UNITED STATES AMERICA OF CONSUMER PRODUCT SAFETY COMMISSION ) ) _ ) MATTEL,INC. ) ) and ) ) FISHER.PRICE,INC. ) lnhe Matterof
I
CpSCDsc*efNo,__
AGREEMENT SETTLEMENT 1. wlth Mattel, ('Mattel') Flsher-Prlce, Inc. Inaccodance 16C.F.R. '1118.20, Inc. and $
('Flsher-Price') thestaff ('Shfl ofhe United Consumer States Producl Safety Commlsslon and ('Agreemenf), Agreement Agreement enter thls The or CCPSC' the'Commlsslon') lnto Settlement the allegatlons brh below. attached ('Ordef)settle Staffs Order set andtheincorporated
PARTIES
2.
pursuant agency isan federal The Commission independent regulabry established to,
Product Ac[15U.S.C, 2051 2089 Safety and responslble enforcernent Cmsumer br he of,tte SS ('cPSA). 3. and underthe ofhe state Delawars, bws Matblis corporaUon a organEed existing of
locatedElSegundo, wiftprindpal offices in Calibmla. Fisher-Prlce, a whollyorvned subsldlary of of shteofDelaware, principal wltr Mattel,a corporaUon is organized existlng lhelaws the and under ln At Aurora, York. alltlmes New rclevant hereto, and Matbl Flsher-Price offces locatedEast producb. (cokctlvdy, and toys dilldnen's lmported sold and tn'Flnr')deslgned,
-1-
STAFF ALLEGATIONS REGARDING MATTEL 4. Between 19,2007 July January and n,2007,Matel lmported theUnfted lnto States
approximately 253,000 of 'Sarge" cast cars marklngs"Chlna' a '7EA'date unlts dle toy with of and -eed+ tmtallors-mmfilayz00noTug-0Ef
2007, Intum,they and, werc toconsurners stor€s soH at letail natlonwlde thatperiod betrrneen durlng br $7and perunlt $20 5. Betueen September 2006 August 30, and 20,2007,ltlattel Into lmported theUnlted
States apptoxlmately 633,000 of Barble accessory conslstlng following unlts toys models: @ ofthe Barble Dream Puppy Playset; House Barble Dream Condo Kltty Playset; Barble Tabb& Chalrs Kltchen Playset; Barbie Bahtub Toilet & Bathroom Barble Playset Barble Desk Playset; Livlng Room & Chair Bedroom Playset; Barble and (collectively, Couch Table & Living RmmPlayset ?ccessory Toys').Maftel shlpped 439,000 theAccessory toretallers of Toys durlng period, intum, and, that they vrrere to onsumerc retail sloesnationwide October toAugust sold at fom 2@6 ?fl07torabout $10 perunlt. 6. The Casand Accessoy (collecWefy, Producb') Toy the Toys 'ftlattel are'@nsumer
product(s),' atalltlmes products, and, relevant hereto, Mattel a 'manufacfuref was ofthose consumer whlch were'dlstdbuted incomllnrca,'as terms defined CPSA (5), ftose are ln sections 3(a)(3), (8), (11), U.S.C.2052(a)(3),(8), (11), (5), and and 15 $ 7. TheMattel Ptoduds articles are intended beenbusted orfor usebychiklren, b b
and, herefore, subfect he rcqulemenb theCommlsslon's of Lead4onhlnlng and to of are Ban Paint (the Certaln ConsumerProducb Lead4onhlnlng 16C.F.R 1303 'Lead Bearlng Paint Paint Pad BanJ.Under Lead fie Palnt bys atd oherchildmn's 'badontaining Ban, arddes notbear must palnt'dellned palnt othsr as or surhce coatlng materlals wfiose ontentls more lead han 0.06
-2-
percent thewelght thetotal of nonvolalile of paint 16 content thepalnt tre weight thedrled of or of film. c.F.R$ 1303.2(bxl) 8. Durlng summerof samplestheMattel the 2007, of Products tested were forhe
prcsen@ leadgmuant of lotheLead Paint Thetesfpsull+demenshated Ban, lhalerh|+samptes ofeach theMattel of levels Poducts contained oflead excess thepermlsslble percent in of 0.06 llmit In Paint Ban. setforth theLead 9. OnAugust 14,2007,the CommlsslonMattelannounced ard a recallof Toy the Cars
paints '[s]urface onthetoys because could levels contaln of lead excess federal ln of shndards.' Sfmllarfy, September on 4,2007, Commlsslon Mattel he and announced a recall theAccessory of palnb Toys because'[s]urface onthetoys contaln levels excesslve oflead wtrlch prohlblted is under law.'Atthetlme each theaforemenUoned Mattel hderal of of reporled Incldents lnjuries no rccalls or wi$ associated he Mattel Products excesslve Lead toxlc lngested young and lead. ls lf by cilldren andcan cause adverce health onsequenoss. 10. 11 , Mattel toensure theMattel falled Palnt that Products complied theLead wllh Ban. producls' TheMattel 'bannod Producb consUtute hazadous under CPSA section I
and Lead Ban, U.S.C.2Q57 10C.F.R. 1303.1(aX1), the Palnt 15 aN 1303,4(b), they lnthat bear S $$ palnt or contain orother surface coatlng materiab whose content lead exceeds permissible of he llmlt palnt 0.06percent lhewelght thebtal nonvolatile of of or ontentofhe paint theweight he dried of fllm. 12. Betunen 2006 br September ad August 2007, Matelsold, manufactured sale,
for offercd sale, ln dlshibuted@mmerce,lmported he Unlted or Into States, caused orrnorc one of or 15 such acts, ospct tohe Mafiel wiUr Produc6, vlolatlonsecdon In of 19(a)(1) fie CPSA, U.S.C. of $ 2068(aX1). In 20(d) Matelommitted prohibited ftese ads'krowlngly,'as term defined sectlon hat is 15 ofhe CPSA, U,S.C.2069(d). S
-3-
13.
Pursuant section oftheCPSA, U.S,C. 2069, to 20 15 Mattel subJectcivll ls to S
penaldes he aforcmentloned for violations.
STAFF ALLEGATIONS REGARDING FISHER-PRICE 14. Between 19, Aprll 2007 July 2007, and 6, Flsher-Prlce lmported approxlmately
'Sesarne unlts 967,000 ofvarious 'DontheExplorer,' oherllcensed Slreet,' and character loys, (collec'tlvely,'Ucensed compdsingdifferent 83 npdels CharacterToys'). Fisher-Prlce shlpped about 678,000 theLicensed of CharacterToys toretallers May from 2007 August and, tum, to 2007 ln they wsre toconsumercretallstores sokt per at dudng natlonwlde thatpedod between and$40 unlt, for $5 15. Between 19,2007 August May and 1,n07, Flsher-Price lmported theUnited Into
States appro$mately unlbofBlgBlg 8,900 World &ln-l Bongo toys Band ('Bongo Toys'). Band Flsher-Prlce shipped Bongo Toys rebilen the Band to fom May 2007 Augus{ to 2007, Intum, and, were to consumen retail they sold at storcs nationwide july 2007 August ftom to 2007 about for $20 perunlt 16. Befiile€n 31,2006 September and 4, 2006, lmported theUnfted July Flsher-Prlce inb
approxlmately unlbofGEOTMX States 3,000 Freightway Tnansport locomotive and80,0@ toys units of GEOTMX Track 'GEOTffi Toys').Flsher-Pdce Spedal Pack loomotlve (collecllvely, toys shipped GEOTMX he Toys rctallens Augusl2006 July2007, Intrm, hey neresoHto to fom to and fiom conttumen retafl at stoms nalionwide Seplember toAugust forbeftveen and$16 2006 2007 S perunil 17 . Between 17 May ,2007 August and 11,2007 imported he United Inb , Flsherfdce
States approxlmately unibof@ Oiego Anlmal 37,500 Resare bys fBoatToys'). Go Boat FlsherPrice Toys rchtren sl'rlpped Eoat tln b duthghat peilrd,andlntum,they rvere to onsumers sold al retail siorcs nationwide June from 2007 hrough 2N7 October br about perunit. $20
-4-
18.
The Llcensed Character Bongo Toys, Toys, Band GEOTRAX and Toys, Boat Toys
(collectvely, 'Fisherfrice product(s),' atallUmes Producb') '@nsum€r arc and, relevant hereto, Flsher-Prlce a'manufacfuref was producb, were'dlstributed ofthose consumer which Incommerce,' asthose terms deflned CPSA arc (5). and In sectlons 3(af,3), (8), (11), U.S.C. 15 (5), 92052(aX3), (8), (11). and 19. The Fisher-Prlce Poducts artlcles arc Intendedbeenfusted orforuseby b to
children, herefore, subJecttre rcqulrements Lead and, am b of0re Palnt Ban. 20. During summer fallof 2007, he and ue samples0reFisher-Prlce of Products retested
pusuant theLead br he presence lead of to Palnt Thstestresults Ban, demonsbated csrbln 0rat samples each he Flsher-Pdce of of Producb contalned oflead excess tre permlssible levels In of 0.06 percent setbrthlntheLead llmlt Ban. Palnt 21. OnAugusl 2007, Gommlsslon Fisherfrlce 2, lhe and announced rccall the Ure of
palnts Llcensed Character because'BJurface onhe byscould Toys ontalnexcessfue of lead.' levels Slmllarly, September on 4,2007, recall announced a was regardlng Bongo the Band Toys the and paints he toys Toya, GEOTRAX because surface on contaln levels lead excess fte of In of pemlsslble percent setbrh lnhe Lead 0.06 llmlt Palnt Ban.Thls followed he Odober was by 25, '[slurface palnts thetoys 2007 announcementrecall ofa oftheBoat Toys because on contaln prohlbldrB palnt children's excesslve oflead, levels nfilcltvblates federalsiandad tte lead on toyc.' At he tirp of each he aforemendoned FblBrfrioercported lrcldents lnjuries of mcalls no or assodated he FbherPfue with Lead b$c if Ingesbd young Producb. b chlldren cancause and by adverse health onsequonces. U. Paint Ban. Fisher-Prlce b en$rFe theFisher-Prlce falled hat PrcducG complled theLead wlh ,
-5-
23.
TheFisher-Prlce products'under Products constitute'banned hazardous CPSA
gg sectlonand Lead I he Palnt 15U.S.C.2057 16C.F.R. 1303.1(a)(1), Ban, and tnthat 1303.4(b), $ palnt hey bear mntaln orother or surface coating materials lead whose content exceeds the permisslble ef 0,06 pereent tp uebhtefthebhl nonvolatile lkCt ef eontent ffrepalnt theurelght of or palnt offte drled fllm. 24. Between 2006 August Flsher-Prlce manuhctrred sab, July and 2007, sold, for
offered sale, br distibuted oommerce, In orlmprted he Unlted Into States, caused ormore or one of such ac{s, respect theFlsher-Pdce wlth to Products, 15 InviolatlonsecUon of 19(a)(1) he CPSA, of U.S.C, 2068(a)(1). Flsher-Prlce commltted prohlblted these acts'knowingly,'as term defined is ftat $ Insecllon 20(d)of CPSA, U.S.C.2069(d). the 15 $ 25. Purcuantsectlon oftheCPSA, U.S.C,2069, 20 Flsher-Price to 15 ls subJed clvil to $
penaltles theaforcmentioned for Molafrons.
THE FIRMS'RESPONSE 26. CPSA. 27. Flsher-Prlce fte Sbffsallegadonsforth denles vlolated set above it hrowlngly fiat the Mattel denles Staffs the allegadonshrthabove it knowingly set that vlolated tre
cP&{. AGREEMENT PARTIES OF THE 28. 29. jurMlcflon hismatter over Firms Under CPSA, Commission he the has over and the parfles into Agreement purposes The The enter he forseillement only. Agreernrnt
not does constltuteadmisslonhe Fims, adeterminatbn Commission,either an by or byhe Srat of theFlrms knowlrgly violated CP$A. he
-6-
30.
Insettlement SHfs allegations, shall forand behatf both ofthe Mattel pay, on of
penalty thetotal Fltms, clvil a In amount twomllllon hundred of ($2,300,000.00) three housand dollars (20)calendardays wihin tuventy ofseMce theCommisslon's Order of final accepting Agreement. tre
31 .
TheCommlsslonnotseek penaltles psslble will civil for vlolafronssectlons 19(a)(1) of
and19(a)(4)of CPSA, U.S.C.2068(a)(1)and regardlng lntormaUon wtrich (4), the 15 any asto the $ Ffrms, between March 1,2Wfand January 2(D9, adequately (l) 28, have Inbmedhe CPSC by submitling Reprtunder a Full OPSA secflon 15(b), U.S.C.2064(b), 16C.F.R. 1115.13(d), 15 and $ S (il) and/or bysubmlfrry mmplete Infurmaton wluntadly agrcement frreOffice Compllance by wltr of penaltles not andFleld dudng perlod. Commlsslon's OperaUons sald The agreement to seek not wlll relleve Firms he onUndng to report CPSC new, the from duty to any addltlonaldlfierent or Informationrequlred CPSA as by 15(b), U.S.C.2004(b) theregulatlons16C.F.R. seclion 15 and at $ Part 1115. Regarding Information any adequately 0mely and reportedCPSC lheFlrms b by after polentlally for January 2009, 28, whether submitted agreementotherwlse, Firnsremaln by llable or the possible vlolatlonssec'tlon of 19(a)of CPSA, U.S.C.2068(a), he 15 otherthan 19(a)(4), subsectlon $ provided 15U.S.C. 2068(a)(4). Except expressly as herein, nothlng thisAgreementlntended In ls $ normay ons{rued preclude, orothenrise potentlal be to llmit, mduce Firms' he liabili$es any under and appllcable shUbryprovisions, all lars, rcgulafrons, sbndards, rules, and/or bans enbrced or admlnbteredCPSC. by 32. provisional Upon Commlssion's he acceptancehe Agreernenl Agrcement of he
shdlbeplaced he public on rccodandpubllshed theFederalRegisferln in accordance he with pocedurcs In Inacordance 16C.F.R. 1118.20(f), wfh setforth 10C.F.R.1118.20(e). lf he $ S (15) Commissbn notrecelve wdtbnrcquest toaeefl theAgnement any not does wlhlnfifteen days,
-7-
lheAgreennnt bedeemed accepted theslrteenUr dayafter date is shall finally on (16th) the it publlshed lheFede Regtsfer. ln ral 33. Upon Commlsslon's acceptance Agreencnt lssuancethelinal he final offte and of
Oder,he Flrms knowingly, voluntaily, conpletely anyrlghb may and uralve th€y ha,/e hls matbr In to thefollowing: anadmlnlstrative (1) orJudldal hearlng; ludlclal (2) revlew other or chatlenge or contest thevalldity lheComrnlsslon's oractons; a determlnatlon Commission of of (3) Order bythe of whether Flrms the falled comply lheCPSA lb underly'ng to wlffr and (4) regulations;a statement of lindings fact concfusions and any of and oflaw; (5) claims under EqualAccess the to Justice Ac[ 34. 35. The Commisslon publbhe terms theAgreement Order, may the of and Ihe Agreement Order apply andbeblnding theFinns each and shall to, upon, and of
thelr successors asslgns. and 36. The CommisslOn frre lsues Oderunder provlslonstheCPSA, vlolatlsn the of and of
theOdermay subJect refercncedparagraph toapproprlate acton. those in 35 tegat 37. The Agreement beused interpreting Order. may in the Undershndlngs, agreements,
nepresentatons, orInterpretafons fomtrose aparl contalnedfrre In Agreement frer may be and not used vary to orcontadic{ terms. Agreerent notbewaived, lls The shall amended, modified, or oherw|sealtered,exccp|lnawriUngtha|isexecutedbytlrepartyaga|nstwhomsuchwatrler, amendmenl modlflcaUon, or alteraUon issought beenbrced. to 38. lf anyprovision$e Agreement Order held beillegal, of ard ls to lnvalir1, or :
unenbrceabb underpesent future eftdfuedudng terms theAgreenrnt Oder, or larvs 0re of and provision befully such shall sevenable. balanceUre The of Agreenrent Order rennln full and shall ln forceandeftct,un|esstheCommisionandheFirmsagreehatserler|rrgUreprov|stonrrater|ally (conlinuednext page) on
-8-
and affects punose he Agreement Oder. lhe of
MATTEL lNC.
Genenal Counsel Secretary and Vlce Senlor Presldenl Mattel,Inc.
]NC. FISHER.PRICE,
and Vlce Sonlor Presldent Secrebry
Esq. c6ldberg, N6llA. 400, New Maln Steet Suite Bufhlo, Yoft 14203 665 Inc, Inc. for Counsel Mattel, and Fisher-Prlce, br STAFF PRODUCTSAFEW COMMISSION CONSUMER U.S. Falwy CherylA. General Counsel of Counsel Office he General
s^1"6,\iij/cf
Br
G.Yelenlk
Assistant General Counsel Counsel ffice ofthe General
DMslon @rpllance of Gourcel of Offioe he General
-9-