[Federal Register: January 24, 2000 (Volume 65, Number 15)]
[Notices]
[Page 3670]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24ja00-36]
=======================================================================
-----------------------------------------------------------------------
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 00-C0004]
Lancaster Colony 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 16 CFR 1118.20(e).
Published below is a provisionally-accepted Settlement Agreement
Lancaster Colony Corporation, a corporation, containing a civil penalty
of $150,000.
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 February 8, 2000.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 00-C0004, Office of the
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.
FOR FURTHER INFORMATION CONTACT: Ronald G. Yelenik, Trial Attorney,
Office of Compliance and Enforcement, Consumer Product Safety
Commission, Washington, D.C. 20207; telephone (301) 504-0626, 1351.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: January 18, 2000.
Sadye E. Dunn,
Secretary.
[FR Doc. 00-1563 Filed 1-21-00;8:45am]
BILLING CODE 6355-01-M
[Federal Register: January 24, 2000 (Volume 65, Number 15)]
[Notices]
[Page 3670-3672]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24ja00-37]
-----------------------------------------------------------------------
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket NO. 00-C0004]
Lancaster Colony Corporation, a Corporation; Settlement Agreement
and Order
1. This Settlement Agreement and Order, entered into between
Lancaster Colony Corporation, a corporation (hereinafter, ``Lancaster
Colony'' or ``Respondent''), and the staff of the Consumer Product
Safety Commission (hereinafter, ``staff''), pursuant to the procedures
set forth in 16 C.F.R. Sec. 1118.20, is a compromise resolution of the
matter described herein, without a hearing or determination of issues
of law and fact.
The Parties
2. The staff is the staff of the Consumer Product Safety Commission
(hereinafter, ``Commission''), an independent federal regulatory agency
of the United States government, established by Congress pursuant to
section 4 of the Consumer Product Safety Act (hereinafter, ``CPSA''),
as amended, 15 U.S.C. Sec. 2053.
3. Respondent Lancaster Colony is a corporation organized and
existing under the laws of the State of Ohio with its principal
corporate offices located in Columbus, Ohio. Lancaster Colony has an
operating division named Candle-lite located in Cincinnati, Ohio, which
manufactures and sells candles.
Staff Allegations
4. Section 15(b) of the CPSA, 15 U.S.C. Sec. 2064(b), requires a
manufacturer of a consumer product who, inter alia, obtains information
that reasonably supports the conclusion that the product contains a
defect which could create a substantial product hazard or creates an
unreasonable risk of serious injury or death, to immediately inform the
Commission of the defect or risk.
5. Between August 1995 and February 1996, Lancaster Colony through
its Candle-lite division, manufactured and sold nationwide,
approximately three million Clearfire De-lite Candles (hereinafter the
``Candles'' or the ``product''). A candle is a ``consumer product and
Lancaster Colony is a ``manufacturer'' of a ``consumer product,'' which
is ``distributed in
[[Page 3671]]
commerce'' as those terms are defined in sections 3(a)(1), (4), (11) of
the CPSA, 15 U.S.C. Secs. 2052(a)(1), (4), (11).
6. The product is a candle made of a clear gel-like substance which
is packaged in a textured glass jar.
7. The Candles are defective because they could flare up
unexpectedly during use, causing the Candles' glass holders to overheat
and break. If this occurs, consumers could be burned or injured by
broken glass.
8. On or about November 20, 1995, Lancaster Colony first received a
report of an incident involving Candle flare-up.
9. By December 31, 1995, Lancaster Colony was aware of
approximately forty four incidents involving Candle flare-up, resulting
in reports alleging five personal injuries and twenty one occurrences
of property damage.
10. In January 1996, with the incidents continuing to mount,
Respondent stopped manufacture of the Candles.
11. In February 1996, Respondent revised the formulation of its
original Candle, in part, to address the flare-up problem, and
introduced a new candle in its place.
12. On or about May 2, 1996, the date the staff conducted an
establishment inspection of the firm, Respondent was aware of at least
142 incidents involving candle flare-ups, including reports of
approximately 20 incidents involving personal injury and reports of
more than 55 incidents involving property damage.
13. Although Lancaster Colony through its Candle-lite division, had
obtained sufficient information to reasonably support the conclusion
that these Candles contained a defect which could create a substantial
product hazard, or created an unreasonable risk of serious injury or
death, it failed to report such information to the Commission prior to
the inspection, as required by section 15(b) of the CPSA. This is a
violation of section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4).
14. Respondent's failure to report to the Commission, as required
by section 15(b) of the CPSA, was committed ``knowingly,'' as that term
is defined in Section 20(d) of the CPSA, 15 U.S.C. Sec. 2069(d), and
Lancaster Colony is subject to civil penalties under Section 20 of the
CPSA.
Response of Lancaster Colony
15. Lancaster Colony denies the allegations of the staff that the
Clearfire De-lite candles contain a defect which could create a
substantial product hazard pursuant to section 15(a) of the CPSA, 15
U.S.C. Sec. 2065(a); denies that it violated the reporting requirements
of section 15(b) of the CPSA, 15 U.S.C. Sec. 2064(b), and further
denies the other allegations of the CPSC staff as stated herein.
16. Lancaster Colony did not have reason to believe that these
candles posed a substantial product hazard. Lancaster Colony believed
the information available did not reasonably support the conclusion
that the products were defective within the meaning of the CPSA or that
they created an unreasonable risk of serious injury or death, and,
therefore, no report was required under section 15(b) of the Act.
17. During the time period in which the CPSC alleges Lancaster
Colony wrongfully failed to file a report, it conducted its own
internal testing as well as independent testing at four different
laboratories of 4,500 candles. Neither the in-house nor outside
laboratories were able to recreate the scenario about which some
consumers complained. These test results suggested to Lancaster Colony
that no defect was present. Likewise, the extremely low complaint rate
(0.00020) suggested to Lancaster Colony that any flare ups were due to
consumer misuse and/or environmental contamination rather than an
inherent product defect. Finally, based upon the nature of the
complaints received by Lancaster Colony, the firm did not believe that
the candles could create a substantial product hazard or create an
unreasonable risk of serious injury or death. For these reasons,
Lancaster Colony concluded, and outside counsel concurred, that it was
not required to submit a report to the CPSC.
18. Nevertheless, Lancaster Colony cooperated fully with the
Commission staff in designing and implementing a voluntary recall of
the candles described in paragraphs 5 and 6 above.
19. By entering into this Settlement Agreement and Order, Lancaster
Colony does not admit any liability or wrongdoing. This Settlement
Agreement and Order is agreed to by Lancaster Colony solely for the
purposes of avoiding the cost of litigation and does not constitute,
and is not evidence of, an admission of liability or wrongdoing by
Lancaster Colony.
Agreement of the Parties
20. The Commission has jurisdiction in this matter under the CPSA,
U.S.C. Secs. 2051-2084.
21. Lancaster Colony knowingly, voluntarily and completely waives
any rights it may have (i) to an administrative or judicial hearing
with respect to the Commission staff's allegations discussed in
paragraphs 4 through 14 herein, and to the issuance of a complaint,
(ii) to judicial review or other challenge or contest of the validity
of the Commission's Order, (iii) to a determination by the Commission
as to whether a violation of Section 15(b) of the CPSA, has occurred,
(iv) to a statement of findings of fact and conclusions of law with,
and (v) to any claims under the Equal Access to Justice Act.
22. Upon provisional acceptance of this Settlement Agreement and
Order by the Commission, the Commission shall place this Agreement and
Order on the public record and shall publish it in the Federal Register
in accordance with the procedure set forth in 16 C.F.R.
Sec. 1118.20(e). If the Commission does not receive any written request
not to accept the Settlement Agreement and Order within 15 days, the
Agreement and Order shall be deemed finally accepted on the 16th day
after the date it is published in the Federal Register, in accordance
with 16 C.F.R. Sec. 1118.20(f).
23. This Settlement Agreement and Order becomes effective only upon
its final acceptance by the Commission and service upon Respondent.
Compliance by Lancaster Colony with this Final Settlement Agreement and
Order releases it from liability arising from any allegations of
violation of section 15(b) of the CPSA regarding the specific candles
described in paragraphs 5 and 6 above.
24. Upon final acceptance of this Settlement Agreement, the
Commission may publicize the terms of the Settlement Agreement and
Order.
25. Lancaster Colony agrees to pay to the Commission a civil
penalty in the amount of one hundred fifty thousand dollars ($150,000),
in settlement of this matter, payable within twenty (20) days after
service of the Final Order of the Commission accepting this Settlement
Agreement.
26. This Settlement Agreement and Order are entered into for
settlement purposes only and shall not constitute an admission or
determination arising from the allegations that the candles contain a
defect which could create a substantial product hazard or create an
unreasonable risk of serious injury or death.
27. The provisions of this Settlement Agreement and Order shall
apply to Lancaster Colony and its successors and assigns, agents,
representatives and employees, directly or through any corporation,
subsidiary, division, or other business entity, or through any agency,
device or instrumentality.
28. This Settlement Agreement may be used in interpreting the
Order. Agreements, understandings,
[[Page 3672]]
representations, or interpretations made outside of this Settlement
Agreement and Order may not be used to vary or to contradict its terms.
Dated: December 10, 1999.
John L. Boylan,
Treasurer, Lancaster Colony Corporation.
The Consumer Product Safety Commission.
Alan H. Schoem,
Associate Executive Director, Office of Compliance.
Eric L. Stone,
Director, Legal Division, Office of Compliance.
Dated: December 17, 1999.
Ronald G. Yelenik,
Trial Attorney, Legal Division, Office of Compliance.
Order
Upon consideration of the Settlement Agreement between Respondent
Lancaster Colony Corporation, a corporation, and the staff of the
Consumer Product Safety Commission, and the Commission having
jurisdiction over the subject matter and over Lancaster Colony
Corporation, and it appearing the Settlement Agreement is in the public
interest, it is
Ordered, that the Settlement Agreement be and hereby is accepted,
and it is
Further Ordered, that within 20 days of service of the Final Order
upon Respondent, Lancaster Colony Corporation shall pay to the order of
the U.S. Treasury a civil penalty in the amount of one hundred fifty
thousand dollars ($150,000).
Provisionally accepted and Provisional Order issued on the 18th
day of January, 2000.
By order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 00-1564 Filed 1-21-00; 8:45 am]
BILLING CODE 6355-01-M