81_FR_35857 81 FR 35750 - Teavana Corporation, Provisional Acceptance of a Settlement Agreement and Order

81 FR 35750 - Teavana Corporation, Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

Federal Register Volume 81, Issue 107 (June 3, 2016)

Page Range35750-35752
FR Document2016-12944

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 the Consumer Product Safety Commission's regulations. Published below is a provisionally-accepted Settlement Agreement with Teavana Corporation containing a civil penalty in the amount of three million, seven hundred fifty thousand U.S. dollars (US $3,750,000) within thirty (30) days of service of the Commission's final Order accepting the Settlement Agreement.

Federal Register, Volume 81 Issue 107 (Friday, June 3, 2016)
[Federal Register Volume 81, Number 107 (Friday, June 3, 2016)]
[Notices]
[Pages 35750-35752]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-12944]


=======================================================================
-----------------------------------------------------------------------

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 16-C0003]


Teavana Corporation, Provisional Acceptance of a Settlement 
Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of the Consumer 
Product Safety Commission's regulations. Published below is a 
provisionally-accepted Settlement Agreement with Teavana Corporation 
containing a civil penalty in the amount of three million, seven 
hundred fifty thousand U.S. dollars (US $3,750,000) within thirty (30) 
days of service of the Commission's final Order accepting the 
Settlement Agreement.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by June 20, 2016.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 16-C0003, 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, Division of 
Compliance, Office of the General Counsel, 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 \1\ 
appears below.
---------------------------------------------------------------------------

    \1\ The Commission voted (3-2) to provisionally accept the 
Settlement Agreement and Order regarding Teavana Corporation. 
Chairman Kaye, Commissioner Adler, Commissioner Robinson voted to 
provisionally accept the Settlement Agreement and Order. 
Commissioner Buerkle and Commissioner Mohorovic voted to reject the 
Settlement Agreement and Order. Commissioner Mohorovic filed a 
statement regarding this matter. The statement is available at the 
Office of the Secretary or the CPSC Web site, www.cpsc.gov.

    Dated: May 27, 2016.
Todd A. Stevenson,
Secretary.

UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: TEAVANA CORPORATION, CPSC Docket No.: 16-C0003

SETTLEMENT AGREEMENT

    1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 
2051-2089 (``CPSA'') and 16 CFR 1118.20, Teavana Corporation 
(``Teavana''), and the United States Consumer Product Safety Commission 
(``Commission''), through its staff, hereby enter into this Settlement 
Agreement (``Agreement''). The Agreement, and the incorporated attached 
Order, resolve staff's charges that Teavana is subject to civil 
penalties in this matter, under section 20 of the CPSA, 15 U.S.C. 2069, 
as 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, 15 U.S.C. 2051-2089. By executing the Agreement, staff is acting 
on behalf of the Commission, pursuant to 16 CFR 1118.20(b). The 
Commission issues the Order under the provisions of the CPSA.
    3. Teavana Corporation was incorporated in Georgia, and, at the 
time of the matters recited in this Agreement, its principal place of 
business was in Atlanta, Georgia.

STAFF CHARGES

    4. Between August 2007 and April 2013, Teavana imported for sale 
approximately 445,000 Double-Walled Glass Tea Tumblers (``Tumblers'') 
in the United States. Most of the models of the Tumblers are designed 
to hold hot beverages, and one model was intended for cold beverages.
    5. The Tumblers are a ``consumer product'' that was ``distributed 
in commerce,'' as those terms are defined or used in sections 3(a)(5) 
and (8) of the CPSA, 15 U.S.C. 2052(a)(5) and (8). Teavana was a 
``manufacturer,'' ``distributor'' and ``retailer'' of the Tumblers, as 
such terms are defined in sections 3(a)(7), (11) and (13) of the CPSA, 
15 U.S.C. 2052(a)(7), (11) and (13).
    6. Teavana had information reasonably supporting the conclusion 
that the Tumblers are defective or created an unreasonable risk of 
serious injury or death because they can

[[Page 35751]]

unexpectedly explode, shatter, or break during normal use, posing a 
laceration and burn hazard.
    7. Between January 2010 and March 2013, Teavana received numerous 
reports of the Tumblers unexpectedly exploding, shattering or breaking, 
including reports of six injuries to consumers who were cut by broken 
glass or burned by hot liquid while holding a Tumbler that exploded, 
shattered, or broke.
    8. Despite having information reasonably supporting the conclusion 
that the Tumblers contained a defect which could create a substantial 
product hazard or create an unreasonable risk of serious injury or 
death, Teavana did not notify the Commission immediately of such defect 
or risk, as required by sections 15(b)(3) and (4) of the CPSA, 15 
U.S.C. 2064(b)(3) and (4).
    9. In failing to immediately inform the Commission about the defect 
or unreasonable risk associated with the Tumblers, Teavana knowingly 
violated section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4), as the 
term ``knowingly'' is defined in section 20(d) of the CPSA, 15 U.S.C. 
2069(d).
    10. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Teavana is 
subject to civil penalties for its knowing violation of section 
19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).

RESPONSE OF TEAVANA

    11. Teavana's settlement of this matter does not constitute an 
admission of staff's charges as set forth in paragraphs 4 through 10 
above.
    12. In March 2013, Teavana notified the Commission pursuant to 
section 15(b) of the CPSA, 15 U.S.C. 2064(b) concerning Teavana's 
receipt of complaints and incident reports about the Tumblers.
    13. On May 20, 2013, in conjunction with the Commission, Teavana 
voluntarily announced a recall of eleven different models of double-
walled borosilicate glass Tumblers (made by three different 
manufacturers), including a Tumbler model for which Teavana had 
received no complaints or incident reports, and some Tumbler models for 
which only a few complaints were received.
    14. The voluntary recall of the Tumblers, as well as the section 
15(b) reporting, by Teavana was conducted out of an abundance of 
caution and without Teavana having determined or concluded that any of 
the eleven different models of Tumblers contained a defect, posed a 
substantial product hazard, or created an unreasonable risk of serious 
injury or death.
    15. The Tumblers were all well-constructed using a high quality 
glass with superior hardness and resistance to temperature shock.

AGREEMENT OF THE PARTIES

    16. Under the CPSA, the Commission has jurisdiction over the matter 
involving the Tumblers and over Teavana.
    17. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Teavana or a 
determination by the Commission that Teavana violated the CPSA's 
reporting requirements.
    18. In settlement of staff's charges, and to avoid the cost, 
distraction, delay, uncertainty, and inconvenience of protracted 
litigation, Teavana shall pay a civil penalty in the amount of three 
million, seven hundred and fifty thousand U.S. dollars (US $3,750,000) 
within thirty (30) calendar days after receiving 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 Teavana under this Agreement. Failure to 
make such payment by the date specified in the Commission's Order shall 
constitute Default.
    19. All unpaid amounts, if any, due and owing under the Agreement, 
shall constitute a debt due and immediately owing by Teavana to the 
United States, and interest shall accrue and be paid by Teavana at the 
federal legal rate of interest set forth at 28 U.S.C. 1961(a) and (b) 
from the date of Default, until all amounts due have been paid in full 
(hereinafter ``Default Payment Amount'' and ``Default Interest 
Balance''). Teavana 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 Teavana 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. Teavana shall pay the United 
States all reasonable costs of collection and enforcement under this 
paragraph, respectively, including reasonable attorney's fees and 
expenses.
    20. After staff receives this Agreement executed on behalf of 
Teavana, staff shall promptly submit the Agreement to the Commission 
for provisional acceptance. Promptly following provisional acceptance 
of the Agreement by the Commission, 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 1118.20(e). If the Commission 
does not receive any written request not to accept the Agreement within 
fifteen (15) calendar days, the Agreement shall be deemed finally 
accepted on the 16th calendar day after the date the Agreement is 
published in the Federal Register, in accordance with 16 CFR 
1118.20(f).
    21. This Agreement is conditioned upon, and subject to, the 
Commission's final acceptance, as set forth above, and it is subject to 
the provisions of 16 CFR 1118.20(h). Upon the later of: (i) 
Commission's final acceptance of this Agreement and service of the 
accepted Agreement upon Teavana, 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.
    22. Effective upon the later of: (i) The Commission's final 
acceptance of the Agreement and service of the accepted Agreement upon 
Teavana, and (ii) and the date of issuance of the final Order, for good 
and valuable consideration, Teavana 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 this 
Agreement: (i) An administrative or judicial hearing; (ii) judicial 
review or other challenge or contest of the Commission's actions; (iii) 
a determination by the Commission of whether Teavana failed to comply 
with the CPSA and the underlying regulations; (iv) a statement of 
findings of fact and conclusions of law; and (v) any claims under the 
Equal Access to Justice Act.
    23. Teavana represents and agrees that it will comply with and 
maintain the comprehensive compliance program of its parent corporation 
designed to ensure compliance with the CPSA and regulations enforced by 
the Commission. That program includes written standards, policies and 
procedures to ensure relevant reports and complaints are sent to 
compliance personnel, recalled goods are properly disposed of, 
employees have a confidential process to report compliance-related 
issues to officials with authority to act, CPSA compliance 
responsibility is exercised with due care

[[Page 35752]]

by senior management, company policies are communicated to applicable 
personnel, records are retained for five years, and compliance program 
documents will be made available to staff upon reasonable request.
    24. Teavana represents and agrees that it will comply with and 
maintain the comprehensive system of internal controls and procedures 
of its parent corporation. These procedures are designed to ensure 
Teavana discloses to the Commission information in accordance with 
applicable law, reports information in a timely, truthful, complete and 
accurate manner as required by the CPSA, and periodically evaluates 
these controls and procedures to ensure they are adequate to allow 
Teavana to report to the Commission in accordance with applicable law.
    25. The parties acknowledge and agree that the Commission may 
publicize the terms of the Agreement and the Order.
    26. Teavana 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 Teavana, enforceable against Teavana in 
accordance with its terms. The individuals signing the Agreement on 
behalf of Teavana represent and warrant that they are duly authorized 
by Teavana to execute the Agreement.
    27. The signatories represent that they are authorized to execute 
this Agreement.
    28. The Agreement is governed by the laws of the United States.
    29. The Agreement and the Order shall apply to, and be binding 
upon, Teavana and each of its parents, successors, transferees, and 
assigns, and a violation of the Agreement or Order may subject Teavana, 
and each of its parents, successors, transferees, and assigns, to 
appropriate legal action.
    30. The Agreement and the Order constitute the complete agreement 
between the parties on the subject matter contained therein.
    31. 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 shall not, therefore, be construed against any party, for that 
reason, in any subsequent dispute.
    32. The Agreement may 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.
    33. 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 Teavana agree in writing that severing the provision materially 
affects the purpose of the Agreement and the Order.

TEAVANA CORPORATION

Dated: May 19, 2016
By:--------------------------------------------------------------------
Bernard Acoca
President, Teavana Corporation

Dated: May 19, 2016
By:--------------------------------------------------------------------
Georgia C. Ravitz
Arent Fox LLP
1717 K Street, NW
Washington, D.C. 20006-5344

Counsel to Teavana Corporation

U.S. CONSUMER PRODUCT SAFETY COMMISSION

Mary T. Boyle
Acting General Counsel

Mary B. Murphy
Assistant General Counsel

Dated: May 19, 2016
By:--------------------------------------------------------------------
Leah Wade
Trial Attorney
Division of Compliance
Office of the General Counsel

UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: TEAVANA CORPORATION, CPSC Docket No.: 16-C0003

ORDER

    Upon consideration of the Settlement Agreement entered into 
between Teavana Corporation (``Teavana''), and the U.S. Consumer 
Product Safety Commission (``Commission''), and the Commission 
having jurisdiction over the subject matter and over Teavana, 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 Teavana shall comply with the terms of the 
Settlement Agreement and shall pay a civil penalty in the amount of 
three million, seven hundred fifty thousand U.S. dollars (US 
$3,750,000) within thirty (30) days after service of the 
Commission's final Order accepting the Settlement Agreement. The 
payment shall be made by electronic wire transfer to the Commission 
via: http://www.pay.gov. Upon the failure of Teavana to make the 
foregoing payment when due, interest on the unpaid amount shall 
accrue and be paid by Teavana at the federal legal rate of interest 
set forth at 28 U.S.C. 1961(a) and (b). If Teavana fails to make 
such payment or to comply in full with any other provision of the 
Settlement Agreement, such conduct will be considered a violation of 
the Settlement Agreement and Order.
    Provisionally accepted and provisional Order issued on the 27th 
day of May, 2016.

BY ORDER OF THE COMMISSION:

Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 2016-12944 Filed 6-2-16; 8:45 am]
 BILLING CODE 6355-01-P



                                                  35750                            Federal Register / Vol. 81, No. 107 / Friday, June 3, 2016 / Notices

                                                    MR 306—Melamine Fruit Plate                           CONSUMER PRODUCT SAFETY                                  Dated: May 27, 2016.
                                                    MR 307—21oz Melamine Tumbler                          COMMISSION                                             Todd A. Stevenson,
                                                    MR 308—Bamboo Placemat                                                                                       Secretary.
                                                    MR 1121—Bag, Storage, Vacuum Sealed,
                                                                                                          [CPSC Docket No. 16–C0003]                             UNITED STATES OF AMERICA
                                                      Club Pack
                                                    MR 1130—4-Section Tray, Holiday,                                                                             CONSUMER PRODUCT SAFETY
                                                                                                          Teavana Corporation, Provisional                       COMMISSION
                                                      Melamine
                                                                                                          Acceptance of a Settlement Agreement
                                                    MR 1131—Serving Tray, Holiday,                                                                                 In the Matter of:
                                                      Melamine 18’’ x 13’’                                and Order
                                                                                                                                                                 TEAVANA CORPORATION, CPSC Docket
                                                    MR 1132—Serving Bowl, Holiday,                                                                               No.: 16–C0003
                                                      Melamine
                                                                                                          AGENCY:Consumer Product Safety
                                                    MR 1135—Set, Spreader, 4Pc                            Commission.                                            SETTLEMENT AGREEMENT
                                                    MR 1150—Set, Mold, Cupcake, Red, Giant                ACTION:   Notice.                                         1. In accordance with the Consumer
                                                      Cupcake, 3pc                                                                                               Product Safety Act, 15 U.S.C.
                                                    MR 1151—Set, Pan, Bake, Perfect Brownie               SUMMARY:   It is the policy of the                     2051¥2089 (‘‘CPSA’’) and 16 CFR
                                                      Pan, 3pc                                            Commission to publish settlements                      1118.20, Teavana Corporation
                                                    MR 1152—Set, Pasta Cooker, Blue, Pasta
                                                                                                          which it provisionally accepts under the               (‘‘Teavana’’), and the United States
                                                      Express, 7pc                                                                                               Consumer Product Safety Commission
                                                                                                          Consumer Product Safety Act in the
                                                    MR 1153—Basket, Cooking, Steel,                                                                              (‘‘Commission’’), through its staff,
                                                      Multipurpose
                                                                                                          Federal Register in accordance with the
                                                                                                                                                                 hereby enter into this Settlement
                                                    MR 1155—Glove, Oven, Flexi                            terms of the Consumer Product Safety
                                                                                                                                                                 Agreement (‘‘Agreement’’). The
                                                    MR 1156—Device, Cutting, Multi-Use,                   Commission’s regulations. Published
                                                                                                                                                                 Agreement, and the incorporated
                                                      Green, Snip It                                      below is a provisionally-accepted                      attached Order, resolve staff’s charges
                                                    MR 1157—Set, Knife and Peeler, Ceramic,               Settlement Agreement with Teavana                      that Teavana is subject to civil penalties
                                                      Kitchen Samurai                                     Corporation containing a civil penalty                 in this matter, under section 20 of the
                                                    MR 1158—Set, Meatloaf Pan and Aerated                 in the amount of three million, seven                  CPSA, 15 U.S.C. 2069, as set forth
                                                      Tray                                                hundred fifty thousand U.S. dollars (US                below.
                                                    MR 1168—Carrier, Cake and Cupcake,                    $3,750,000) within thirty (30) days of
                                                      Collapsible                                         service of the Commission’s final Order                THE PARTIES
                                                    MR 1169—Set, Bowl and Lid, Blue, 4 Piece              accepting the Settlement Agreement.                       2. The Commission is an independent
                                                  Mandatory Source(s) of Supply:                                                                                 federal regulatory agency, established
                                                                                                          DATES: Any interested person may ask
                                                    Industries for the Blind, Inc., West Allis,                                                                  pursuant to, and responsible for, the
                                                      WI.                                                 the Commission not to accept this                      enforcement of the CPSA, 15 U.S.C.
                                                    MR 1053—Mop, Sponge, Triple Action                    agreement or otherwise comment on its                  2051¥2089. By executing the
                                                    MR 1083—Mop, Ratchet, Twist Action,                   contents by filing a written request with              Agreement, staff is acting on behalf of
                                                      Cotton                                              the Office of the Secretary by June 20,                the Commission, pursuant to 16 CFR
                                                    MR 1084—Refill, Mop, Ratchet, Twist                   2016.                                                  1118.20(b). The Commission issues the
                                                      Action, Cotton                                      ADDRESSES:  Persons wishing to                         Order under the provisions of the CPSA.
                                                  Mandatory Source(s) of Supply: LC                                                                                 3. Teavana Corporation was
                                                                                                          comment on this Settlement Agreement
                                                      Industries, Inc., Durham, NC.                                                                              incorporated in Georgia, and, at the time
                                                                                                          should send written comments to the
                                                  Contracting Activity: Defense Commissary                                                                       of the matters recited in this Agreement,
                                                      Agency.
                                                                                                          Comment 16–C0003, Office of the
                                                                                                                                                                 its principal place of business was in
                                                                                                          Secretary, Consumer Product Safety
                                                  Services:                                                                                                      Atlanta, Georgia.
                                                                                                          Commission, 4330 East West Highway,
                                                  SERVICE TYPE: Switchboard Operation Service             Room 820, Bethesda, Maryland 20814–                    STAFF CHARGES
                                                  Mandatory for: US Air Force, Patrick Air                4408.                                                     4. Between August 2007 and April
                                                      Force Base, 1225 Pershing Place, Patrick
                                                                                                          FOR FURTHER INFORMATION CONTACT:                       2013, Teavana imported for sale
                                                      AFB, FL
                                                                                                          Leah Wade, Trial Attorney, Division of                 approximately 445,000 Double-Walled
                                                  Mandatory Source(s) of Supply: Brevard
                                                      Achievement Center, Inc., Rockledge, FL             Compliance, Office of the General                      Glass Tea Tumblers (‘‘Tumblers’’) in the
                                                  Contracting Activity: Dept of the Air Force,            Counsel, Consumer Product Safety                       United States. Most of the models of the
                                                      FA252145 CONS LGC, Patrick Air Force                Commission, 4330 East West Highway,                    Tumblers are designed to hold hot
                                                                                                                                                                 beverages, and one model was intended
                                                      Base, FL                                            Bethesda, Maryland 20814–4408;
                                                  Service Type: Switchboard Operation Service                                                                    for cold beverages.
                                                                                                          telephone (301) 504–7225.
                                                  Mandatory for: Keesler Air Force Base,                                                                            5. The Tumblers are a ‘‘consumer
                                                      Keesler AFB, MS                                     SUPPLEMENTARY INFORMATION:  The text of                product’’ that was ‘‘distributed in
                                                  Mandatory Source(s) of Supply: Mississippi              the Agreement and Order 1 appears                      commerce,’’ as those terms are defined
                                                      Goodworks, Inc., Gulfport, MS                       below.                                                 or used in sections 3(a)(5) and (8) of the
                                                  Contracting Activity: Dept of the Air Force,                                                                   CPSA, 15 U.S.C. 2052(a)(5) and (8).
                                                      FA7014 AFDW PK, Andrews Air Force                                                                          Teavana was a ‘‘manufacturer,’’
                                                      Base, MD                                              1 The Commission voted (3–2) to provisionally        ‘‘distributor’’ and ‘‘retailer’’ of the
                                                                                                          accept the Settlement Agreement and Order              Tumblers, as such terms are defined in
                                                  Barry S. Lineback,                                                                                             sections 3(a)(7), (11) and (13) of the
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                          regarding Teavana Corporation. Chairman Kaye,
                                                  Director, Business Operations.                          Commissioner Adler, Commissioner Robinson              CPSA, 15 U.S.C. 2052(a)(7), (11) and
                                                                                                          voted to provisionally accept the Settlement           (13).
                                                  [FR Doc. 2016–13126 Filed 6–2–16; 8:45 am]
                                                                                                          Agreement and Order. Commissioner Buerkle and
                                                  BILLING CODE 6353–01–P
                                                                                                                                                                    6. Teavana had information
                                                                                                          Commissioner Mohorovic voted to reject the
                                                                                                          Settlement Agreement and Order. Commissioner
                                                                                                                                                                 reasonably supporting the conclusion
                                                                                                          Mohorovic filed a statement regarding this matter.     that the Tumblers are defective or
                                                                                                          The statement is available at the Office of the        created an unreasonable risk of serious
                                                                                                          Secretary or the CPSC Web site, www.cpsc.gov.          injury or death because they can


                                             VerDate Sep<11>2014   21:20 Jun 02, 2016   Jkt 238001   PO 00000   Frm 00018   Fmt 4703   Sfmt 4703   E:\FR\FM\03JNN1.SGM   03JNN1


                                                                                   Federal Register / Vol. 81, No. 107 / Friday, June 3, 2016 / Notices                                             35751

                                                  unexpectedly explode, shatter, or break                   15. The Tumblers were all well-                         20. After staff receives this Agreement
                                                  during normal use, posing a laceration                  constructed using a high quality glass                 executed on behalf of Teavana, staff
                                                  and burn hazard.                                        with superior hardness and resistance to               shall promptly submit the Agreement to
                                                    7. Between January 2010 and March                     temperature shock.                                     the Commission for provisional
                                                  2013, Teavana received numerous                                                                                acceptance. Promptly following
                                                  reports of the Tumblers unexpectedly                    AGREEMENT OF THE PARTIES
                                                                                                                                                                 provisional acceptance of the
                                                  exploding, shattering or breaking,                         16. Under the CPSA, the Commission                  Agreement by the Commission, the
                                                  including reports of six injuries to                    has jurisdiction over the matter                       Agreement shall be placed on the public
                                                  consumers who were cut by broken                        involving the Tumblers and over                        record and published in the Federal
                                                  glass or burned by hot liquid while                     Teavana.                                               Register, in accordance with the
                                                  holding a Tumbler that exploded,                           17. The parties enter into the                      procedures set forth in 16 CFR
                                                  shattered, or broke.                                    Agreement for settlement purposes only.                1118.20(e). If the Commission does not
                                                    8. Despite having information                         The Agreement does not constitute an                   receive any written request not to accept
                                                  reasonably supporting the conclusion                    admission by Teavana or a                              the Agreement within fifteen (15)
                                                  that the Tumblers contained a defect                    determination by the Commission that                   calendar days, the Agreement shall be
                                                  which could create a substantial                        Teavana violated the CPSA’s reporting                  deemed finally accepted on the 16th
                                                  product hazard or create an                             requirements.                                          calendar day after the date the
                                                  unreasonable risk of serious injury or                     18. In settlement of staff’s charges,               Agreement is published in the Federal
                                                  death, Teavana did not notify the                       and to avoid the cost, distraction, delay,             Register, in accordance with 16 CFR
                                                  Commission immediately of such defect                   uncertainty, and inconvenience of                      1118.20(f).
                                                  or risk, as required by sections 15(b)(3)               protracted litigation, Teavana shall pay                  21. This Agreement is conditioned
                                                  and (4) of the CPSA, 15 U.S.C.                          a civil penalty in the amount of three                 upon, and subject to, the Commission’s
                                                  2064(b)(3) and (4).                                     million, seven hundred and fifty                       final acceptance, as set forth above, and
                                                    9. In failing to immediately inform the               thousand U.S. dollars (US $3,750,000)                  it is subject to the provisions of 16 CFR
                                                  Commission about the defect or                          within thirty (30) calendar days after                 1118.20(h). Upon the later of: (i)
                                                  unreasonable risk associated with the                   receiving service of the Commission’s                  Commission’s final acceptance of this
                                                  Tumblers, Teavana knowingly violated                    final Order accepting the Agreement.                   Agreement and service of the accepted
                                                  section 19(a)(4) of the CPSA, 15 U.S.C.                 All payments to be made under the                      Agreement upon Teavana, and (ii) the
                                                  2068(a)(4), as the term ‘‘knowingly’’ is                Agreement shall constitute debts owing                 date of issuance of the final Order, this
                                                  defined in section 20(d) of the CPSA, 15                to the United States and shall be made                 Agreement shall be in full force and
                                                  U.S.C. 2069(d).                                         by electronic wire transfer to the United              effect and shall be binding upon the
                                                    10. Pursuant to section 20 of the                     States via: http://www.pay.gov for                     parties.
                                                  CPSA, 15 U.S.C. 2069, Teavana is                        allocation to, and credit against, the                    22. Effective upon the later of: (i) The
                                                  subject to civil penalties for its knowing              payment obligations of Teavana under                   Commission’s final acceptance of the
                                                  violation of section 19(a)(4) of the                    this Agreement. Failure to make such                   Agreement and service of the accepted
                                                  CPSA, 15 U.S.C. 2068(a)(4).                             payment by the date specified in the                   Agreement upon Teavana, and (ii) and
                                                                                                          Commission’s Order shall constitute                    the date of issuance of the final Order,
                                                  RESPONSE OF TEAVANA                                     Default.                                               for good and valuable consideration,
                                                     11. Teavana’s settlement of this matter                 19. All unpaid amounts, if any, due                 Teavana hereby expressly and
                                                  does not constitute an admission of                     and owing under the Agreement, shall                   irrevocably waives and agrees not to
                                                  staff’s charges as set forth in paragraphs              constitute a debt due and immediately                  assert any past, present, or future rights
                                                  4 through 10 above.                                     owing by Teavana to the United States,                 to the following, in connection with the
                                                     12. In March 2013, Teavana notified                  and interest shall accrue and be paid by               matter described in this Agreement: (i)
                                                  the Commission pursuant to section                      Teavana at the federal legal rate of                   An administrative or judicial hearing;
                                                  15(b) of the CPSA, 15 U.S.C. 2064(b)                    interest set forth at 28 U.S.C. 1961(a)                (ii) judicial review or other challenge or
                                                  concerning Teavana’s receipt of                         and (b) from the date of Default, until all            contest of the Commission’s actions; (iii)
                                                  complaints and incident reports about                   amounts due have been paid in full                     a determination by the Commission of
                                                  the Tumblers.                                           (hereinafter ‘‘Default Payment Amount’’                whether Teavana failed to comply with
                                                     13. On May 20, 2013, in conjunction                  and ‘‘Default Interest Balance’’).                     the CPSA and the underlying
                                                  with the Commission, Teavana                            Teavana shall consent to a Consent                     regulations; (iv) a statement of findings
                                                  voluntarily announced a recall of eleven                Judgment in the amount of the Default                  of fact and conclusions of law; and (v)
                                                  different models of double-walled                       Payment Amount and Default Interest                    any claims under the Equal Access to
                                                  borosilicate glass Tumblers (made by                    Balance, and the United States, at its                 Justice Act.
                                                  three different manufacturers),                         sole option, may collect the entire                       23. Teavana represents and agrees that
                                                  including a Tumbler model for which                     Default Payment Amount and Default                     it will comply with and maintain the
                                                  Teavana had received no complaints or                   Interest Balance, or exercise any other                comprehensive compliance program of
                                                  incident reports, and some Tumbler                      rights granted by law or in equity,                    its parent corporation designed to
                                                  models for which only a few complaints                  including, but not limited to, referring               ensure compliance with the CPSA and
                                                  were received.                                          such matters for private collection; and               regulations enforced by the
                                                     14. The voluntary recall of the                      Teavana agrees not to contest, and                     Commission. That program includes
                                                  Tumblers, as well as the section 15(b)                  hereby waives and discharges any                       written standards, policies and
                                                  reporting, by Teavana was conducted                     defenses, to any collection action                     procedures to ensure relevant reports
mstockstill on DSK3G9T082PROD with NOTICES




                                                  out of an abundance of caution and                      undertaken by the United States, or its                and complaints are sent to compliance
                                                  without Teavana having determined or                    agents or contractors, pursuant to this                personnel, recalled goods are properly
                                                  concluded that any of the eleven                        paragraph. Teavana shall pay the United                disposed of, employees have a
                                                  different models of Tumblers contained                  States all reasonable costs of collection              confidential process to report
                                                  a defect, posed a substantial product                   and enforcement under this paragraph,                  compliance-related issues to officials
                                                  hazard, or created an unreasonable risk                 respectively, including reasonable                     with authority to act, CPSA compliance
                                                  of serious injury or death.                             attorney’s fees and expenses.                          responsibility is exercised with due care


                                             VerDate Sep<11>2014   21:20 Jun 02, 2016   Jkt 238001   PO 00000   Frm 00019   Fmt 4703   Sfmt 4703   E:\FR\FM\03JNN1.SGM   03JNN1


                                                  35752                            Federal Register / Vol. 81, No. 107 / Friday, June 3, 2016 / Notices

                                                  by senior management, company                           otherwise altered, except as in                        amount shall accrue and be paid by Teavana
                                                  policies are communicated to applicable                 accordance with the provisions of 16                   at the federal legal rate of interest set forth
                                                  personnel, records are retained for five                CFR 1118.20(h). The Agreement may be                   at 28 U.S.C. 1961(a) and (b). If Teavana fails
                                                  years, and compliance program                                                                                  to make such payment or to comply in full
                                                                                                          executed in counterparts.
                                                                                                                                                                 with any other provision of the Settlement
                                                  documents will be made available to                       33. If any provision of the Agreement
                                                                                                                                                                 Agreement, such conduct will be considered
                                                  staff upon reasonable request.                          or the Order is held to be illegal,                    a violation of the Settlement Agreement and
                                                     24. Teavana represents and agrees that               invalid, or unenforceable under present                Order.
                                                  it will comply with and maintain the                    or future laws effective during the terms                 Provisionally accepted and provisional
                                                  comprehensive system of internal                        of the Agreement and the Order, such                   Order issued on the 27th day of May, 2016.
                                                  controls and procedures of its parent                   provision shall be fully severable. The                BY ORDER OF THE COMMISSION:
                                                  corporation. These procedures are                       balance of the Agreement and the Order
                                                  designed to ensure Teavana discloses to                 shall remain in full force and effect,                 Todd A. Stevenson,
                                                  the Commission information in                           unless the Commission and Teavana                      Secretary, U.S. Consumer Product Safety
                                                  accordance with applicable law, reports                 agree in writing that severing the                     Commission.
                                                  information in a timely, truthful,                      provision materially affects the purpose               [FR Doc. 2016–12944 Filed 6–2–16; 8:45 am]
                                                  complete and accurate manner as                         of the Agreement and the Order.                        BILLING CODE 6355–01–P
                                                  required by the CPSA, and periodically                  TEAVANA CORPORATION
                                                  evaluates these controls and procedures
                                                                                                          Dated: May 19, 2016
                                                  to ensure they are adequate to allow                    By:    llllllllllllllllll                              DEPARTMENT OF DEFENSE
                                                  Teavana to report to the Commission in                  Bernard Acoca
                                                  accordance with applicable law.                         President, Teavana Corporation                         Office of the Secretary
                                                     25. The parties acknowledge and                      Dated: May 19, 2016                                    [Docket ID: DoD–2015–OS–0004]
                                                  agree that the Commission may                           By:    llllllllllllllllll
                                                  publicize the terms of the Agreement                    Georgia C. Ravitz                                      Proposed Collection; Comment
                                                  and the Order.                                          Arent Fox LLP                                          Request
                                                     26. Teavana represents that the                      1717 K Street, NW
                                                  Agreement: (i) Is entered into freely and               Washington, D.C. 20006–5344                            AGENCY: Office of the Under Secretary of
                                                  voluntarily, without any degree of                      Counsel to Teavana Corporation                         Defense for Personnel and Readiness,
                                                  duress or compulsion whatsoever; (ii)                   U.S. CONSUMER PRODUCT SAFETY                           DoD.
                                                  has been duly authorized; and (iii)                     COMMISSION                                             ACTION: Notice.
                                                  constitutes the valid and binding                       Mary T. Boyle                                          SUMMARY:    In compliance with the
                                                  obligation of Teavana, enforceable                      Acting General Counsel
                                                                                                                                                                 Paperwork Reduction Act of 1995, the
                                                  against Teavana in accordance with its                  Mary B. Murphy                                         Office of the Under Secretary of Defense
                                                  terms. The individuals signing the                      Assistant General Counsel
                                                                                                                                                                 for Personnel and Readiness announces
                                                  Agreement on behalf of Teavana                          Dated: May 19, 2016                                    a proposed public information
                                                  represent and warrant that they are duly                By:    llllllllllllllllll
                                                                                                                                                                 collection and seeks public comment on
                                                  authorized by Teavana to execute the                    Leah Wade
                                                                                                          Trial Attorney                                         the provisions thereof. Comments are
                                                  Agreement.
                                                     27. The signatories represent that they              Division of Compliance                                 invited on: Whether the proposed
                                                  are authorized to execute this                          Office of the General Counsel                          collection of information is necessary
                                                  Agreement.                                                                                                     for the proper performance of the
                                                                                                          UNITED STATES OF AMERICA                               functions of the agency, including
                                                     28. The Agreement is governed by the                 CONSUMER PRODUCT SAFETY
                                                  laws of the United States.                                                                                     whether the information shall have
                                                                                                          COMMISSION                                             practical utility; the accuracy of the
                                                     29. The Agreement and the Order
                                                  shall apply to, and be binding upon,                      In the Matter of: TEAVANA                            agency’s estimate of the burden of the
                                                  Teavana and each of its parents,                        CORPORATION, CPSC Docket No.: 16–                      proposed information collection; ways
                                                                                                          C0003                                                  to enhance the quality, utility, and
                                                  successors, transferees, and assigns, and
                                                  a violation of the Agreement or Order                   ORDER                                                  clarity of the information to be
                                                  may subject Teavana, and each of its                       Upon consideration of the Settlement                collected; and ways to minimize the
                                                  parents, successors, transferees, and                   Agreement entered into between Teavana                 burden of the information collection on
                                                  assigns, to appropriate legal action.                   Corporation (‘‘Teavana’’), and the U.S.                respondents, including through the use
                                                     30. The Agreement and the Order                      Consumer Product Safety Commission                     of automated collection techniques or
                                                  constitute the complete agreement                       (‘‘Commission’’), and the Commission having            other forms of information technology.
                                                  between the parties on the subject                      jurisdiction over the subject matter and over          DATES: Consideration will be given to all
                                                                                                          Teavana, and it appearing that the Settlement
                                                  matter contained therein.                               Agreement and the Order are in the public
                                                                                                                                                                 comments received by August 2, 2016.
                                                     31. The Agreement may be used in                     interest, it is:                                       ADDRESSES: You may submit comments,
                                                  interpreting the Order. Understandings,                    ORDERED that the Settlement Agreement               identified by docket number and title,
                                                  agreements, representations, or                         be, and is, hereby, accepted; and it is                by any of the following methods:
                                                  interpretations apart from those                           FURTHER ORDERED that Teavana shall                    • Federal eRulemaking Portal: http://
                                                  contained in the Agreement and the                      comply with the terms of the Settlement                www.regulations.gov. Follow the
                                                  Order may not be used to vary or                        Agreement and shall pay a civil penalty in             instructions for submitting comments.
                                                  contradict their terms. For purposes of                 the amount of three million, seven hundred               • Mail: Department of Defense, Office
mstockstill on DSK3G9T082PROD with NOTICES




                                                  construction, the Agreement shall be                    fifty thousand U.S. dollars (US $3,750,000)            of the Deputy Chief Management
                                                                                                          within thirty (30) days after service of the
                                                  deemed to have been drafted by both of                  Commission’s final Order accepting the
                                                                                                                                                                 Officer, Directorate for Oversight and
                                                  the parties and shall not, therefore, be                Settlement Agreement. The payment shall be             Compliance, 4800 Mark Center Drive,
                                                  construed against any party, for that                   made by electronic wire transfer to the                Mailbox #24, Alexandria, VA 22350–
                                                  reason, in any subsequent dispute.                      Commission via: http://www.pay.gov. Upon               1700.
                                                     32. The Agreement may not be                         the failure of Teavana to make the foregoing             Instructions: All submissions received
                                                  waived, amended, modified, or                           payment when due, interest on the unpaid               must include the agency name, docket


                                             VerDate Sep<11>2014   21:20 Jun 02, 2016   Jkt 238001   PO 00000   Frm 00020   Fmt 4703   Sfmt 4703   E:\FR\FM\03JNN1.SGM   03JNN1



Document Created: 2018-02-08 07:29:49
Document Modified: 2018-02-08 07:29:49
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 request with the Office of the Secretary by June 20, 2016.
ContactLeah Wade, Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7225.
FR Citation81 FR 35750 

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR