Federal Register: October 20, 1994]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 95-C0002]
Bee International, Inc., a Corporation; Provisional Acceptance of
a Settlement Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Provisional acceptance of a settlement agreement under the
Consumer Product Safety Act.
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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)
through (h). Published below is a provisionally-accepted Settlement
Agreement with Bee International, Inc., a corporation.
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 November 4, 1994.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 95-C0001, Office of the
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.
FOR FURTHER INFORMATION CONTACT:
Dennis C. Kacoyanis, Trial Attorney, Office of Compliance and
Enforcement, Consumer Product Safety Commission, Washington, D.C.
20207; telephone (301) 504-0626.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: October 14, 1994.
Sadye E. Dunn,
Secretary.
Settlement Agreement and Order
1. Bee International, Inc. (hereinafter, ``Bee''), a corporation,
enters into this Settlement Agreement and Order (hereinafter,
``Settlement Agreement'') with the staff of the Consumer Product Safety
Commission, and agrees to the entry of the Order described herein. The
purpose of the Settlement Agreement is to settle the staff's
allegations that Bee knowingly violated sections 4 (a), (c), and (i) of
the Federal Hazardous Substances Act (FHSA), 15 U.S.C. 1263 (a), (c),
and (i).
I. The Parties
2. The ``staff'' is the staff of the Consumer Product Safety
Commission, an independent regulatory Commission of the United States
established pursuant to section 4 of the Consumer Product Safety Act
(CPSA), 15 U.S.C. 2053.
3. Bee is a corporation organized and existing under the laws of
the State of California, since 1970. The firm's principal place of
business is located at 2311 Boswell Road, Chula Vista, CA 91914. Bee is
an importer and distributor of toys, novelty items, and confectionery
items.
II. Allegations of the Staff
4. On five occasions between October 9, 1991, and February 23,
1994, Bee introduced or caused the introduction into interstate
commerce; or received in interstate commerce and delivered or proffered
delivery thereof nine kinds of toys (337,320 articles) intended for use
by children under three years of age, which are identified and
described below:
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Collect
.
Sample No. Product date* ent
ry Expt/mfg
date
P-867-7794 Acrobatic Animal (Bulldog) W/Candy................. 03/03/
92 Unlimited Creations.
P-867-7795 Acrobatic Animal (Dinosaur) W/Candy................ 03/03/
92 Unlimited Creations.
P-867-7796 Acrobatic Animal (Cat) W/Candy..................... 03/03/
92 Unlimited Creations.
P-867-7797 Plastic Acrobatic Panda) Animal W/Candy............ 03/03/
92 Unlimited Creations.
R-800-2663 Plastic Acrobatic Animal W/Candy................... 01/23/
93 Unlimited Creations.
S-871-8518 Acrobatic Animal (Bunny and Duck) W/Candy Easter *02/23/
94 Unlimited Creations.
Acrobats.
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5. The toys identified in paragraph 4 above are subject to, but
failed to comply with, the Commission's Small Parts Regulation, 16 CFR
Part 1501, in that when tested under the ``use and abuse'' test methods
specified in 16 CFR 1500.51 and 1500.52, (a) one or more parts of each
tested toy separated and (b) one or more of the separated parts from
``hazardous substance'' pursuant to section 2(f)(1)(D) of the FHSA, 15
U.S.C. 1261(f)(1)(D).
8. Each of the toys identified in paragraph 4 above is a ``banned
hazardous substance'' pursuant to section 2(q)(1)(A) of the FHSA, 15
U.S.C. 1261(q)(1)(A) (any toy or other article intended for use by
children which bears or contains a hazardous substance); and (b) 16 CFR
1500.18(a)(9) (any toy or other article intended for use by children
under 3 years of age which presents a choking, aspiration, or ingestion
hazard because of small parts).
9. Bee knowingly introduced or caused the introduction into
interstate commerce; or received in interstate commerce and delivered
or proffered delivery thereof for pay or otherwise, the banned
hazardous toys identified in paragraph 4 above, in violation of
sections 4 (a) or (c) of the FHSA, 15 U.S.C. 1263 (a) or (c).
10. On or about October 16, 1993, Bee exported 108,000 articles of
the toy, Plastic Acrobatic Animal W/Candy, Sample No. R-800-2663,
identified in paragraph 4 above as a ``banned hazardous substance''
without notifying the Commission pursuant to section 14(d) of the FHSA,
15 U.S.C. 1273(d) and the Commission's Procedures For Export of
Noncomplying Products, 16 CFR Part 1019.
11. Bee knowingly failed to file the required notification
information the Commission of its intent to export the Plastic
Acrobatic Animal W/Candy, identified in paragraphs 4 and 10 above, in
violation of section 4(i) of the FHSA, 15 U.S.C. 1263(i).
III. Response of Bee
12. Bee denies the allegations of the staff set forth in paragraphs
4 through 11 above that it has knowingly introduced or caused the
introduction into interstate commerce; received in interstate commerce
and delivered or proffered delivery thereof for pay or otherwise the
banned hazardous toys identified in paragraph 4 above, in violation of
sections 4 (a) and (c) of the FHSA, 15 U.S.C. 1263 (a) and (c); and
further denies that it failed to comply with the export notification
requirements of the FHSA, in violation of section 4(i) of the FHSA, 15
U.S.C. 1263(i).
IV. Agreement of the Parties
13. The Consumer Product Safety Commission has jurisdiction over
Bee and the subject matter of this Settlement Agreement under the
following acts: Consumer Product Safety Act, 15 U.S.C. 2051 et seq.,
and the Federal Hazardous Substances Act, 15 U.S.C. 1261 et seq.
14. Upon final acceptance by the Commission of this Settlement
Agreement and issuance of the Final Order, Bee agrees to pay to the
Commission a civil penalty in the amount of SIXTY-FIVE THOUSAND AND 00/
100 DOLLARS ($65,000.00), under the terms and conditions set forth in
the attached Order incorporated herein, and made a part hereof, by
reference.
15. The Commission and Bee agree that this Agreement is entered
into for the purposes of settlement only and does not constitute an
admission that Bee knowingly violated the FHSA.
16. Upon final acceptance of this Settlement Agreement by the
Commission and issuance of the Final Order, Bee 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 Commission's actions, (3)
to a determination by the Commission as to whether Bee failed to comply
with the FHSA as aforesaid, and (4) to a statement of findings of fact
and conclusions of law.
17. For purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b),
this matter shall be treated as if a complaint had issued, and the
Commission may publicize the terms of the Settlement Agreement and
Order.
18. Upon provisional acceptance of this Settlement Agreement by the
Commission, the Commission will place the Settlement Agreement and the
Provisional Order on the public record, and publish it in the Federal
Register in accordance with the procedures set forth in 16 CFR 1118.20
(e) through (h). If the Commission does not receive any written request
not to accept the Settlement Agreement within 15 days, the Settlement
Agreement shall be deemed finally accepted and the Final Order shall be
deemed issued on the 16th day.
19. This Settlement Agreement may be used in interpreting the
Provisional and Final Orders. No agreements, understandings,
representations, or interpretations apart from those contained in this
Settlement Agreement may be used to vary or to contradict its terms.
20. The provisions of the Settlement Agreement and Final Order
shall apply to Bee and each of its successors and assigns.
Respondent Bee International, Inc.
Dated: August 29, 1994.
By: Louis C. Block,
President, Bee International, Inc., 2311 Boswell Road, Chula Vista, CA
91914.
Commission Staff.
David Schmeltzer,
Assistant Executive Director, Office of Compliance and Enforcement.
Dated: September 19, 1994.
By: Earl A. Gershenow,
Trial Attorney, Division of Administrative Litigation, Office of
Compliance and Enforcement.
Dated: September 19, 1994.
By: Dennis C. Kacoyanis,
Trial Attorney, Division of Administrative Litigation, Office of
Compliance and Enforcement.
Order
Upon consideration of the Settlement Agreement entered into
between respondent Bee International, Inc., a corporation, and the
staff of the Consumer Product Safety Commission; and the Commission
having jurisdiction over the subject matter and Bee International,
Inc.; and it appearing that the Settlement Agreement and Order is in
the public interest, it is
Ordered, That the Settlement Agreement and Order be and hereby
is accepted; and it is
Further Ordered, That upon final acceptance of the Settlement
Agreement and Order, Bee International, Inc. shall pay to the
Commission a civil penalty in the amount of SIXTY-FIVE THOUSAND AND
00/100 DOLLARS ($65,000.00) in three (3) payments consisting of one
payment of TWENTY-FIVE THOUSAND DOLLARS AND 00/100 ($25,000.00) and
two payments of TWENTY THOUSAND AND 00/100 DOLLARS ($20,000.00)
each. The first payment of TWENTY-FIVE THOUSAND AND 00/100 DOLLARS
($25,000.00) shall be due within twenty (20) days after service of
the Final Order of the Commission accepting the Settlement
Agreement, hereinafter, the ``anniversary date.'' The second payment
of TWENTY THOUSAND AND 00/100 DOLLARS ($20,000.00) shall be made
within one year of the anniversary date, and the third payment of
TWENTY THOUSAND AND 00/100 DOLLARS ($20,000.00) shall be made within
two years of the anniversary date. Payment of the full amount of the
civil penalty shall settle fully the staff's allegations set forth
in paragraphs 4 through 11 of the Settlement Agreement and Order
that Bee International, Inc. violated the FHSA. Upon the failure by
Bee International, Inc. to make a payment or upon the making of a
late payment by Bee International, 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 14th
day of October, 1994.
By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 94-25967 Filed 10-19-94; 8:45 am]
BILLING CODE 6355-01-M