In the Matter of 99 Cents Only Stores
Published: Oct. 2, 2010 | Result Date: Sep. 7, 2010 | Filing Date: Jan. 1, 1900 |Case number: FIFRA 09-2008-0027 Bench Decision – $409,490
Facts
99 Cents Only Stores sold three pesticidal products, including one cleaning product imported from Mexico with a label only in Spanish stating the product disinfected surfaces.
The Environmental Protection Agency (EPA) filed suit against 99 Cents, alleging violations of the Federal Insecticide, Fungicide, and Rodentcide Act (FIFRA).
Contentions
PLAINTIFF'S CONTENTIONS:
The EPA contended the products were not registered and/or did not contain proper labeling pursuant to the FIFRA. The EPA argued that 99 Cents culpability was high. 99 Cents sold over 650 bottles of illegal disinfectant after it received two notices of violation. The EPA further asserted that 99 Cents recall of the disinfectant was not completely effective for 10 months.
DEFENDANT'S CONTENTIONS:
99 Cents contended that the violations occurred despite the company's exercise of due care, after it inspected sample products with the same labels to determine FIFRA compliance. 99 Cents alleged that it purchased the products from a distributor that made representations that all the products were in compliance with federal and state laws.
Result
On June 2, 2009, the administrative judge found 99 Cents liable for selling unregistered and misbranded pesticidal products. On Sept. 7, 2010, the judge's decision, assessing $409,490 in penalties, became final. The judge found a "culture of indifference" among 99 Cents' top management regarding its handling of the disinfectant product recall.
Other Information
The penalty is the largest one ever litigated under FIFRA.
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