Dollar General Corporation – Provisional Acceptance of a Settlement Agreement and Order, CSPC Docket
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Dollar General Corporation – Provisional Acceptance of a Settlement Agreement and Order, CSPC Docket

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3 Pages
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Federal Register/Vol. 74, No. 147/Monday, August 3, 2009/Notices 38415 for sale, distributed in commerce, or agreements, representations, or CONSUMER PRODUCT SAFETY imported into the United States, or caused interpretations apart from those contained in COMMISSION one or more of such acts, with respect to the the Agreement and Order may not be used to aforesaid banned hazardous Baskets, Eggs vary or contradict its terms. The Agreement [CPSC Docket No. 09–C0029] and Tops, in violation of section 19(a)(1) of shall not be waived, amended, modified, or the CPSA, 15 U.S.C. 2068(a)(1). Hobby Lobby otherwise altered, except in a writing that is Dollar General Corporation, committed these prohibited acts executed by the party against whom such Provisional Acceptance of a ‘‘knowingly,’’ as that term is defined in waiver, amendment, modification, or Settlement Agreement and Order section 20(d) of the CPSA, 15 U.S.C. 2069(d). alteration is sought to be enforced. 15. Pursuant to section 20 of the CPSA, 15 26. If any provision of the Agreement and AGENCY: Consumer Product Safety U.S.C. 2069, Hobby Lobby is subject to civil Order is held to be illegal, invalid, or Commission. penalties for the aforementioned violations. unenforceable under present or future laws ACTION: Notice. effective during the terms of the Agreement Hobby Lobby’s Responsive Allegations and Order, such provision shall be fully SUMMARY: It is the policy of the 16. Hobby Lobby denies the Staff’s ...

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Federal RegisterAugust 3, 2009/ Monday,74, No. 147/ Vol./ Notices
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for sale, distributed in commerce, oragreements, representations, or CONSUMER PRODUCT SAFETY imported into the United States, or causedinterpretations apart from those contained in COMMISSION one or more of such acts, with respect to thethe Agreement and Order may not be used to aforesaid banned hazardous Baskets, Eggsvary or contradict its terms. The Agreement[CPSC Docket No. 09–C0029] and Tops, in violation of section 19(a)(1) ofshall not be waived, amended, modified, or the CPSA, 15 U.S.C. 2068(a)(1). Hobby Lobbyotherwise altered, except in a writing that isDollar General Corporation, committed these prohibited actsexecuted by the party against whom such Provisional Acceptance of a ‘‘knowingly,’’ as that term is defined inwaiver, amendment, modification, or Settlement Agreement and Order section 20(d) of the CPSA, 15 U.S.C. 2069(d).alteration is sought to be enforced. 15. Pursuant to section 20 of the CPSA, 1526. If any provision of the Agreement andAGENCY:Consumer Product Safety U.S.C. 2069, Hobby Lobby is subject to civilOrder is held to be illegal, invalid, or Commission. penalties for the aforementioned violations.unenforceable under present or future laws ACTION:Notice. effective during the terms of the Agreement Hobby Lobby’s Responsive Allegations and Order, such provision shall be fully SUMMARY:It is the policy of the 16. Hobby Lobby denies the Staff’sseverable. The balance of the Agreement and Commission to publish settlements allegations set forth above that Hobby LobbyOrder shall remain in full force and effect, which it provisionally accepts under the knowingly violated the CPSA or that it failedunless the Commission and Hobby Lobby Consumer Product Safety Act in the to take adequate action to ensure that noneagree that severing the provision materially Federal Registerin accordance with the of the products contained lead containingaffects the purpose of the Agreement and paint. Order.terms of 16 CFR 1118.20(e). Published Dated: March 3, 2009.below is a provisionallyaccepted Agreement of the Parties Settlement Agreement with Dollar Steve Green, 17. Under the CPSA, the Commission has General Corporation, containing a civil President, Hobby Lobby Stores, Inc., 7707 jurisdiction over this matter and over Hobby penalty of $100,000.00. SW. 44th Street, Oklahoma City, OK 73179. Lobby. DATES:Any interested person may ask 18. The parties enter into the AgreementDated: March 3, 2009. for settlement purposes only. The Agreementthe Commission not to accept this Peter M. Dobelbower, does not constitute an admission by Hobby agreement or otherwise comment on its Vice President & General Counsel, Hobby Lobby, or a determination by the contents by filing a written request with Lobby Stores, Inc. U.S. Consumer Product Commission, that Hobby Lobby has Safety Commission Staff.the Office of the Secretary by August 18, knowingly violated the CPSA. 2009. Cheryl A. Falvey, 19. In settlement of the Staff’s allegations, General Counsel, Office of the GeneralADDRESSES:Persons wishing to Hobby Lobby shall pay a civil penalty in the Counsel. amount of fifty thousand dollars ($50,000.00)comment on this Settlement Agreement within twenty (20) calendar days of serviceRonald G. Yelenik,should send written comments to the of the Commission’s final Order acceptingAssistant General Counsel, Office of the Comment 09–C0029, Office of the the Agreement. This payment shall be madeGeneral Counsel. Secretary, Consumer Product Safety by check payable to the order of the United Dated: March 6, 2009. Commission, 4330 East West Highway, States Treasury. M. Reza Malihi,Room 502, Bethesda, Maryland 20814– 20. Upon the Commission’s provisional Trial Attorney, Division of Compliance,4408. acceptance of the Agreement, the Agreement Office of the General Counsel. FOR FURTHER INFORMATION CONTACT shall be placed in the public record and:Neal published in theFederal RegisterinS. Cohen, Trial Attorney, Division of Order accordance with the procedures set forth in Compliance, Office of the General Upon consideration of the Settlement 16 CFR 1118.20(e). In accordance with 16 Counsel, Consumer Product Safety Agreement entered into between Hobby CFR 1118.20(f), if the Commission does not Lobby Stores, Inc. (‘‘Hobby Lobby’’) and theCommission, 4330 East West Highway, receive any written request not to accept the U.S. Consumer Product Safety CommissionBethesda, Maryland 20814–4408; Agreement within fifteen (15) days, the (‘‘Commission’’) staff, and the Commission telephone (301) 504–7504 or M. Reza Agreement shall be deemed finally accepted having jurisdiction over the subject matter Malihi, Trial Attorney, (same address); on the sixteenth (16th) day after the date it and over Hobby Lobby, and it appearing that is published in theFederal Register.telephone (301) 504–7733. the Settlement Agreement and Order are in 21. Upon the Commission’s finalSUPPLEMENTARY INFORMATION:The text of the public interest, it is acceptance of the Agreement and issuance of the Agreement and Order appears ORDERED, that the Settlement Agreement the final Order, Hobby Lobby knowingly, be, and hereby is, accepted; and it isbelow. voluntarily, and completely waives any FURTHER ORDERED, that Hobby Lobby Dated: July 28, 2009. rights it may have in this matter to the shall pay a civil penalty in the amount of following: (1) An administrative or judicialTodd A. Stevenson, fifty thousand dollars ($50,000.00) within hearing; (2) judicial review or other challenge Secretary. twenty (20) calendar days of service of the or contest of the validity of the Commission’s Commission’s final Order accepting the In the Matter of Dollar General Corporation; Order or actions; (3) a determination by the Agreement. The payment shall be made by Settlement Agreement Commission of whether Hobby Lobby failed check payable to the order of the United to comply with the CPSA and its underlying 1. In accordance with 16 CFR 1118.20, States Treasury. Upon the failure of Hobby regulations; (4) a statement of findings of fact Dollar General Corporation (‘‘DGC’’), for itself Lobby to make any of the foregoing payments and conclusions of law; and (5) any claimsand on behalf of its wholly owned when due, interest on the unpaid amount under the Equal Access to Justice Act.subsidiaries referenced in paragraph three shall accrue and be paid by Hobby Lobby at 22. The Commission may publicize the(collectively referred to as ‘‘Dollar General’’), the Federal legal rate of interest set forth at terms of the Agreement and Order.and the staff (‘‘Staff’’) of the United States 28 U.S.C. 1961(a) and (b). 23. The Agreement and Order shall applyConsumer Product Safety Commission Provisionally accepted and provisional to, and be binding upon, Hobby Lobby and(‘‘CPSC’’ or the ‘‘Commission’’) enter into Order issued on the 8th day of July, 2009. each of its successors and assigns.this Settlement Agreement (‘‘Agreement’’). 24. The Commission issues the OrderBy Order of the Commission.The Agreement and the incorporated under the provisions of the CPSA, and Todd A. Stevenson,attached Order (‘‘Order’’) settle the Staff’s violation of the Order may subject Hobby Secretary, U.S. Consumer Product Safetyallegations set forth below. Lobby and those designated in paragraph 23 Commission. Parties above to appropriate legal action. [FR Doc. E9–18516 Filed 7–31–09; 8:45 am] 25. The Agreement may be used in2. The Commission is an independent interpreting the Order. Understandings,BILLING CODE 6355–01–Pfederal regulatory agency established
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pursuant to, and responsible for the enforcement of, the Consumer Product Safety Act, 15 U.S.C. 2051–2089 (‘‘CPSA’’). 3. DGC is a corporation organized and existing under the laws of Tennessee, with its principal offices located in Goodlettsville, Tennessee. At all times relevant hereto, the following wholly owned subsidiaries of DGC had principal offices located in Goodlettsville, Tennessee. Dollar General Merchandising, Inc. (‘‘DGMI’’), a corporation, and DG Retail, LLC, a limited liability company, were entities organized and existing under the laws of Tennessee. Dolgencorp, Inc. (‘‘Dolgencorp,’’) Dolgencorp of Texas, Inc., and Dolgencorp of New York, Inc. were corporations, and Dollar General Partners was a partnership, organized and existing under the laws of Kentucky. (DG Retail LLC, Dolgencorp, Dolgencorp of Texas, Inc., Dolgencorp of New York, Inc., and Dollar General Partners, are collectively referred to as the ‘‘Retail Subsidiaries.’’) At all times relevant hereto, Dollar General imported and/or sold toys and other children’s products, among other general merchandise.
Staff Allegations 4. During September 2007, DGMI imported into the United States about 63,000 units of green, plastic Frankenstein headshaped Tumblers (‘‘Tumbler(s)’’). The Tumblers were, in turn, offered for sale or sold to consumers at retail stores nationwide owned or operated by DGC or one of its Retail Subsidiaries in September 2007 for about $1 per unit. 5. Between April 2007 and July 2007, DGMI imported about 380,000 PullBack Action Toy Cars, comprising two styles that included a four pack of ‘‘Super Wheels’’ (UPC #400016576344) and a two pack of ‘‘Super Racer’’ cars (UPC #883788965002) (‘‘Toy Car(s)’’). The Toy Cars were, in turn, offered for sale or sold to consumers at retail stores nationwide owned or operated by DGC or one of its Retail Subsidiaries from April 2007 through October 2007 for about $1 per pack. 6. Between March 2005 and October 2007, Dolgencorp imported about 51,000 Children’s Sunglasses, yellow in color, with the word ‘‘CHINA’’ printed on the left side of the frame, and the UPC #400007860896 and words ‘‘Fashion Sunglasses’’ and ‘‘Time to Play Every Day’’ printed on the product’s red hangtag (‘‘Sunglasses’’). The Sunglasses were, in turn, offered for sale or sold to consumers at retail stores nationwide owned or operated by DGC or one of its Retail Subsidiaries from March 2005 through October 2007 for about $1 per unit. 7. The Tumblers, Toy Cars and Sunglasses are ‘‘consumer product(s),’’ and, at all times relevant hereto, Dollar General 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). 8. The Tumblers, Toy Cars and Sunglasses 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) 9. On September 28, 2007, the Staff obtained from the University of Ashland’s Department of Chemistry laboratory results relating to, in pertinent part, testing for the presence of lead in surface paints on samples of the Tumblers collected from a DGC retail store in Ashland, Ohio. The University’s test results demonstrated that paint from the center of the eye on certain Tumbler samples contained a total lead content in excess of the permissible 0.06 percent limit set forth in the Ban. 10. On October 12, 2007, Dollar General reported to CPSC that it had commissioned an independent laboratory to conduct validation testing for the presence of lead in surface coatings on a sample of the Sunglasses. As expressed in a test report of the same date, the test results demonstrated that the yellow surface coating and gold surface coating (printing on sample) contained a total lead content in excess of the permissible 0.06 percent limit set forth in the Ban. 11. On November 6, 2007, Dollar General reported to CPSC that it had commissioned an independent laboratory to conduct testing for the presence of lead in surface coatings on multiple samples of the Toy Cars. As expressed in two test reports dated November 5, 2007, the test results demonstrated that samples of the ‘‘4pack’’ and ‘‘2pack’’ Toy Cars contained a total lead content in excess of the permissible 0.06 percent limit set forth in the Ban. 12. On October 4, 2007, the Commission and DGMI announced a consumerlevel recall of about 63,000 units of the Tumblers because ‘‘Surface paint on the center of the eyes of some of the cups can contain high levels of lead, violating the federal lead paint standard.’’ On November 7, 2007, the Commission and DGMI announced a recall of about 380,000 units of the Toy Cars because ‘‘Surface paint on the cars contains excessive levels of lead, violating the federal lead paint standard.’’ On the next day, November 8, 2007, the Commission and Dolgencorp likewise announced a recall of about 51,000 units of the Sunglasses because ‘‘The yellow surface paint on the sunglasses may contain excessive levels of lead, violating the federal lead paint standard.’’ 13. Although Dollar General reported no incidents or injuries associated with the Tumblers, Sunglasses and Toy Cars, 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. 14. The Tumblers, Sunglasses and Toy Cars 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. 15. Between March 2005 and October 2007, Dollar General sold, manufactured for sale, offered 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 Tumblers, Sunglasses and Toy Cars, in violation of section 19(a)(1) of the CPSA, 15 U.S.C. 2068(a)(1). Dollar General committed these prohibited acts ‘‘knowingly,’’ as that term is defined in section 20(d) of the CPSA, 15 U.S.C. 2069(d). 16. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Dollar General is subject to civil penalties for the aforementioned violations. Dollar General’s Responsive Allegations 17. Dollar General denies that it knowingly violated the CPSA. 18. Dollar General states that the vendors of the Tumblers, Sunglasses and Toy Cars each represented and warranted to Dollar General that the products furnished by the applicable vendor complied with all applicable laws, regulations and standards. Additionally, prior to importing the Tumblers, Sunglasses and Toy Cars, Dollar General had the products tested by a qualified independent third party laboratory for all applicable safety standards, including, without limitation, lead paint standards. The tests indicated that the products were fully compliant. 19. Thus, Dollar General neither knew, nor should have known, of any potential problems with these products. However, as a result of industry changes and in an abundance of caution, Dollar General voluntarily commenced validation retesting of toys to confirm initial test results. Dollar General tested hundreds of samples and, of those, discovered that two, the Sunglasses and Toy Cars, did not meet applicable standards. Dollar General notified the CPSC of the results and promptly initiated a voluntary recall of the items. Agreement of the Parties 20. Under the CPSA, the Commission has jurisdiction over this matter and over Dollar General. 21. The parties enter into the Agreement for settlement purposes only. The Agreement does not constitute an admission by Dollar General, or a determination by the Commission, that Dollar General has knowingly violated the CPSA. 22. In settlement of the Staff’s allegations, DGC shall pay, on behalf of Dollar General, a civil penalty in the amount of one hundred thousand dollars ($100,000.00) 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. 23. Upon the Commission’s provisional acceptance of the Agreement, the Agreement shall be placed on the public record and published in theFederal Registerin accordance with the procedures set forth in 16 CFR 1118.20(e). In accordance with 16
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CFR 1118.20(f), if the Commission does notNeal S. Cohen, DATES:Any interested person may ask receive any written request not to accept theTrial Attorney, Division of Compliance, the Commission not to accept this Agreement within fifteen (15) days, theOffice of the General Counsel. agreement or otherwise comment on its Agreement shall be deemed finally accepted By:lllllllllllllllllll contents by filing a written request with on the sixteenth (16th) day after the date it M. Reza Malihi, the Office of the Secretary by August 18, is published in theFederal Register. Trial Attorney, Division of Compliance, 2009. 24. Upon the Commission’s final Office of the General Counsel. acceptance of the Agreement and issuance of ADDRESSES:Persons wishing to the final Order, Dollar General knowingly,In the Matter of Dollar General Corporation; comment on this Settlement Agreement voluntarily, and completely waives anyOrder should send written comments to the rights it may have in this matter to the Upon consideration of the Settlement Comment 09–C0030, Office of the following: (1) An administrative or judicial Agreement entered into between Dollar hearing; (2) judicial review or other challengeSecretary, Consumer Product Safety General Corporation (‘‘DGC’’), for itself and or contest of the validity of the Commission’sCommission, 4330 East West Highway, on behalf of its wholly owned subsidiaries, Order or actions; (3) a determination by the Dollar General Merchandising, Inc., DGRoom 502, Bethesda, Maryland 20814– Commission of whether Dollar General failed Retail, LLC, Dolgencorp, Inc., Dolgencorp of4408. to comply with the CPSA and its underlying Texas, Inc., Dolgencorp of New York, Inc., regulations; (4) a statement of findings of factFOR FURTHER INFORMATION CONTACT:Seth and Dollar General Partners (collectively and conclusions of law; and (5) any claimsreferred to as ‘‘Dollar General’’), and the U.S.B. Popkin, Lead Trial Attorney, Division under the Equal Access to Justice Act. Consumer Product Safety Commissionof Compliance, Office of the General 25. The Commission may publicize the (‘‘Commission’’) staff, and the Commission Counsel, Consumer Product Safety terms of the Agreement and Order. having jurisdiction over the subject matter Commission, 4330 East West Highway, 26. The Agreement and Order shall apply and over Dollar General, and it appearing Bethesda, Maryland 20814–4408; to, and be binding upon, Dollar General and that the Settlement Agreement and Order are telephone (301) 504–7612. each of its successors and assigns.in the public interest, it is 27. The Commission issues the OrderOrdered,that the Settlement Agreement be, SUPPLEMENTARY INFORMATION:The text of under the provisions of the CPSA, andand hereby is, accepted; and it is the Agreement and Order appears violation of the Order may subject thoseFurther ordered,that DGC shall pay, on below. referenced in paragraph 26 above tobehalf of Dollar General, a civil penalty in the appropriate legal action.amount of one hundred thousand dollarsDated: July 29, 2009. 28. The Agreement may be used in($100,000.00) within twenty (20) calendar Todd A. Stevenson, interpreting the Order. Understandings,days of service of the Commission’s final Secretary. agreements, representations, orOrder accepting the Agreement. The payment interpretations apart from those contained inshall be made by check payable to the order United States of America—Consumer the Agreement and Order may not be used toof the United States Treasury. Product Safety Commission vary or contradict its terms. The Agreement Upon the failure of DGC to make any of the In the Matter of Haier America Trading, shall not be waived, amended, modified, or foregoing payments when due, interest on the LLC, CPSC Docket No.09–C0030. otherwise altered, without written agreement unpaid amount shall accrue and be paid by thereto executed by the party against whomSettlement Agreement DGC at the federal legal rate of interest set such waiver, amendment, modification, or forth at 28 U.S.C. 1961(a) and (b). 1. In accordance with 16 CFR 1118.20, alteration is sought to be enforced. Provisionally accepted and provisionalHaier America Trading, LLC (‘‘Haier 29. If any provision of the Agreement and Order issued on the8thday ofJuly2009. America’’)and the staff (‘‘Staff’’) of the Order is held to be illegal, invalid, or United States Consumer Product Safety BY ORDER OF THE COMMISSION: unenforceable under present or future laws Commission (‘‘Commission’’) enter into this effective during the terms of the Agreementlllllllllllllllllllll Settlement Agreement (‘‘Agreement’’). The and Order, such provision shall be fullyTodd A. Stevenson, Agreement and the incorporated attached severable. The balance of the Agreement andSecretary, U.S. Consumer Product Safety Order (‘‘Order’’) settle the Staff’s allegations Order shall remain in full force and effect,Commission. set forth below. unless the Commission and Dollar General [FR Doc. E9–18508 Filed 7–31–09; 8:45 am] agree that severing the provision materiallyParties BILLING CODE 6355–01–P affects the purpose of the Agreement and 2. The Commission is an independent Order. Federal regulatory agency established DOLLAR GENERAL CORPORATION pursuant to, and responsible for the CONSUMER PRODUCT SAFETY Dated:June 24, 2009.enforcement of, the Consumer Product Safety COMMISSION Act, 15 U.S.C. 2051–2089 (‘‘CPSA’’). By:lllllllllllllllllll [CPSC Docket No. 09–C0030] 3. Haier America is a limited liability Susan S. Lanigan, company organized and existing under the Executive Vice President and General Haier America Trading, LLC, laws of New York, with its principal offices Counsel, Dollar General Corporation, 100 Provisional Acceptance of alocated in New York, New York. At all times Mission Ridge, Goodlettsville, TN 37072. Settlement Agreement and Orderrelevant hereto, Haier America sold Dated:June 24, 2009.lllllllllll appliances. By:lllllllllllllllllllAGENCY:Consumer Product Safety Staff Allegations Commission. Robert R. Stephenson, Deputy General Counsel,4. From on or about January to July 2004, ACTION:Notice. Dollar General Corporation.Haier America distributed in commerce, SUMMARY:It is the policy of theincluding through importation and sale to U.S. CONSUMER PRODUCT SAFETY retailers, multiple units of the Haier America Commission to publish settlements COMMISSION STAFF Oscillating Tower Fan model FTM140GG which it provisionally accepts under the Cheryl A. Falvey, (‘‘Fan’’). Consumer Product Safety Act in the General Counsel, Office of the General 5. The Fans are ‘‘consumer product[s],’’ Counsel.Federal Registerin accordance with the and, at all times relevant hereto, Haier terms of 16 CFR 1118.20(e). Published Ronald G. Yelenik, America was a ‘‘manufacturer’’ of those Assistant General Counsel, Office of thebelow is a provisionally accepted consumer products, which were ‘‘distributed General Counsel.Settlement Agreement with Haier in commerce,’’ as those terms are defined in Dated:June 25, 2009.lllllllllllAmerica Trading, LLC, containing aCPSA sections 3(a)(5), (8), and (11), 15 U.S.C. By:lllllllllllllllllllcivil penalty of $587,500.00.2052(a)(5), (8), and (11).
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