SMC Marketing Corp., a Corporation, Provisional Acceptance of a Settlement Agreement and Order, 73208-73210 [05-23875]

Download as PDF 73208 Federal Register / Vol. 70, No. 236 / Friday, December 9, 2005 / Notices NAO216_6_TOC.pdf, and the Council on Environmental Quality implementation regulations, https:// ceq.eh.doe.gov/nepa/regs/ceq/ toc_ceq.htm. Consequently, as part of an applicant’s package, and under their description of their program activities, applicants are required to provide detailed information on the activities to be conducted, locations, sites, species and habitat to be affected, possible construction activities, and any environmental concerns that may exist (e.g., the use and disposal of hazardous or toxic chemicals, introduction of nonindigenous species, impacts to endangered and threatened species, aquaculture projects, and impacts to coral reef systems). In addition to providing specific information that will serve as the basis for any required impact analyses, applicants may also be requested to assist NOAA in drafting of an environmental assessment, if NOAA determines an assessment is required. Applicants will also be required to cooperate with NOAA in identifying feasible measures to reduce or avoid any identified adverse environmental impacts of their proposal. The failure to do so shall be grounds for not selecting an application. In some cases if additional information is required after an application is selected, funds can be withheld by the Grants Officer under a special award condition requiring the recipient to submit additional environmental compliance information sufficient to enable NOAA to make an assessment on any impacts that a project may have on the environment. information displays a currently valid OMB control number. The Department of Commerce PreAward Notification Requirements for Grants and Cooperative Agreements [CPSC Docket No. 06–C0001] The Department of Commerce PreAward Notification Requirements for Grants and Cooperative Agreements contained in the Federal Register notice of December 30, 2004 (69 FR 78389), are applicable to this solicitation. Paperwork Reduction Act This document contains collection-ofinformation requirements subject to the Paperwork Reduction Act (PRA). The use of Standard Forms 424, 424A, 424B, and SF–LLL and CD–346 has been approved by the Office of Management and Budget (OMB) under the respective control numbers 0348–0043, 0348–0044, 0348–0040, 0348–0046, and 0605–0001. Notwithstanding any other provision of law, no person is required to, nor shall a person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the PRA unless that collection of VerDate Aug<31>2005 14:22 Dec 08, 2005 Jkt 208001 Executive Order 12866 This notice has been determined to be not significant for purposes of Executive Order 12866. Executive Order 13132 (Federalism) It has been determined that this notice does not contain policies with Federalism implications as that term is defined in Executive Order 13132. Administrative Procedure Act/ Regulatory Flexibility Act Prior notice and an opportunity for public comment are not required by the Administrative Procedure Act or any other law for rules concerning public property, loans, grants, benefits, and contracts (5 U.S.C. 553(a)(2)). Because notice and opportunity for comment are not required pursuant to 5 U.S.C. 553 or any other law, the analytical requirements for the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are inapplicable. Therefore, a regulatory flexibility analysis has not been prepared. Dated: December 5, 2005. Helen Hurcombe, Director, NOAA Acquisitions and Grants, U.S. Department of Commerce. [FR Doc. E5–7101 Filed 12–8–05; 8:45 am] Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 06–C0001, Office of the Secretary, Consumer Product Safety Commission, Washington, DC 20207. FOR FURTHER INFORMATION CONTACT: Howard N. Tarnoff, Trial Attorney, Office of Compliance, Consumer Product Safety Commission, Washington, DC 20207; telephone (301) 504–7589. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. ADDRESSES: Dated: December 6, 2005. Todd A. Stevenson, Secretary. 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 SMC Marketing Corp. (‘‘SMC’’), 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. The Parties BILLING CODE 3510–KC–P CONSUMER PRODUCT SAFETY COMMISSION SMC Marketing Corp., a Corporation, Provisional Acceptance of a Settlement Agreement and Order 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 SMC Marketing Corp., a corporation, containing a civil penalty of $500,000.00. 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 December 27, 2005. DATES: PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 2. The Commission is an independent federal regulatory agency responsible for the enforcement of the Consumer Product Safety Act, 15 U.S.C. 2051– 2084. 3. SMC is a corporation organized and existing under the laws of the State of Texas with its principal corporate office located in Grand Prairie, Texas. At all times relevant herein, SMC imported, sold, and marketed oscillating floor fans, ceiling fans, vacuum cleaners, and DVD players, among other consumer products. SMC is a wholly-owned subsidiary of Shell Electric Mfg. (Holdings) Co. Ltd. (‘‘Shell Electric Holdings’’), a foreign corporation. Staff Allegations 4. From April 1998 through April 2001, SMC imported into the United States and sold approximately 2,342 Model SR–18 Fans. From January 1997 through October 2001, Shell Electric Mfg. (China) Co. Ltd., a foreign corporation and also a wholly-owned subsidiary of Shell Electric Holdings, exported to the United States approximately 2.2 million 18–inch pedestal oscillating floor fans with model numbers SR–18 and SP–18 bearing the SMC label (‘‘the Fans’’). E:\FR\FM\09DEN1.SGM 09DEN1 Federal Register / Vol. 70, No. 236 / Friday, December 9, 2005 / Notices 5. The Fans are ‘‘consumer products’’ and, at the times relevant herein, SMC was a ‘‘manufacturer’’ or ‘‘retailer’’ or ‘‘consumer products,’’ which were ‘‘distributed in commerce’’ as those terms are defined in sections 3(a)(1), (4), (6), (11), and (12) of the CPSA, 15 U.S.C. 2052(a)(1), (4), (6), (11), and (12). 6. The Fans are defective because the electric power cord can be damaged by the oscillation motion of the fan. The damage to the cord can result in a short circuit and possible ignition of the plastic case, posing a fire hazard. 7. Between November 29, 1999 and January 7, 2004, SMC learned about at least 46 incidents of malfunction with the Fans which resulted in allegations of either fire or smoke damage to consumers’ homes, and one alleged personal injury. SMC did not inform the Commission about the full extent of these incidents until June 6, 2004, when it submitted a Section 15 report, and December 14, 2004, when it submitted additional information. 8. During a CPSC staff inspection of SMC on December 23, 2002, SMC provided a CPSC investigator with information about only 2 incidents with the Fans, despite the fact that SMC was aware of numerous incidents of malfunction with the Fans which allegedly caused fire or smoke damage to consumers’ homes. When the CPSC staff conducted a second inspection of SMC on August 5, 2003, SMC did not provide the CPSC investigator with any additional incidents, despite the fact that it was aware of additional incidents involving the Fans that allegedly caused fire or smoke damage to homes. 9. Although SMC had obtained sufficient information to reasonably support the conclusion that the Fans contained a defect which could create a substantial product hazard, or created an unreasonable risk of serious injury or death, long before June 6, 2004, 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). In failing to do so, SMC ‘‘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). 10. Pursuant to Section 20 of the CPSA, 15 U.S.C. 2069, SMC is subject to civil penalties for its failure to make a timely report pursuant to Section 15(b) of the CPSA, 15 U.S.C. 2064(b). Response of SMC 11. SMC denies the allegations of the staff that the Fans contain a defect which could create a substantial product hazard, or create an VerDate Aug<31>2005 14:22 Dec 08, 2005 Jkt 208001 unreasonable risk of serious injury or death, and denies that it violated the reporting requirements of Section 15(b) of the CPSA, 15 U.S.C. 2064(b). SMC further did not ‘‘knowingly’’ violate any reporting requirements under the CPSA. 12. At all times when the Commission staff conducted its inspections, SMC attempted to cooperate fully by providing samples of claims and samples of products, and believed it was both responsive to all inspectors’ requests and voluntarily cooperative. 13. Upon the request of the CPSC staff, SMC filed a report pursuant to Section 15(b) of the Consumer Product Safety Act 15, U.S.C. 2064(b), voluntarily met with the staff to discuss the potential problem with the Fans, and additionally cooperated fully with the Commission in voluntarily recalling the Fans beginning in June 2004. Agreement of the Parties 14. The Commission has jurisdiction over this matter and over SMC under the CPSA, 15 U.S.C. 2051–2084. 15. In settlement of the staff’s allegations, SMC agrees to pay a civil penalty of five hundred thousand dollars ($500,000) in three installments. The first installment of one hundred sixty-six thousand dollars ($166,000) shall be paid within thirty (30) calendar days of service of the Final Order of the Commission accepting this Settlement Agreement. The second installment of one hundred sixty-seven thousand dollars ($167,000) shall be paid within sixty (60) calendar days of service of the Final Order of the Commission accepting this Settlement Agreement. The third installment of one hundred sixty-seven thousand dollars ($167,000) shall be paid within ninety (90) calendar days of service of the Final Order of the Commission accepting this Settlement Agreement. These payments shall be made by check payable to the order of the United States Treasury. 16. The parties enter into this Settlement Agreement for settlement purposes only. The Settlement Agreement does not constitute an admission by SMC or a determination by the Commission that SMC has violated the CPSA’s reporting requirements. 17. 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 CFR 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 PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 73209 Order shall be deemed finally accepted on the 16th day after the date it is published in the Federal Register. 18. Upon final acceptance of this Settlement Agreement by the Commission and issuance of the Final Order, SMC 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 SMC failed to comply with the CPSA and its underlying regulations; (iv) a statement of findings of fact and conclusions of law; and (v) any claims under the Equal Access to Justice Act. 19. The Commission may publicize the terms of the Settlement Agreement and Order. 20. This Settlement Agreement and Order shall apply to, and be binding upon, SMC and each of its successors and assigns. 21. 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 the Order may subject SMC to appropriate legal action. 22. 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. 23. This Settlement Agreement and Order 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 and approval by the Commission. 24. If, after the effective date hereof, any provision of this Settlement Agreement and Order is held to be illegal, invalid, or enforceable under present or future laws effective during the terms of the Settlement Agreement and Order, such provision shall be fully severable. The rest of the Settlement Agreement and Order shall remain in full effect, unless the Commission and SMC determine that severing the provision materially changes the purpose of the Settlement Agreement and Order. SMC Marketing Corp. Dated: October 31, 2005. David Leung, Senior Vice President—Marketing & Sales, SMC Marketing Corp., 1931 North Great Southwest Parkway, Grand Prairie, Texas 75050. Dated: October 31, 2005. E:\FR\FM\09DEN1.SGM 09DEN1 73210 Federal Register / Vol. 70, No. 236 / Friday, December 9, 2005 / Notices James E. Singer, Esq., Bovis, Kyle & Burch, LLC, 53 Perimeter Center East, Third Floor, Atlanta, GA 30346–2298, Counsel for SMC Marketing Corp. U.S. Consumer Product Safety Commission. John Gibson Mullan, Director, Office of Compliance. Ronald G. Yelenik, Acting Director, Legal Division, Office of Compliance. Dated: November 7, 2005. Howard N. Parnoff, Trial Attorney, Legal Division, Office of Compliance. DEPARTMENT OF DEFENSE Office of the Secretary Proposed Collection; Comment Request Office of the Under Secretary of Defense (Personnel and Readiness), DoD ACTION: Notice. AGENCY: In compliance with Section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, the Office of the Under Secretary of Defense (Personnel and Readiness) announces the following Order proposed public information collection Upon consideration of the Settlement and seeks public comment on the Agreement entered into between SMC provisions thereof. Comments are Marketing Corp. (‘‘SMC’’) and the staff invited on: (a) Whether the proposed of the U.S. Consumer Product Safety collection of information is necessary Commission (the ‘‘Commission’’), and for the proper performance of the the Commission having jurisdiction functions of the agency, including over the subject matter and over SMC, whether the information shall have and it appearing that the Settlement practical utility; (b) the accuracy of the Agreement is in the public interest, it is agency’s estimate of burden of the I. Ordered that the Settlement proposed information collection; (c) Agreement be, and hereby is, accepted; ways to enhance the quality, utility, and and it is clarity of the information to be II. Further Ordered that SMC shall pay collected; and (d) ways to minimize the a civil penalty of five hundred thousand burden of the information collection on dollars ($500,000) in three installments. respondents, including through the use The first installment of one hundred of automated collection techniques or sixty-six thousand dollars ($166,000) other forms of information technology. shall be paid within thirty (30) calendar DATES: Consideration will be given to all days of service of the Final Order of the comments received by February 7, 2006. Commission accepting the Settlement ADDRESSES: Written comment and Agreement. The second installment of recommendations on the proposed one hundred sixty-seven thousand information collection should be sent to dollars ($167,000) shall be paid within the Department of Defense Education sixty (60) calendar days of service of the Activity (DoDEA), 4040 N. Fairfax Final Order of the Commission Drive, 9th Floor, Arlington, VA 22203, accepting the Settlement Agreement. ATTN: Sandra Embler. The third installment of one hundred FOR FURTHER INFORMATION CONTACT: To sixty-seven thousand dollars ($167,000) request more information on this shall be paid within ninety (90) proposed information collection or to calendar days of service of the Final obtain a copy of the proposal and Order of the Commission accepting the Settlement Agreement. These payments associated collection instruments, please write to the above address or call shall be made by check payable to the at (703) 588–3175. order of the United States Treasury. Title, Form, and OMB Control Upon the failure of SMC to make a Number: Department of Defense payment or upon the making of a late Education Activity (DoDEA) Nonpayment, (i) the entire amount of the Sponsored Research Program; DoDEA civil penalty shall become due and Form 1: OMB Control Number 0704– payable, and (ii) interest on the TBD. outstanding balance shall accrue and be Needs and Uses: The Department of paid at the federal legal rate of interest Defense Education Activity (DoDEA) is under the provisions of 28 U.S.C. a DoD field activity operating under the 1961(a) and (b). direction, authority, and control of the Provisionally accepted and Provisional Deputy Under Secretary of Defense, Order issued on the 6th day of December, Military Community and Family Policy. 2005. The DoDEA operates 223 schools in 16 By order of the Commission. districts located in 13 foreign countries, Todd A. Stevenson, seven states, Guam, and Puerto Rico. Secretary, Consumer Product Safety The DoDEA receives requests from Commission. researchers to conduct non-DoDEA [FR Doc. 05–23875 Filed 12–8–05; 8:45 am] sponsored research studies in DoDEA schools, districts, and/or areas. To BILLING CODE 6355–01–M VerDate Aug<31>2005 14:22 Dec 08, 2005 Jkt 208001 PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 review the proposed research requests, DoDEA developed Form 1, ‘‘Research Study Request,’’ in Administrative Instruction 2071.3 (DoDEA AI 2071.3), to collect information about the researcher, the research project, audience, timeline, and the statistical analyses that will be conducted during the proposed research study. This information is needed to ensure that the proposed non-DoDEA sponsored research does not unduly interfere with the classroom instructional process or the regular operations of the school, district, and/or areas. Affected Public: Individuals or households; business or other for-profit; not-for-profit institutions; and state, local, or tribal government. Annual Burden Hours: 75. Number of Respondents: 75. Responses Per Respondent: 1. Average Burden Per Response: 1 hour. Frequency: On occasion. SUPPLEMENTARY INFORMATION: Summary of Information Collection The DoDEA Administrative Instruction 2071.3 (DoDEA AI 2071.3) follows DoD Directive 3216.2, ‘‘Protection of Human Subjects and Adherence to Ethical Standards in DoDSupported Research,’’ March 25, 2002, that states ‘‘The rights and welfare of human subjects in research supported or conducted by the DoD Components shall be protected. This protection encompasses basic respect for persons, beneficence, and justice in the selection of subjects.’’ To ensure that all nonDoDEA sponsored research conducted in the DoDEA school system complies with these guidelines, DoDEA developed Form 1, ‘‘Research Study Request,’’ to collect information from researchers that will be used to evaluate the proposed research study. The data collected is analyzed to determine whether the research unduly interferes with the classroom instructional process or the regular operations of the school, and/or areas. Information collected on the DoDEA ‘‘Research Study Request’’ includes the researcher’s name, address, telephone number, e-mail address, FAX number (if available), school affiliation (if applicable), the study title, an abstract of the proposed study, an explanation of how the research study (1) is aligned with the DoDEA Community Strategic Plan, and (2) the impact of the study in the researcher’s field of study, the major hypothesis(es) or question(s) to be tested, the population and/or sample to be studied, a description and copy of instruments, other data collection activities, the timetable for the study, and the E:\FR\FM\09DEN1.SGM 09DEN1

Agencies

Consumer Product Safety Commission

[Federal Register Volume 70, Number 236 (Friday, December 9, 2005)]
[Notices]
[Pages 73208-73210]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-23875]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 06-C0001]


SMC Marketing Corp., a 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 with 
SMC Marketing Corp., a corporation, containing a civil penalty of 
$500,000.00.

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 December 27, 2005.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 06-C0001, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT: Howard N. Tarnoff, Trial Attorney, 
Office of Compliance, Consumer Product Safety Commission, Washington, 
DC 20207; telephone (301) 504-7589.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: December 6, 2005.
Todd A. Stevenson,
Secretary.

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 SMC Marketing Corp. (``SMC''), 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.

The Parties

    2. The Commission is an independent federal regulatory agency 
responsible for the enforcement of the Consumer Product Safety Act, 15 
U.S.C. 2051-2084.
    3. SMC is a corporation organized and existing under the laws of 
the State of Texas with its principal corporate office located in Grand 
Prairie, Texas. At all times relevant herein, SMC imported, sold, and 
marketed oscillating floor fans, ceiling fans, vacuum cleaners, and DVD 
players, among other consumer products. SMC is a wholly-owned 
subsidiary of Shell Electric Mfg. (Holdings) Co. Ltd. (``Shell Electric 
Holdings''), a foreign corporation.

Staff Allegations

    4. From April 1998 through April 2001, SMC imported into the United 
States and sold approximately 2,342 Model SR-18 Fans. From January 1997 
through October 2001, Shell Electric Mfg. (China) Co. Ltd., a foreign 
corporation and also a wholly-owned subsidiary of Shell Electric 
Holdings, exported to the United States approximately 2.2 million 18-
inch pedestal oscillating floor fans with model numbers SR-18 and SP-18 
bearing the SMC label (``the Fans'').

[[Page 73209]]

    5. The Fans are ``consumer products'' and, at the times relevant 
herein, SMC was a ``manufacturer'' or ``retailer'' or ``consumer 
products,'' which were ``distributed in commerce'' as those terms are 
defined in sections 3(a)(1), (4), (6), (11), and (12) of the CPSA, 15 
U.S.C. 2052(a)(1), (4), (6), (11), and (12).
    6. The Fans are defective because the electric power cord can be 
damaged by the oscillation motion of the fan. The damage to the cord 
can result in a short circuit and possible ignition of the plastic 
case, posing a fire hazard.
    7. Between November 29, 1999 and January 7, 2004, SMC learned about 
at least 46 incidents of malfunction with the Fans which resulted in 
allegations of either fire or smoke damage to consumers' homes, and one 
alleged personal injury. SMC did not inform the Commission about the 
full extent of these incidents until June 6, 2004, when it submitted a 
Section 15 report, and December 14, 2004, when it submitted additional 
information.
    8. During a CPSC staff inspection of SMC on December 23, 2002, SMC 
provided a CPSC investigator with information about only 2 incidents 
with the Fans, despite the fact that SMC was aware of numerous 
incidents of malfunction with the Fans which allegedly caused fire or 
smoke damage to consumers' homes. When the CPSC staff conducted a 
second inspection of SMC on August 5, 2003, SMC did not provide the 
CPSC investigator with any additional incidents, despite the fact that 
it was aware of additional incidents involving the Fans that allegedly 
caused fire or smoke damage to homes.
    9. Although SMC had obtained sufficient information to reasonably 
support the conclusion that the Fans contained a defect which could 
create a substantial product hazard, or created an unreasonable risk of 
serious injury or death, long before June 6, 2004, 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). In 
failing to do so, SMC ``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).
    10. Pursuant to Section 20 of the CPSA, 15 U.S.C. 2069, SMC is 
subject to civil penalties for its failure to make a timely report 
pursuant to Section 15(b) of the CPSA, 15 U.S.C. 2064(b).

Response of SMC

    11. SMC denies the allegations of the staff that the Fans contain a 
defect which could create a substantial product hazard, or create an 
unreasonable risk of serious injury or death, and denies that it 
violated the reporting requirements of Section 15(b) of the CPSA, 15 
U.S.C. 2064(b). SMC further did not ``knowingly'' violate any reporting 
requirements under the CPSA.
    12. At all times when the Commission staff conducted its 
inspections, SMC attempted to cooperate fully by providing samples of 
claims and samples of products, and believed it was both responsive to 
all inspectors' requests and voluntarily cooperative.
    13. Upon the request of the CPSC staff, SMC filed a report pursuant 
to Section 15(b) of the Consumer Product Safety Act 15, U.S.C. 2064(b), 
voluntarily met with the staff to discuss the potential problem with 
the Fans, and additionally cooperated fully with the Commission in 
voluntarily recalling the Fans beginning in June 2004.

Agreement of the Parties

    14. The Commission has jurisdiction over this matter and over SMC 
under the CPSA, 15 U.S.C. 2051-2084.
    15. In settlement of the staff's allegations, SMC agrees to pay a 
civil penalty of five hundred thousand dollars ($500,000) in three 
installments. The first installment of one hundred sixty-six thousand 
dollars ($166,000) shall be paid within thirty (30) calendar days of 
service of the Final Order of the Commission accepting this Settlement 
Agreement. The second installment of one hundred sixty-seven thousand 
dollars ($167,000) shall be paid within sixty (60) calendar days of 
service of the Final Order of the Commission accepting this Settlement 
Agreement. The third installment of one hundred sixty-seven thousand 
dollars ($167,000) shall be paid within ninety (90) calendar days of 
service of the Final Order of the Commission accepting this Settlement 
Agreement. These payments shall be made by check payable to the order 
of the United States Treasury.
    16. The parties enter into this Settlement Agreement for settlement 
purposes only. The Settlement Agreement does not constitute an 
admission by SMC or a determination by the Commission that SMC has 
violated the CPSA's reporting requirements.
    17. 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 CFR 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.
    18. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, SMC 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 SMC failed to comply with the CPSA and its underlying 
regulations; (iv) a statement of findings of fact and conclusions of 
law; and (v) any claims under the Equal Access to Justice Act.
    19. The Commission may publicize the terms of the Settlement 
Agreement and Order.
    20. This Settlement Agreement and Order shall apply to, and be 
binding upon, SMC and each of its successors and assigns.
    21. 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 the 
Order may subject SMC to appropriate legal action.
    22. 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.
    23. This Settlement Agreement and Order 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 and 
approval by the Commission.
    24. If, after the effective date hereof, any provision of this 
Settlement Agreement and Order is held to be illegal, invalid, or 
enforceable under present or future laws effective during the terms of 
the Settlement Agreement and Order, such provision shall be fully 
severable. The rest of the Settlement Agreement and Order shall remain 
in full effect, unless the Commission and SMC determine that severing 
the provision materially changes the purpose of the Settlement 
Agreement and Order.

SMC Marketing Corp.

    Dated: October 31, 2005.
David Leung,
Senior Vice President--Marketing & Sales, SMC Marketing Corp., 1931 
North Great Southwest Parkway, Grand Prairie, Texas 75050.

    Dated: October 31, 2005.

[[Page 73210]]

James E. Singer, Esq.,
Bovis, Kyle & Burch, LLC, 53 Perimeter Center East, Third Floor, 
Atlanta, GA 30346-2298, Counsel for SMC Marketing Corp.

U.S. Consumer Product Safety Commission.

John Gibson Mullan,
Director, Office of Compliance.

Ronald G. Yelenik,
Acting Director, Legal Division, Office of Compliance.

    Dated: November 7, 2005.
Howard N. Parnoff,
Trial Attorney, Legal Division, Office of Compliance.

Order

    Upon consideration of the Settlement Agreement entered into between 
SMC Marketing Corp. (``SMC'') and the staff of the U.S. Consumer 
Product Safety Commission (the ``Commission''), and the Commission 
having jurisdiction over the subject matter and over SMC, and it 
appearing that the Settlement Agreement is in the public interest, it 
is
    I. Ordered that the Settlement Agreement be, and hereby is, 
accepted; and it is
    II. Further Ordered that SMC shall pay a civil penalty of five 
hundred thousand dollars ($500,000) in three installments. The first 
installment of one hundred sixty-six thousand dollars ($166,000) shall 
be paid within thirty (30) calendar days of service of the Final Order 
of the Commission accepting the Settlement Agreement. The second 
installment of one hundred sixty-seven thousand dollars ($167,000) 
shall be paid within sixty (60) calendar days of service of the Final 
Order of the Commission accepting the Settlement Agreement. The third 
installment of one hundred sixty-seven thousand dollars ($167,000) 
shall be paid within ninety (90) calendar days of service of the Final 
Order of the Commission accepting the Settlement Agreement. These 
payments shall be made by check payable to the order of the United 
States Treasury. Upon the failure of SMC to make a payment or upon the 
making of a late payment, (i) the entire amount of the civil penalty 
shall become due and payable, and (ii) 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 6th 
day of December, 2005.

    By order of the Commission.
Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 05-23875 Filed 12-8-05; 8:45 am]
BILLING CODE 6355-01-M

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