[Federal Register: June 3, 2003 (Volume 68, Number 106)]
[Notices]
[Page 33105-33108]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03jn03-55]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 03-C0001]
TGH International Trading, Inc., A Corporation Provisional
Acceptance of a Settlement Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
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SUMMARY: It is the policy of the Commission to publish settlements
which it provisionally accepts under the Federal Hazardous Substances
Act in the Federal Register in accordance with the terms of 16 CFR
1118.20. Published below is a provisionally-accepted Settlement
Agreement with TGH International Trading, 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 June 18, 2003.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 03-C0001, Office of the
Secretary, Consumer Product Safety Commission, Washington, DC 20207.
FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney,
Office of Compliance, Consumer Product Safety Commission, Washington,
DC 20207; telephone (301) 504-7587.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: May 28, 2003.
Todd A. Stevenson,
Secretary.
Consent Order Agreement
1. TGH International Trading, Inc. (``TGH'' or ``Respondent'')
enter into this Consent Order Agreement (hereinafter referred to as
``Agreement'') with the staff of the Consumer Product Safety Commission
(``the staff'') pursuant to the Commission's Procedures for Consent
Order Agreements, 16 CFR 1118.20. The purpose of this Agreement is to
settle the staff's allegations that Respondent 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. TGH is a corporation organized and existing under the laws of
the State of California. TGH's principal place of business is 421 South
Wall Street, Los Angeles, CA 90013. TGH is an importer and distributor
of toys.
3. The ``staff'' is the ``staff'' of the Consumer Product Safety
Commission, an independent regulatory agency established by Congress
under section 4 of the Consumer Product Safety Act (CPSA), 15 U.S.C.
2053.
II. Allegations of the Staff
A. Violations of the Small Parts Regulation
4. On 12 occasions between May 28, 1994, and April 24, 2002,
Respondent introduced or caused the introduction into interstate
commerce; and received in interstate commerce and delivered or
proffered delivery thereof for pay or otherwise, 30 types of toys
(49,529 retail units) intended for use by children under three years
old. These toys are identified and described as follows:
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Entry/Collec *
Sample No. Toy Date Exporter Quantity LOA
----------------------------------------------------------------------------------------------------------------
S-867-8292........... Cathy Dolls............ 05/28/94 Alltrend.......... 30 08/03/94
[[Page 33106]]
T-867-8024........... Rainbow Loco........... 10/05/94 Camke............. 600 10/19/94
T-867-8211........... Savings Bank Phone..... 03/22/95 Development....... 1,440 07/19/95
T-867-8212........... Telephone Plano........ 03/22/95 Development....... 720 07/19/95
96-860-5862.......... Pull & Push............ 04/15/96 Kapo.............. 288 05/14/96
97-860-5520.......... Rainbow Loco........... 10/18/96 Kapo.............. 240 11/20/96
97-860-5521.......... Animal Funny........... 10/18/96 Kapo.............. 720 11/20/96
97-860-5572.......... Port-A-Phone........... 11/20/96 Kapo.............. 7,200 01/29/97
98-860-5608.......... Cartoon Car............ 10/09/97 Sun Ta............ 816 11/28/97
99-860-5683.......... Xylophone/Panda........ 07/15/99 Goldoll........... 1,440 08/04/99
99-860-5684.......... Xylophone/Dog.......... 07/15/99 Goldoll........... 1,440 08/04/99
99-860-5685.......... Xylophone/Elephant..... 07/15/99 Goldoll........... 1,440 08/04/99
99-860-5686.......... Ice Cream Cart/Panda... 07/15/99 Goldell........... 2,160 08/04/99
99-860-5687.......... Ice Cream Cart/Dog..... 07/15/99 Goldoll........... 2,160 08/04/99
99-860-5688.......... Ice Cream Cart/........ 07/15/99 Goldell........... 2,160 08/04/99
00-860-6546.......... Rabbit Pull toy........ 03/14/00 Jia Mei........... 5,568 04/03/00
00-860-6547.......... Elephant Pull Toy...... 03/14/00 Jia Mei........... 5,568 04/03/00
00-860-6548.......... Lion Pull Toy.......... 03/14/00 Jia Mai........... 5,568 04/03/00
00-860-6549.......... Dog Pull Toy........... 03/14/00 Jia Mai........... 5,568 04/03/00
00-860-6550.......... Locomotive Pull Toy.... 03/14/00 Jia Mai........... 5,568 04/03/00
00-860-6561.......... Funny Train Pull Toy... 03/14/00 Jia Mai........... 192 04/10/00
00-860-6562.......... Dog Pull Toy........... 03/14/00 Jia Mai........... 192 04/10/00
00-860-6563.......... Rabbit Pull Toy........ 03/14/00 Jia Mei........... 192 04/10/00
00-860-6564.......... Dog Pull Toy........... 03/14/00 Jia Mei........... 192 04/10/00
00-860-6565.......... Lion Pull Toy.......... 03/14/00 Jia Mai........... 192 04/10/00
01-840-6017.......... Musical Mobile......... 02/05/01 CSCL.............. 8,352 03/22/01
01-840-6048.......... African Giraffe........ 03/28/01 Goldoll........... 1,440 04/20/01
02-840-7010.......... TV Man Toy............. * 04/24/02 Superegent........ 72 07/02/02
02-840-7011.......... Mushroom House Toy..... * 04/24/02 Jia Mei........... 48 07/02/02
02-840-7012.......... Guards of Crazing Land. * 04/24/02 Goldoll........... 17 07/02/02
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5. The toys identified in paragraph 4 above are intended for
children under three years old and are subject to the Commission's
Small Parts Regulation, 16 CFR part 1501.
6. The toys identified in paragraph 4 above 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 .52, (a) one or more parts of each tested toy separated and
(b) one or more of the separated parts from each of the toys fit
completely within the small parts test cylinder, as set forth in 16 CFR
1501.4.
7. Because the separated parts fit completely within the test
cylinder as described in paragraph 6 above, each of the toys identified
in paragraph 4 above presents a ``mechanical hazard'' within the
meaning of section 2(s) of the FHSA, 15 U.S.C. 1261(s) (choking,
aspiration, and/or ingestion of small parts).
8. Each of the toys identified in paragraph 4 above is a
``hazardous substance'' pursuant to section 2(f)(1)(D) of the FHSA, 15
U.S.C. 1261(f)(1)(D).
9. 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) and 16 CFR 1500.18(a)(9) because it is intended
for use by children under three years of age and bears or contains a
hazardous substance as described in paragraph 10 above; and because it
presents a mechanical hazard as described in paragraph 9 above.
10. Respondent introduced or caused the introduction into
interstate commerce; and 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).
B. Violations of the Rattle Regulation
11. On one occasion in 2001, Respondent introduced or caused the
introduction into interstate commerce; and received in interstate
commerce and delivered or proffered delivery thereof for pay or
otherwise a rattle set (58,800 retail units) intended for use by
children. The rattle set is identified and described as follows:
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Entry/Collec*
Sample No. Rattle Date Exporter Quantity LOA
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01-840-6011.......... Musical Baby Rattle Set 01/31/01 Goldoll........... 8,400 03/08/01
01-840-6012.......... Musical Baby Rattle Set 01/31/01 Goldoll........... 8,400 03/08/01
01-840-6013.......... Musical Baby Rattle Set 01/31/01 Goldell........... 8,400 03/08/01
01-840-6014.......... Musical Baby Rattle Set 01/31/01 Goldell........... 8,400 03/08/01
01-840-6014.......... Musical Baby Rattle Set 01/31/01 Goldell........... 8,400 03/08/01
01-840-6015.......... Musical Baby Rattle Set 01/31/01 Goldell........... 8,400 03/08/01
01-840-6016.......... Musical Baby Rattle Set 01/31/01 Goldell........... 8,400 03/08/01
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12. The rattle set identified in paragraph 11 above is subject to,
but failed to comply with the Commission's Rattle Regulations, 16 CFR
part 1510, in that when tested under the procedures set forth in 16 CFR
1510.4, each rattle in the set penetrated the full depth of the test
fixture.
13. Because each rattle in the set identified in paragraph 11 above
penetrated the full depth of the cavity of the test fixture as
specified in 16 CFR
[[Page 33107]]
1510.4, it presents a ``mechanical hazard'' within the meaning of
section 2(s) of the FHSA, 15 U.S.C. 1261(s) (choking) and is,
therefore, a ``hazardous substance'' pursuant to section 2(f)(1)(D) of
the FHSA, 15 U.S.C. 1261(f)(1)(D).
14. The rattle set identified in paragraph 11 above is a ``banned
hazardous substance'' pursuant to section 2(q)(1)(A) of the FHSA, 15
U.S.C. 1261(q)(1)(A) and 16 CFR 1500.18(a)(15) because it is intended
for use by children and bears or contains a hazardous substance; and
because it presents a mechanical hazard as defined in paragraph 13
above.
15. Respondent introduced or caused the introduction into
interstate commerce; and received in interstate commerce and delivered
or proffered delivery thereof for pay or otherwise, the aforesaid
banned hazardous rattle set identified in paragraph 11 above, in
violation of sections 4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and
(c).
C. Violations of the Labeling Requirements for Certain Toys and Games
16. On two occasions between March 28, 2001, and April 24, 2002,
Respondent introduced or caused the introduction into interstate
commerce; and received in interstate commerce and delivered or
proffered delivery thereof for pay or otherwise, two types of toys
(2,890 retail units) intended to use by children who are at least three
years old but not older than six years old. These toys are identified
and described as follows:
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Entry/Collec*
Sample No. Toy Date Exporter Quality LOA
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01-840-6049.......... Snooker Set............ 03/28/01 Goldell........... 2,880 04/20/01
02-840-7013.......... Golf Play Toy Set...... 04/24/02 ?................. 10 05/21/02
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17. The toys identified in paragraph 16 above are subject to, but
failed to comply with the Labeling Requirements for Certain Toys and
Games under sections 24(b)(2)(B) and (b)(2)(C) of the FSHA, 15 U.S.C.
1278(b)(20)(B) and (b)(3)(B) and 16 CFR 1500.19(b)(3)(i) and (b)(4)(i)
in that the toys did not bear the required cautionary label.
18. Because they lacked the required labeling, the toys identified
in paragraph 16 above are ``misbranded hazardous substances'' pursuant
to sections 2(p)(1)(D) and 24(d) of the FSHA, 15 U.S.C. 1261(p)(1)(D)
and 24(d) and 16 CFR 1500.19(b)(3)(i) and 4(i).
19. Respondent introduced or caused the introduction into
interstate commerce; and received in interstate commerce and delivered
or proffered delivery thereof for pay or otherwise, the misbranded
hazardous toys identified in paragraph 16 above, in violation of
sections 4(a) and (c) of the FHSA, 15 U.S.C. 1263(a) and (c)
III. TGH's Response
20. TGH denies the allegations of the staff set forth in paragraphs
4-19 above.
IV. Agreement of the Parties
21. The Consumer Product Safety Commission has jurisdiction over
Respondent under the Consumer Product Safety Act (CPSA), 15 U.S.C. 2051
et seq. and the Federal Hazardous Substances Act (FHSA), 15 U.S.C. 1261
et seq.
22. This Settlement Agreement is entered into for settlement
purposes only and does not constitute findings by the Commission or an
admission by Respondent that Respondent violated the FHSA.
23. Upon final acceptance of this Agreement by the Commission and
issuance of the Final Order, Respondent knowingly, voluntarily, and
completely waives any rights it may have in the above captioned case
(1) to an administrative or judicial hearing with respect to the
staff's allegations cited herein, (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 Respondent failed to
comply with the FHSA and the underlying regulations, (4) to a statement
of findings of facts and conclusions of law, and (5) to any claims
under the Equal Access of Justice Act.
24. Upon provisions acceptance of this Agreement by the Commission,
this Agreement shall be placed on the public record and shall be
published in the Federal Register in accordance with the procedures set
forth in 16 CFR 1118.20(e). If the Commission does not receive any
written request not to accept the Agreement within 15 days, the
Agreement will be deemed finally accepted on the 16th day after the
date it is published in the Federal Register.
25. In settlement of the staff's allegations, Respondent agrees to
comply with the attached Order incorporated herein by reference.
26. Upon violation of the attached Order by Respondent, the
Commission reserves the right to take appropriate legal action against
Respondent for all violations listed in section II of this Agreement
and for all violations occurring after the effective date of this
Agreement and Respondent waives the statute of limitations.
27. If the Commission finds that Respondent has introduced or
caused the introduction into interstate commerce; and received in
interstate commerce and delivered or proffered delivery thereof for pay
or otherwise any banned or misbranded hazardous substances, Respondent
will pay to the Commission upon demand a penalty in the amount of five
(5) times the retail value of the product in question. This provision
does not preclude the Commission from taking additional legal action
including, but not limited to civil and/or criminal actions under
sections 5 and 8 of the FHSA, 15 U.S.C. 1264 and 1267 and sections 20,
21, and 22 of the CPSA, 15 U.S.C. 2069, 2070, and 2071.
28. Respondent reserves its right to challenge the Commission's
findings under paragraph 27 of this Agreement before the Commission and
to have the court review whether the Commission acted arbitrary and
capricious.
29. The Commission may publicize the terms of this Agreement.
30. Agreements, understandings, representations, or interpretations
made outside of this Agreement may not be used to vary or to contradict
its terms.
31. This Agreement shall become effective upon issuance of the
Final Order by the Commission.
32. The provisions of this Agreement shall apply to Respondent and
each of its successors and assigns.
Dated: April 11, 2003.
TGH International Trading, Inc.
Teresa Chan,
President, TGH International, Inc., 421 South Wall Street, Los
Angeles, CA 90013.
Dated: April 11, 2003.
Consumer Product Safety Commission
Alan H. Schoem,
Assistant Executive Director, Office of Compliance, U.S. Consumer
Product Safety Commission, Washington, DC 20207-0001.
Eric L. Stone,
[[Page 33108]]
Director, Legal Division, Office of Compliance, U.S. Consumer
Product Safety Commission.
Dennis C. Kacoyanis,
Trial Attorney, Legal Division, Office of Compliance, Washington,
DC.
Order
Upon consideration of the Consent Order Agreement entered into
between Respondent TGH International Trading, Inc., and the staff of
the Consumer Product Safety Commission; and the Commission having
jurisdiction over the subject matter and Respondent; and it appearing
that the Consent Order Agreement is in the public interest, it is
ordered, that the Consent Agreement be and hereby is accepted and it is
further ordered, that Respondent is prohibited from introducing or
causing the introduction into interstate commerce; and receiving in
interstate commerce and delivering or proffering delivery thereof for
pay or otherwise
(a) Any toy or other article intended for use by children under
three years of age that presents a choking, aspiration, or ingestion
hazard because of small parts as defined in 16 CFR part 1501 when
tested in accordance with the standards published in 16 CFR 1501.4,
1500.51, and 1500.52;
(b) Any rattle that presents a choking hazard because the rattle
penetrates the full depth of the cavity of the test fixture as
published in 16 CFR 1510.4;
(c) Any toy or other article intended for use by children who are
at least three years old but less than six years old that fails to
comply with the Labeling Requirements for Certain Toys and Games under
section 24 of the FHSA, 15 U.S.C. 1278 and 16 CFR 1500.19; and
(d) Any other products that do not comply with the requirements of
the FHSA and the underlying regulations and it is
Further ordered that a violation of this Order shall subject
Respondent to legal action for all violations listed in section II of
this Agreement and for all violations occurring after the effective
date of this Agreement and it is
Further ordered that a violation of this Order shall subject
Respondent to a penalty in the amount of five (5) times the retail
value of the banned or misbranded hazardous substance and to additional
legal action under the Federal Hazardous Substances Act and the
Consumer Product Safety Act.
Provisionally accepted and Provisional Order issued on the 28th
day of May, 2003.
By order of the Commission.
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 03-13747 Filed 6-2-03; 8:45 am]
BILLING CODE 6355-01-M