[Federal Register: January 19, 2007 (Volume 72, Number 12)]
[Notices]
[Page 2496-2497]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19ja07-32]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 07-C0002]
Nexgrill Industries, Inc., a Corporation, 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
Nexgrill Industries, Inc., a corporation, containing a civil penalty of
$300,000.
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 5, 2007.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 07-C0002, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Room 502, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney,
Office of Compliance and Field Operations, Consumer Product Safety
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408;
telephone (301) 504-7587.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: January 16, 2007.
Todd A. Stevenson,
Secretary.
In the Matter of Nexgrill Industries, Inc., a Corporation
I. Settlement Agreement and Order
1. This Settlement Agreement is made by and between the staff
(``the staff'') of the U.S. Consumer Product Safety Commission (``the
Commission'') and Nexgrill Industries, Inc. (``Nexgrill''), a
corporation, in accordance with 16 CFR 1118.20 of the Commission's
Procedures for Investigations, Inspections, and Inquiries under the
Consumer Product Safety Act (``CPSA''). This Settlement Agreement and
the incorporated attached Order settle the staff's allegations set
forth below.
II. The Parties
2. The Commission is an independent Federal regulatory agency
responsible for the enforcement of the CPSA, 15 U.S.C. 2051-2084.
3. Nexgrill is a corporation organized and existing under the laws
of the State of California with its principal corporate office located
at 280 Machlin Ct., Walnut, CA 91789. Nexgrill is a manufacturer of gas
grills, patio heaters, outdoor fire pits, and kitchen food prep carts.
III. Allegations of the Staff
4. Between December 2003 and March 2005, Nexgrill manufactured and
sold nationwide approximately 16,000 Nexgrill Gas Grills (``gas
grills''), Model Number 720-0025.
5. The gas grills are ``consumer products'' and, at the times
relevant herein, Nexgrill was a ``manufacturer'' of those consumer
products, which were ``distributed in commerce,'' as those terms are
defined in sections 3(a)(1), (4), (11), and (12) of the CPSA, 15 U.S.C.
2052(a)(1), (4), (11), and (12).
6. Between April 2004 and October 2005, Nexgrill received 20
reports of gas grill fires, including three reports of minor burn
injuries.
7. Although Nexgrill obtained sufficient information to support the
conclusion that the gas grills contained a defect which could create a
substantial product hazard, or created an unreasonable risk of serious
injury or death at least 10 months before reporting, it failed to
immediately inform the Commission of such defect or risk as required by
sections 15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3).
8. By failing to furnish information as required by section 15(b)
of the CPSA, 15 U.S.C. 2064(b), Nexgrill knowingly violated section
19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4), as the term ``knowingly''
is defined in section 20(d) of the CPSA, 15 U.S.C. 2069(d).
9. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Nexgrill is
subject to civil penalties for its failure to make a timely report
under section 15(b) of the CPSA, 15 U.S.C. 2064(b).
IV. Nexgrill's Response
10. Nexgrill denies the staff's allegations that it violated the
CPSA as set forth in paragraphs 4 through 9 above.
11. Nexgrill enters into this Settlement Agreement to resolve the
staff's allegations without the time and expense of litigation. By
agreeing to this settlement, Nexgrill does not admit any of the staff's
allegations of any fault, liability, or statutory or regulatory
violation.
12. Nexgrill voluntarily, and without the Commission or the staff
having first requested information from Nexgrill, reported the above
matter under section 15(b) of the CPSA, 15 U.S.C. 2064(b) and offered
to implement a voluntary corrective action that was accepted by the
staff.
V. Agreement of the Parties
13. The Commission has jurisdiction over this matter and over
Nexgrill under the Consumer Product Safety Act, 15 U.S.C. 2051-2084.
14. In settlement of the staff's allegations, Nexgrill agrees to
pay a civil penalty in the amount of $300,000.00 as set forth in the
attached incorporated Order.
15. The parties enter this Settlement Agreement for settlement
purposes only. The Settlement Agreement does not constitute an
admission by Nexgrill or a determination by the Commission that
Nexgrill violated the CPSA's reporting requirements.
16. Upon provisional acceptance of this Agreement 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 procedures set forth in 16 CFR 1118.20(e). If the
Commission does not receive any written request not to accept the
Settlement Agreement and Order within 15 calendar days, the Agreement
will be deemed finally accepted on the 16th calendar day after the date
it is published in the Federal Register.
17. Upon final acceptance of the Agreement by the Commission and
issuance of the Final Order, Nexgrill knowingly, voluntarily, and
completely waives any rights it may have in this matter to the
following: (i) An administrative or judicial hearing; (ii) judicial
review or other challenge or contest of the validity of the
Commission's actions; (iii) a determination by the Commission as to
whether Nexgrill failed to comply with the CPSA and the underlying
regulations; (iv) a statement of findings of fact or conclusions of
law; and (v) any
[[Page 2497]]
claims under the Equal Access to Justice Act.
18. The Commission may publicize the terms of the Settlement
Agreement and Order.
19. This Settlement Agreement and Order shall apply to, and be
binding upon, Nexgrill and each of its successors and assigns.
20. The Commission's Order in this matter is issued under the
provisions of the CPSA, 15 U.S.C. 2051-2084, and a violation of this
Order may subject Nexgrill to appropriate legal action.
21. This Settlement Agreement may be used in interpreting the
Order. Agreements, understandings, representations, or interpretations
made outside of this Settlement Agreement and Order may not be used to
vary or contradict its terms.
22. This Settlement Agreement shall not be waived, changed,
amended, modified, or otherwise altered without written agreement
thereto executed by the party against whom such amendment,
modification, alteration, or waiver is sought to be enforced.
23. If after the effective date hereof, any provision of this
Settlement Agreement and Order is held to be illegal, invalid, or
unenforceable under present or future laws effective during the terms
of the Settlement Agreement and Order, such provisions shall be fully
severable. The rest of the Settlement Agreement and Order shall remain
in full effect, unless the Commission and Nexgrill determine that
severing the provision materially changes the purpose of the Settlement
Agreement and Order.
Nexgrill Industries, Inc.
Dated: January 2, 2007.
Sherman Lin,
Vice President, Operations, Nexgrill Industries, Inc., 280 Machlin
Court, Walnut, CA 91789.
Dated: January 3, 2007.
Mac. S. Dunaway,
Matthew F. Hall,
Dunaway & Cross, P.C., Attorneys for Nexgrill, Industries, Inc.,
1100 Connecticut Avenue, NW., Suite 410, Washington, DC 20036.
Commission.
John Gibson Mullan,
Assistant Executive Director, Office of Compliance and Field
Operations, Consumer Product Safety Commission, 4330 East West
Highway, Bethesda, MD 20814.
Ronald G. Yelenik,
Acting Director, Legal Division, Office of Compliance and Field
Operations.
Dated: January 3, 2007.
Dennis C. Kacoyanis,
Trial Attorney, Legal Division, Office of Compliance and Field
Operations.
Order
Upon consideration of the Settlement Agreement entered into between
Nexgrill Industries, Inc., (``Nexgrill'') and the staff of the Consumer
Product Safety Commission (``the Commission''); and the Commission
having jurisdiction over the subject matter and Nexgrill; 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 Nexgrill shall pay a civil
penalty of THREE HUNDRED THOUSAND DOLLARS ($300,000.00) in three
installments as follows: SEVENTY-FIVE THOUSAND DOLLARS ($75,000.00)
shall be paid within twenty (20) calendar days of service of the Final
Order upon Nexgrill; ONE-HUNDRED THOUSAND DOLLARS ($100,000.00) shall
be paid within one (1) year of service of the Final Order upon
Nexgrill; and ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,000.00)
shall be paid within two (2) years of service of the Final Order upon
Nexgrill. Upon the failure of Nexgrill to make any of the foregoing
payments when due, the entire amount of the civil penalty shall become
due and payable, and interest on the outstanding balance shall accrue
and be 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 12th
day of January, 2007.
By Order of the Commission.
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 07-214 Filed 1-18-07; 8:45 am]
BILLING CODE 6355-01-M