C. 2069(d). public interest, it is and conclusions of law; and (5) any claims 12. Pursuant to section 20 of the CPSA, 15 Ordered,that the Settlement Agreement be, under the Equal Access to Justice Act. U.S.C. 2069, A&A is subject to civil penalties and hereby is, accepted; and it is 22. The Commission may publicize the for the aforementioned violations. Further ordered,that A&A shall pay a civil terms of the Agreement and Order. penalty in the amount of forty thousand A&A’s Responsive Allegations 23. The Agreement and Order shall apply dollars ($40,000.00). The civil penalty shall 13. A&A contests and denies the Staff’s to, and be binding upon, A&A and each of be paid within twenty (20) calendar days of allegations set forth in paragraphs 4 through its successors and assigns. service of the Commission’s final Order 12. 24.The Commission issues the Order accepting the Agreement. The payment shall 14. A&A specifically denies that it failed to under the provisions of the CPSA, and be made by check payable to the order of the take adequate action to ensure that the violation of the Order may subject A&A to United States Treasury. Upon the failure of Bracelets did not bear leadcontaining paint appropriate legal action. A&A to make the foregoing payment when exceeding the permissible limits set forth in 25. The Agreement may be used in due, interest on the unpaid amount shall the Ban. A&A’s compliance program, at the interpreting the Order. Understandings, accrue and be paid by A&A at the federal time of the subject recall met or exceeded agreements, representations, or legal rate of interest set forth at 28 U.S.C. industry standards for ensuring compliance interpretations apart from those contained in 1961(a) and (b). with the permissible lead limits set forth in the Agreement and Order may not be used to Provisionally accepted and provisional the Ban. Likewise, A&A asserts that it acted vary or contradict its terms. The Agreement Order issued on the8thday ofJuly2009. responsibly and reasonably to respond to the shall not be waived, amended, modified, or By Order of the Commission. Commission’s concern regarding the otherwise altered, except in a writing that is Todd A. Stevenson, Bracelets, including its prompt and voluntary executed by the party against whom such Secretary, U.S. Consumer Product Safety implementation of a successful product recall waiver, amendment, modification, or Commission. of the Bracelets in cooperation with the alteration is sought to be enforced. Commission. 26.If any provision of the Agreement and [FR Doc. E9–18513 Filed 7–31–09; 8:45 am] 15. A&A specifically denies that any Order is held to be illegal, invalid, or BILLING CODE 6355–01–P alleged violation of the CPSA occurred unenforceable under present or future laws ‘‘knowingly,’’ as the term ‘‘knowingly’’ is effective during the terms of the Agreement defined in section 20(d) of the CPSA, 15 and Order, such provision shall be fully CONSUMER PRODUCT SAFETY U.S.C. 2069(d). severable. The balance of the Agreement and COMMISSION 16. A&A has entered into the Agreement Order shall remain in full force and effect, for settlement purposes only, to avoid unless the Commission and A&A agree that [CPSC Docket No. 09–C0021] incurring additional expenses and the severing the provision materially affects the distraction of litigation. Accordingly, the purpose of the Agreement and Order. Raymond Geddes & Co., Provisional Agreement and Order do not constitute, and A&A Global Industries, Inc. Acceptance of a Settlement Agreement are not evidence of, any fault or wrongdoing Dated: 4/23/09. and Order on the part of A&A. By:lllllllllllllllllll AGENCY :Consumer Product Safety Agreement of the PartiesEugene Lipman, Commission. Vice President of Finance and 17. Under the CPSA, the Commission has ACTION :Notice. Administration, A&A Global Industries, Inc., jurisdiction over this matter and over A&A. 17 Stenersen Lane, Cockeysville, MD 21030. 18. The parties enter into the Agreement SUMMARY :It is the policy of the for settlement purposes only. The Agreement Dated: 4/27/09. Commission to publish settlements does not constitute an admission by A&A, or By:lllllllllllllllllll which it provisionally accepts under the a determination by the Commission, that Kathleen M. Sanzo, Esq., Consumer Product Safety Act in the A&A has knowingly violated the CPSA. Morgan, Lewis & Bockius LLP, 1111 Federal Registerin accordance with the 19. In settlement of the Staff’s allegations, Pennsylvania Avenue, NW., Washington, DC terms of 16 CFR 1118.20(e). Published A&A shall pay a civil penalty in the amount 20004, Counsel for A&A Global Industries, of forty thousand dollars ($40,000.00) within Inc. below is a provisionallyaccepted twenty (20) calendar days of service of the Settlement Agreement with Raymond U.S. Consumer Product Safety Commission Commission’s final Order accepting the Geddes & Co., containing a civil penalty Staff Agreement. The payment shall be made by of $40,000.00. Cheryl A. Falvey, check payable to the order of the United General Counsel, Office of the General DATES :Any interested person may ask States Treasury. Counsel. the Commission not to accept this 20. Upon the Commission’s provisional Ronald G. Yelenik, agreement or otherwise comment on its acceptance of the Agreement, the Agreement Assistant General Counsel, Office of the contents by filing a written request with shall be placed on the public record and General Counsel. published in theFederal Registerin the Office of the Secretary by August 18, accordance with the procedures set forth inDated: 5/12/09. 2009.

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