80_FR_54945 80 FR 54769 - phil&teds USA, Inc., Provisional Acceptance of a Settlement Agreement and Order

80 FR 54769 - phil&teds USA, Inc., Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

Federal Register Volume 80, Issue 176 (September 11, 2015)

Page Range54769-54773
FR Document2015-22892

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 phil&teds USA, Inc., containing a civil penalty of $3,500,000, with $3,300,000 of the total suspended, subject to the terms and conditions of the Settlement Agreement. phil&teds USA, Inc., shall pay the non- suspended portion of the penalty, $200,000, in accordance with the terms set forth in the Settlement Agreement.\1\ The $200,000 Payment shall be paid within thirty (30) calendar days after the phil&teds USA, Inc., receives service of the Commission's final Order accepting the Agreement. ---------------------------------------------------------------------------

Federal Register, Volume 80 Issue 176 (Friday, September 11, 2015)
[Federal Register Volume 80, Number 176 (Friday, September 11, 2015)]
[Notices]
[Pages 54769-54773]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-22892]


=======================================================================
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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 15-C0007]


phil&teds USA, 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 
phil&teds USA, Inc., containing a civil penalty of $3,500,000, with 
$3,300,000 of the total suspended, subject to the terms and conditions 
of the Settlement Agreement. phil&teds USA, Inc., shall pay the non-
suspended portion of the penalty, $200,000, in accordance with the 
terms set forth in the Settlement Agreement.\1\ The $200,000 Payment 
shall be paid within thirty (30) calendar days after the phil&teds USA, 
Inc., receives service of the Commission's final Order accepting the 
Agreement.
---------------------------------------------------------------------------

    \1\ The Commission voted (4-1) to provisionally accept the 
Settlement Agreement and Order regarding phil&teds USA, Inc. 
Chairman Kaye, Commissioner Adler, Commissioner Robinson and 
Commissioner Buerkle voted to provisionally accept the Settlement 
Agreement and Order. Commissioner Mohorovic voted to take other 
action and reject the Settlement Agreement and Order and return to 
staff to seek higher payment.

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 September 28, 2015.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 15-C0007 Office of the 
Secretary, Consumer Product Safety Commission, 4330 East-West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Leah Wade, Trial Attorney, Office of 
the General Counsel, Division of Compliance, Consumer Product Safety 
Commission, 4330 East-West Highway, Bethesda, Maryland 20814-4408; 
telephone (301) 504-7225.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: September 8, 2015.
Todd A. Stevenson,
Secretary.

UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: phil&teds USA, Inc.

CPSC Docket No.: 15-C0007

SETTLEMENT AGREEMENT

    1. In accordance with the Consumer Product Safety Act (``CPSA''), 
15 U.S.C. 2051-2089 and 16 CFR 1118.20, phil&teds USA, Inc. 
(``phil&teds USA'' or ``Firm''), and the U.S. Consumer Product Safety 
Commission (``Commission''), through its staff (``Staff''), hereby 
enter into this Settlement Agreement. The Settlement Agreement and 
Affidavit of Corporate Officer, attached at Exhibit A (collectively the 
``Agreement'') and the incorporated attached Order (``Order'') resolve 
Staff's charges set forth below.

THE PARTIES

    2. The Commission is an independent federal regulatory agency 
established pursuant to, and responsible for, the enforcement of the 
CPSA. By executing this Agreement, Staff is acting on behalf of the 
Commission, pursuant to 16 CFR Sec.  1118.20(b). The Commission issues 
the Order under the provisions of the CPSA.

[[Page 54770]]

    3. phil&teds USA is a corporation, organized and existing under the 
laws of the state of Colorado, with its principal corporate office 
located in Fort Collins, CO. phil&teds USA is an importer, distributor 
and retailer of children's strollers, child carriers and other baby 
products and accessories.

STAFF'S CHARGES

    4. From May 2009 through January 2011, phil&teds USA imported and 
sold in the United States, approximately 13,500 clip-on high chairs 
under the brand name, MeToo Chairs (``Chairs''). The Firm sold the 
Chairs online and through independent retailers nationwide.
    5. The Chairs are ``consumer products,'' and, at all relevant 
times, phil&teds USA was either the importer, ``distributor'' or 
``retailer'' of these consumer products, which were ``distributed in 
commerce,'' as those terms are defined or used in sections 3(a)(5), 
(7), (8),and (13) of the CPSA, 15 U.S.C. 2052(a)(5), (7), (8), and 
(13).
    6. The Chairs are defective and create an unreasonable risk of 
serious injury because the clamps on the Chairs can detach from the 
table, posing a fall hazard. If only one side of the Chair detaches, 
the lack of space between the metal cross bar and the clamps creates a 
finger pinching, laceration, and amputation hazard.
    7. Between September 2009 and October 2010, the Firm obtained 
sufficient information that reasonably supported the conclusion that 
the Chairs contained a defect that could create a substantial product 
hazard or created an unreasonable risk of serious injury. Specifically, 
the Firm was aware of reports of incidents and injuries, including 
reports of fingertip amputations to children. The Firm was also aware 
that two design changes had been implemented to address the defects in 
the Chair.
    8. Despite having information regarding the Chair's defect or risk, 
the Firm failed to inform the Commission immediately, as required by 
sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. Sec. Sec.  2064(b)(3) 
and (4).
    9. Because the information in the Firm's possession constituted 
actual and presumed knowledge, the Firm knowingly violated section 
19(a)(4) of the CPSA, 15 U.S.C. Sec.  2068(a)(4), as the term 
``knowingly'' is defined in section 20(d) of the CPSA, 15 U.S.C. Sec.  
2069(d).
    10. When the Firm filed its Full Report, the Firm:
    a. underreported the total number of incidents and injuries 
involving the Chairs, stating that it was aware of 10 ``instances'' 
involving the product, but provided no details on the instances and 
failed to indicate that the Firm was aware of two amputation injuries;
    b. failed to notify staff that the Chairs posed an amputation 
hazard; and
    c. withheld information that the Chair had been redesigned to 
address the hazard and that the sample product supplied with the Full 
Report was manufactured differently than the Chairs involved in the 
incident and injury reports.
    11. The Firm's failure to report this information resulted in 
delayed implementation of the corrective action and recall of the 
product, which was not publicly announced until August 17, 2011.
    12. By making these inaccurate and incomplete statements in the 
Full Report, the Firm knowingly committed a material misrepresentation 
to an officer or employee in the course of an investigation under the 
CPSA, which violates section 19(a)(13) of the CPSA, 15 U.S.C. Sec.  
2068(a)(13), as the term ``knowingly'' is defined in section 20(d) of 
the CPSA, 15 U.S.C. Sec.  2069(d).
    13. Under section 20 of the CPSA, 15 U.S.C. Sec.  2069, the Firm is 
subject to civil penalties for its knowing violation of section 
19(a)(4) of the CPSA, 15 U.S.C. Sec.  2068(a)(4) and for the Firm's 
knowing material misrepresentations in violation of section 19(a)(13) 
of the CPSA, 15 U.S.C. Sec.  2068(a)(13).

FIRM'S RESPONSE

    14. This Agreement does not constitute an admission by the Firm to 
the charges set forth in paragraphs 4 through 13, including charges 
that phil&teds USA violated any statute or regulation, failed to timely 
report, or committed a material misrepresentation in violation of the 
CPSA. In fact, phil&teds USA took the initiative in reporting incidents 
surrounding the Chair to the CPSC, disclosed the number of those 
incidents, and further explained that unreasonable misuse of the 
product was the cause of serious injuries.

AGREEMENT OF THE PARTIES

    15. Under the CPSA, the Commission has jurisdiction over the matter 
involving the Chairs and over phil&teds USA, Inc.
    16. In settlement of Staff's charges, and to avoid the cost, 
distraction, delay, uncertainty, and inconvenience of protracted 
litigation or other proceedings, the Firm shall pay a civil penalty in 
the amount of three million, five hundred thousand dollars ($3,500,000) 
(``Total Civil Penalty Amount''). In reliance on the accuracy and 
completeness of the Firm's representations and warranties in this 
Agreement, the Commission agrees to suspend all but two hundred 
thousand dollars ($200,000) of the Total Civil Penalty Amount 
(``$200,000 Payment''), on the terms and conditions set forth in this 
Agreement. The $200,000 Payment shall be paid within thirty (30) 
calendar days after the Firm receives service of the Commission's final 
Order accepting the Agreement. All payments to be made under the 
Agreement shall constitute debts owing to the United States and shall 
be made by electronic wire transfer to the United States via: http://www.pay.gov for allocation to and credit against the payment 
obligations of the Firm under this Agreement.
    17. phil&teds USA represents and warrants that the financial 
statements of phil&teds USA provided to the Commission in connection 
with the matters addressed in this Agreement (``Financial Statements'') 
are complete, accurate and current and have been prepared on a 
consistent basis throughout the periods indicated except as otherwise 
noted therein, and that the Financial Statements fairly present the 
financial condition and results of operations and cash flow of the Firm 
as of the dates, and for the periods, indicated therein, all 
consistently applied during the periods involved except as noted 
therein, and subject, in the case of the unaudited interim financial 
statements, to the absence of notes and normal year-end adjustments.
    18. The Firm represents and warrants that the information supplied 
by the Firm to the Commission in connection with the matters addressed 
in the Agreement (including information about the Firm's financial 
resources and ability to pay the Total Civil Penalty Amount) did not, 
at the time provided to the Commission, contain any untrue statement of 
a material fact or omit to state any material fact required to be 
stated therein or necessary in order to make the statements therein, in 
light of the circumstances under which they are made, not misleading.
    19. The parties agree that an amount equal to Total Civil Penalty 
Amount minus any amounts paid by phil&teds USA pursuant to this 
Agreement shall become due and payable immediately upon the occurrence 
of an ``Event of Default,'' without notice or further action by any 
party. An ``Event of Default'' means:
    a. a failure of phil&teds USA to pay the $200,000 Payment (or any 
portion thereof) when due and payable;
    b. the breach or inaccuracy of any representation or warranty of 
phil&teds USA in this Agreement;

[[Page 54771]]

    c. the breach or failure by phil&teds USA to observe or perform any 
of its obligations, covenants or agreements set forth in the Agreement; 
or
    d. a failure of phil&teds USA to comply with all CPSC statutes or 
regulations for three (3) years after the effective date of this 
Agreement.
    20. All unpaid amounts, if any, due and owing under the Agreement 
shall constitute a debt due and immediately owing by phil&teds USA to 
the United States, and interest shall accrue and be paid by phil&teds 
USA at the federal legal rate of interest set forth at 28 U.S.C. Sec.  
1961(a) and (b) from the date of Event of Default until all amounts due 
have been paid in full (hereinafter ``Default Payment Amount'' and 
``Default Interest Balance''). phil&teds USA shall consent to a Consent 
Judgment in the amount of the Default Payment Amount and Default 
Interest Balance, and the United States, at its sole option, may 
collect the entire Default Payment Amount and Default Interest Balance 
or exercise any other rights granted by law or in equity, including but 
not limited to referring such matters for private collection, and 
phil&teds USA agrees not to contest, and hereby waives and discharges 
any defenses to, any collection action undertaken by the United States 
or its agents or contractors pursuant to this paragraph. phil&teds USA 
shall pay the United States all reasonable costs of collection and 
enforcement under this paragraph, respectively, including reasonable 
attorney's fees and expenses.
    21. phil&teds USA shall notify CPSC in writing if any financial 
information supplied or to be supplied in writing by phil&teds USA to 
the Commission in connection with the Agreement is, in any material 
respect, discovered not to be true, accurate or complete; is no longer 
true, accurate or complete as a result of subsequent events; is 
discovered to contain an untrue statement of a material fact or to omit 
a material fact required to be stated therein or necessary in order to 
make the statements therein, in light of the circumstances under which 
they were made, not misleading; or contains as a result of subsequent 
events an untrue statement of a material fact or an omission of a 
material fact required to be stated, not misleading.
    22. After Staff receives this Agreement executed on behalf of 
phil&teds USA, Staff shall promptly submit the Agreement to the 
Commission for provisional acceptance. Promptly following the 
Commission's provisional acceptance of the Agreement, the Agreement 
shall be placed on the public record and published in the Federal 
Register, in accordance with the procedures set forth in 16 CFR Sec.  
1118.20(e). If within fifteen (15) calendar days the Commission does 
not receive any written request not to accept the Agreement, the 
Agreement shall be deemed finally accepted on the sixteenth (16th) 
calendar day after the date the Agreement is published in the Federal 
Register, in accordance with 16 CFR Sec.  1118.20(f).
    23. This Agreement is conditioned upon, and subject to, the 
Commission's final acceptance, as set forth above, and is subject to 
the provisions of 16 CFR Sec.  1118.20(h). Upon the later of: (i) The 
Commission's final acceptance of this Agreement and service of the 
accepted Agreement upon phil&teds USA, and (ii) the date of issuance of 
the final Order, this Agreement shall be in full force and effect, and 
shall be binding upon the parties.
    24. Effective upon the later of: (i) The Commission's final 
acceptance of the Agreement and service of the accepted Agreement upon 
phil&teds USA, and (ii) the date of issuance of the final Order, for 
good and valuable consideration, phil&teds USA hereby expressly and 
irrevocably waives and agrees not to assert any past, present, or 
future rights to the following, in connection with the matter described 
in the Agreement: (a) An administrative or judicial hearing; (b) 
judicial review or other challenge or contest of the validity of the 
Order or of the Commission's actions; (c) a determination by the 
Commission of whether phil&teds USA failed to comply with the CPSA and 
the underlying regulations; (d) a statement of findings of fact and 
conclusions of law; and (e) any claims under the Equal Access to 
Justice Act.
    25. phil&teds USA shall implement and maintain a compliance program 
designed to ensure compliance with the statutes and regulations 
enforced by the Commission that, at a minimum, contains the following 
elements:
    a. written standards and policies concerning products sold by 
phil&teds USA in the United States that may relate to, or impact, CPSA 
compliance;
    b. procedures for verifying the accuracy and completeness of 
information conveyed to the Commission;
    c. procedures for implementing corrective and preventive actions 
when compliance deficiencies or violations are identified;
    d. procedures for collecting information from phil&teds USA's 
affiliates on incidents and injuries occurring outside the United 
States;
    e. a mechanism for confidential employee reporting of compliance-
related questions or concerns to either a compliance officer or to 
another senior manager with authority to act as necessary;
    f. effective communication of company compliance-related policies 
and procedures to all employees through training programs or otherwise;
    g. senior manager responsibility for compliance and accountability 
for violations of the statutes and regulations enforced by the 
Commission;
    h. board oversight of compliance; and
    i. retention of all compliance-related records for at least five 
(5) years and availability of such records to Staff, upon request.
    26. phil&teds USA shall implement, maintain and enforce a system of 
internal controls and procedures designed to ensure that:
    a. information required to be disclosed by phil&teds USA to the 
Commission is recorded, processed and reported in accordance with 
applicable law;
    b. all reporting made to the Commission is timely, truthful, 
complete and accurate; and
    c. prompt disclosure is made to phil&teds USA's management of any 
significant deficiencies or material weaknesses in the design or 
operation of such internal controls that are reasonably likely to 
adversely affect in any material respect phil&teds USA's ability to 
record, process, and report to the Commission in accordance with 
applicable law.
    27. Upon Staff's request, phil&teds USA shall provide written 
documentation of its compliance program and system of internal controls 
and procedures, including, but not limited to, the effective dates of 
the program, controls and procedures and improvements thereto. 
phil&teds USA shall cooperate fully and truthfully with Staff and shall 
make available all information, materials, and personnel deemed 
necessary by Staff to evaluate phil&teds USA's compliance with the 
terms of the Agreement.
    28. phil&teds USA agrees that any settlement agreements with 
consumers involving products over which the Commission has 
jurisdiction, and which include a confidentiality clause, must include 
an exception to the confidentiality clause that allows consumers to 
discuss any issues related to their settlement agreement with officers 
and employees of the Commission and other local, state and federal 
government representatives.
    29. The parties acknowledge and agree that the Commission may make 
public disclosure of the terms of the Agreement and Order.

[[Page 54772]]

    30. phil&teds USA represents that the Agreement: (i) Is entered 
into freely and voluntarily, without any degree of duress or compulsion 
whatsoever; (ii) has been duly authorized; and (iii) constitutes the 
valid and binding obligation of phil&teds USA, and each of its 
successors, transferees, and/or assigns.
    31. The signatories represent that they are authorized to execute 
this Agreement.
    32. The Agreement is governed by the laws of the United States.
    33. The Agreement and the Order shall apply to, and be binding 
upon, phil&teds USA and each of its successors, transferees, and/or 
assigns, and a violation of the Agreement or Order may subject 
phil&teds USA and each of its successors, transferees, and/or assigns 
to appropriate legal action.
    34. The Agreement and the Order constitute the complete agreement 
between the parties on the subject matter.
    35. The Agreement may be used in interpreting the Order. 
Understandings, agreements, representations, or interpretations apart 
from those contained in the Agreement and the Order may not be used to 
vary or contradict their terms. For purposes of construction, the 
Agreement shall be deemed to have been drafted by both of the parties, 
and therefore, shall not be construed against any party for that reason 
in any subsequent dispute.
    36. The Agreement shall not be waived, amended, modified, or 
otherwise altered, except as in accordance with the provisions of 16 
CFR 1118.20(h). The Agreement may be executed in counterparts.
    37. If any provision of the Agreement or the Order is held to be 
illegal, invalid, or unenforceable under present or future laws 
effective during the terms of the Agreement and the Order, such 
provision shall be fully severable. The balance of the Agreement and 
the Order shall remain in full force and effect, unless the Commission 
and phil&teds USA agree that severing the provision materially affects 
the purpose of the Agreement and Order.
PHIL&TEDS USA, INC.

Dated:-----------------------------------------------------------------
8/12/15

By:--------------------------------------------------------------------
Michael Grant, President,
phil&teds USA, Inc.,
221 Jefferson Street, Suite 100
Fort Collins, Colorado 80524

Dated:-----------------------------------------------------------------
8/13/15

By:--------------------------------------------------------------------
Jonathan Judge,
Schiff Hardin LLP,
233 Wacker Drive, Suite 6600
Chicago, Illinois 60606
Counsel for phil&teds USA, Inc.

U.S. CONSUMER PRODUCT SAFETY COMMISSION STAFF

Dated:-----------------------------------------------------------------
8/13/15

By:--------------------------------------------------------------------
Stephanie Tsacoumis,
General Counsel
Mary T. Boyle,
Deputy General Counsel
Mary B. Murphy,
Assistant General Counsel
Leah Wade,
Trial Attorney

EXHIBIT A

AFFIDAVIT OF CORPORATE OFFICER MICHAEL GRANT

    I, the undersigned, swear and affirm that I am employed by 
phil&teds USA, Inc., that I hold the position indicated below, and, by 
reason of my position, I am authorized and qualified to make the 
following statements. All capitalized terms not defined in this 
affidavit shall have the meanings given to them in the Agreement 
between phil&teds USA, Inc. and the U.S. Consumer Product Safety 
Commission, of which this Affidavit is a part.
    1. The financial statements of phil&teds USA provided to the 
Commission in connection with the matters addressed in this Agreement 
(``Financial Statements'') are complete, accurate and current and have 
been prepared on a consistent basis throughout the periods indicated 
except as otherwise noted therein, and that the Financial Statements 
fairly present the financial condition and results of operations and 
cash flow of phil&teds USA as of the dates, and for the periods, 
indicated therein, all consistently applied during the periods involved 
except as noted therein, and subject, in the case of the unaudited 
interim financial statements, to the absence of notes and normal year-
end adjustments.
    2. phil&teds USA has supplied all documents and information 
responsive to CPSC's requests.
    3. The information supplied by phil&teds USA to the Commission in 
connection with the matters addressed in the Agreement (including 
information about the Firm's financial resources and ability to pay the 
Total Civil Penalty Amount) did not, at the time provided to the 
Commission, contain any untrue statement of a material fact or omit to 
state any material fact required to be stated therein or necessary in 
order to make the statements therein, in light of the circumstances 
under which they are made, not misleading.
    4. For each of the fiscal years ended March 31, 2015, 2014 and 
2013, the net income, the net worth/stockholder's equity and working 
capital of phil&teds USA, Inc., was negative and to satisfy 
liabilities, phil&teds USA, Inc. relied on payments from its parent 
entity, Most Excellent World Holdings, Limited (``MEW''), pursuant to 
an intercompany agreement.
    5. phil&teds USA, Inc. has insufficient cash or other liquid assets 
to satisfy a civil penalty payment in excess of $200,000, has no 
sources of funding that could be used to provide the liquidity to make 
such a payment, and is unable to secure funds from MEW to fulfill a 
civil penalty payment obligation.
    6. phil&teds USA, Inc. will not directly or indirectly receive 
reimbursement, indemnification, insurance-related payment or other 
payment in connection with the matters addressed in the Agreement.
    7. Any civil penalty payment by phil&teds USA, Inc. in excess of 
$200,000 will require phil&teds USA, Inc. to cease operations as an 
ongoing business.
    I declare under penalty of perjury that the foregoing is true and 
correct. I understand that any intentional false statement in this 
declaration may be a criminal offense under 18 U.S.C. Sec.  1001.

Executed on August 12, 2015

Signed:----------------------------------------------------------------

Michael Grant
President, phil&teds USA, Inc.

UNITED STATES OF AMERICA

CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: phil&teds USA, Inc.

CPSC Docket No.: 15-C0007

ORDER

    Upon consideration of the Settlement Agreement entered into between 
phil&teds USA, Inc. (``phil&teds USA''), and the U.S. Consumer Product 
Safety Commission (``Commission''), and the Commission having 
jurisdiction over the subject matter and over phil&teds USA, and it 
appearing that the Settlement Agreement and the Order are in the public 
interest, it is
    ORDERED that the Settlement Agreement be, and is, hereby, accepted; 
and it is
    FURTHER ORDERED, that phil&teds USA shall comply with the terms of 
the Settlement Agreement and shall pay a civil penalty of $3,500,000, 
with $3,300,000 of the total suspended, subject to the terms and 
conditions of the Settlement Agreement. phil&teds USA shall pay the 
non-suspended portion of the penalty, $200,000, in

[[Page 54773]]

accordance with the terms set forth in the Settlement Agreement. Upon 
the occurrence of an Event of Default, as set forth in the Settlement 
Agreement, an amount equal to $3,500,000 (representing the entire civil 
penalty, including the suspended portion), plus any accrued and unpaid 
interest, minus any penalty amounts paid by phil&teds USA, shall 
immediately become due and payable.

Provisionally accepted and provisional Order issued on the 8th day 
of September , 2015.

 BY ORDER OF THE COMMISSION:
-----------------------------------------------------------------------

Todd A. Stevenson,
Secretary U.S. Consumer Product Safety Commission

[FR Doc. 2015-22892 Filed 9-10-15; 8:45 am]
 BILLING CODE 6355-01-P



                                                                           Federal Register / Vol. 80, No. 176 / Friday, September 11, 2015 / Notices                                                54769

                                               FOR FURTHER INFORMATION CONTACT:                            Valve with AC Sensor                              The $200,000 Payment shall be paid
                                               Barry S. Lineback, Telephone: (703)                     4240–00–NIB–0202—Lockout/Tagout                       within thirty (30) calendar days after the
                                               603–7740, Fax: (703) 603–0655, or email                     Station, 3 Padlocks                               phil&teds USA, Inc., receives service of
                                                                                                       4240–00–NIB–0203—Lockout/Tagout
                                               CMTEFedReg@AbilityOne.gov.                                                                                    the Commission’s final Order accepting
                                                                                                           Station, 8 Padlocks
                                               SUPPLEMENTARY INFORMATION:                              4240–00–NIB–0207—AC Sensor, 50V–1000V                 the Agreement.
                                                                                                       4240–00–NIB–0228—Medium Electrical                    DATES: Any interested person may ask
                                               Additions
                                                                                                           Lockout Kit with Breaker Lockouts                 the Commission not to accept this
                                                 On 6/6/2014 (79 FR 32716–32718), 6/                   4240–00–NIB–0229—Large Electrical                     agreement or otherwise comment on its
                                               5/2015 (80 FR 32096–32097) and 6/12/                        Lockout Kit                                       contents by filing a written request with
                                               2015 (80 FR 33485–33489), the                           4240–00–NIB–0230—Large Electrical/Valve               the Office of the Secretary by September
                                               Committee for Purchase From People                          Lockout Kit                                       28, 2015.
                                               Who Are Blind or Severely Disabled                      4240–00–NIB–0231—Small Standard
                                                                                                           Lockout Kit                                       ADDRESSES: Persons wishing to
                                               published notices of proposed additions                                                                       comment on this Settlement Agreement
                                                                                                       4240–00–NIB–0232—Extra Small Personal
                                               to the Procurement List.                                    Electrical Lockout Kit                            should send written comments to the
                                                 After consideration of the material                   4240–00–NIB–0233—Small Electrical                     Comment 15–C0007 Office of the
                                               presented to it concerning capability of                    Lockout Kit                                       Secretary, Consumer Product Safety
                                               qualified nonprofit agencies to provide                 4240–00–NIB–0234—Small Electrical                     Commission, 4330 East-West Highway,
                                               the products and impact of the                              Lockout Kit with Plug Lockouts                    Room 820, Bethesda, Maryland 20814–
                                               additions on the current or most recent                 4240–00–NIB–0236—Small Electrical Valve               4408.
                                               contractors, the Committee has                              Lockout Kit
                                                                                                       Mandatory Source of Supply: Association for           FOR FURTHER INFORMATION CONTACT:
                                               determined that the products listed
                                                                                                           the Blind and Visually Impaired—                  Leah Wade, Trial Attorney, Office of the
                                               below are suitable for procurement by
                                                                                                           Goodwill Industries of Greater Rochester,         General Counsel, Division of
                                               the Federal Government under 41 U.S.C.
                                                                                                           Rochester, NY                                     Compliance, Consumer Product Safety
                                               8501–8506 and 41 CFR 51–2.4.                            Mandatory Purchase For: Total Government              Commission, 4330 East-West Highway,
                                               Regulatory Flexibility Act Certification                    Requirement                                       Bethesda, Maryland 20814–4408;
                                                                                                       Contracting Activity: Defense Logistics               telephone (301) 504–7225.
                                                  I certify that the following action will                 Agency Troop Support
                                               not have a significant impact on a                                                                            SUPPLEMENTARY INFORMATION: The text of
                                                                                                       Distribution: B-List
                                               substantial number of small entities.                                                                         the Agreement and Order appears
                                               The major factors considered for this                   Barry S. Lineback,                                    below.
                                               certification were:                                     Director, Business Operations.                          Dated: September 8, 2015.
                                                  1. The action will not result in any                 [FR Doc. 2015–22898 Filed 9–10–15; 8:45 am]           Todd A. Stevenson,
                                               additional reporting, recordkeeping or                  BILLING CODE 6353–01–P
                                                                                                                                                             Secretary.
                                               other compliance requirements for small
                                               entities other than the small                                                                                 UNITED STATES OF AMERICA
                                               organizations that will furnish the                     CONSUMER PRODUCT SAFETY                               CONSUMER PRODUCT SAFETY
                                               products to the Government.                             COMMISSION                                            COMMISSION
                                                  2. The action will result in                                                                                 In the Matter of: phil&teds USA, Inc.
                                                                                                       [CPSC Docket No. 15–C0007]
                                               authorizing small entities to furnish the                                                                     CPSC Docket No.: 15–C0007
                                               products to the Government.                             phil&teds USA, Inc., Provisional
                                                  3. There are no known regulatory                                                                           SETTLEMENT AGREEMENT
                                                                                                       Acceptance of a Settlement Agreement
                                               alternatives which would accomplish                                                                              1. In accordance with the Consumer
                                                                                                       and Order
                                               the objectives of the Javits-Wagner-                                                                          Product Safety Act (‘‘CPSA’’), 15 U.S.C.
                                               O’Day Act (41 U.S.C. 8501–8506) in                      AGENCY: Consumer Product Safety                       2051–2089 and 16 CFR 1118.20,
                                               connection with the products proposed                   Commission.                                           phil&teds USA, Inc. (‘‘phil&teds USA’’
                                               for addition to the Procurement List.                   ACTION: Notice.                                       or ‘‘Firm’’), and the U.S. Consumer
                                               End of Certification                                                                                          Product Safety Commission
                                                                                                       SUMMARY:    It is the policy of the
                                                                                                                                                             (‘‘Commission’’), through its staff
                                                 Accordingly, the following products                   Commission to publish settlements
                                                                                                                                                             (‘‘Staff’’), hereby enter into this
                                               are added to the Procurement List:                      which it provisionally accepts under the
                                                                                                                                                             Settlement Agreement. The Settlement
                                                                                                       Consumer Product Safety Act in the
                                               Products                                                                                                      Agreement and Affidavit of Corporate
                                                                                                       Federal Register in accordance with the
                                               NSN(s)—Product Name(s)                                                                                        Officer, attached at Exhibit A
                                                                                                       terms of 16 CFR 1118.20(e). Published
                                               8455–00–NIB–0003—Badge Reel, ID,                                                                              (collectively the ‘‘Agreement’’) and the
                                                                                                       below is a provisionally-accepted
                                                   Retractable, Bulldog Clip, Black                                                                          incorporated attached Order (‘‘Order’’)
                                                                                                       Settlement Agreement with phil&teds
                                               8455–00–NIB–0050—Flight Line Lanyard,                                                                         resolve Staff’s charges set forth below.
                                                                                                       USA, Inc., containing a civil penalty of
                                                   Cord Style, Breakaway, with Holder,                 $3,500,000, with $3,300,000 of the total              THE PARTIES
                                                   Black, 36″ x .25″
                                               8455–00–NIB–0051—Holder, Badge, Vinyl,
                                                                                                       suspended, subject to the terms and                     2. The Commission is an independent
                                                   Re-Sealable, Clear, 3–3⁄4″ x 2–5⁄8″                 conditions of the Settlement Agreement.               federal regulatory agency established
                                               Mandatory Source of Supply: West Texas                  phil&teds USA, Inc., shall pay the non-               pursuant to, and responsible for, the
                                                   Lighthouse for the Blind, San Angelo, TX            suspended portion of the penalty,                     enforcement of the CPSA. By executing
                                               Mandatory Purchase For: Total Government                $200,000, in accordance with the terms
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                                                                                                                                                             this Agreement, Staff is acting on behalf
                                                   Requirement                                         set forth in the Settlement Agreement.1               of the Commission, pursuant to 16 CFR
                                               Contracting Activity: General Services
                                                   Administration, Fort Worth, TX                        1 The Commission voted (4–1) to provisionally
                                                                                                                                                             § 1118.20(b). The Commission issues the
                                               Distribution: A-List                                    accept the Settlement Agreement and Order             Order under the provisions of the CPSA.
                                               NSN(s)—Product Name(s)                                  regarding phil&teds USA, Inc. Chairman Kaye,
                                                                                                       Commissioner Adler, Commissioner Robinson and         Commissioner Mohorovic voted to take other action
                                               4240–00–NIB–0161—Lockout Tags, 25-pack                  Commissioner Buerkle voted to provisionally           and reject the Settlement Agreement and Order and
                                               4240–00–NIB–0185—Kit, Lockout, Electrical/              accept the Settlement Agreement and Order.            return to staff to seek higher payment.



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                                               54770                       Federal Register / Vol. 80, No. 176 / Friday, September 11, 2015 / Notices

                                                  3. phil&teds USA is a corporation,                   provided no details on the instances and              representations and warranties in this
                                               organized and existing under the laws of                failed to indicate that the Firm was                  Agreement, the Commission agrees to
                                               the state of Colorado, with its principal               aware of two amputation injuries;                     suspend all but two hundred thousand
                                               corporate office located in Fort Collins,                  b. failed to notify staff that the Chairs          dollars ($200,000) of the Total Civil
                                               CO. phil&teds USA is an importer,                       posed an amputation hazard; and                       Penalty Amount (‘‘$200,000 Payment’’),
                                               distributor and retailer of children’s                     c. withheld information that the Chair             on the terms and conditions set forth in
                                               strollers, child carriers and other baby                had been redesigned to address the                    this Agreement. The $200,000 Payment
                                               products and accessories.                               hazard and that the sample product                    shall be paid within thirty (30) calendar
                                                                                                       supplied with the Full Report was                     days after the Firm receives service of
                                               STAFF’S CHARGES                                         manufactured differently than the                     the Commission’s final Order accepting
                                                  4. From May 2009 through January                     Chairs involved in the incident and                   the Agreement. All payments to be
                                               2011, phil&teds USA imported and sold                   injury reports.                                       made under the Agreement shall
                                               in the United States, approximately                        11. The Firm’s failure to report this              constitute debts owing to the United
                                               13,500 clip-on high chairs under the                    information resulted in delayed                       States and shall be made by electronic
                                               brand name, MeToo Chairs (‘‘Chairs’’).                  implementation of the corrective action               wire transfer to the United States via:
                                               The Firm sold the Chairs online and                     and recall of the product, which was not              http://www.pay.gov for allocation to and
                                               through independent retailers                           publicly announced until August 17,                   credit against the payment obligations of
                                               nationwide.                                             2011.                                                 the Firm under this Agreement.
                                                  5. The Chairs are ‘‘consumer                            12. By making these inaccurate and                    17. phil&teds USA represents and
                                               products,’’ and, at all relevant times,                 incomplete statements in the Full                     warrants that the financial statements of
                                               phil&teds USA was either the importer,                  Report, the Firm knowingly committed                  phil&teds USA provided to the
                                               ‘‘distributor’’ or ‘‘retailer’’ of these                a material misrepresentation to an                    Commission in connection with the
                                               consumer products, which were                           officer or employee in the course of an               matters addressed in this Agreement
                                               ‘‘distributed in commerce,’’ as those                   investigation under the CPSA, which                   (‘‘Financial Statements’’) are complete,
                                               terms are defined or used in sections                   violates section 19(a)(13) of the CPSA,               accurate and current and have been
                                               3(a)(5), (7), (8),and (13) of the CPSA, 15              15 U.S.C. § 2068(a)(13), as the term                  prepared on a consistent basis
                                               U.S.C. 2052(a)(5), (7), (8), and (13).                  ‘‘knowingly’’ is defined in section 20(d)             throughout the periods indicated except
                                                  6. The Chairs are defective and create               of the CPSA, 15 U.S.C. § 2069(d).                     as otherwise noted therein, and that the
                                               an unreasonable risk of serious injury                     13. Under section 20 of the CPSA, 15               Financial Statements fairly present the
                                               because the clamps on the Chairs can                    U.S.C. § 2069, the Firm is subject to civil           financial condition and results of
                                               detach from the table, posing a fall                    penalties for its knowing violation of                operations and cash flow of the Firm as
                                               hazard. If only one side of the Chair                   section 19(a)(4) of the CPSA, 15 U.S.C.               of the dates, and for the periods,
                                               detaches, the lack of space between the                 § 2068(a)(4) and for the Firm’s knowing               indicated therein, all consistently
                                               metal cross bar and the clamps creates                  material misrepresentations in violation              applied during the periods involved
                                               a finger pinching, laceration, and                      of section 19(a)(13) of the CPSA, 15                  except as noted therein, and subject, in
                                               amputation hazard.                                      U.S.C. § 2068(a)(13).                                 the case of the unaudited interim
                                                  7. Between September 2009 and
                                                                                                       FIRM’S RESPONSE                                       financial statements, to the absence of
                                               October 2010, the Firm obtained
                                                                                                         14. This Agreement does not                         notes and normal year-end adjustments.
                                               sufficient information that reasonably
                                                                                                       constitute an admission by the Firm to                   18. The Firm represents and warrants
                                               supported the conclusion that the
                                                                                                       the charges set forth in paragraphs 4                 that the information supplied by the
                                               Chairs contained a defect that could
                                                                                                       through 13, including charges that                    Firm to the Commission in connection
                                               create a substantial product hazard or
                                                                                                       phil&teds USA violated any statute or                 with the matters addressed in the
                                               created an unreasonable risk of serious
                                                                                                       regulation, failed to timely report, or               Agreement (including information about
                                               injury. Specifically, the Firm was aware
                                                                                                       committed a material misrepresentation                the Firm’s financial resources and
                                               of reports of incidents and injuries,
                                                                                                       in violation of the CPSA. In fact,                    ability to pay the Total Civil Penalty
                                               including reports of fingertip
                                                                                                       phil&teds USA took the initiative in                  Amount) did not, at the time provided
                                               amputations to children. The Firm was
                                                                                                       reporting incidents surrounding the                   to the Commission, contain any untrue
                                               also aware that two design changes had
                                                                                                       Chair to the CPSC, disclosed the number               statement of a material fact or omit to
                                               been implemented to address the
                                                                                                       of those incidents, and further                       state any material fact required to be
                                               defects in the Chair.
                                                  8. Despite having information                        explained that unreasonable misuse of                 stated therein or necessary in order to
                                               regarding the Chair’s defect or risk, the               the product was the cause of serious                  make the statements therein, in light of
                                               Firm failed to inform the Commission                    injuries.                                             the circumstances under which they are
                                               immediately, as required by sections                                                                          made, not misleading.
                                                                                                       AGREEMENT OF THE PARTIES                                 19. The parties agree that an amount
                                               15(b)(3) and (4) of the CPSA, 15 U.S.C.
                                               §§ 2064(b)(3) and (4).                                     15. Under the CPSA, the Commission                 equal to Total Civil Penalty Amount
                                                  9. Because the information in the                    has jurisdiction over the matter                      minus any amounts paid by phil&teds
                                               Firm’s possession constituted actual and                involving the Chairs and over phil&teds               USA pursuant to this Agreement shall
                                               presumed knowledge, the Firm                            USA, Inc.                                             become due and payable immediately
                                               knowingly violated section 19(a)(4) of                     16. In settlement of Staff’s charges,              upon the occurrence of an ‘‘Event of
                                               the CPSA, 15 U.S.C. § 2068(a)(4), as the                and to avoid the cost, distraction, delay,            Default,’’ without notice or further
                                               term ‘‘knowingly’’ is defined in section                uncertainty, and inconvenience of                     action by any party. An ‘‘Event of
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                                               20(d) of the CPSA, 15 U.S.C. § 2069(d).                 protracted litigation or other                        Default’’ means:
                                                  10. When the Firm filed its Full                     proceedings, the Firm shall pay a civil                  a. a failure of phil&teds USA to pay
                                               Report, the Firm:                                       penalty in the amount of three million,               the $200,000 Payment (or any portion
                                                  a. underreported the total number of                 five hundred thousand dollars                         thereof) when due and payable;
                                               incidents and injuries involving the                    ($3,500,000) (‘‘Total Civil Penalty                      b. the breach or inaccuracy of any
                                               Chairs, stating that it was aware of 10                 Amount’’). In reliance on the accuracy                representation or warranty of phil&teds
                                               ‘‘instances’’ involving the product, but                and completeness of the Firm’s                        USA in this Agreement;


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                                                                           Federal Register / Vol. 80, No. 176 / Friday, September 11, 2015 / Notices                                          54771

                                                  c. the breach or failure by phil&teds                Register, in accordance with the                      related questions or concerns to either a
                                               USA to observe or perform any of its                    procedures set forth in 16 CFR                        compliance officer or to another senior
                                               obligations, covenants or agreements set                § 1118.20(e). If within fifteen (15)                  manager with authority to act as
                                               forth in the Agreement; or                              calendar days the Commission does not                 necessary;
                                                  d. a failure of phil&teds USA to                     receive any written request not to accept               f. effective communication of
                                               comply with all CPSC statutes or                        the Agreement, the Agreement shall be                 company compliance-related policies
                                               regulations for three (3) years after the               deemed finally accepted on the                        and procedures to all employees
                                               effective date of this Agreement.                       sixteenth (16th) calendar day after the               through training programs or otherwise;
                                                  20. All unpaid amounts, if any, due                  date the Agreement is published in the                  g. senior manager responsibility for
                                               and owing under the Agreement shall                     Federal Register, in accordance with 16               compliance and accountability for
                                               constitute a debt due and immediately                   CFR § 1118.20(f).                                     violations of the statutes and regulations
                                               owing by phil&teds USA to the United                       23. This Agreement is conditioned                  enforced by the Commission;
                                               States, and interest shall accrue and be                upon, and subject to, the Commission’s                  h. board oversight of compliance; and
                                               paid by phil&teds USA at the federal                    final acceptance, as set forth above, and               i. retention of all compliance-related
                                               legal rate of interest set forth at 28                  is subject to the provisions of 16 CFR                records for at least five (5) years and
                                               U.S.C. § 1961(a) and (b) from the date of               § 1118.20(h). Upon the later of: (i) The              availability of such records to Staff,
                                               Event of Default until all amounts due                  Commission’s final acceptance of this                 upon request.
                                               have been paid in full (hereinafter                     Agreement and service of the accepted                   26. phil&teds USA shall implement,
                                               ‘‘Default Payment Amount’’ and                          Agreement upon phil&teds USA, and                     maintain and enforce a system of
                                               ‘‘Default Interest Balance’’). phil&teds                (ii) the date of issuance of the final                internal controls and procedures
                                               USA shall consent to a Consent                          Order, this Agreement shall be in full                designed to ensure that:
                                               Judgment in the amount of the Default                   force and effect, and shall be binding                  a. information required to be
                                               Payment Amount and Default Interest                     upon the parties.                                     disclosed by phil&teds USA to the
                                               Balance, and the United States, at its                     24. Effective upon the later of: (i) The           Commission is recorded, processed and
                                               sole option, may collect the entire                     Commission’s final acceptance of the                  reported in accordance with applicable
                                               Default Payment Amount and Default                      Agreement and service of the accepted                 law;
                                               Interest Balance or exercise any other                  Agreement upon phil&teds USA, and                       b. all reporting made to the
                                               rights granted by law or in equity,                     (ii) the date of issuance of the final                Commission is timely, truthful,
                                               including but not limited to referring                  Order, for good and valuable                          complete and accurate; and
                                               such matters for private collection, and                consideration, phil&teds USA hereby                     c. prompt disclosure is made to
                                               phil&teds USA agrees not to contest,                    expressly and irrevocably waives and                  phil&teds USA’s management of any
                                               and hereby waives and discharges any                    agrees not to assert any past, present, or            significant deficiencies or material
                                               defenses to, any collection action                      future rights to the following, in                    weaknesses in the design or operation of
                                               undertaken by the United States or its                  connection with the matter described in               such internal controls that are
                                               agents or contractors pursuant to this                  the Agreement: (a) An administrative or               reasonably likely to adversely affect in
                                               paragraph. phil&teds USA shall pay the                  judicial hearing; (b) judicial review or              any material respect phil&teds USA’s
                                               United States all reasonable costs of                   other challenge or contest of the validity            ability to record, process, and report to
                                               collection and enforcement under this                   of the Order or of the Commission’s                   the Commission in accordance with
                                               paragraph, respectively, including                      actions; (c) a determination by the                   applicable law.
                                               reasonable attorney’s fees and expenses.                Commission of whether phil&teds USA                     27. Upon Staff’s request, phil&teds
                                                  21. phil&teds USA shall notify CPSC                  failed to comply with the CPSA and the                USA shall provide written
                                               in writing if any financial information                 underlying regulations; (d) a statement               documentation of its compliance
                                               supplied or to be supplied in writing by                of findings of fact and conclusions of                program and system of internal controls
                                               phil&teds USA to the Commission in                      law; and (e) any claims under the Equal               and procedures, including, but not
                                               connection with the Agreement is, in                    Access to Justice Act.                                limited to, the effective dates of the
                                               any material respect, discovered not to                    25. phil&teds USA shall implement                  program, controls and procedures and
                                               be true, accurate or complete; is no                    and maintain a compliance program                     improvements thereto. phil&teds USA
                                               longer true, accurate or complete as a                  designed to ensure compliance with the                shall cooperate fully and truthfully with
                                               result of subsequent events; is                         statutes and regulations enforced by the              Staff and shall make available all
                                               discovered to contain an untrue                         Commission that, at a minimum,                        information, materials, and personnel
                                               statement of a material fact or to omit                 contains the following elements:                      deemed necessary by Staff to evaluate
                                               a material fact required to be stated                      a. written standards and policies                  phil&teds USA’s compliance with the
                                               therein or necessary in order to make                   concerning products sold by phil&teds                 terms of the Agreement.
                                               the statements therein, in light of the                 USA in the United States that may relate                28. phil&teds USA agrees that any
                                               circumstances under which they were                     to, or impact, CPSA compliance;                       settlement agreements with consumers
                                               made, not misleading; or contains as a                     b. procedures for verifying the                    involving products over which the
                                               result of subsequent events an untrue                   accuracy and completeness of                          Commission has jurisdiction, and which
                                               statement of a material fact or an                      information conveyed to the                           include a confidentiality clause, must
                                               omission of a material fact required to                 Commission;                                           include an exception to the
                                               be stated, not misleading.                                 c. procedures for implementing                     confidentiality clause that allows
                                                  22. After Staff receives this Agreement              corrective and preventive actions when                consumers to discuss any issues related
                                               executed on behalf of phil&teds USA,                    compliance deficiencies or violations                 to their settlement agreement with
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                                               Staff shall promptly submit the                         are identified;                                       officers and employees of the
                                               Agreement to the Commission for                            d. procedures for collecting                       Commission and other local, state and
                                               provisional acceptance. Promptly                        information from phil&teds USA’s                      federal government representatives.
                                               following the Commission’s provisional                  affiliates on incidents and injuries                    29. The parties acknowledge and
                                               acceptance of the Agreement, the                        occurring outside the United States;                  agree that the Commission may make
                                               Agreement shall be placed on the public                    e. a mechanism for confidential                    public disclosure of the terms of the
                                               record and published in the Federal                     employee reporting of compliance-                     Agreement and Order.


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                                               54772                       Federal Register / Vol. 80, No. 176 / Friday, September 11, 2015 / Notices

                                                 30. phil&teds USA represents that the                 233 Wacker Drive, Suite 6600                             4. For each of the fiscal years ended
                                               Agreement: (i) Is entered into freely and               Chicago, Illinois 60606                               March 31, 2015, 2014 and 2013, the net
                                               voluntarily, without any degree of                      Counsel for phil&teds USA, Inc.                       income, the net worth/stockholder’s
                                               duress or compulsion whatsoever; (ii)                   U.S. CONSUMER PRODUCT SAFETY                          equity and working capital of phil&teds
                                               has been duly authorized; and (iii)                     COMMISSION STAFF                                      USA, Inc., was negative and to satisfy
                                               constitutes the valid and binding                       Dated: lllllllllllllllll                              liabilities, phil&teds USA, Inc. relied on
                                               obligation of phil&teds USA, and each                   8/13/15                                               payments from its parent entity, Most
                                               of its successors, transferees, and/or                  By: lllllllllllllllllll                               Excellent World Holdings, Limited
                                               assigns.                                                Stephanie Tsacoumis,                                  (‘‘MEW’’), pursuant to an intercompany
                                                 31. The signatories represent that they               General Counsel                                       agreement.
                                                                                                       Mary T. Boyle,
                                               are authorized to execute this                                                                                   5. phil&teds USA, Inc. has insufficient
                                                                                                       Deputy General Counsel
                                               Agreement.                                              Mary B. Murphy,                                       cash or other liquid assets to satisfy a
                                                 32. The Agreement is governed by the                  Assistant General Counsel                             civil penalty payment in excess of
                                               laws of the United States.                              Leah Wade,                                            $200,000, has no sources of funding that
                                                 33. The Agreement and the Order                       Trial Attorney                                        could be used to provide the liquidity
                                               shall apply to, and be binding upon,                                                                          to make such a payment, and is unable
                                               phil&teds USA and each of its                           EXHIBIT A                                             to secure funds from MEW to fulfill a
                                               successors, transferees, and/or assigns,                AFFIDAVIT OF CORPORATE OFFICER                        civil penalty payment obligation.
                                               and a violation of the Agreement or                     MICHAEL GRANT                                            6. phil&teds USA, Inc. will not
                                               Order may subject phil&teds USA and                        I, the undersigned, swear and affirm               directly or indirectly receive
                                               each of its successors, transferees, and/               that I am employed by phil&teds USA,                  reimbursement, indemnification,
                                               or assigns to appropriate legal action.                 Inc., that I hold the position indicated              insurance-related payment or other
                                                 34. The Agreement and the Order                                                                             payment in connection with the matters
                                                                                                       below, and, by reason of my position, I
                                               constitute the complete agreement                                                                             addressed in the Agreement.
                                                                                                       am authorized and qualified to make the
                                               between the parties on the subject                                                                               7. Any civil penalty payment by
                                                                                                       following statements. All capitalized
                                               matter.                                                                                                       phil&teds USA, Inc. in excess of
                                                                                                       terms not defined in this affidavit shall
                                                 35. The Agreement may be used in                                                                            $200,000 will require phil&teds USA,
                                                                                                       have the meanings given to them in the
                                               interpreting the Order. Understandings,                                                                       Inc. to cease operations as an ongoing
                                                                                                       Agreement between phil&teds USA, Inc.
                                               agreements, representations, or                                                                               business.
                                                                                                       and the U.S. Consumer Product Safety                     I declare under penalty of perjury that
                                               interpretations apart from those
                                                                                                       Commission, of which this Affidavit is                the foregoing is true and correct. I
                                               contained in the Agreement and the
                                                                                                       a part.                                               understand that any intentional false
                                               Order may not be used to vary or
                                                                                                          1. The financial statements of                     statement in this declaration may be a
                                               contradict their terms. For purposes of
                                                                                                       phil&teds USA provided to the                         criminal offense under 18 U.S.C. § 1001.
                                               construction, the Agreement shall be
                                                                                                       Commission in connection with the
                                               deemed to have been drafted by both of                                                                        Executed on August 12, 2015
                                                                                                       matters addressed in this Agreement
                                               the parties, and therefore, shall not be                                                                      Signed: lllllllllllllllll
                                                                                                       (‘‘Financial Statements’’) are complete,
                                               construed against any party for that                                                                          Michael Grant
                                                                                                       accurate and current and have been
                                               reason in any subsequent dispute.                                                                             President, phil&teds USA, Inc.
                                                                                                       prepared on a consistent basis
                                                 36. The Agreement shall not be
                                                                                                       throughout the periods indicated except               UNITED STATES OF AMERICA
                                               waived, amended, modified, or
                                                                                                       as otherwise noted therein, and that the
                                               otherwise altered, except as in                                                                               CONSUMER PRODUCT SAFETY
                                                                                                       Financial Statements fairly present the
                                               accordance with the provisions of 16                                                                          COMMISSION
                                                                                                       financial condition and results of
                                               CFR 1118.20(h). The Agreement may be
                                                                                                       operations and cash flow of phil&teds                   In the Matter of: phil&teds USA, Inc.
                                               executed in counterparts.
                                                                                                       USA as of the dates, and for the periods,             CPSC Docket No.: 15–C0007
                                                 37. If any provision of the Agreement
                                                                                                       indicated therein, all consistently
                                               or the Order is held to be illegal,                                                                           ORDER
                                                                                                       applied during the periods involved
                                               invalid, or unenforceable under present
                                                                                                       except as noted therein, and subject, in                Upon consideration of the Settlement
                                               or future laws effective during the terms
                                                                                                       the case of the unaudited interim                     Agreement entered into between
                                               of the Agreement and the Order, such
                                                                                                       financial statements, to the absence of               phil&teds USA, Inc. (‘‘phil&teds USA’’),
                                               provision shall be fully severable. The
                                                                                                       notes and normal year-end adjustments.                and the U.S. Consumer Product Safety
                                               balance of the Agreement and the Order
                                                                                                          2. phil&teds USA has supplied all                  Commission (‘‘Commission’’), and the
                                               shall remain in full force and effect,
                                                                                                       documents and information responsive                  Commission having jurisdiction over
                                               unless the Commission and phil&teds
                                                                                                       to CPSC’s requests.                                   the subject matter and over phil&teds
                                               USA agree that severing the provision
                                                                                                          3. The information supplied by                     USA, and it appearing that the
                                               materially affects the purpose of the
                                                                                                       phil&teds USA to the Commission in                    Settlement Agreement and the Order are
                                               Agreement and Order.
                                               PHIL&TEDS USA, INC.
                                                                                                       connection with the matters addressed                 in the public interest, it is
                                                                                                       in the Agreement (including                             ORDERED that the Settlement
                                               Dated: lllllllllllllllll
                                               8/12/15
                                                                                                       information about the Firm’s financial                Agreement be, and is, hereby, accepted;
                                                                                                       resources and ability to pay the Total                and it is
                                               By: lllllllllllllllllll
                                               Michael Grant, President,
                                                                                                       Civil Penalty Amount) did not, at the                   FURTHER ORDERED, that phil&teds
                                               phil&teds USA, Inc.,                                    time provided to the Commission,                      USA shall comply with the terms of the
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                                               221 Jefferson Street, Suite 100                         contain any untrue statement of a                     Settlement Agreement and shall pay a
                                               Fort Collins, Colorado 80524                            material fact or omit to state any                    civil penalty of $3,500,000, with
                                               Dated: lllllllllllllllll                                material fact required to be stated                   $3,300,000 of the total suspended,
                                               8/13/15                                                 therein or necessary in order to make                 subject to the terms and conditions of
                                               By: lllllllllllllllllll                                 the statements therein, in light of the               the Settlement Agreement. phil&teds
                                               Jonathan Judge,                                         circumstances under which they are                    USA shall pay the non-suspended
                                               Schiff Hardin LLP,                                      made, not misleading.                                 portion of the penalty, $200,000, in


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                                                                           Federal Register / Vol. 80, No. 176 / Friday, September 11, 2015 / Notices                                          54773

                                               accordance with the terms set forth in       Installations, Environment, and                                  Army & Air Force Exchange announces
                                               the Settlement Agreement. Upon the           Logistics.                                                       a proposed public information
                                               occurrence of an Event of Default, as set       5. Lt Gen James McLaughlin, Deputy                            collection and seeks public comment on
                                               forth in the Settlement Agreement, an        Commander at United States Cyber                                 the provisions thereof. Comments are
                                               amount equal to $3,500,000                   Command.                                                         invited on: (a) Whether the proposed
                                               (representing the entire civil penalty,         6. Lt Gen Andrew Busch, Director,                             collection of information is necessary
                                               including the suspended portion), plus       Defense Logistics Agency.                                        for the proper performance of the
                                               any accrued and unpaid interest, minus          7. Ms. Thomas, Deputy Chief                                   functions of the agency, including
                                               any penalty amounts paid by phil&teds        Management Officer of the Air Force.                             whether the information shall have
                                               USA, shall immediately become due               8. Mr. Gill, Executive Director, Air                          practical utility; (b) the accuracy of the
                                               and payable.                                 Force Materiel Command.                                          agency’s estimate of the burden of the
                                               Provisionally accepted and provisional Order    9. Mr. Hartley, Principal Deputy                              proposed information collection; (c)
                                               issued on the 8th day of September , 2015.   Assistant Secretary of the Air Force for                         ways to enhance the quality, utility, and
                                                 BY ORDER OF THE COMMISSION:                Installations, Environment and Energy.                           clarity of the information to be
                                               lllllllllllllllllllll                           10. Mr. Bennett, Principal Deputy                             collected; and (d) ways to minimize the
                                                                                            Assistant Secretary of the Air Force for                         burden of the information collection on
                                               Todd A. Stevenson,
                                               Secretary U.S. Consumer Product Safety       Financial Management and Comptroller.                            respondents, including through the use
                                               Commission                                      11. Mr. Lombardi, Principal Deputy                            of automated collection techniques or
                                                                                            Assistant Secretary of the Air Force                             other forms of information technology.
                                               [FR Doc. 2015–22892 Filed 9–10–15; 8:45 am]
                                                                                            (Acquisition).                                                   DATES: Consideration will be given to all
                                               BILLING CODE 6355–01–P
                                                                                               12. Mr. Corsi, Assistant Deputy Chief                         comments received by November 10,
                                                                                            of Staff for Manpower, Personnel and                             2015.
                                                                                            Services.                                                        ADDRESSES: You may submit comments,
                                               DEPARTMENT OF DEFENSE                           13. Mr. Salvatori, Director,                                  identified by docket number and title,
                                               Department of the Air Force                  Capabilities Management Office.                                  by any of the following methods:
                                                                                               14. Mr. Geurts, Acquisition Executive,                           • Federal eRulemaking Portal: http://
                                               Notice Is Given of the Names of              U.S. Special Operations Command.                                 www.regulations.gov. Follow the
                                               Members of the Performance Review               15. Mr. Fedrigo, Deputy Assistant                             instructions for submitting comments.
                                               Board for the Department of the Air          Secretary of the Air Force for Reserve                              • Mail: Department of Defense, Office
                                               Force                                        Affairs and Airman Readiness.                                    of the Deputy Chief Management
                                                                                               16. Ms. Kay, Director of Security,                            Officer, Directorate of Oversight and
                                               AGENCY: Department of the Air Force,         Special Program Oversight and                                    Compliance, Regulatory and Audit
                                               Department of Defense.                       Information Protection. Additionally, all                        Matters Office, 9010 Defense Pentagon,
                                               ACTION: Notice.                              career status Air Force Tier 3 SES                               Washington, DC 20301–9010.
                                                                                            members not included in the above list                              Instructions: All submissions received
                                               SUMMARY: Notice is given of the names        are eligible to serve on the 2015                                must include the agency name, docket
                                               of members of the Performance Review         Performance Review Board and are                                 number and title for this Federal
                                               Board for the Department of the Air          hereby nominated for inclusion on an                             Register document. The general policy
                                               Force.                                       ad hoc basis in the event of absence(s).                         for comments and other submissions
                                               DATES: Effective Date: November 1,           FOR FURTHER INFORMATION CONTACT:                                 from members of the public is to make
                                               2015.                                        Please direct any written comments or                            these submissions available for public
                                               SUPPLEMENTARY INFORMATION: Pursuant          requests for information to Dr. Daramia                          viewing on the Internet at http://
                                               to 5 U.S.C. 4314(c) (1–5), the               Hinton, Deputy Director, Senior                                  www.regulations.gov as they are
                                               Department of the Air Force (AF)             Executive Management, AF/DPS, 1040                               received without change, including any
                                               announces the appointment of members Air Force Pentagon, Washington, DC                                       personal identifiers or contact
                                               to the AF’s Senior Executive Service         20330–1040 (PH: 703–695–7677; or via                             information.
                                               (SES) Performance Review Board (PRB). email at daramia.t.hinton.civ@mail.mil).                                   Any associated form(s) for this
                                               Appointments are made by the                                                                                  collection may be located within this
                                                                                            Henry Williams,                                                  same electronic docket and downloaded
                                               authorizing official. Each board member Acting, Air Force Federal Register Liaison
                                               shall review and evaluate performance                                                                         for review/testing. Follow the
                                                                                            Officer.                                                         instructions at http://
                                               scores provided by the SES’ immediate        [FR Doc. 2015–22889 Filed 9–10–15; 8:45 am]
                                               supervisor. Performance standards must                                                                        www.regulations.gov for submitting
                                               be applied consistently across the AF.
                                                                                            BILLING CODE 5001–10–P                                           comments. Please submit comments on
                                               The board will make final                                                                                     any given form identified by docket
                                               recommendations to the authorizing                                                                            number, form number, and title.
                                                                                            DEPARTMENT OF DEFENSE
                                               official relative to the performance of                                                                       FOR FURTHER INFORMATION CONTACT: To
                                               the executive.                               Department of the Army                                           request more information on this
                                                  The members of the 2015 Performance                                                                        proposed information collection or to
                                               Review Board for the U.S. Air Force are: [Docket ID USA–2015–HQ–0035]                                         obtain a copy of the proposal and
                                                  1. Board President—Gen McDew,                                                                              associated collection instruments,
                                                                                            Proposed Collection; Comment                                     please write to the Army and Air Force
                                               Commander, United States
rmajette on DSK7SPTVN1PROD with NOTICES




                                                                                            Request                                                          Exchange Service, Office of the General
                                               Transportation Command.
                                                  2. Gen Goldfein, Vice Chief of Staff of AGENCY: Army & Air Force Exchange                                  Counsel, Compliance Division, Attn:
                                               the Air Force.                               Service (Exchange), DoD.                                         Teresa Schreurs, 3911 South Walton
                                                  3. Honorable Lisa Disbrow, Under          ACTION: Notice.
                                                                                                                                                             Walker Blvd., Dallas, TX 75236–1598 or
                                               Secretary of the Air Force.                                                                                   call the Exchange Compliance Division
                                                  4. Honorable Miranda Ballentine,          SUMMARY: In compliance with the                                  at 800–967–6067.
                                               Assistant Secretary of the Air Force for     Paperwork Reduction Act of 1995, the                             SUPPLEMENTARY INFORMATION:



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Document Created: 2015-12-15 10:00:21
Document Modified: 2015-12-15 10:00:21
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesAny interested person may ask the Commission not to accept this agreement or otherwise comment on its contents by filing a written
ContactLeah Wade, Trial Attorney, Office of the General Counsel, Division of Compliance, Consumer Product Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7225.
FR Citation80 FR 54769 

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