Hamilton Beach/Proctor-Silex, Inc., Provisional Acceptance of a Settlement Agreement and Order, 17418-17420 [05-6659]
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17418
Federal Register / Vol. 70, No. 65 / Wednesday, April 6, 2005 / Notices
work session is for the purpose of
developing information for the
Council’s consideration at a future
Council meeting; no management
actions will be decided by the HMSMT
at this work session.
Although nonemergency issues not
contained in the meeting agenda may be
discussed, those issues may not be the
subject of formal action during this
meeting. Action will be restricted to
those issues specifically listed in this
document and any issues arising after
publication of this document that
require emergency action under section
305(c) of the Magnuson-Stevens Fishery
Conservation and Management Act,
provided the public has been notified of
the intent to take final action to address
the emergency.
producers, processors, lenders and other
interested agricultural groups.
Interested persons may obtain
information or make comments by
writing to the Commodity Futures
Trading Commission, Three Lafayette
Centre, 1155 21st Street, NW.,
Washington, DC 20581.
[CPSC Docket No. 05–C0007]
II. Staff Allegations
Special Accommodations
Hamilton Beach/Proctor-Silex, Inc.,
Provisional Acceptance of a
Settlement Agreement and Order
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).
The meeting is physically accessible
to people with disabilities. Requests for
sign language interpretation or other
auxiliary aids should be directed to Ms.
Carolyn Porter at (503) 820–2280 at least
5 days prior to the meeting date.
Dated: April 1, 2005.
Emily Menashes,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. E5–1570 Filed 4–5–05; 8:45 am]
BILLING CODE 3510–22–S
COMMODITY FUTURES TRADING
COMMISSION
Agricultural Advisory Committee;
Eleventh Renewal
The Commodity Futures Trading
Commission has determined to renew
again for a period of two years its
advisory committee designated as the
‘‘Agricultural Advisory Committee.’’
The Commission certifies that the
renewal of the advisory committee is in
the public interest in connection with
duties imposed on the Commission by
the Commodity Exchange Act, 7 U.S.C.
1, et seq., as amended.
The objectives and scope of activities
of the Agricultural Advisory Committee
are to conduct public meetings and
submit reports and recommendations on
issues affecting agricultural producers,
processors, lenders and others
interested in or affected by agricultural
commodities markets, and to facilitate
communications between the
Commission and the diverse agricultural
and agriculture-related organizations
represented on the Committee. The
Committee’s membership represents a
cross-section of interested and affected
groups including representatives of
VerDate jul<14>2003
18:17 Apr 05, 2005
Jkt 205001
Issued in Washington, DC, on March 31,
2005, by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 05–6779 Filed 4–5–05; 8:45 am]
BILLING CODE 6351–01–M
CONSUMER PRODUCT SAFETY
COMMISSION
Consumer Product Safety
Commission.
ACTION: Notice.
AGENCY:
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
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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.
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
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Federal Register / Vol. 70, No. 65 / Wednesday, April 6, 2005 / Notices
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 JoinOne 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.
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18:17 Apr 05, 2005
Jkt 205001
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
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17419
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.
§§ 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
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Federal Register / Vol. 70, No. 65 / Wednesday, April 6, 2005 / Notices
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,
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18:17 Apr 05, 2005
Jkt 205001
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/ProctorSilex, 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 llday 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
DEPARTMENT OF DEFENSE
Notice of the Defense Task Force on
Sexual Harassment and Violence at the
Military Service Academies—Open
Meeting
Department of Defense.
Notice; Defense Task Force on
Sexual Harassment and Violence at the
AGENCY:
ACTION:
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Fmt 4703
Sfmt 4703
Military Service Academies—open
meeting.
SUMMARY: Pursuant to the Federal
Advisory Committee Act (FACA), Public
Law 96–463, notice is hereby given that
the Defense Task Force on Sexual
Harassment and Violence at the Military
Service Academies will hold an open
meeting at the Courtyard Marriott, 2700
Eisenhower Avenue, Alexandria,
Virginia 22314, on April 20, 2005, from
1 p.m. to 4 p.m. Be advised that the
Task Force determined on March 31,
2005, that this additional meeting is
necessary to ensure the report to the
Secretary of Defense is delivered within
the Task Force’s scheduled deadline.
Purpose: The Task Force will meet on
April 20, 2005, from 1 p.m. until 4 p.m.
This session will be open to the public,
subject to the availability of space. In
keeping with the spirit of Federal
Advisory Committee Act, it is the desire
of the Task Force to provide the public
with an opportunity to make comment
regarding the current work of the Task
Force. The first hour of the meeting will
be designated for any public comment.
During the final two hours, the Task
Force as a whole will discuss findings
and recommendations regarding
victims’ rights and services,
accountability, training, and community
collaboration at the U.S. Military and
Naval Academies. Any interested
citizens are encouraged to attend.
DATES: April 20, 2005 1 p.m.–4 p.m.
Location: The Courtyard Marriott,
2700 Eisenhower Avenue, Alexandria,
Virginia 22314.
FOR FURTHER INFORMATION CONTACT: Any
member of the public wishing further
information concerning this meeting or
wishing to submit comments must
contact: Mr. William Harkey, Public
Affairs Officer, Task Force on Sexual
Harassment and Violence at the Military
Service Academies, 2850 Eisenhower
Ave, Suite 100, Alexandria, Virginia
22314; telephone: (703) 325–6640;
DSN# 221–6640; Fax: (703) 325–6710/
6711; william.harkey.CTR@wso.whs.mil.
Interested persons may submit a
written statement for consideration by
the Task Force and make an oral
presentation of such. Persons desiring to
make an oral presentation or submit a
written statement to the Committee
must notify the point of contact listed
above no later than 5 p.m., April 15,
2005. Oral presentations by members of
the public will be permitted only on
April 20, 2005, from 1 p.m. until 4 p.m.
before the full Task Force. Presentations
will be limited to ten (10) minutes each.
Number of oral presentations to be made
will depend on the number of requests
received from members of the public
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Agencies
[Federal Register Volume 70, Number 65 (Wednesday, April 6, 2005)]
[Notices]
[Pages 17418-17420]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-6659]
=======================================================================
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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