38414 Federal Register / Vol. 74, No. 147 / Monday, August 3, 2009 / Notices 

Order 

Upon consideration of the Settlement 

Agreement entered into between Michaels 

Stores, Inc. (‘‘Michaels’’) and the U.S. 

Consumer Product Safety Commission 

(‘‘Commission’’) staff, and the Commission 

having jurisdiction over the subject matter 

and over Michaels, 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 Michaels shall pay a 

civil penalty in the amount of forty five 

thousand dollars ($45,000.00) 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 Michaels 

to make any of the foregoing payments when 

due, interest on the unpaid amount shall 

accrue and be paid by Michaels 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. E9–18518 Filed 7–31–09; 8:45 am] 

BILLING CODE 6355–01–P 

CONSUMER PRODUCT SAFETY 

COMMISSION 

[CPSC Docket No. 09–C0025] 

Hobby Lobby Stores, Inc., Provisional 

Acceptance of a Settlement Agreement 

and Order 

AGENCY: Consumer Product Safety 

Commission. 

ACTION: Notice. 

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 Hobby 

Lobby Stores, Inc., containing a civil 

penalty of $50,000.00. 

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. 

ADDRESSES: Persons wishing to 

comment on this Settlement Agreement 

should send written comments to the 

Comment 09–C0025, Office of the 

Secretary, Consumer Product Safety 

Commission, 4330 East West Highway, 

Room 502, Bethesda, Maryland 20814– 

4408. 

FOR FURTHER INFORMATION CONTACT: M. 

Reza Malihi, Trial Attorney, Division of 

Compliance, Office of the General 

Counsel, Consumer Product Safety 

Commission, 4330 East West Highway, 

Bethesda, Maryland 20814–4408; 

telephone (301) 504–7733. 

SUPPLEMENTARY INFORMATION: The text of 

the Agreement and Order appears 

below. 

Dated: July 28, 2009. 

Todd A. Stevenson, 

Secretary. 

Settlement Agreement 

1. In accordance with 16 CFR 1118.20, 

Hobby Lobby Stores, Inc. (‘‘Hobby Lobby’’) 

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, and responsible for the 

enforcement of, the Consumer Product Safety 

Act, 15 U.S.C. 2051–2089 (‘‘CPSA’’). 

3. Hobby Lobby is a corporation organized 

and existing under the laws of Oklahoma, 

with its principal offices located in 

Oklahoma City, Oklahoma. At all times 

relevant hereto, Hobby Lobby imported and/ 

or sold toys and other children’s products, 

among other merchandise such as arts and 

crafts, hobbies, picture framing, jewelry 

making, fashion fabrics, floral, cards and 

party items. 

Staff Allegations 

4. During August 2007, Hobby Lobby 

imported into the United States about 10,000 

units of certain Halloween-themed plastic 

baskets, with two carrying handles, an 

emblem of a witch, bat or pumpkin attached 

to each side of the handle, and item number 

5464201 located next to the price on the 

paper hangtag on the handle (‘‘Basket(s)’’). 

The Baskets were, in turn, offered for sale or 

sold to consumers at Hobby Lobby stores 

nationwide from August 2007 through 

November 2007 for about $1 per unit. 

5. Also during August 2007, Hobby Lobby 

imported into the United States about 13,000 

units of Easter-Themed Camouflage Eggs and 

Spinning Egg Top Toys. The Camouflage 

Easter Egg Treat Containers have Item #1031 

printed on the front of the packaging and are 

white, brown and green camouflage colors, 

sold in a package of eight eggs, with ‘‘Made 

in China for Tony Development and Mfg Ltd; 

TST, Kin, HK’’ and UPC code number 43078 

01031 printed on the back of the packing 

(‘‘Egg(s)’’). The Easter Spinning Egg Tops 

have Item # 1054 printed on the front of the 

packaging and are multi-colored and come in 

packages of a single egg and a rip cord, with 

‘‘Made in China for Tony Development and 

Mfg Ltd. TST, Kin, HK’’ and UPC code 

number 43078 01054 printed on the back of 

the packaging (‘‘Top(s)’’). The Eggs and Tops 

were, in turn, offered for sale or sold to 

consumers at Hobby Lobby stores nationwide 

from January 2008 through March 2008, for 

about $2.50 per unit and about $2 per unit, 

respectively. 

6. The Baskets, Eggs and Tops are 

‘‘consumer product(s),’’ and, at all times 

relevant hereto, Hobby Lobby was a 

‘‘manufacturer’’ and/or a ‘‘retailer’’ of those 

consumer product(s), which were 

‘‘distributed in commerce,’’ as those terms 

are defined in CPSA sections 3(a)(3), (5), (8), 

(11), and (13), 15 U.S.C. 2052(a)(3), (5), (8), 

(11), and (13). 

7. The Baskets, Eggs and Tops 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 ‘‘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) 

8. Samples of the Baskets were tested by 

an independent laboratory for the presence of 

lead pursuant to the Ban. The test results 

demonstrated that certain samples of each 

contained levels of lead in excess of the 

permissible 0.06 percent limit set forth in the 

Ban. On or about October 30, 2007, the 

Commission informed Hobby Lobby of the 

violation. 

9. On November 16, 2007, the Commission 

and Hobby Lobby announced a consumerlevel recall of about 10,000 units of the 

Baskets because ‘‘Surface paint on the bat, 

pumpkin and witch emblems attached to the 

baskets contains excess levels of lead, which 

violates the Federal lead paint ban.’’ 

10. Samples of the Eggs and Tops were 

tested by an independent laboratory for the 

presence of lead pursuant to the Ban. The test 

results demonstrated that certain samples of 

each contained levels of lead in excess of the 

permissible 0.06 percent limit set forth in the 

Ban. On or about March 13, 2008, the 

Commission informed Hobby Lobby of the 

violation. 

11. On March 21, 2008, the Commission 

and Hobby Lobby announced a consumerlevel recall of about 13,000 units of the Eggs 

and Tops because ‘‘The paint on the toys 

contains excessive levels of lead, violating 

the Federal lead paint standard.’’ 

12. Although Hobby Lobby reported no 

incidents or injuries associated with the 

Baskets, Eggs and Tops, it failed to take 

adequate action to ensure that none would 

bear or contain lead-containing paint, thereby 

creating a risk of lead poisoning and adverse 

health effects to children. 

13. The Baskets, Eggs and Tops 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. 

14. Between August 2007 and March 2008, 

Hobby Lobby manufactured for sale, offered 


sroberts on DSKD5P82C1PROD with NOTICES
Federal Register / Vol. 74, No. 147 / Monday, August 3, 2009 / Notices 38415 

for sale, distributed in commerce, or 

imported into the United States, or caused 

one or more of such acts, with respect to the 

aforesaid banned hazardous Baskets, Eggs 

and Tops, in violation of section 19(a)(1) of 

the CPSA, 15 U.S.C. 2068(a)(1). Hobby Lobby 

committed these prohibited acts 

‘‘knowingly,’’ as that term is defined in 

section 20(d) of the CPSA, 15 U.S.C. 2069(d). 

15. Pursuant to section 20 of the CPSA, 15 

U.S.C. 2069, Hobby Lobby is subject to civil 

penalties for the aforementioned violations. 

Hobby Lobby’s Responsive Allegations 

16. Hobby Lobby denies the Staff’s 

allegations set forth above that Hobby Lobby 

knowingly violated the CPSA or that it failed 

to take adequate action to ensure that none 

of the products contained lead containing 

paint. 

Agreement of the Parties 

17. Under the CPSA, the Commission has 

jurisdiction over this matter and over Hobby 

Lobby. 

18. The parties enter into the Agreement 

for settlement purposes only. The Agreement 

does not constitute an admission by Hobby 

Lobby, or a determination by the 

Commission, that Hobby Lobby has 

knowingly violated the CPSA. 

19. In settlement of the Staff’s allegations, 

Hobby Lobby shall pay a civil penalty in the 

amount of fifty thousand dollars ($50,000.00) 

within twenty (20) calendar days of service 

of the Commission’s final Order accepting 

the Agreement. This payment shall be made 

by check payable to the order of the United 

States Treasury. 

20. Upon the Commission’s provisional 

acceptance of the Agreement, the Agreement 

shall be placed in 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. 

21. Upon the Commission’s final 

acceptance of the Agreement and issuance of 

the final Order, Hobby Lobby 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 Hobby Lobby 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. 

22. The Commission may publicize the 

terms of the Agreement and Order. 

23. The Agreement and Order shall apply 

to, and be binding upon, Hobby Lobby and 

each of its successors and assigns. 

24. The Commission issues the Order 

under the provisions of the CPSA, and 

violation of the Order may subject Hobby 

Lobby and those designated in paragraph 23 

above to appropriate legal action. 

25. 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. 

26. If 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 Hobby Lobby 

agree that severing the provision materially 

affects the purpose of the Agreement and 

Order. 

Dated: March 3, 2009. 

Steve Green, 

President, Hobby Lobby Stores, Inc., 7707 

SW. 44th Street, Oklahoma City, OK 73179. 

Dated: March 3, 2009. 

Peter M. Dobelbower, 

Vice President & General Counsel, Hobby 

Lobby Stores, Inc. U.S. Consumer Product 

Safety Commission Staff. 

Cheryl A. Falvey, 

General Counsel, Office of the General 

Counsel. 

Ronald G. Yelenik, 

Assistant General Counsel, Office of the 

General Counsel. 

Dated: March 6, 2009. 

M. Reza Malihi, 

Trial Attorney, Division of Compliance, 

Office of the General Counsel. 

Order 

Upon consideration of the Settlement 

Agreement entered into between Hobby 

Lobby Stores, Inc. (‘‘Hobby Lobby’’) and the 

U.S. Consumer Product Safety Commission 

(‘‘Commission’’) staff, and the Commission 

having jurisdiction over the subject matter 

and over Hobby Lobby, 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 Hobby Lobby 

shall pay a civil penalty in the amount of 

fifty thousand dollars ($50,000.00) 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 Hobby 

Lobby to make any of the foregoing payments 

when due, interest on the unpaid amount 

shall accrue and be paid by Hobby Lobby 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. E9–18516 Filed 7–31–09; 8:45 am] 

BILLING CODE 6355–01–P 

CONSUMER PRODUCT SAFETY 

COMMISSION 

[CPSC Docket No. 09–C0029] 

Dollar General Corporation, 

Provisional Acceptance of a 

Settlement Agreement and Order 

AGENCY: Consumer Product Safety 

Commission. 

ACTION: Notice. 

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 Dollar 

General Corporation, containing a civil 

penalty of $100,000.00. 

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. 

ADDRESSES: Persons wishing to 

comment on this Settlement Agreement 

should send written comments to the 

Comment 09–C0029, Office of the 

Secretary, Consumer Product Safety 

Commission, 4330 East West Highway, 

Room 502, Bethesda, Maryland 20814– 

4408. 

FOR FURTHER INFORMATION CONTACT: Neal 

S. Cohen, Trial Attorney, Division of 

Compliance, Office of the General 

Counsel, Consumer Product Safety 

Commission, 4330 East West Highway, 

Bethesda, Maryland 20814–4408; 

telephone (301) 504–7504 or M. Reza 

Malihi, Trial Attorney, (same address); 

telephone (301) 504–7733. 

SUPPLEMENTARY INFORMATION: The text of 

the Agreement and Order appears 

below. 

Dated: July 28, 2009. 

Todd A. Stevenson, 

Secretary. 

In the Matter of Dollar General Corporation; 

Settlement Agreement 

1. In accordance with 16 CFR 1118.20, 

Dollar General Corporation (‘‘DGC’’), for itself 

and on behalf of its wholly owned 

subsidiaries referenced in paragraph three 

(collectively referred to as ‘‘Dollar General’’), 

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 


sroberts on DSKD5P82C1PROD with NOTICES