Haier America Trading, LLC, Provisional Acceptance of a Settlement Agreement and Order, 38417-38419 [E9-18506]

Download as PDF sroberts on DSKD5P82C1PROD with NOTICES Federal Register / Vol. 74, No. 147 / Monday, August 3, 2009 / Notices CFR 1118.20(f), if the Commission does not receive any written request not to accept the Agreement within fifteen (15) days, the Agreement shall be deemed finally accepted on the sixteenth (16th) day after the date it is published in the Federal Register. 24. Upon the Commission’s final acceptance of the Agreement and issuance of the final Order, Dollar General knowingly, voluntarily, and completely waives any rights it may have in this matter to the following: (1) An administrative or judicial hearing; (2) judicial review or other challenge or contest of the validity of the Commission’s Order or actions; (3) a determination by the Commission of whether Dollar General failed to comply with the CPSA and its underlying regulations; (4) a statement of findings of fact and conclusions of law; and (5) any claims under the Equal Access to Justice Act. 25. The Commission may publicize the terms of the Agreement and Order. 26. The Agreement and Order shall apply to, and be binding upon, Dollar General and each of its successors and assigns. 27. The Commission issues the Order under the provisions of the CPSA, and violation of the Order may subject those referenced in paragraph 26 above to appropriate legal action. 28. The Agreement may be used in interpreting the Order. Understandings, agreements, representations, or interpretations apart from those contained in the Agreement and Order may not be used to vary or contradict its terms. The Agreement shall not be waived, amended, modified, or otherwise altered, without written agreement thereto executed by the party against whom such waiver, amendment, modification, or alteration is sought to be enforced. 29. If any provision of the Agreement and Order is held to be illegal, invalid, or unenforceable under present or future laws effective during the terms of the Agreement and Order, such provision shall be fully severable. The balance of the Agreement and Order shall remain in full force and effect, unless the Commission and Dollar General agree that severing the provision materially affects the purpose of the Agreement and Order. DOLLAR GENERAL CORPORATION Dated: June 24, 2009. By: lllllllllllllllllll Susan S. Lanigan, Executive Vice President and General Counsel, Dollar General Corporation, 100 Mission Ridge, Goodlettsville, TN 37072. Dated: June 24, 2009. lllllllllll By: lllllllllllllllllll Robert R. Stephenson, Deputy General Counsel, Dollar General Corporation. U.S. CONSUMER PRODUCT SAFETY COMMISSION STAFF Cheryl A. Falvey, General Counsel, Office of the General Counsel. Ronald G. Yelenik, Assistant General Counsel, Office of the General Counsel. Dated: June 25, 2009. lllllllllll By: lllllllllllllllllll VerDate Nov<24>2008 16:05 Jul 31, 2009 Jkt 217001 Neal S. Cohen, Trial Attorney, Division of Compliance, Office of the General Counsel. By: lllllllllllllllllll M. Reza Malihi, Trial Attorney, Division of Compliance, Office of the General Counsel. In the Matter of Dollar General Corporation; Order Upon consideration of the Settlement Agreement entered into between Dollar General Corporation (‘‘DGC’’), for itself and on behalf of its wholly owned subsidiaries, Dollar General Merchandising, Inc., DG Retail, LLC, Dolgencorp, Inc., Dolgencorp of Texas, Inc., Dolgencorp of New York, Inc., and Dollar General Partners (collectively referred to as ‘‘Dollar General’’), and the U.S. Consumer Product Safety Commission (‘‘Commission’’) staff, and the Commission having jurisdiction over the subject matter and over Dollar General, and it appearing that the Settlement Agreement and Order are in the public interest, it is Ordered, that the Settlement Agreement be, and hereby is, accepted; and it is Further ordered, that DGC shall pay, on behalf of Dollar General, a civil penalty in the amount of one hundred thousand dollars ($100,000.00) within twenty (20) calendar days of service of the Commission’s final Order accepting the Agreement. The payment shall be made by check payable to the order of the United States Treasury. Upon the failure of DGC to make any of the foregoing payments when due, interest on the unpaid amount shall accrue and be paid by DGC at the federal legal rate of interest set forth at 28 U.S.C. 1961(a) and (b). Provisionally accepted and provisional Order issued on the 8th day of July 2009. BY ORDER OF THE COMMISSION: lllllllllllllllllllll Todd A. Stevenson, Secretary, U.S. Consumer Product Safety Commission. [FR Doc. E9–18508 Filed 7–31–09; 8:45 am] BILLING CODE 6355–01–P CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 09–C0030] Haier America Trading, LLC, 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 Haier America Trading, LLC, containing a civil penalty of $587,500.00. PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 38417 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 August 18, 2009. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 09–C0030, Office of the Secretary, Consumer Product Safety Commission, 4330 East West Highway, Room 502, Bethesda, Maryland 20814– 4408. FOR FURTHER INFORMATION CONTACT: Seth B. Popkin, Lead Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814–4408; telephone (301) 504–7612. The text of the Agreement and Order appears below. SUPPLEMENTARY INFORMATION: Dated: July 29, 2009. Todd A. Stevenson, Secretary. United States of America—Consumer Product Safety Commission In the Matter of Haier America Trading, LLC, CPSC Docket No. 09–C0030. Settlement Agreement 1. In accordance with 16 CFR 1118.20, Haier America Trading, LLC (‘‘Haier America’’) and the staff (‘‘Staff’’) of the United States Consumer Product Safety Commission (‘‘Commission’’) enter into this Settlement Agreement (‘‘Agreement’’). The Agreement and the incorporated attached Order (‘‘Order’’) settle the Staff’s allegations set forth below. Parties 2. The Commission is an independent Federal regulatory agency established pursuant to, and responsible for the enforcement of, the Consumer Product Safety Act, 15 U.S.C. 2051–2089 (‘‘CPSA’’). 3. Haier America is a limited liability company organized and existing under the laws of New York, with its principal offices located in New York, New York. At all times relevant hereto, Haier America sold appliances. Staff Allegations 4. From on or about January to July 2004, Haier America distributed in commerce, including through importation and sale to retailers, multiple units of the Haier America Oscillating Tower Fan model FTM140GG (‘‘Fan’’). 5. The Fans are ‘‘consumer product[s],’’ and, at all times relevant hereto, Haier America was a ‘‘manufacturer’’ of those consumer products, which were ‘‘distributed in commerce,’’ as those terms are defined in CPSA sections 3(a)(5), (8), and (11), 15 U.S.C. 2052(a)(5), (8), and (11). E:\FR\FM\03AUN1.SGM 03AUN1 38418 Federal Register / Vol. 74, No. 147 / Monday, August 3, 2009 / Notices 6. From May to October 2004, Haier America received 14 reports of Fan incidents, some of which involved fires and injuries. 7. From May to October 2004, Haier America obtained information about the Fans through investigation, testing, and analysis. 8. The incident reports and other information that Haier America received about the Fans raised defect and hazard concerns for Haier America. 9. On November 22, 2005, Haier America and the Commission announced a recall of the Fans. As indicated in part in the recall Press Release, the defect and hazard involved repeated bending of the Fan wires from the base to the tower during oscillation, which caused the wires to break and arc, resulting in a fire hazard. 10. By no later than July 1, 2004, Haier America had obtained information that reasonably supported the conclusion that the Fans contained a defect that could create a substantial product hazard or that they created an unreasonable risk of serious injury or death. CPSA sections 15(b)(3) and (4), 15 U.S.C. 2064(b)(3) and (4), required Haier America to immediately inform the Commission of the Fans’ defect and risk. 11. Haier America did not report to the Commission regarding the Fans until December 22, 2004, after the Commission staff requested that Haier America report. In addition, at the time that it reported, Haier America failed to furnish all required information. Haier America thereby failed to immediately and adequately inform the Commission about the Fans’ defect and risk as required by CPSA sections 15(b)(3) and (4), 15 U.S.C. 2064(b)(3) and (4). This failure constituted a prohibited act under CPSA section 19(a)(4), 15 U.S.C. 2068(a)(4). 12. Haier America knowingly committed this prohibited act, as the term ‘‘knowingly’’ is defined in CPSA section 20(d), 15 U.S.C. 2069(d). Pursuant to CPSA section 20, 15 U.S.C. 2069, Haier America’s prohibited act subjected it to civil penalties. Haier America Response 13. Haier America denies the Staff’s allegations set forth in paragraphs 4–12 above, including, but not limited to, any allegation that Haier America failed timely to notify the Commission in accordance with section 15 of the CPSA. sroberts on DSKD5P82C1PROD with NOTICES Agreement of the Parties 14. Under the CPSA, the Commission has jurisdiction over this matter and over Haier America. 15. The parties enter into the Agreement for settlement purposes only. The Agreement does not constitute an admission by Haier America, or a determination by the Commission, that Haier America knowingly violated the CPSA. Upon issuance of, and Haier America’s compliance with, the final Order, the Commission regards this matter as VerDate Nov<24>2008 16:05 Jul 31, 2009 Jkt 217001 resolved and agrees not to bring a civil penalty action against Haier America based upon the Staff’s allegations set forth in paragraphs 4–12 above regarding the Fan. 16. In settlement of the Staff’s allegations, Haier America shall pay a civil penalty in the amount of five hundred eighty-seven thousand five hundred dollars ($587,500.00) within twenty (20) calendar days of service of the Commission’s final Order accepting the Agreement. The payment shall be by check payable to the order of the United States Treasury. 17. Upon provisional acceptance of the Agreement, the Agreement shall be placed on the public record and published in the Federal Register in accordance with the procedures set forth in 16 CFR 1118.20(e). In accordance with 16 CFR 1118.20(f), if the Commission does not receive any written request not to accept the Agreement within fifteen (15) calendar days, the Agreement shall be deemed finally accepted on the sixteenth (16th) calendar day after the date it is published in the Federal Register. 18. Upon the Commission’s final acceptance of the Agreement and issuance of the final Order, Haier America knowingly, voluntarily, and completely waives any rights it may have in this matter to the following: (1) An administrative or judicial hearing; (2) judicial review or other challenge or contest of the validity of the Order or of the Commission’s actions; (3) a determination by the Commission of whether Haier America failed to comply with the CPSA and its underlying regulations; (4) a statement of findings of fact and conclusions of law; and (5) any claims under the Equal Access to Justice Act. 19. The Commission may publicize the terms of the Agreement and the Order. 20. The Agreement and the Order shall apply to, and be binding upon, Haier America and each of its successors and assigns. 21. The Commission issues the Order under the provisions of the CPSA, and violation of the Order may subject those persons or entities referenced in the preceding paragraph to appropriate legal action. 22. The Agreement may be used in interpreting the Order. Understandings, agreements, representations, or interpretations apart from those contained in the Agreement and the Order may not be used to vary or contradict their terms. The Agreement shall not be waived, amended, modified, or otherwise altered without written agreement thereto executed by the party against whom such waiver, amendment, modification, or alteration is sought to be enforced. 23. If any provision of the Agreement and the Order is held to be illegal, invalid, or unenforceable under present or future laws effective during the terms of the Agreement PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 and the Order, such provision shall be fully severable. The balance of the Agreement and the Order shall remain in full force and effect, unless the Commission and Haier America agree that severing the provision materially affects the purpose of the Agreement and the Order. Haier America Trading, LLC. Dated: lllllllllllllllll By: lllllllllllllllllll Michael Jemal, President and CEO, Haier America Trading, LLC, 1356 Broadway, New York, N.Y. 10018. Dated: 6/1/09. By: lllllllllllllllllll Eric A. Rubel, Esq., Arnold & Porter LLP, 555 12th Street, NW., Washington, DC 20004–1206, Counsel for Haier America Trading LLC. U.S. CONSUMER PRODUCT SAFETY COMMISSION STAFF Cheryl A. Falvey, General Counsel. Ronald G. Yelenik, Assistant General Counsel, Office of the General Counsel. Dated: 6/19/09. By: lllllllllllllllllll Seth B. Popkin, Lead Trial Attorney, Division of Compliance, Office of the General Counsel. United States of America—Consumer Product Safety Commission In the Matter of Haier America Trading, LLC, CPSC Docket No. 09–C0030. Order Upon consideration of the Settlement Agreement entered into between Haier America Trading, LLC (‘‘Haier America’’) and the U.S. Consumer Product Safety Commission (‘‘Commission’’) staff, and the Commission having jurisdiction over the subject matter and over Haier America, and it appearing that the Settlement Agreement and the Order are in the public interest, it is Ordered, that the Settlement Agreement be, and hereby is, accepted; and it is Further ordered, that Haier America shall pay a civil penalty in the amount of five hundred eighty-seven thousand five hundred dollars ($587,500.00) within twenty (20) calendar days of service of the Commission’s final Order accepting the Agreement. The payment shall be made by check payable to the order of the United States Treasury. Upon the failure of Haier America to make the foregoing payment when due, interest on the unpaid amount shall accrue and be paid by Haier America at the Federal legal rate of interest set forth at 28 U.S.C. 1961(a) and (b). Provisionally accepted and provisional Order issued on the 28th day of July, 2009. E:\FR\FM\03AUN1.SGM 03AUN1 Federal Register / Vol. 74, No. 147 / Monday, August 3, 2009 / Notices By Order of the Commission: lllllllllllllllllllll Todd A. Stevenson, Secretary, U.S. Consumer Product Safety Commission. Commission (‘‘CPSC’’ or the ‘‘Commission’’) enter into this Settlement Agreement (‘‘Agreement’’). The Agreement and the incorporated attached Order (‘‘Order’’) settle the Staff’s allegations set forth below. [FR Doc. E9–18506 Filed 7–31–09; 8:45 am] Parties 2. The Commission is an independent Federal regulatory agency established pursuant to, and responsible for the enforcement of, the Consumer Product Safety Act, 15 U.S.C. 2051—2089 (‘‘CPSA’’). 3. Cardinal is a corporation organized and existing under the laws of Maryland, with its principal offices located in Baltimore, Maryland. At all times relevant hereto, Cardinal imported and/or sold toy jewelry. BILLING CODE 6355–01–P CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 09–C0028] Cardinal Distributing Company, Inc., 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 Cardinal Distributing Company, Inc., containing a civil penalty of $100,000.00. 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 August 18, 2009. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 09–C0028, Office of the Secretary, Consumer Product Safety Commission, 4330 East West Highway, Room 502, Bethesda, Maryland 20814– 4408. FOR FURTHER INFORMATION CONTACT: M. Reza Malihi, Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814–4408; telephone (301) 504–7733. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. sroberts on DSKD5P82C1PROD with NOTICES Dated: July 28, 2009. Todd A. Stevenson, Secretary. United States of America—Consumer Product Safety Commission In the Matter of Cardinal Distributing Company, Inc., CPSC Docket No. 09–C0028. Settlement Agreement 1. In accordance with 16 CFR 1118.20, Cardinal Distributing Company, Inc. (‘‘Cardinal’’) and the staff (‘‘Staff’’) of the United States Consumer Product Safety VerDate Nov<24>2008 16:05 Jul 31, 2009 Jkt 217001 Staff Allegations 4. Between November 2005 and April 2007, Cardinal imported into the United States about 900,000 units of toy jewelry, consisting of Children’s ‘‘Sportswear’’ Necklaces, Item # 8261 (‘‘Necklace(s)’’), and Children’s Charm Bracelets, Item # INK705 (‘‘Bracelet(s)’’). Cardinal offered for sale or sold most of the subject products through vending machines located in malls, discount, department and grocery stores nationwide from January 2006 through April 2007 for $0.25 per unit. 5. The Necklaces and Bracelets are ‘‘consumer product(s),’’ and, at all times relevant hereto, Cardinal was a ‘‘manufacturer’’ and/or a ‘‘retailer’’ of those consumer product(s), which were ‘‘distributed in commerce,’’ as those terms are defined in CPSA sections 3(a)(3), (5), (8), (11), and (13), 15 U.S.C. 2052(a)(3), (5), (8), (11), and (13). 6. The Necklaces and Bracelets are articles intended to be entrusted to or for use by children, and, therefore, are subject to the requirements of the Commission’s Ban of Lead-Containing Paint and Certain Consumer Products Bearing Lead-Containing Paint, 16 CFR part 1303 (the ‘‘Ban’’). Under the Ban, toys and other children’s articles must not bear ‘‘lead-containing paint,’’ defined as paint or other surface coating materials whose lead content is more than 0.06 percent of the weight of the total nonvolatile content of the paint or the weight of the dried paint film. 16 CFR 1303.2(b)(1) 7. On February 16, 2007, the Staff obtained samples of the Necklaces from one of Cardinal’s customers based in Illinois, which subsequently were tested at the CPSC Laboratory for the presence of lead. The test results demonstrated that the yellow paint on certain Necklace samples contained a total lead content from 0.519 percent to 0.726 percent. These levels of lead are in excess of the permissible 0.06 percent limit set forth in the Ban. 8. Cardinal reported to CPSC on April 10, 2007 that recent testing of the Bracelets by an independent laboratory had demonstrated that their surface coating contained a total lead content as high as 1.5 percent. These levels of lead are in excess of the permissible 0.06 percent limit set forth in the Ban. 9. On April 17, 2007, the Commission and Cardinal announced a consumer-level recall of about 900,000 units of the Necklaces and Bracelets because ‘‘The paint on this jewelry PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 38419 contains high levels of lead. Lead is toxic if ingested by young children and can cause adverse health effects.’’ 10. Although Cardinal reported no incidents or injuries associated with the Necklaces and Bracelets, it failed to take adequate action to ensure that none would bear or contain lead-containing paint, thereby creating a risk of lead poisoning and adverse health effects to children. 11. The Necklaces and Bracelets constitute ‘‘banned hazardous products’’ under CPSA section 8 and the Ban, 15 U.S.C. 2057 and 16 CFR 1303.1(a)(1), 1303.4(b), in that they bear or contain paint or other surface coating materials whose lead content exceeds the permissible limit of 0.06 percent of the weight of the total nonvolatile content of the paint or the weight of the dried paint film. 12. Between November 2005 and April 2007, Cardinal sold, manufactured for sale, offered for sale, distributed in commerce, or imported into the United States, or caused one or more of such acts, with respect to the aforesaid banned hazardous Necklaces and Bracelets, in violation of section 19(a)(1) of the CPSA, 15 U.S.C. 2068(a)(1). Cardinal committed these prohibited acts ‘‘knowingly,’’ as that term is defined in section 20(d) of the CPSA, 15 U.S.C. 2069(d). 13. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Cardinal is subject to civil penalties for the aforementioned violations. Cardinal Response 14. Cardinal denies the Staff’s allegations set forth above that Cardinal knowingly violated the CPSA. Agreement of the Parties 15. Under the CPSA, the Commission has jurisdiction over this matter and over Cardinal. 16. The parties enter into the Agreement for settlement purposes only. The Agreement does not constitute an admission by Cardinal, or a determination by the Commission, that Cardinal has knowingly violated the CPSA. 17. In settlement of the Staff’s allegations, Cardinal shall pay a civil penalty in the amount of one hundred thousand dollars ($100,000.00). The civil penalty shall be paid in two (2) installments as follows: $50,000.00 shall be paid within twenty (20) calendar days of service of the Commission’s final Order accepting the Agreement; and $50,000.00 shall be paid within six (6) months of service of the Commission’s final Order accepting the Agreement. Each payment shall be made by check payable to the order of the United States Treasury. 18. The CPSC agrees to take no further action involving Cardinal with respect to CPSC Sample Nos. 07–302–0148 and 07– 302–0149 (Children’s Rings with Dice or Horseshoes, Release No. 07–174), and CPSC No. RP070318 (Children’s Turquoise Rings, Release No. 07–189). 19. Upon the Commission’s provisional acceptance of the Agreement, the Agreement shall be placed on the public record and published in the Federal Register in accordance with the procedures set forth in 16 CFR 1118.20(e). In accordance with 16 CFR 1118.20(f), if the Commission does not receive any written request not to accept the E:\FR\FM\03AUN1.SGM 03AUN1

Agencies

[Federal Register Volume 74, Number 147 (Monday, August 3, 2009)]
[Notices]
[Pages 38417-38419]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-18506]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 09-C0030]


Haier America Trading, LLC, 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 
Haier America Trading, LLC, containing a civil penalty of $587,500.00.

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 August 18, 2009.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 09-C0030, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 502, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Seth B. Popkin, Lead Trial Attorney, 
Division of Compliance, Office of the General Counsel, Consumer Product 
Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-7612.

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

    Dated: July 29, 2009.
Todd A. Stevenson,
Secretary.

United States of America--Consumer Product Safety Commission

    In the Matter of Haier America Trading, LLC, CPSC Docket No. 09-
C0030.

Settlement Agreement

    1. In accordance with 16 CFR 1118.20, Haier America Trading, LLC 
(``Haier America'') and the staff (``Staff'') of the United States 
Consumer Product Safety Commission (``Commission'') enter into this 
Settlement Agreement (``Agreement''). The Agreement and the 
incorporated attached Order (``Order'') settle the Staff's 
allegations set forth below.

Parties

    2. The Commission is an independent Federal regulatory agency 
established pursuant to, and responsible for the enforcement of, the 
Consumer Product Safety Act, 15 U.S.C. 2051-2089 (``CPSA'').
    3. Haier America is a limited liability company organized and 
existing under the laws of New York, with its principal offices 
located in New York, New York. At all times relevant hereto, Haier 
America sold appliances.

Staff Allegations

    4. From on or about January to July 2004, Haier America 
distributed in commerce, including through importation and sale to 
retailers, multiple units of the Haier America Oscillating Tower Fan 
model FTM140GG (``Fan'').
    5. The Fans are ``consumer product[s],'' and, at all times 
relevant hereto, Haier America was a ``manufacturer'' of those 
consumer products, which were ``distributed in commerce,'' as those 
terms are defined in CPSA sections 3(a)(5), (8), and (11), 15 U.S.C. 
2052(a)(5), (8), and (11).

[[Page 38418]]

    6. From May to October 2004, Haier America received 14 reports 
of Fan incidents, some of which involved fires and injuries.
    7. From May to October 2004, Haier America obtained information 
about the Fans through investigation, testing, and analysis.
    8. The incident reports and other information that Haier America 
received about the Fans raised defect and hazard concerns for Haier 
America.
    9. On November 22, 2005, Haier America and the Commission 
announced a recall of the Fans. As indicated in part in the recall 
Press Release, the defect and hazard involved repeated bending of 
the Fan wires from the base to the tower during oscillation, which 
caused the wires to break and arc, resulting in a fire hazard.
    10. By no later than July 1, 2004, Haier America had obtained 
information that reasonably supported the conclusion that the Fans 
contained a defect that could create a substantial product hazard or 
that they created an unreasonable risk of serious injury or death. 
CPSA sections 15(b)(3) and (4), 15 U.S.C. 2064(b)(3) and (4), 
required Haier America to immediately inform the Commission of the 
Fans' defect and risk.
    11. Haier America did not report to the Commission regarding the 
Fans until December 22, 2004, after the Commission staff requested 
that Haier America report. In addition, at the time that it 
reported, Haier America failed to furnish all required information. 
Haier America thereby failed to immediately and adequately inform 
the Commission about the Fans' defect and risk as required by CPSA 
sections 15(b)(3) and (4), 15 U.S.C. 2064(b)(3) and (4). This 
failure constituted a prohibited act under CPSA section 19(a)(4), 15 
U.S.C. 2068(a)(4).
    12. Haier America knowingly committed this prohibited act, as 
the term ``knowingly'' is defined in CPSA section 20(d), 15 U.S.C. 
2069(d). Pursuant to CPSA section 20, 15 U.S.C. 2069, Haier 
America's prohibited act subjected it to civil penalties.

Haier America Response

    13. Haier America denies the Staff's allegations set forth in 
paragraphs 4-12 above, including, but not limited to, any allegation 
that Haier America failed timely to notify the Commission in 
accordance with section 15 of the CPSA.

Agreement of the Parties

    14. Under the CPSA, the Commission has jurisdiction over this 
matter and over Haier America.
    15. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Haier 
America, or a determination by the Commission, that Haier America 
knowingly violated the CPSA. Upon issuance of, and Haier America's 
compliance with, the final Order, the Commission regards this matter 
as resolved and agrees not to bring a civil penalty action against 
Haier America based upon the Staff's allegations set forth in 
paragraphs 4-12 above regarding the Fan.
    16. In settlement of the Staff's allegations, Haier America 
shall pay a civil penalty in the amount of five hundred eighty-seven 
thousand five hundred dollars ($587,500.00) within twenty (20) 
calendar days of service of the Commission's final Order accepting 
the Agreement. The payment shall be by check payable to the order of 
the United States Treasury.
    17. Upon provisional acceptance of the Agreement, the Agreement 
shall be placed on the public record and published in the Federal 
Register in accordance with the procedures set forth in 16 CFR 
1118.20(e). In accordance with 16 CFR 1118.20(f), if the Commission 
does not receive any written request not to accept the Agreement 
within fifteen (15) calendar days, the Agreement shall be deemed 
finally accepted on the sixteenth (16th) calendar day after the date 
it is published in the Federal Register.
    18. Upon the Commission's final acceptance of the Agreement and 
issuance of the final Order, Haier America knowingly, voluntarily, 
and completely waives any rights it may have in this matter to the 
following: (1) An administrative or judicial hearing; (2) judicial 
review or other challenge or contest of the validity of the Order or 
of the Commission's actions; (3) a determination by the Commission 
of whether Haier America failed to comply with the CPSA and its 
underlying regulations; (4) a statement of findings of fact and 
conclusions of law; and (5) any claims under the Equal Access to 
Justice Act.
    19. The Commission may publicize the terms of the Agreement and 
the Order.
    20. The Agreement and the Order shall apply to, and be binding 
upon, Haier America and each of its successors and assigns.
    21. The Commission issues the Order under the provisions of the 
CPSA, and violation of the Order may subject those persons or 
entities referenced in the preceding paragraph to appropriate legal 
action.
    22. The Agreement may be used in interpreting the Order. 
Understandings, agreements, representations, or interpretations 
apart from those contained in the Agreement and the Order may not be 
used to vary or contradict their terms. The Agreement shall not be 
waived, amended, modified, or otherwise altered without written 
agreement thereto executed by the party against whom such waiver, 
amendment, modification, or alteration is sought to be enforced.
    23. If any provision of the Agreement and the Order is held to 
be illegal, invalid, or unenforceable under present or future laws 
effective during the terms of the Agreement and the Order, such 
provision shall be fully severable. The balance of the Agreement and 
the Order shall remain in full force and effect, unless the 
Commission and Haier America agree that severing the provision 
materially affects the purpose of the Agreement and the Order.

Haier America Trading, LLC.

Dated:-----------------------------------------------------------------

By:--------------------------------------------------------------------
Michael Jemal,
President and CEO, Haier America Trading, LLC, 1356 Broadway, New 
York, N.Y. 10018.

Dated: 6/1/09.

By:--------------------------------------------------------------------
Eric A. Rubel, Esq.,
Arnold & Porter LLP, 555 12th Street, NW., Washington, DC 20004-
1206, Counsel for Haier America Trading LLC.

U.S. CONSUMER PRODUCT SAFETY COMMISSION STAFF

Cheryl A. Falvey,
General Counsel.

Ronald G. Yelenik,
Assistant General Counsel, Office of the General Counsel.

Dated: 6/19/09.
By:--------------------------------------------------------------------
Seth B. Popkin,
Lead Trial Attorney, Division of Compliance, Office of the General 
Counsel.

United States of America--Consumer Product Safety Commission

    In the Matter of Haier America Trading, LLC, CPSC Docket No. 09-
C0030.

Order

    Upon consideration of the Settlement Agreement entered into 
between Haier America Trading, LLC (``Haier America'') and the U.S. 
Consumer Product Safety Commission (``Commission'') staff, and the 
Commission having jurisdiction over the subject matter and over 
Haier America, and it appearing that the Settlement Agreement and 
the Order are in the public interest, it is
    Ordered, that the Settlement Agreement be, and hereby is, 
accepted; and it is
    Further ordered, that Haier America shall pay a civil penalty in 
the amount of five hundred eighty-seven thousand five hundred 
dollars ($587,500.00) within twenty (20) calendar days of service of 
the Commission's final Order accepting the Agreement. The payment 
shall be made by check payable to the order of the United States 
Treasury. Upon the failure of Haier America to make the foregoing 
payment when due, interest on the unpaid amount shall accrue and be 
paid by Haier America at the Federal legal rate of interest set 
forth at 28 U.S.C. 1961(a) and (b).

    Provisionally accepted and provisional Order issued on the 28th 
day of July, 2009.


[[Page 38419]]


    By Order of the Commission:
-----------------------------------------------------------------------
Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety Commission.

[FR Doc. E9-18506 Filed 7-31-09; 8:45 am]
BILLING CODE 6355-01-P
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