[Federal Register: April 13, 1995] ======================================================================= ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 95-C0009] Neptune Fireworks Company, 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. ----------------------------------------------------------------------- SUMMARY: It is the policy of the Commission of publish settlements which it provisionally accepts under the Consumer Product Safety Act in the Federal Register in accordance with the terms of 16 C.F.R. 1118.20(e)-(h). Published below is a provisionally-accepted Settlement Agreement with Neptune Fireworks Company, 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 April 28, 1995. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 95-C0009, 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: April 7, 1995. Sadye E. Dunn, Secretary. Settlement Agreement and Order 1. Neptune Fireworks Company, Inc. (hereinafter, ``Neptune''), 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 Neptune Knowingly violated sections 4(a) and (c) of the Federal Hazardous Substances Act (FHSA), 15 U.S.C. 1263(a) and (c). 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. Neptune is a corporation organized and existing under the laws of the State of Florida, since 1984. The firm's principal place of business is located at 768 East Dania Beach Boulevard, Dania, FL 3304. Neptune is an importer and distributor of fireworks. II. Allegations of the Staff 4. On ten occasions between April 14, 1991, and May 12, 1994, Neptune introduced or caused to be introduced into interstate commerce; or received in interstate commerce and delivered or proffered delivery thereof for pay or otherwise, 23 different kinds of non-complying fireworks (8,116,614 retail units) which are identified and described below: ------------------------------------------------------------------------ Expt/ Sample No. Product Collect. date* entry date mfg ------------------------------------------------------------------------ M-807-1367............ Festival 04/14/91.................... Kwong Balls yen Hangk ee. M-807-1370............ News 04/14/91.................... Kwong Transmitter yen Hangk ee. [[Page 18802]] M-807-3107............ Small 04/14/91.................... Kwong Festival yen Balls Hangk ee. M-807-3109............ Blue Palm 04/14/91.................... Kwong yen Hangk ee. M-807-3110............ Killer Bees 04/14/91.................... Kwong yen Hangk ee. M-807-1374............ Air Travel 04/14/91.................... Kwong With Report yen Hangk ee. M-807-1691............ Twitter 04/27/91.................... Kwong Glitter yen Hangk ee. P-807-2093............ Tiger 12/28/91.................... Hop Cluster Kee. Cicada P-807-2095............ Red Lantern 12/28/91.................... Hop Festival Kee. Balls P-807-2533............ Moon 03/25/92.................... Hop Traveler Kee. P-807-2536............ Blue Palm 03/25/92.................... Hop Kee. P-807-2545............ Artillery 04/22/92.................... Hop Shells Kee. P-807-2547............ Twitter 04/22/92.................... Hop Glitter Kee. P-807-2549............ Jumping 04/25/92.................... Hop Jack Kee. P-807-2555............ Small 05/16/92.................... Glori Festival ous Balls Compa ny. S-800-2094............ Moon Travel 01/17/94.................... Glori ous Compa ny. S-800-2095............ Jumping 01/17/94.................... Glori Jacks ous Compa ny. S-800-2096............ Artillery 01/17/94.................... Glori Shell ous Compa ny. S-800-2097............ Artillery 01/17/94.................... Glori Shell ous Compa ny. S-800-2616............ Jumping 04/18/94.................... Glori Jack ous Compa ny. S-800-2617............ Artillery 04/18/94.................... Glori Shells ous Compa ny. S-800-2618............ Festival 04/18/94.................... Glori Balls ous Compa ny. S-800-2625............ Kaleidoscop 05/12/94.................... Unite e d Firew orks. ------------------------------------------------------------------------ 5. The firework device identified as Small Festival Balls, No. 0008, Sample No. M-807-1367 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 6. The firework device identified as News Transmitter, No. T2508, Sample No. M-807-1370 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507 and 16 C.F.R. 1500.14, in that when tested, it failed to comply with the side ignition and labeling requirements in 16 C.F.R. 1507.3(a)(1), and 16 C.F.R. 1500.14(a)(7)(ix). 7. The firework device identified as Small Festival Balls, No. 0008, Sample No. M-807-3107 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the side ignition and fuse burn time requirements in 16 C.F.R. 1507.3(a)(1) and (a)(2). 8. The firework device identified as Blue Palm, No. W442, Sample No. M-807-3109 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. Part 1507, in that when tested, it failed to comply with the fuse burn time and pyrotechnic leakage requirements in 16 C.F.R. 1507.3(a)(2) and 1507.5. 9. The firework device identified as Killer Bees, No. W499A, Sample No. M-807-3110 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse attachment and pyrotechnic leakage requirements in 16 C.F.R. 1507.3(b) and 1507.5. 10. The firework device identified as Air Travel With Report, No. T0001, Sample No. M-807-1374 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 11. The firework device identified as Twitter Glitter, No. 0530, Sample No. M-807-1691 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the pyrotechnic leakage requirement in 16 C.F.R. 1507.5. 12. The firework device identified as Tiger Cluster Cicada, No. 2011, Sample No. P-807-2093 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the burnout/blowout requirement in 16 C.F.R. 1507.6. 13. The firework device identified as Red Lantern Festival Balls, No. 0008, Sample No. P-807-2095 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 14. The firework device identified as Moon Traveler, No. 0495, Sample No. P-807-2533 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 15. The firework device identified as Blue Palm, No. W441, Sample No. P-807-2536 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the pyrotechnic leakage requirement in 16 C.F.R. 1507.5. 16. The firework device identified as Artillery Shells, No. N515, Sample No. P-807-2545 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the pyrotechnic leakage requirement in 16 C.F.R. part 1507, in that when tested, it failed to comply with the pyrotechnic leakage requirement in 16 C.F.R. part 1507.5. 17. The firework device identified as Twitter Glitter, No. 0530L, Sample No. P-807-2547 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the pyrotechnic leakage requirement in 16 C.F.R. 1507.5. 18. The firwork device identified as Jumping Jack, No. T3500, Sample No. P-807-2459 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. part 1507.3(a)(2). 19. The firework device identified as Small Festival Balls, No. 0008, Sample No. P-807-2555 in paragraph 4 above is subject to, but failed to comply with, the [[Page 18803]] Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 20. The firework device identified as Moon Travel, No. 0445, Sample No. S-800-2094 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time, fuse attachment, and stick rigidity requirements in 16 C.F.R. 1507.3(a)(2), 1507.3(b) and 1507.10. 21. The firework device identified as Jumping Jacks, No. T3500, Sample No. S-800-2095 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time and burnout/blowout requirements in 16 C.F.R. 1507.3(a)(2) and 1507.6. 22. The firework device identified as Artillery Shell, No. W515B, Sample No. S-800-2096 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 23. The firework device identified as Artillery Shell, No. 515A, Sample No. S-800-2097 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 24. The firework device identified as Jumping Jack, No. T3500, Sample No. S-800-2616 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507 in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 25. The firework device identified as Artillery Shells, No. W515A, Sample No. S-800-2617 in paragraph 4 above is subject to, but failed to comply with, the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 26. The firwork device identified as Festival Balls, No. 0008, Sample No. S-800-2618 identified in paragraph 4 above is subject to, but failed to comply with the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time requirement in 16 C.F.R. 1507.3(a)(2). 27. The firework device identified as Kaleidoscope, No. 2512, Sample No. S-800-2625 identified in paragraph 4 above is subject to, but failed to comply with the Commission's Fireworks Regulations, 16 C.F.R. part 1507, in that when tested, it failed to comply with the fuse burn time and burnout/blowout requirements in 16 C.F.R. 1507.3(a)(2) and 1507.6. 28. Each of the fireworks identified in paragraph 4 above is a ``banned hazardous substance'' pursuant to section 2(q)(1)(B) of the FHSA, 15 U.S.C. 1261(q)(1)(B); and 16 C.F.R. part 1507 et seq. 29. The fireworks device identified as News Transmitter, No. T2508, Sample No. M-807-1370 in paragraph 4 above is a ``misbranded hazardous substance'' pursuant to section 3(b) of the FHSA, 15 U.S.C. 1262(b) and 16 CFR 1500.14 et seq. 30. Neptune knowingly introduced or caused to be introduced into interstate commerce; or received in interstate commerce and delivered or proffered delivery thereof for pay or otherwise, the banned hazardous fireworks and misbranded hazardous fireworks identified in paragraph 4 above, in violation of sections 4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and (c). III. Response of Neptune 31. Neptune denies the allegations of the staff set forth in paragraphs 4 through 30 above. Neptune denies it knowingly, or otherwise, introduced or caused to be introduced into interstate commerce; or received in interstate commerce and delivered or proferred delivery thereof for pay or otherwise, the banned hazardous fireworks and misbranded hazardous fireworks 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/or 16 CFR part 1507 et seq. and 15 CFR 1500.14 et seq. 32. Neptune enters into this Settlement Agreement with the sole purpose of avoiding the costs of litigation. IV. Agreement of the Parties 33. The Consumer Product Safety Commission has jurisdiction over Neptune 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. 34. The Commission and Neptune agree, notwithstanding any other statements to the contrary in this Settlement Agreement and Order, that this Settlement Agreement and Order is entered into for the purposes of settlement only and does not constitute a determination by the Commission or an admission by Neptune that Neptune violated the CPSA, FHSA and/or the Commission's regulations. 35. Upon final acceptance of this Settlement Agreement by the Commission and issuance of the Final order, Neptune 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 Neptune failed to comply with the FHSA as foresaid, (4) to a statement of findings of fact and conclusions of law, and (5) to any claims under the Equal Access to Justice Act. 36. 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. 37. 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)-(h). If the Commission does not receive any written requests 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. 38. This Settlement Agreement may be used in interpreting the Provisional and Final Orders. Agreements, understandings, representations, or interpretations apart from those contained in this Settlement Agreement may not be used to vary or to contradict its terms. 39. The provisions of the Settlement Agreement and Final order shall apply to Neptune and each of its successors and assigns. 40. Upon final acceptance of this Agreement, the Commission shall issue the Final Order. Dated: March 20, 1995. [[Page 18804]] Respondent Neptune Fireworks Co., Inc. Itzhak Dickstein, President, Neptune Fireworks Company, Inc. Commission Staff. David Schmeltzer, Assistant Executive Director, Office of Compliance and Enforcement. Eric L. Stone, Acting Director, Division of Administrative Litigation, Office of Compliance and Enforcement. Dated: March 24, 1995. 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 Neptune Fireworks Company, Inc., a corporation, and the staff of the Consumer Product Safety Commission; and the Commission having jurisdiction over the subject matter and Neptune Fireworks Company Inc.; and it appearing that the Settlement Agreement and Order is in the public interest, it is Ordered, That the Settlement Agreement be and hereby is accepted; and it is Further ordered, That upon final acceptance of the Settlement Agreement and Order, Neptune Fireworks Company, Inc. shall pay to the Commission a civil penalty in the amount of Forty-Five Thousand and 00/ 100 Dollars ($45,000.00) in three (3) payments each. The first payment of Fifteen Thousand and 00/100 dollars ($15,000.00) shall be paid by August 15, 1995 or within twenty (20) days after service of the Final Order of the Commission accepting the Settlement Agreement (hereinafter, the ``anniversary date''), whichever is later. The second payment of fifteen thousand and 00/100 dollars ($15,000.00) shall be paid on August 15, 1996 or within one (1) year of the anniversary date. The third payment of fifteen thousand and 00/100 dollars ($15,000.00) shall be paid on August 15, 1997 or within (2) years of the anniversary date. Upon the failure by Neptune Fireworks Company, Inc. to make a payment or upon the making of a late payment by Neptune Fireworks Company, 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 provision of 28 U.S.C. 1961 (a) and (b). Provisionally accepted and Provisional Order issued on the 75 day of April, 1995. By order of the Commission. Sadye E. Dunn, Secretary, Consumer Product Safety Commission. [FR Doc. 95-9047 Filed 4-12-95; 8:45 am] BILLING CODE 6335-01-M