Draft RCA: Proposed Civil Penalty Settlement: Health Mor Industries

The Commiission vote to provisionally accept a settlement agreement and order to will order HMI to page a civil penalty of $725,000, with $325,000 of that sum suspended and remaining $400,000 to be paid in forty equal payments of $10,000.
July 01, 2014

Record of Commission Action

 

Health Mor Industries (HMI) - Proposed Civil Penalty Settlement of $725,000, with $325,000 to be suspended and $400,000 to be paid in forty installments dated June 20, 2014, OS No. 4351

 

Decision

The Commission voted (2-1) to provisionally accept the attached Settlement Agreement and Order, which orders HMI to pay a civil penalty of $725,000, with $325,000 of that sum suspended and the remaining $400,000 to be paid in forty equal payments of $10,000 as specified in the Settlement Agreement and Order. The provisional Settlement Agreement and incorporated Order will be announced in a Federal Register Notice. The Commission’s Compliance Division of the Office of General Counsel negotiated the proposed agreement to settle staff allegations that HMI knowingly failed to report in a timely manner under section 15(b) of the Consumer Product Safety Act (CPSA), 15 U.S.C. § 2064(b), information regarding defective vacuum cleaners. Section 20(a)(1) of the CPSA, 15 U.S.C. § 2069(a)(1), permits the imposition of civil penalties for any person who knowingly violates section 19(a)(4) of the CPSA, 15 U.S.C. § 2068(a)(4), by failing to report information under section 15(b). Acting Chairman Adler and Commissioner Robinson voted to provisionally accept Settlement Agreement and Order. Commissioner Buerkle voted to reject the attached Settlement Agreement and Order. Commissioner Buerkle filed the attached statement regarding this matter.

 

Commissioners Voting

Commissioners voting by ballot. Ballot vote due June 26, 2014 (Commissioner Buerkle extended the ballot vote due date to July, 1, 2014.)

  • Acting Chairman Robert S. Adler
  • Commissioner Marietta S. Robinson
  • Commissioner Ann Marie Buerkle

Attachment: 

Statement of Commissioner Buerkle