56872 Federal Register / Vol. 65, No. 183 / Wednesday, September 20, 2000 / Notices
By Order of the Commission: I. The Parties rapidly to make it ‘‘fly,’’ often in Sadye E. Dunn, 2. The Commission is an independent unpredictable directions and angles, Secretary, Consumer Product Safety federal regulatory agency responsible for allowing it to forcefully strike the user Commission. the enforcement of the Consumer or nearby playmates, usually in the face [FR Doc. 00–24076 Filed 9–19–00; 8:45 am] Product Safety Act, 15 U.S.C. 2051– or head. 9. Before formal ratification and BILLING CODE 6355±01±M 2084. signing the necessary documents to 3. Galoob is a corporation organized acquire Galoob, Hasbro examined and existing under the laws of the State Galoob’s records reflecting its assets, CONSUMER PRODUCT SAFETY of Delaware. Its principal offices are liabilities and other documents COMMISSION located at 5 Thomas Mellon Circle, including the history of the ‘‘Sky Suite 304, San Francisco, California. [CPSC Docket No. 00±C0014] Dancers.’’ Galoob is a wholly owned subsidiary of 10. Between January 1995 and Galoob Toys, Inc., a Corporation, Hasbro, Inc., (‘‘Hasbro’’) Before ti was November 1998, Galoob received 165 Provisional Acceptance of a acquired by Hasbro, Galoob Toys, Inc. injury complaints, including damage to Settlement Agreement and Order was an independent corporation doing the eyes, face and teeth. Hasbro learned business as Lewis Galoob Toys, Inc. AGENCY: Consumer Product Safety of the problem with the product before Commission. II. Staff Allegations acquiring Galoob. 11. On November 2, 1998, Hasbro ACTION: 4. From on or before November 1994 Notice. acquired Galoob. Following the through approximately August 1998, acquisition, on November 18, 1998 SUMMARY: It is the policy of the Galoob, a corporation and toy Hasbro/Galoob made a telephone report Commission to publish settlements manufacturer, made, sold and and, on November 23, 1998, sent a which it provisionally accepts under the distributed into United States commerce preliminary report letter to the CPSC Consumer Product Safety Act in the over 8 million ‘‘flying’’ toys known as staff under Section 15(b) of the CPSA. Federal Register in accordance with the the ‘‘Sky Dancers’’. Galoob is, therefore, 15 U.S.C. 2064(b). By letter dated terms of 16 CFR 1118.20. Published a manufacturer and distributor of a December 15, 1998, the CPSA staff below is a provisionally-accepted consumer product in U.S. commerce requested full report information from Settlement Agreement with Galoob pursuant to 15 U.S.C. 2052 (a)(1), (4), (5) the reporting firm pursuant to the CPSA. Toys, Inc., a corporation, containing a an (6). civil penalty of $400,000. Id. 5. On November 2, 1998 Hasbro 12. On January 14, 1999 Hasbro/ DATES: Any interested person may ask purchased Galoob’s stock and Galoob Galoob filed a limited report with the the Commission not to accept this became one of Hasbro’s wholly owned Commission and filed its full report on agreement or otherwise comment on its subsidiaries. Galoob remained and April 8, 1999. Galoob undertook a contents by filing a written request with remains a corporation and a separate voluntary recall of the Sky Dancers in the Office of the Secretary by October 5, legal entity. June 2000. 2000. 6. Galoob experienced several toy 13. Galoob, during 1994 testing and ADDRESSES: Persons wishing to manufacturing/production problems early production, and subsequently, as comment on this Settlement Agreement resulting in unsafe performance of the it received injury reports through 1998, should send written comments to the Sky Dancers shortly after production obtained information which reasonably Comment 00–C0014, Office of the began. In late 1994 and early 1995, supported the conclusion that the Sky Secretary, Consumer Product Safety production defects included: use of Dancers contained defects which could Commission, Washington, DC 20207. wings of uneven weight on the same create a substantial product hazard but FOR FURTHER INFORMATION CONTACT: Sky Dancer, improper methods for failed to report to the Commission in a William J. Moore, Trial Attorney, Office centering and affixing wings to the body timely manner as required by section of Compliance and Enforcement, of the toy; and producing wings with 15(b) of the CPSA, 15 U.S.C. 2064(b). Consumer Product Safety Commission, padding that was susceptible of coming Hasbro obtained such information Washington, DC 20207; telephone (301) off the wing. before it formally acquired the stock of 504–0626, 1348. 7. In 1995 Galoob made several Galoob on November 2, 1998. prospective changes in the design and SUPPLEMENTARY INFORMATION: The text of 14. By failing to furnish information production of the Sky Dancers intended as required by section 15(b) of the the Agreement and Order appears to reduce performance problems and below. CPSA, Galoob committed a prohibited make the Sky Dancer safer to use. After act under section 19(a)(4) of the CPSA, Dated: September 15, 2000. Galoob distributed approximately 15 U.S.C. 2068(a)(4). Sadye E. Dunn, 100,000 Sky Dancers into U.S. 15. The staff alleges this violation was Secretary. commerce, Galoob reworked a large committed ‘‘knowlingly’’ as the term in number of Sky Dancers in inventory to Settlement Agreement and Order defined in section 20(d) of the CPSC, 15 attempt to eliminate safety defects. The U.S.C. 2069(d). 1. This Settlement Agreement, made approximately 100,000 Sky Dancers by and between the staff (‘‘the staff’’) of sold were not recalled or reworked. III. Response of Galoob the U.S. Consumer Product Safety 8. Even as designed and produced as 16. Galoob denies the staff allegations Commission (‘‘the Commission’’) and intended, the Sky Dancers are numbered six through ten and 13 Galoob Toys, Inc., (‘‘Galoob’’), a susceptible of causing injury. The Sky through 15 above. It denies the Galoob corporation, in accordance with 16 CFR Dancer uses a pull cord to launch the Sky Dancer contains a defect or that it 1118.20 of the Commission’s Procedures hard plastic toy; to send it spinning up creates a substantial product hazard for Investigations, Inspections, and and away from its base at a high rate of pursuant to section 15(a) of the CPSA, Inquiries under the Consumer Product speed. Once launched the Sky Dancer 15 U.S.C. 2064(a) or that it creates an Safety Act (‘‘CPSA’’), is a settlement of uses two propeller-like blades or unreasonable risk of serious injury or the staff allegations set forth below. ‘‘wings’’ (attached to the toy) spinning death pursuant to section 15(b) of the
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CPSA. Galoob denies that Sky Dancers specifically waives its right to initiate, Director, Legal Division, Office of or Galoob has caused any injuries. either by referral to the Department of Compliance. Galoob further denies that it or Hasbro Justice, or bringing in its own name, any Dated: August 9, 2000. violated the reporting requirements of action for civil penalties relating to any William J. Moore, Jr., section 15(b) of the CPSA, 15 U.S.C. of the events that gave rise to the staff Trial Attorney, Legal Division, Office of 2064(b) or 16 C.F.R. Part 1115. allegations in paragraphs four through Compliance. 17. Galoob asserts that Sky Dancers 15, supra, against (a) Galoob; (b) any of Order were properly designed, tested and Galoob’s current or former parents, Upon consideration of the Settlement manufactured and contained adequate subsidiaries, affiliates, divisions or Agreement entered into between Galoob warnings and labeling. related entities; (c) any shareholder, Toys, Inc., a corporation, and the staff 18. Galoob enters this Settlement director, officer, employee, agent or of the U.S. Consumer Product Safety Agreements and Order for settlement attorney of any entity referenced in (a) Commission; and the Commission purposes only, to avoid incurring legal or (b), and (d) any successor, heir, or having jurisdiction over the subject costs and expenses. assign of the persons described in (a) or matter and Galoob Toys, Inc., and it (b) above. IV. Agreement of the Parties appearing that the Settlement 25. Upon final acceptance by the Agreement and Order is in the public 19. The Commission has jurisdiction Commission, the parties agree that the interest, it is over this matter and over Galoob under Commission may publicize the terms of Ordered, that the Settlement the Consumer Product Safety (CPSA), 15 the Settlement Agreement and Order. U.S.C. 2051 et seq. 26. Galoob agrees to the entry of the Agreement be, and hereby is, accepted, 20. Galoob knowingly, voluntarily attached Order, which is incorporated and it is and completely waives any rights it may herein by reference, and agrees to be Further Ordered, that, upon final have in the above captioned case (1) to bound by its terms. acceptance of the Settlement Agreement the issuance of a Compliant in this 27. The Commission’s Order in this and Order, Galoob Toys, Inc. shall pay matter; (2) to an administrative or matter is issued under the provisions of the Commission a civil penalty in the judicial hearing with respect to the staff the CPSA, 15 U.S.C. 2051 et seq., and amount of FOUR HUNDRED allegations cited herein (3) to judicial a violation of this Order may subject THOUSAND AND no/100 dollars, review or other challenge or contest of Galoob to appropriate legal action. ($400,000.00) within ten (10) calendar the validity of the Commission’s Order; 28. This Settlement Agreement and days after service of this Final Order (4) to a determination by the Order is binding upon and shall inure upon Galoob Toys, Inc. Commission as to whether a violation of to the benefit of Galoob, its parent and Provisionally accepted and Provisional section 15(b) of the CPSA, 15 U.S.C. each of their assigns or successors. Order issued on the 15th day of September, 2064(b), has occurred, and (5) to a 29. Agreements, understandings, 2000. statement of findings of fact and representations, or interpretations made By Order of the Commission. conclusions of law with regard to the outside this Settlement Agreement and Sadye E. Dunn, staff allegations. Order may not be used to vary or to Secretary, U.S. Consumer Product Safety 21. Upon provisional acceptance of contradict its terms. Commission. this Settlement Agreement and Order by 30. If, after the effective date hereof, [FR Doc. 00–24188 Filed 9–19–00; 8:45 am] the Commission, this Settlement any provision of this Settlement BILLING CODE 6355±01±M Agreement and Order shall be placed on Agreement and Order is held to be the public record and shall by published illegal, invalid, or unenforceable under in the Federal Register in accordance present or future laws effective during CORPORATION FOR NATIONAL AND with 16 CFR 1118.20. the terms of the Settlement and Order, COMMUNITY SERVICE 22. The Settlement Agreement and such provision shall be fully severable. Order becomes effective upon final The rest of the Settlement Agreement Sunshine Act Meeting acceptance by the Commission. Galoob and Order shall remain in full effect, The Board of Directors of the shall pay a civil penalty in the amount unless the Commission determines that Corporation for National and of four hundred thousand and no/ severing the provision materially Community Service gives notice of the dollars ($400,000.00) within 10 calender impacts the purpose of the Settlement following meeting: days of receiving service of such final Agreement and Order. Settlement Agreement and Order. 31. This Settlement Agreement and DATE AND TIME: Wednesday, September 23. This Settlement Agreement and Order shall not be waived, changed, 27, 2000, 10 a.m.–12:30 p.m. Order is not deemed or construed as an amended, modified, or otherwise PLACE: Corporation for National Service admission by Galoob (a) of any liability altered, except in writing executed by 1201 New York Avenue, NW, 8th Floor or wrongdoing by Galoob or, (b) that the party against whom such conference room, Washington, D.C. Galoob violated any law or regulation. amendment, modification, alteration, or STATUS: Open. Nothing contained in this Settlement waiver is sought to be enforced, and MATTERS TO BE CONSIDERED: Agreement and Order precludes Galoob approved by the Commission. from raising any defenses in any future I. Chair’s Opening Remarks litigation not arising out of the terms of Galoob Toys, Inc. II. Approval of Prior Meeting Minutes this Settlement Agreement and Order. Dated: August 17, 2000. III. Report by the Chief Executive Officer 24. Upon final acceptance of this Alfred J. Vurmhra, IV. Committee Reports Settlement Agreement by the Executive Vice President—Global A. Executive Committee Commission, the issuance of the Operations, Chief Financial Officer. B. Management, Audit, annd The U.S. Consumer Product Safety implementing Order, and the full and Commission. Governance Committee Audit timely payment by Galoob to the United Alan H. Schoem, Report States Treasury of a civil penalty in the Assistant Executive Director, Office of C. Communications Committee amount of four hundred thousand Compliance. D. Planning and Evaluation dollars ($400,000.00), the Commission Eric L. Stone, Committee Strategic Plan
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