[Federal Register Volume 77, Number 247 (Wednesday, December 26, 2012)]
[Notices]
[Pages 76006-76011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-30828]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 13-2]
Star Networks USA, LLC; Complaint
AGENCY: Consumer Product Safety Commission
ACTION: Publication of a Complaint under the Consumer Product Safety
Act.
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SUMMARY: Under provisions of its Rules of Practice for Adjudicative
Proceeding (16 CFR part 1025), the Consumer Product Safety Commission
must publish in the Federal Register Complaints which it issues.
Published below is a Complaint: In the Matter of Star Networks USA,
LLC.\1\
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\1\ Chairman Inez M. Tenenbaum and Commissioner Robert S. Adler
voted to authorize the Complaint. Commissioner Nancy A. Nord voted
to not authorize the Complaint.
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SUPPLEMENTARY INFORMATION: The text of the Complaint appears below.
Dated: December 18, 2012.
Todd A. Stevenson,
Secretary.
UNITED STATES OF AMERICA
CONSUMER PRODUCT SAFETY COMMISSION
In the Matter of STAR NETWORKS USA, LLC, Respondent
CPSC DOCKET NO. 13-2
COMPLAINT
Nature of Proceedings
1. This is an administrative enforcement proceeding pursuant to
Section 15 of the Consumer Product Safety Act (``CPSA''), as amended,
15 U.S.C. Sec. 2064, for public notification and remedial action to
protect the public from the substantial risk of injury presented by
aggregated masses of high-powered, small rare earth magnets known as
Magnicube Magnet Balls (``Magnicube Spheres'') and Magnet Cubes
(``Magnicube Cubes'') (collectively the ``Subject Products''), imported
and distributed by STAR NETWORKS USA, LLC (``Star'' or ``Respondent'').
2. This proceeding is governed by the Rules of Practice for
Adjudicative Proceedings before the Consumer Product Safety Commission
(``Commission''), 16 C.F.R. part 1025.
Jurisdiction
3. This proceeding is instituted pursuant to the authority
contained in Sections 15(c), (d), and (f) of the CPSA, 15 U.S.C. Sec.
2064 (c), (d), and (f).
[[Page 76007]]
Parties
4. Complaint Counsel is the staff of the Division of Compliance
within the Office of the General Counsel of the Commission (``Complaint
Counsel''). The Commission is an independent federal regulatory agency
established pursuant to Section 4 of the CPSA, 15 U.S.C. Sec. 2053.
5. Upon information and belief, Star is a New Jersey corporation
with its principal place of business located at 26 Commerce Road, Suite
B, Fairfield, New Jersey, 07004.
6. Respondent is an importer and distributor of the Subject
Products.
7. As an importer and distributor of the Subject Products,
Respondent is a ``manufacturer'' and ``distributor'' of a ``consumer
product'' that is ``distributed in commerce,'' as those terms are
defined in CPSA sections 3(a)(5),(7), (8), and (11) of the CPSA, 15
U.S.C. Sec. Sec. 2052(a)(5),(7), (8), and (11).
The Consumer Product
8. Respondent imported and distributed the Subject Products in U.S.
commerce and offered them for sale to consumers for their personal use
in or around a permanent or temporary household or residence, a school,
and in recreation or otherwise.
9. Upon information and belief, the Subject Products consist of
small, individual magnets that are packaged as aggregated masses in
different sized containers holding 125, 216, 250, 343 or 1,027 small
magnets, ranging in size from approximately 5.0 mm to 6.0 mm, with a
variety of coatings, and a flux index greater than 50.
10. Upon information and belief, the flux index of the Magnicube
Spheres ranges from 435.1 to 876.5 kg\2\mm.\2\
11. Upon information and belief, the flux index of the Magnicube
Cubes ranges from 441.9 to 496.4 kg\2\mm.\2\
12. Upon information and belief, Magnicubes Spheres were introduced
into U.S. commerce sometime after August 2010.
13. Upon information and belief, Magnicubes Cubes were introduced
into U.S. commerce sometime after August 2010.
14. Upon information and belief, the Subject Products are
manufactured by Dongyang Huale Electronics, LTD, Hengdian Industrial
Area, Dongyang Zheijiang, China.
15. Upon information and belief, the Subject Products are sold in
velvet-lined boxes or foam-lined tins.
16. Upon information and belief, the Subject Products range in
retail price from approximately $19.95 to $79.95.
17. Upon information and belief, more than 21,000 sets of Magnicube
Spheres have been sold to consumers in the United States.
18. Upon information and belief, more than 480 sets of Magnicube
Cubes have been sold to consumers in the United States.
19. Upon information and belief, approximately 17 mixed sets of 125
Magnicube Spheres and 125 Magnicube Cubes marketed as the Magnicube Duo
Edition have been sold to consumers in the United States.
COUNT I
The Subject Products are Substantial Product Hazards Under Section
15(a)(2) of the CPSA, 15 U.S.C. Sec. 2064(a)(2), Because They Contain
Product Defects That Create a Substantial Risk of Injury to the Public
The Subject Products are Defective Because Their Instructions,
Packaging, and Warnings Are Inadequate
20. Paragraphs 1 through 19 are hereby realleged and incorporated
by reference as though fully set forth herein.
21. A defect can occur in a product's contents, construction,
finish, packaging, warnings and/or instructions. 16 C.F.R. Sec. 1115.4
22. A defect can occur when reasonably foreseeable consumer use or
misuse, based in part on lack of adequate instructions and safety
warnings, could result in injury, even where there are no reports of
injury. 16 C.F.R. Sec. 1115.4
23. Upon information and belief, Star offered the Subject Products
for sale sometime after August 2010 through December 2012 on its
direct-sales Web site, www.magnicube.com.
24. Upon information and belief, sometime after August 2010 through
December 2012, Star's U.S. Direct sales Web site contained the
following warning regarding the Subject Products: ``Keep Away from All
Children! This product is NOT intended to be inhaled or swallowed,
magnets should not be put in those nose or mouth. Magnets that are
inhaled or swallowed may stick to intestines, which may lead to serious
injury or death. Immediate medical attention is required if magnets are
inhaled or swallowed. Recommended age 14+.''
25. Upon information and belief, from sometime after August 2010
through December 2012, the ``Safety Notice'' page of Star's Direct
sales Web site contained the following warning regarding the Subject
Products: ``Magnicube products are NOT toys for children[.] Recommended
age 14+. Magnicube Magnet Balls and Magnet Cubes are not manufactured,
distributed, promoted, labeled, or intended for children. Ingestion
Hazard--This product represents an ingestion Hazard, DO NOT ingest
magnets. Magnets that are inhaled or swallowed may stick to intestines,
which may lead to serious injury or death. Immediate medical attention
is required if magnets are inhaled or swallowed.''
26. Upon information and belief, Star offered the Subject Products
for sale from November 2011 through July 2012, on Amazon.com, Inc.'s
Web site www.amazon.com.
27. Upon information and belief, from November 2011 through July
2012 Star's product listing for the Subject Products on the Amazon.com,
Inc.'s Web site contained the following warning: WARNING: CHOKING
HAZARD--WARNING: KEEP AWAY FROM ALL CHILDREN. Do not put in mouth or
nose. This product contains small magnets. Swallowed magnets can stick
together across intestines causing serious infections and death. Seek
immediate medical attention if magnets or swallowed or inhaled. CHOKING
HAZARD--This toy is a marble. Not for children under 3 yrs. CHOKING
HAZARD--This toy is a small ball. Not for children under 3 yrs. CHOKING
HAZARD--Small parts. Not for children under 3 yrs. CHOKING HAZARD--Toy
contains a small ball. Not for children under 3 yrs.''
28. Upon information and belief, on or about June 14, 2012, Star
authorized online discount retailer Groupon, Inc. to issue an internet
offer for the sale of the Subject Products on Groupon, Inc.'s Web site,
www.groupon.com.
29. Upon information and belief, the Groupon internet offer
contained the following warning: ``Recommended for ages 14 and up. Keep
out of reach of children.''
30. Upon information and belief, sets of the Subject Products are
currently sold in tins with the following warning printed on a sticker
on the underside of the tin:
WARNING: Keep Away From All Children! This product is NOT intended
to be inhaled or swallowed, magnets [sic] should not be put in nose or
mouth. Magnets that are inhaled or swallowed may stick to intestines,
which may lead to serious injury or death. Immediate medical attention
is required if magents are inhaled or swallowed. Recommended age 14+.''
31. Upon information and belief, sets of the Subject Products are
currently sold in boxes with following warning printed on the underside
of a cardboard sleeve that wraps around the box:
[[Page 76008]]
WARNING: Keep Away From All Children! This product is NOT intended
to be inhaled or swallowed, magnets [sic] should not be put in nose or
mouth. Magnets that are inhaled or swallowed may stick to intestines,
which may lead to serious injury or death. Immediate medical attention
is required if magents are inhaled or swallowed. Recommended age 14+.''
32. Upon information and belief, the Subject Products are packaged
without any instructions.
33. Before and after the Subject Products were introduced into
commerce sometime after August 2010, many children under the age of 14
have ingested products (the ``Ingested Products'') that are almost
identical in form, substance, and content to the Subject Products.
34. Upon information and belief, the Ingested Products are marketed
and used in substantially similar ways to the Subject Products.
35. Upon information and belief, on or about January 28, 2010, a 9-
year-old boy used high-powered, small, spherically-shaped magnets
almost identical in form, substance, and content to the Subject
Products to mimic tongue and lip piercings, and accidentally ingested
seven magnets. He was treated at an emergency room.
36. Upon information and belief, on or about September 5, 2010, a
12-year-old girl accidentally swallowed two high-powered, small,
spherically-shaped magnets almost identical in form, substance, and
content to the Subject Products. She sought medical treatment at a
hospital, including x-rays and monitoring for infection and damage to
her gastrointestinal tract.
37. Upon information and belief, on or about December 23, 2010, a
3-year-old girl ingested eight high-powered, small, spherically-shaped
magnets almost identical in form, substance, and content to the Subject
Products that she found on a refrigerator in her home. She required
surgery to remove the magnets. The magnets caused intestinal and
stomach perforations, and had also become embedded in the girl's
trachea and esophagus.
38. Upon information and belief, on or about January 6, 2011, a 4-
year-old boy suffered intestinal perforations after ingesting three
high-powered, small, spherically-shaped magnets almost identical in
form, substance, and content to the Subject Products that he thought
were chocolate candy because they looked like the decorations on his
mother's wedding cake.
39. By November 2011, the Commission was aware of approximately 22
reports of ingestions of high-powered, small, spherically-shaped
magnets almost identical in form, substance, and content to the Subject
Products.
40. On November 11, 2011, the Commission issued a public safety
alert warning the public of the dangers of the ingestion of rare earth
magnets like the Subject Products.
41. Ingestion incidents, however, continue to occur.
42. Since the safety alert, the Commission has received dozens of
reports of children ingesting high-powered, small, spherically-shaped
magnets that are almost identical in form, substance, and content to
the Subject Products, but may be manufactured and/or sold by firms
other than the Respondent.
43. Upon information and belief, on or about January 17, 2012, a
10-year-old girl accidentally ingested two high-powered, small,
spherically-shaped magnets almost identical in form, substance, and
content to the Subject Products after using them to mimic a tongue
piercing. The magnets became embedded in her large intestine, and she
underwent x-rays, CT scans, endoscopy, and an appendectomy to remove
them. The girl's father had purchased the magnets for her at the local
mall.
44. All warnings on the Subject Products and/or on the Web sites
where the Subject Products are or were offered for sale are inadequate
and defective because they do not and cannot effectively communicate to
consumers, including parents and caregivers, the hazard associated with
the Subject Products and magnet ingestions.
45. Because the warnings on the Subject Products and/or on the Web
sites where the Subject Products are or were offered for sale are
inadequate and defective, parents will continue to give children the
Subject Products or allow children to have access to the Subject
Products.
46. Parents and caregivers are unlikely to appreciate the hazard
associated with the product because the product warnings refer to the
product as a ``marble'' and as a ``small ball.'' This product
description suggests that the potential health risk posed by the
Subject Products is from choking, rather than intestinal perforations
or other gastrointestinal injuries that can result if more than one
magnet ball is swallowed.
47. Children cannot and do not appreciate the hazard, and it is
foreseeable that they will mouth the items, swallow them, or, in the
case of adolescents and teens, use them to mimic body piercings. These
uses can and do result in injury.
48. All warnings on the packaging of the Subject Products are
inadequate and defective because the font-size of the warnings hinders
legibility and may discourage consumers from reading the warning
message, making it less likely that consumers will review the warnings
on the packaging prior to foreseeable uses of the Subject Products.
These uses can and do result in injury.
49. All warnings on the packaging and/or carrying cases of the
Subject Products are inadequate and defective because the placement of
the warnings only on the underside of the packaging and/or carrying
case renders the warnings inconspicuous such that consumers likely will
not review the warnings prior to foreseeable uses of the Subject
Products. These uses can and do result in injury.
50. All warnings on the Subject Products that are packaged in boxes
are inadequate and defective because the cardboard sleeve on which the
warnings are written is not necessary for use of the Subject Products
and is often discarded. Because the cardboard sleeve is unnecessary and
is often discarded, consumers likely will not review the warnings on
the packaging prior to foreseeable uses of the Subject Products. These
uses can and do result in injury.
51. All warnings on the Subject Products are inadequate and
defective because once the Subject Products are removed from the
packaging and/or the carrying case prior to foreseeable uses of the
Subject Products, the magnets themselves display no warnings, and the
small size of the individual magnets precludes the addition of
warnings. These uses can and do result in injury.
52. All warnings on the Subject Products are inadequate and
defective because the magnets are shared and used among various
consumers, including children, after the packaging is discarded; thus,
many consumers of the Subject Products will have no exposure to any
warnings prior to using the Subject Products. These uses can and do
result in injury.
53. All warnings displayed on the carrying cases, if any, are
inadequate and defective because consumers are unlikely to disassemble
configurations made with the Subject Products after each use, many of
which are elaborate and time-consuming to create, to return the Subject
Products to the carrying case or to put the Subject Products out of the
reach of children.
54. The effectiveness of the warnings on the Subject Products is
further diminished by the advertising and marketing of the Subject
Products.
55. Upon information and belief, as late as May 2012, Star was
aware that
[[Page 76009]]
the Subject Products were displayed with other toys on the Amazon.com,
Inc.'s Web site.
56. Upon information and belief, as of November 2012, Respondent
advertised the Subject Products on its direct sale Web site as a
``toy,'' encouraging consumers to ``get out of your daze with your new
toy.''
57. Upon information and belief, the Subject Products are described
on Star's direct sales Web site as a magnetic puzzle, a 3d puzzle, and
magnetic puzzle gift items that are typically considered playthings for
children under the age of 14.
58. The advertising and marketing of the Subject Products conflict
with the claimed 14+ age grade label on the Subject Products.
59. Because the advertising and marketing of the Subject Products
conflict with the age label, the effectiveness of the age label is
diminished.
60. The advertising and marketing of Subject Products conflict with
the stated warnings on the Subject Products.
61. Because the advertising and marketing conflict with the stated
warnings, the effectiveness of the warnings is diminished.
62. No warnings or instructions could be devised that would
effectively communicate the hazard in a way that would be understood
and heeded by consumers and would reduce the incidences of magnet
ingestions.
63. Because of the lack of adequate instructions and safety
warnings, a substantial risk of injury occurs as a result of the
foreseeable use and misuse of the Subject Products.
The Subject Products Are Defective Because the Risk of Injury Occurs as
a Result of Its Operation and Use and the Failure of the Subject
Products to Operate as Intended
1. A design defect can be present if the risk of injury occurs as a
result of the operation or use of the product or a failure of the
product to operate as intended. 16 C.F.R. Sec. 1115.4.
2. The Subject Products contain a design defect because they
present a risk of injury as a result of their operation and/or use.
3. Upon information and belief, the Subject Products have been
advertised and marketed by the Respondent to both children and adults.
4. As a direct result of such marketing and promotion, the Subject
Products have been, and are currently used by, both children and
adults.
5. The risk of injury occurs as a result of the use of the Subject
Products by adults, who give the Subject Products to children or allow
children to have access to the Subject Products.
6. The risk of injury occurs as a result of the foreseeable use
and/or misuse of the Subject Products by children.
7. The Subject Products contain a design defect because they fail
to operate as intended and present a substantial risk of injury to the
public.
8. Upon information and belief, Respondent contends that the
Subject Products are manipulatives that provide stress relief and other
benefits to adults only.
9. The Subject Products are intensely appealing to children due to
their tactile features, their small size, and their highly reflective,
shiny metallic and colorful coatings.
10. Certain sets of the Subject Products come in bright color
combinations which are likely to add to the perception that the magnets
are intended to appeal to children because they offer creative value as
puzzles, models, or art by combining magnetism and color.
11. The Subject Products are also appealing to children because
they are smooth, unique, and make a soft snapping sound as they are
manipulated.
12. The Subject Products also move in unexpected, incongruous ways
as the poles on the magnets move to align properly, which can evoke a
degree of awe and amusement among children enticing them to play with
the Subject Products.
13. Despite the Respondent's current age label and asserted use of
the Subject Products, they do not operate as intended because they are
intensely appealing to and are often played with by children.
14. This defective design of the Subject Products poses a risk of
injury because parents and caregivers buy the Subject Products for
children and/or allow children to play with the Subject Products.
The Type of the Risk of Injury Renders the Subject Products Defective
15. The risk of injury associated with a product may render the
product defective. 16 C.F.R. Sec. 1115.4.
16. Upon information and belief, the Subject Products have low
utility to consumers.
17. Upon information and belief, the Subject Products are not
necessary to consumers.
18. The nature of the risk of injury includes serious, life-
threatening, and long-term health conditions that can result when
magnets attract to each other through intestinal walls, causing harmful
tissue compression that can lead to perforations, fistulas, and other
gastrointestinal injuries.
19. Children, a vulnerable population protected by the CPSA, are
exposed to risk of injury by the Subject Products.
20. The risk of injury associated with the ingestion of the Subject
Products is neither obvious nor intuitive.
21. Warnings and instructions cannot adequately mitigate the risk
of injury associated with ingesting the Subject Products.
22. Children mouthing and ingesting the Subject Products is
foreseeable.
23. Children using the Subject Products for body art, including
mimicking tongue piercings, is foreseeable.
24. The type of the risk of injury renders the Subject Products
defective.
The Subject Products Create a Substantial Risk of Injury to the Public
25. The Subject Products pose a risk of magnet ingestion by
children below the age of 14, who may, consistent with developmentally
appropriate behavior, place a single magnet or numerous magnets in
their mouth.
26. The risk of ingestion also exists when adolescents and teens
use the Subject Products to mimic piercings of the mouth, tongue, and
cheek and accidentally swallow the magnets.
27. If two or more of the magnets are ingested and the magnetic
forces of the magnets pull them together, the magnets can pinch or trap
the intestinal walls or other digestive tissue between them, resulting
in acute and long-term health consequences. Magnets that attract
through the walls of the intestines result in progressive tissue
injury, beginning with local inflammation and ulceration, progressing
to tissue death, then perforation or fistula formation. Such conditions
can lead to infection, sepsis, and death.
28. Ingestion of more than one magnet often requires medical
intervention, including endoscopic or surgical procedures.
29. Because the initial symptoms of injury from magnet ingestion
are nonspecific and may include nausea, vomiting, and abdominal pain,
caretakers, parents, and medical professionals may easily mistake these
nonspecific symptoms for other common gastrointestinal upsets, and
erroneously believe that medical treatment is not immediately required,
thereby delaying potentially critical treatment.
30. Medical professionals may not be aware of the dangers posed by
ingestion of the Subject Products and the corresponding need for
immediate evaluation and monitoring. A delay of
[[Page 76010]]
surgical intervention or other medical treatment due to the
presentation of nonspecific symptoms and/or a lack of awareness by
medical personnel of the dangers posed by multiple magnet ingestion can
exacerbate life-threatening internal injuries.
31. Magnets that become affixed through the gastrointestinal walls
and are not surgically removed may result in intestinal perforations
which can lead to necrosis, the formation of fistulas, or ultimately,
perforation of the bowel and leakage of toxic bowel contents into the
abdominal cavity. These conditions can lead to serious injury and
possibly even death.
32. Endoscopic and surgical procedures may also be complicated in
cases of multiple magnet ingestion due to the attraction of the magnets
to the metal equipment used to retrieve the magnets.
33. Children who undergo surgery to remove multiple magnets from
their gastrointestinal tract are also at risk for long-term health
consequences, including intestinal scarring, nutritional deficiencies
due to loss of portions of the bowel, and, in the case of girls,
fertility problems.
34. The Subject Products contain defects in packaging, warnings,
and instructions, that create a substantial risk of injury to the
public.
35. The Subject Products contain defects in design that pose a
substantial risk of injury.
36. The type of the risk of injury posed by the Subject Products
creates a substantial risk of injury.
37. Therefore, because the Subject Products are defective and
create a substantial risk of injury, the Subject Products present a
substantial product hazard within the meaning of Section 15(a)(2) of
the CPSA, 15 U.S.C. Sec. 2064(a)(2).
COUNT II
The Subject Products Are Substantial Product Hazards Under Section
15(a)(1) of the CPSA, 15 U.S.C. Sec. 2064(a)(1)
38. Paragraphs 1 through 100 are hereby realleged and incorporated
by reference as though fully set forth herein.
39. Upon information and belief, each of the Subject Products is an
object designed and/or manufactured as a plaything for children under
14 years of age, and, therefore, each of the Subject Products that was
imported and/or otherwise distributed in commerce after August 16,
2009, is a ``toy'' as that term is defined in ASTM International
Standard F963-08, Standard Consumer Safety Specification for Toy
Safety, section 3.1.72 and its most recent version, ASTM 963-11 section
3.1.81 (``the Toy Standard'').
40. As toys, and as toys intended for use by children under 14
years of age as addressed in the Toy Standard, the Subject Products
that were imported and/or otherwise distributed in commerce after
August 16, 2009, were and are covered by the Toy Standard.
41. Pursuant to the Toy Standard, a magnet that has a flux index
greater than 50 and that is a small object as determined by the Toy
Standard is a ``hazardous magnet.''
42. The Toy Standard prohibits toys from containing a loose as-
received hazardous magnet.
43. The Subject Products that were imported and/or otherwise
distributed in commerce after August 16, 2009 consist of and contain
loose as-received hazardous magnets. As a result, the Subject Products
that were imported and/or otherwise distributed in commerce after
August 16, 2009 fail to comply with the Toy Standard.
44. The Subject Products that were imported and/or otherwise
distributed in commerce after August 16, 2009 create a substantial risk
of injury to the public.
45. Because the Subject Products that were imported and/or
otherwise distributed in commerce after August 16, 2009 fail to comply
with the Toy Standard and create a substantial risk of injury to the
public, they are substantial product hazards as the term ``substantial
product hazard'' is defined in Section 15(a)(1) of the CPSA, 15 U.S.C.
Sec. 2064(a)(1).
Relief Sought
Wherefore, in the public interest, Complaint Counsel requests that
the Commission:
A. Determine that the Subject Products present a ``substantial
product hazard'' within the meaning of Section 15(a)(2) of the CPSA, 15
U.S.C. Sec. 2064(a)(2), and/or presents a ``substantial product
hazard'' within the meaning of Section 15(a)(1) of the CPSA, 15 U.S.C.
Sec. 2064(a)(1).
B. Determine that extensive and effective public notification under
Section 15(c) of the CPSA, 15 U.S.C. Sec. 2064(c), is required to
adequately protect children from the substantial product hazard
presented by the Subject Products, and order Respondents under Section
15(c) of the CPSA, 15 U.S.C. Sec. 2064(c) to:
(1) Cease importation and distribution of the Subject Products;
(2) Notify all persons that transport, store, distribute or
otherwise handle the Subject Products, or to whom such product has been
transported, sold, distributed or otherwise handled, to immediately
cease distribution of the products;
(3) Notify appropriate state and local public health officials;
(4) Give prompt public notice of the defects in the Subject
Products, including the incidents and injuries associated with
ingestion including posting clear and conspicuous notice on
Respondent's Web site, and providing notice to any third party Web site
on which Respondent has placed the Subject Products for sale, and
provide further announcements in languages other than English and on
radio and television;
(5) Mail notice to each distributor or retailer of the Subject
Products; and
(6) Mail notice to every person to whom the Subject Products were
delivered or sold;
C. Determine that action under Section 15(d) of the CPSA, 15 U.S.C.
Sec. 2064(d), is in the public interest and additionally order
Respondent to:
(1) Refund consumers the purchase price of the Subject Products;
(2) Make no charge to consumers and to reimburse consumers for any
reasonable and foreseeable expenses incurred in availing themselves of
any remedy provided under any Commission Order issued in this matter,
as provided by Section 15 U.S.C. Sec. 2064(e)(1);
(3) Reimburse retailers for expenses in connection with carrying
out any Commission Order issued in this matter, including the costs of
returns, refunds and/or replacements, as provided by Section 15(e)(2)
of the CPSA, 15 U.S.C. Sec. 2064(e)(2);
(4) Submit a plan satisfactory to the Commission, within ten (10)
days of service of the Final Order, directing that actions specified in
Paragraphs B(1) through (6) and C(1) through (3) above be taken in a
timely manner;
(5) To submit monthly reports, in a format satisfactory to the
Commission, documenting the progress of the corrective action program;
(6) For a period of five (5) years after issuance of the Final
Order in this matter, to keep records of its actions taken to comply
with Paragraphs B(1) through (6) and C(1) through (4) above, and supply
these records to the Commission for the purpose of monitoring
compliance with the Final Order;
(7) For a period of five (5) years after issuance of the Final
Order in this matter, to notify the Commission at least sixty (60) days
prior to any change in its business (such as incorporation,
dissolution, assignment, sale, or petition
[[Page 76011]]
for bankruptcy) that results in, or is intended to result in, the
emergence of a successor corporation, going out of business, or any
other change that might affect compliance obligations under a Final
Order issued by the Commission in this matter; and
D. Order that Respondent shall take other and further actions as
the Commission deems necessary to protect the public health and safety
and to comply with the CPSA.
ISSUED BY ORDER OF THE COMMISSION:
Dated this 17th day of December, 2012
BY: Kenneth R. Hinson
Executive Director
U.S. Consumer Product Safety Commission
Bethesda, MD 20814
Tel: (301) 504-7854
Mary B. Murphy, Assistant General Counsel
Division of Compliance, Office of General Counsel
U.S. Consumer Product Safety Commission
Bethesda, MD 20814
Tel: (301) 504-7809
Jennifer Argabright, Trial Attorney
Richa Shyam Dasgupta, Trial Attorney
Leah Wade, Trial Attorney
Complaint Counsel
Division of Compliance
Office of the General Counsel
U.S. Consumer Product Safety Commission
Bethesda, MD 20814
Tel: (301) 504-7808
CERTIFICATE OF SERVICE
I hereby certify that on December 17, 2012, I served the foregoing
Complaint and List and Summary of Documentary Evidence upon all parties
of record in these proceedings by mailing, certified mail, postage
prepaid, a copy to each at their principal place of business, and
emailing a courtesy copy, as follows:
David C. Japha, Esquire
Counsel to Respondent Star Networks USA, LLC
The Law Offices of David C. Japha, P.C.
950 S. Cherry Street, Ste. 912
Denver, CO 80246
Email: [email protected].
Complaint Counsel for U.S. Consumer Product Safety Commission
[FR Doc. 2012-30828 Filed 12-21-12; 8:45 am]
BILLING CODE 6355-01-P