[Federal Register: April 6, 2005 (Volume 70, Number 65)]
[Notices]
[Page 17418-17420]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ap05-54]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 05-C0007]
Hamilton Beach/Proctor-Silex, Inc., Provisional Acceptance of a
Settlement Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
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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 with
Hamilton Beach/Proctor-Silex, Inc., containing a civil penalty of
$1,200,000.00.
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 April 21, 2005.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 05-C0007, Office of the
Secretary, Consumer Product Safety Commission, Washington, DC 20207.
FOR FURTHER INFORMATION CONTACT: Andrea S. Paterson, Trial Attorney,
Office of Compliance, Consumer Product Safety Commission, Washington,
DC 20207; telephone (301) 504-7615.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: March 30, 2005.
Todd A. Stevenson,
Secretary.
Settlement Agreement and Order
1. Hamilton Beach/Proctor-Silex, Inc. (hereinafter ``HB/PS'' or
``Respondent'') enters into this Settlement Agreement and Order
(hereinafter, ``Settlement Agreement'' or ``Agreement'') with the staff
of the U.S. Consumer Product Safety Commission (the ``Commission''),
and agrees to the entry of the attached Order incorporated by reference
herein. The Settlement Agreement resolves the Commission staff's
allegations set forth below.
I. The Parties
2. The Commission is an independent federal regulatory commission
responsible for the enforcement of the Consumer Product Safety Act
(``CPSA''), 15 U.S.C. 2051-2084.
3. HB/PS is headquartered in Glen Allen, Virginia, and incorporated
in Delaware.
II. Staff Allegations
4. In the last five years, HB/PS has failed to report in a timely
manner concerning three separate products: countertop toasters, juice
extractors, and slow cookers, in violation of section 15(b) of the
CPSA, 15 U.S.C. 2064(b).
5. Each of these products was sold to and/or used by consumers in
or around a permanent or temporary household or residence, a school, in
recreation, or otherwise and was, therefore, a ``consumer product'' as
defined in section 3(a)(1) of the CPSA, 15 U.S.C. 2052(a)(1).
Furthermore, HB/PS was an importer and, therefore, was a
``manufacturer'' of these toasters, juice extractors, and slow cookers,
for distribution in ``commerce,'' as those terms are defined in
sections 3(a)(4) and (12) of the CPSA, 15 U.S.C. 2052(a)(4), (12).
A. The Countertop Toasters
6. HB/PS imported and distributed model 24205 and 24208 countertop
toasters (the ``subject toasters'' or ``toasters'') from April 1997
through September 1999. These toasters were manufactured for HB/PS by
Durable Electrical Metal Factory, Ltd., in China. These traditional
upright electric toasters had four extra-wide slots that could toast
either bagels or bread. On the front of the toasters was a bread lifter
for raising or lowering the food, as well as a control dial, numbered
1-6, which consumers used to adjust the degree of toasting. The model
24205 was white, and model 24208 was black and chrome. Both models had
the name ``Proctor-Silex'' in grey letters on the front panel.
7. The subject toasters were defective because their heating
elements could remain on after the food in the toaster ``popped up,''
which should have caused the heating element to
[[Page 17419]]
disengage. As a result, the toaster could set afire its contents.
8. Between 1997 and 1999, HB/PS learned of three consumer reports
of damage to kitchen cabinets or countertops due to fires and received
over 230 consumer complaints involving toasters that may have failed to
turn off. The company also knew of product changes to attempt to
correct the problem.
9. Before reporting the subject toasters to the Commission on
November 9, 1999, HB/PS had obtained information which reasonably
supported the conclusion that the subject toasters contained a defect
which could create a substantial product hazard or created an
unreasonable risk of serious injury.
10. Respondent failed to report to the Commission in a timely
manner, as required by section 15(b) of the CPSA, 15 U.S.C. 2064(b). In
doing so, HB/PS violated section 19(a)(4) of the CPSA, 15 U.S.C.
2068(a)(4).
11. Respondent committed this failure to report to the Commission
``knowingly'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), subjecting Respondent to civil penalties under section
20 of the CPSA, 15 U.S.C. 2069.
B. The Juice Extractors
12. HB/PS imported and distributed juice extractor models 67150,
67180, 67180W, 67199, 395WS and 3920JS (the ``subject extractors'' or
``juice extractors'') between 1992 and October 2001. Simatelex
Manufacturing Company, Ltd. (1991 to 1995) and Join-One Enterprise Co.
Ltd. (1996 to 2001) manufactured these juice extractors for HB/PS. All
of the juice extractors consisted of the same basic pieces: a base, a
strainer basket (consisting of a strainer and a metal cutter), a top
cover with a food chute (through which the food to be juiced was fed
with a pusher), a juice cup, and a refuse pulp bin. The juicer bases,
constructed of white plastic with the name ``Hamilton Beach'' on the
side, housed the juicer motors, ranging from 140-150 watts (Simatelex)
to 300-350 watts (Join-One).
13. The subject juice extractors contained a defect that could
cause the strainer basket and lid to break apart, posing a risk of
injury to nearby consumers who could be struck by pieces of metal or
plastic.
14. Between 1992 and 2001, HB/PS received 59 consumer complaints
related to the alleged defect. Consumer reports of injuries included
four consumers who received lacerations requiring stitches and five
consumers alleging possible eye injuries.
15. Before reporting the subject juice extractors to the Commission
on October 8, 2001, HB/PS had obtained information which reasonably
supported the conclusion that the subject juice extractors contained a
defect which could create a substantial product hazard or created an
unreasonable risk of serious injury.
16. Respondent failed to report to the Commission in a timely
manner, as required by section 15(b) of the CPSA, 15 U.S.C. 2064(b). In
doing so, HB/PS violated section 19(a)(4) of the CPSA, 15 U.S.C.
2068(a)(4).
17. Respondent committed this failure to report to the Commission
``knowingly'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), subjecting Respondent to civil penalties under section
20 of the CPSA, 15 U.S.C. 2069.
C. The Slow Cookers
18. HB/PS imported and distributed slow cooker models 33390, 33475,
33575, 33590, 33675, 33690, 33725, 33850, 33860, 33680, 33320, 33320FD,
33325, 33375, 33380, 33625A, 106661, and 106851 (the ``subject slow
cookers'' or ``slow cookers'') from January 1999 through December 2002.
These slow cookers were manufactured for HB/PS by Huamei Electronics
Co., Ltd., in China. These slow cookers shared the same basic elements:
a cooker base with a heating element and handles, a ceramic inset where
the food to be cooked was placed, and a tight-fitting lid. Most of the
subject slow cookers were sold under the ``Hamilton Beach'' or
``Proctor Silex'' names, with the brand name printed on the particular
unit's front. They were round or oval, were solid white or had various
print designs on the outside, and had 3.5 quart to 6.5 quart
capacities.
19. The subject slow cookers were defective because their handles
could crack and break off when the product was lifted. This defect
posed a risk of burns from hot food spilling onto consumers.
20. Between 1999 and 2001, HB/PS received over 2000 complaints of
cracked or broken slow cooker handles, including two reports of
consumers who required medical attention for injuries, as well as
information regarding product changes to attempt to address the problem
of handles breaking.
21. Before February 4, 2002, when HB/PS first shared incident and
other data on the slow cookers with the staff, HB/PS had obtained
information which reasonably supported the conclusion that the subject
slow cookers contained a defect which could create a substantial
product hazard or created an unreasonable risk of serious injury.
22. Respondent failed to report to the Commission in a timely
manner, as required by section 15(b) of the CPSA, 15 U.S.C. 2064(b). In
doing so, Respondent violated section 19(a)(4) of the CPSA, 15 U.S.C.
2068(a)(4).
23. Respondent committed this failure to report to the Commission
``knowingly'' as that term is defined in section 20(d) of the CPSA, 15
U.S.C. 2069(d), subjecting Respondent to civil penalties under section
20 of the CPSA, 15 U.S.C. 2069.
III. Response of HB/PS
24. HB/PS contests and denies the staff's allegations set forth
above in this Settlement Agreement. HB/PS enters into this Settlement
Agreement and Order to resolve this claim without the expense and
distraction of litigation. By agreeing to this settlement, HB/PS does
not admit any of the allegations set forth above in this Settlement
Agreement, or any fault, liability or statutory or regulatory
violation.
25. HB/PS, voluntarily and without the Commission having requested
information from HB/PS, notified the Commission in each of the matters
described above. In addition, HB/PS voluntarily recalled each of the
products in cooperation with the Commission.
26. At all times HB/PS closely monitored its reporting obligations
under the Consumer Product Safety Act. HB/PS never knowingly failed to
file a required report with the Commission. HB/PS has continued to
improve its efforts to meet its reporting obligations under the CPSA.
IV. Agreement of the Parties
27. The Consumer Product Safety Commission has jurisdiction over
this matter and over Respondent under the Consumer Product Safety Act,
15 U.S.C. Sec. Sec. 2051-2084.
28. Respondent agrees to be bound by and comply with this
Settlement Agreement and Order.
29. This Agreement is entered into for settlement purposes only and
does not constitute an admission by Respondent or a determination by
the Commission that Respondent knowingly violated the VPSA's reporting
requirements, or a finding of fact or law by the CPSC of any of the
allegations in this Settlement Agreement.
30. In settlement of the staff's allegations, Respondent agrees to
pay a civil penalty of one million, two hundred thousand and 00/100
dollars ($1,200,000), in full settlement of this matter, and payable
within twenty (20) calendar days of receiving services of
[[Page 17420]]
the final Settlement Agreement and Order.
31. Upon final acceptance of this Agreement by the Commission and
issuance of the Final Order, Respondent knowingly, voluntarily, and
completely waives any rights it may have in this matter (1) to an
administrative hearing, (2) to judicial review or other challenge or
contest of the validity of the Commission's actions, (3) to a
determination by the Commission as to whether Respondent failed to
comply with CPSA and the underlying regulations, (4) to a statement of
findings of fact and conclusions of law and (5) to any claims under the
Equal Access to Justice Act.
32. Upon provisional acceptance of this Agreement by the
Commission, this Agreement shall be placed on the public record and
shall be 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 obligations within 15 days, the Agreement will be
deemed finally accepted on the 16th day after the date it is published
in the Federal Register.
33. The Commission may publicize the terms of this Settlement
Agreement and Order upon provisional acceptance of this Agreement by
the Commission.
34. HB/PS's full and timely payment to the United States Treasury
of a civil penalty in the amount of one million two hundred thousand
dollars ($1,200,000) resolves the allegations in paragraphs 4-23 above
with respect to (a) HB/PS, (b) any HB/PS parent, subsidiary, affiliate,
division, or related entity; (c) any shareholder, director, officer,
employee, agent or attorney of any entity referenced in (a) or (b)
above; and (d) any successor, heir, or assign of any entity referenced
in (a), (b), or (c) above.
35. The Commission's Order in this matter is issued under the
provisions of the CPSA, 15 U.S.C. 2051-2084. Violation of this Order
may subject Respondent to appropriate legal action.
36. This Settlement Agreement may be used in interpreting the
Order. Agreements, understandings, representations, or interpretations
apart from those contained in this Settlement Agreement and Order may
not be used to vary or contradict its terms.
37. The provisions of this Settlement Agreement and Order shall
apply to Respondent, its parent, and each of their successors and
assigns.
Dated: March 24, 2005.
Hamilton Beach/Proctor-Silex, Inc.
Kathleen Diller.
Eric A. Rubel,
Respondent's Attorney.
Dated: March 28, 2005.
U.S. Consumer Product Safety Commission.
John Gibson Mullan,
Director, Office of Compliance.
Eric L. Stone,
Director, Legal Division, Office of Compliance.
Andrea S. Paterson,
Trial Attorney, Legal Division, Office of Compliance.
Order
Upon consideration of the Settlement Agreement between Respondent
Hamilton Beach/Proctor-Silex, Inc., and the staff of the Consumer
Product Safety Commission, and the Commission having jurisdiction over
the subject matter and over Hamilton Beach/Proctor-Silex, Inc., and it
appearing that the Settlement Agreement and Order is in the public
interest, it is Ordered that the Settlement Agreement be, and hereby
is, accepted and it is Further ordered that Hamilton Beach/Proctor-
Silex, Inc., shall pay the United States Treasury a civil penalty in
the amount of one million, two-hundred thousand and 00/100 dollars
($1,200,000.00), payable within twenty (20) days of the service of the
Final Order upon Hamilton Beach/Proctor-Silex, Inc. Upon the failure of
Hamilton Beach/Proctor-Silex, Inc., to make payment or upon the making
of a late payment by Respondent (a) the entire amount of the civil
penalty shall be due and payable, and (b) interest on the outstanding
balance shall accrue and paid at the federal legal rate of interest
under the provisions of 28 U.S.C. 1961(a) and (b).
Provisionally accepted and Provisional Order issued on the 30th day
of March 2005.
By order of the Commission.
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
Finally accepted and Final Order issued on the ----day of 2005.
By order of the Commission.
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 05-6659 Filed 4-5-05; 8:45 am]
BILLING CODE 6355-01-M