32328 Federal Register / Vol. 66, No. 115 / Thursday, June 14, 2001 / Notices

Dated: June 7, 2001.

Wanda L. Cain,

Acting Deputy Director, Office of Protected

Resources.

[FR Doc. 01–15060 Filed 6–13–01; 8:45 am]

BILLING CODE 3510–22–S

CONSUMER PRODUCT SAFETY

COMMISSION

[CPSC Docket No. 01–C0008]

Fisher-Price, Inc., a 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 FisherPrice, Inc., a corporation containing a

civil penalty of $1,100,000.

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 June 29,

2001.

ADDRESSES: Persons wishing to

comment on this Settlement Agreement

should send written comments to the

Comment 01–C0008, Office of the

Secretary, Consumer Product Safety

Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:

Roald G. Yelenik, Trial Attorney, Office

of Compliance and Enforcement,

Consumer Product Safety Commission,

Washington, DC 20207; telephone (301)

504–0626, 1351.

SUPPLEMENTARY INFORMATION: The text of

the Agreement and Order appears

below.

Dated: June 7, 2001.

Todd A. Stevenson,

Acting Secretary.

Settlement Agreement and Order

1. This Settlement Agreement, made

by and between the staff (‘‘the staff’’) of

the U.S. Consumer Product Safety

Commission (the ‘‘Commission’’) and

Fisher-Price, Inc. (‘‘Fisher-Price’’ or

‘‘Respondent’’), a corporation, in

accordance with 16 CFR 1118.20 of the

Commission’s Procedures for

Investigations, Inspections, and

Inquiries under the Consumer Product

Safety Act (‘‘CPSA’’), is a settlement of

the staff allegations set forth below.

The Parties

2. The Commission is an independent

federal regulatory agency responsible for

the enforcement of the Consumer

Product Safety Act, 15 U.S.C. 2051–

2084.

3. Respondent is a corporation

organized and existing under the laws of

the State of Delaware with its principal

corporate offices located in East Aurora,

N.Y. Fisher-Price designs and

distributes toys and juvenile products.

In May 1994, the parent corporation of

Fisher-Price acquired Kransco, the

manufacturer of ‘‘Power Wheels’’ rideon cars and trucks. Subsequently,

Fisher-Price designed, marketed and

distributed ‘‘Power Wheels’’ ride on cars

and trucks.

Staff Allegations

4. Between 1994 and October 1998,

Fisher-Price distributed nationwide, and

prior to that time, Kransco

manufactured and sold nationwide, a

total of approximately 10 million

battery-powered Super 6 and 12-volt

‘‘Power Wheels’’ ride-on toy cars and

trucks (the ‘‘vehicle(s)’’) in nearly 100

different models. These vehicles are

intended for children two to seven years

old.

5. The vehicles are ‘‘consumer

product(s)’’ and Respondent is a

‘‘distributor’’ of ‘‘consumer product(s),’’

which were ‘‘distributed in commerce’’

as those terms are defined in sections

3(a)(1), (5), (11) and (12) of the CPSA,

15 U.S.C. 2052(a)(1), (5), (11) and (12).

6. The vehicles are defective because

their electrical components can

overheat, melt, short circuit, or

otherwise fail and thereby cause fires. If

this should occur, children and other

consumers could suffer serious injuries

or death. Additionally, wiring problems

can prevent the vehicles from stopping,

thereby creating the potential for

collisions that could cause serious

injury or death.

7. Between early 1995 and July 1998,

Respondent received reports of more

than 116 fires involving the vehicles

and reports of more than 1,800 incidents

of the vehicles’ electrical components

overheating, short-circuiting, melting or

failing. This resulted in at least nine

minor burn injuries to children, and up

to $300,000 in property damage to 22

houses and garages. Moreover, FisherPrice was aware of at least 71 incidents

involving the products’ failure to stop,

resulting in six minor injuries when the

vehicles hit a car, truck, pole, window

or fence.

8. Despite being aware of the

information set forth in paragraphs 6

and 7 above, Fisher-Price did not

provide a written report to the

Commission until March 1997, when it

partially responded to the Commission

staff’s February 1997 request for a Full

Report. However, Respondent did not

fully comply with the staff’s

investigational requests until July 1998.

9. Although Respondent had obtained

sufficient information to reasonably

support the conclusion that these

vehicles contained defects which could

create a substantial product hazard, or

created an unreasonable risk of serious

injury or death, it failed to report such

information to the Commission as

required by section 15(b) of the CPSA.

By failing to report, Fisher-Price

violated section 19(a)(4) of the CPSA, 15

U.S.C. 2068(a)(4).

10. Respondent committed this failure

to report to the Commission

‘‘knowingly’’, as the term ‘‘knowingly’’

is defined in section 20(d) of the CPSA,

15 U.S.C. 2069(d), and Respondent is

subject to civil penalties under section

20 of the CPSA.

Response of Fisher-Price

11. Respondent denies that the

vehicles contain defects which could

create a substantial product hazard

pursuant to section 15(a) of the CPSA,

15 U.S.C. 2064(a).

12. Respondent denies that it violated

the reporting requirements of section

15(b) of the CPSA, 15 U.S.C. 2064(b).

13. Respondent denies that the

information available to it reasonably

supported the conclusion that the

vehicles contained a defect which could

create a substantial product hazard or

created an unreasonable risk of serious

injury or death, and, therefore, no report

was required under section 15(b) of the

CPSA, 15 U.S.C. 2064(b).

14. Notwithstanding its denial that

the vehicles contain a defect which

could create a substantial product

hazard, and notwithstanding its denial

that the vehicles create an unreasonable

risk of serious injury or death,

Respondent, nevertheless, cooperated

with the staff in recalling the products.

15. Respondent agrees to this

Settlement Agreement and Order solely

to avoid incurring additional legal costs

and it does not constitute nor is it

evidence of an admission of any fault,

any liability, any violation of any law,

or any wrongdoing by Respondent.

16. Respondent enters into this

Agreement solely to settle the

allegations of the staff that a civil

penalty is appropriate.

Agreement of the Parties

17. The Commission has jurisdiction

over this matter and over Fisher-Price

under the CPSA, 15 U.S.C. 2051–2084.

Federal Register / Vol. 66, No. 115 / Thursday, June 14, 2001 / Notices 32329

18. Respondent agrees to pay to the

order of the U.S. Treasury a civil

penalty in the amount of one million,

one hundred thousand dollars

($1,100,000), in settlement of this

matter. The first payment in the amount

of $366,666.66 shall be made within

twenty (20) calendar days of receiving

service of the final Settlement

Agreement and Order. The second

payment in the amount of $366,666.67

shall be made within six months of the

date the first payment is due. A final

payment in the amount of $366,666.68

shall be made within one calendar year

of the date the first payment is due. If

Fisher-Price fails to make a payment on

schedule, the unpaid balance of the

entire civil penalty shall be due and

payable, and 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)

from the date payment was due.

19. This Settlement Agreement and

Order is entered into for settlement

purposes only and does not constitute

findings by the Commission or an

admission of any fault, any liability, any

violation of any law, or any wrongdoing

by Respondent.

20. Fisher-Price knowingly,

voluntarily and completely waives any

rights it may have in the above

captioned case (i) to the issuance of a

Complaint in this matter; (ii) to an

administrative or judicial hearing with

respect to the staff’s allegations cited

herein; (iii) to judicial review or other

challenge or contest of the validity of

the Settlement Agreement or the

Commission’s Order; (iv) to a

determination by the Commission as to

whether a violation of Section 15(b) of

the CPSA, has occurred; (v) to a

statement of findings of fact and

conclusions of law with regard to the

staff’s allegations; and (vi) to any claims

under the Equal Access to Justice Act.

21. Upon provisional acceptance of

this Settlement Agreement and Order by

the Commission, the Commission shall

place this Settlement Agreement and

Order on the public record and shall

publish it in the Federal Register in

accordance with the procedure set forth

in 16 CFR 1118.20(e). If the Commission

does not receive any written requests

not to accept the Settlement Agreement

and Order within 15 days, the

Settlement Agreement and Order shall

be deemed finally accepted on the 16th

day after the date it is published in the

Federal Register, in accordance with 16

CFR 1118.20(f).

22. This Settlement Agreement and

Order becomes effective after its final

acceptance by the Commission and

service upon Respondent.

23. Upon final acceptance of this

Settlement Agreement by the

Commission, the Commission may

publicize the terms of the Settlement

Agreement and Order.

24. Respondent agrees to the entry of

the attached Order, which is

incorporated herein by reference, and

agrees to be bound by its terms.

25. This Settlement Agreement and

Order is being upon Fisher-Price, its

parent, its parent’s subsidiaries and

each of their successors or assigns with

respect to Power Wheels.

26. This Settlement Agreement and

Order releases Fisher-Price, its parent

and its parent’s subsidiaries and each of

their successors and assigns, from any

liability to the Commission under

section 20 of the CPSA for a civil

penalty arising from the allegations in

paragraphs 4 through 10.

27. Nothing in this Settlement

Agreement and Order shall be construed

to preclude the Commission from

pursuing corrective action or other relief

not described above.

28. If, after the effective date hereof,

any provision of this Settlement

Agreement and Order is held to be

illegal, invalid, or unenforceable under

present or future laws effective during

the terms of the Settlement Agreement

and Order, such provision shall be fully

severable. The rest of the Settlement

agreement and Order shall remain in

full effect, unless the Commission and

Fisher-Price determine that severing the

provision materially impacts the

purpose of the Settlement Agreement

and Order.

29. This Settlement Agreement and

Order shall not be waived, changed,

amended, modified, or otherwise

altered, except in writing executed by

the party against whom such

amendment, modification, alteration, or

waiver is sought to be enforced, and

approved by the Commission.

30. This Settlement Agreement may

be used in interpreting the Order.

Agreements, understandings,

representations, or interpretations made

outside of this Settlement Agreement

and Order may not be used to vary or

to contradict its terms.

Dated: May 29, 2001.

Fisher-Price, Inc.

Neil Friedman,

President & Chief Executive Officer.

The Consumer Product Safety Commission

Alan H. Schoem,

Assistant Executive Director, Office of

Compliance.

Eric L. Stone,

Legal Division, Office of Compliance.

Dated: May 30, 3001.

Ronald G. Yelenk,

Trial Attorney, Legal Division, Office of

Compliance.

Order

Upon consideration of the Settlement

Agreement between Respondent FisherPrice, Inc., a corporation, and the staff

of the Consumer Product Safety

Commission, and the Commission

having jurisdiction over the subject

matter and over Fisher-Price, Inc., and

it appearing the Settlement Agreement

is in the public interest, it is

Ordered, that the Settlement

Agreement be, and hereby is, accepted,

and it is

Further Ordered, that Fisher-Price,

Inc. shall pay to the order of the U.S.

Treasury a civil penalty in the amount

of one million, one hundred thousand

dollars ($1,100,000), payable as follows:

$366,666.66 within twenty (20) calendar

days after service of this Final Order

upon Fisher-Price, Inc.; $366.66.67

within six months of the date the first

payment is due; and $366,666.68 within

one calendar year of the date the first

payment is due.

Upon failing to make a payment on

schedule, the unpaid balance of the

entire civil penalty shall be due and

payable, and 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)

from the date payment was due.

Provisionally accepted and Provisional Order

issued on the 7th day of June, 2001.

By Order of the Commission.

Todd A. Stevenson,

Consumer Product Safety Commission.

[FR Doc. 01–14927 Filed 6–13–01; 8:45 am]

BILLING CODE 6355–01–M

DEPARTMENT OF DEFENSE

Office of the Secretary

Submission for OMB Review;

Comment Request

ACTION: Notice.

The Department of Defense has

submitted to OMB for clearance, the

following proposal for collection of

information under the provisions of the

Paperwork Reduction Act (44 U.S.C.

Chapter 35).

Title, Form, and OMB Number:

Military Critical Technical Data

Agreement; DD Form 2345; OMB

Number 0704–0207.

Type of Request: Extension.

Number of Respondents: 6,000.

Responses per Respondent: 1.

Annual Responses: 6,000.

Average Burden per Response: 20

Minutes.