Johnson Health Tech Co. Ltd. and Johnson Health Tech North America, Inc., Provisional Acceptance of a Settlement Agreement and Order, 49991-49994 [2015-20332]

Download as PDF Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices Groundfish Advisory Panel to consider actions affecting New England fisheries in the exclusive economic zone (EEZ). Recommendations from this group will be brought to the full Council for formal consideration and action, if appropriate. This meeting will be held on Wednesday, September 2, 2015 at 9:30 a.m. DATES: ADDRESSES: Meeting address: The meeting will be held at the Hilton Garden Inn, 100 Boardman Street, Boston, MA 02128; phone: (617) 567–6789; fax: (617) 561– 0798. Council address: New England Fishery Management Council, 50 Water Street, Mill 2, Newburyport, MA 01950. Special Accommodations This meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to Thomas A. Nies, Executive Director, at (978) 465–0492, at least 5 days prior to the meeting date. Authority: 16 U.S.C. 1801 et seq. Dated: August 13, 2015. Tracey L. Thompson, Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service. [FR Doc. 2015–20340 Filed 8–17–15; 8:45 am] BILLING CODE 3510–22–P DEPARTMENT OF COMMERCE FOR FURTHER INFORMATION CONTACT: Thomas A. Nies, Executive Director, New England Fishery Management Council; telephone: (978) 465–0492. National Oceanic and Atmospheric Administration RIN 0648–XE082 The items of discussion on the agenda are: The Advisory Panel plans to discuss Framework Adjustment 55 (FW55): (a) Receive an update on the development of FW55/specifications and the addition of a sector, (b) receive an overview of Transboundary Resource Assessment Committee Assessments for Eastern Georges Bank (EGB) cod, EGB Haddock and Georges Bank yellowtail flounder, (c) discuss recommendations for the Groundfish Committee. The panel will receive an update on the development of the At-Sea Monitoring Framework Adjustment and discuss recommendations to the Groundfish Committee. They will also receive and overview of the Amendment 18 (A18) Public Hearings and develop if necessary final recommendations to the Groundfish Committee on preferred alternatives in A18. Additionally, they will discuss enforcement concerns for the groundfish fishery on EGB in order to improve identification of the separator panel within the trawl net and discuss recommendations to the Groundfish Committee. They will also discuss other business as necessary. Although non-emergency issues not contained in this agenda may come before this group for discussion, those issues may not be the subject of formal action during this meeting. Action will be restricted to those issues specifically listed in this notice and any issues arising after publication of this notice that require emergency action under section 305(c) of the Magnuson-Stevens Act, provided the public has been notified of the Council’s intent to take final action to address the emergency. asabaliauskas on DSK5VPTVN1PROD with NOTICES SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 17:02 Aug 17, 2015 Jkt 235001 49991 stock status projections for blueline tilefish, and consider fishing level recommendations. The SSC reviewed the SEDAR 32 blueline tilefish stock assessment in October 2013 and revised projections in April 2014 and June 2015. The SSC requested additional projections in June 2015; these will be reviewed at this meeting. Items to be addressed during this meeting: 1. Blueline Tilefish Stock Projections 2. Blueline Tilefish Fishing Level Recommendations Special Accommodations The meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to the Council office (see ADDRESSES) at least 10 business days prior to the meeting. Note: The times and sequence specified in this agenda are subject to change. Fisheries of the South Atlantic; South Atlantic Fishery Management Council; Public Meeting National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Notice of a public meeting. AGENCY: The South Atlantic Fishery Management Council (Council) will hold a meeting of its Scientific and Statistical Committee (SSC) to review stock projections and consider fishing level recommendations for blueline tilefish. Authority: 16 U.S.C. 1801 et seq. Dated: August 13, 2015. Tracey L. Thompson, Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service. [FR Doc. 2015–20337 Filed 8–17–15; 8:45 am] BILLING CODE 3510–22–P SUMMARY: The SSC meeting will be held via webinar on Wednesday, September 9, 2015, from 1 p.m. to 3 p.m. ADDRESSES: Meeting address: The meetings will be held via webinar. The webinar is open to members of the public. Those interested in participating should contact John Carmichael at the Council office (see FOR FURTHER INFORMATION CONTACT) to request an invitation providing webinar access information. Please request webinar invitations at least 24 hours in advance of the webinar. Council address: South Atlantic Fishery Management Council, 4055 Faber Place Drive, Suite 201, N. Charleston, SC 29405. FOR FURTHER INFORMATION CONTACT: John Carmichael; 4055 Faber Place Drive, Suite 201, North Charleston, SC 29405; phone: (843) 571–4366 or toll free: (866) SAFMC–10; fax: (843) 769–4520; email: john.carmichael@safmc.net SUPPLEMENTARY INFORMATION: This meeting is held to review yield and DATES: PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 15–C0006] Johnson Health Tech Co. Ltd. and Johnson Health Tech North America, Inc., Provisional Acceptance of a Settlement Agreement and Order Consumer Product Safety Commission. ACTION: Notice. AGENCY: 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 Johnson Health Tech Co. Ltd. and Johnson Health Tech North America, Inc. containing a civil penalty in the amount of three million dollars ($3,000,000), within thirty (30) days of service of the Commission’s final Order accepting the Settlement Agreement.1 SUMMARY: 1 The Commission voted (3–2) to provisionally accept the Settlement Agreement and Order regarding Johnson Health Tech Co., Ltd. and Johnson Health Tech North America, Inc. Chairman Kaye, Commissioner Adler and Commissioner E:\FR\FM\18AUN1.SGM Continued 18AUN1 49992 Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices 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 September 2, 2015. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 15–C0006 Office of the Secretary, Consumer Product Safety Commission, 4330 East West Highway, Room 820, Bethesda, Maryland 20814– 4408. FOR FURTHER INFORMATION CONTACT: Gregory M. Reyes, Trial Attorney, Office of the General Counsel, Division of Compliance, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814–4408; telephone (301) 504–7220. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. DATES: Dated: August 13, 2015. Todd A. Stevenson, Secretary. United States Of America Consumer Product Safety Commission In the Matter of: JOHNSON HEALTH TECH CO. LTD. and JOHNSON HEALTH TECH NORTH AMERICA, INC. CPSC Docket No.: 15–C0006 Settlement Agreement 1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 2051– 2089 (‘‘CPSA’’) and 16 CFR 1118.20, Johnson Health Tech Co. Ltd. (‘‘JHT’’) and Johnson Health Tech North America, Inc. (‘‘JHTNA’’) (collectively, ‘‘Johnson Health Tech’’), and the United States Consumer Product Safety Commission (‘‘Commission’’), through its staff, hereby enter into this Settlement Agreement (‘‘Agreement’’). The Agreement, and the incorporated attached Order, resolve staff’s charges set forth below. asabaliauskas on DSK5VPTVN1PROD with NOTICES The Parties 2. The Commission is an independent federal regulatory agency, established pursuant to, and responsible for the enforcement of, the CPSA, 15 U.S.C. 2051–2089. By executing the Agreement, staff is acting on behalf of the Commission, pursuant to 16 CFR 1118.20(b). The Commission issues the Order under the provisions of the CPSA. 3. JHT is a Taiwanese corporation with its principal office located at #999, Robinson voted to provisionally accept the Settlement Agreement and Order. Commissioner Buerkle and Commissioner Mohorovic voted to reject the Settlement Agreement and Order. VerDate Sep<11>2014 17:02 Aug 17, 2015 Jkt 235001 Sec. 2, DongDa Rd., Ta-Ya Dist. Taichung City, 428, Taiwan. 4. JHTNA is a corporation, organized and existing under the laws of the state of Wisconsin, with its principal place of business in Cottage Grove, Wisconsin. Staff Charges 5. Between September 2011 and December 2012, JHTNA imported and sold approximately 3,025 Matrix Fitness Ascent Trainers and Elliptical Trainers (‘‘Trainers’’) in the United States. JHT manufactured the Trainers. 6. The Trainers are a ‘‘consumer product,’’ ‘‘distributed in commerce,’’ as those terms are defined or used in sections 3(a)(5) and (8) of the CPSA, 15 U.S.C. 2052(a)(5) and (8). Johnson Health Tech was a ‘‘manufacturer’’ and ‘‘retailer’’ of the Trainers, as such terms are defined in sections 3(a)(11) and (13) of the CPSA, 15 U.S.C. 2052(a)(11) and (13). 7. The Trainers contain a defect which could create a substantial product hazard and create an unreasonable risk of serious injury or death because moisture from perspiration or cleaning liquids can build up in the Trainers’ power socket, causing a short circuit. This poses a fire hazard. 8. Between March 2012 and October 2013, Johnson Health Tech received incident reports of smoking, sparking, fire, and melted power components involving the Trainers. No property damage or injuries were reported. 9. In response to these incident reports, Johnson Health Tech implemented two design changes to remedy the defect and unreasonable risk of serious injury or death associated with the Trainers. 10. Despite having obtained information that the Trainers contained a defect or created an unreasonable risk, Johnson Health Tech did not notify the Commission immediately of such defect or risk, as required by sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. 2064(b)(3) and (4). 11. In failing to inform the Commission immediately about the Trainers, Johnson Health Tech 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). 12. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Johnson Health Tech is subject to civil penalties for its knowing violation of section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4). Response of Johnson Health Tech 13. This agreement does not constitute an admission by Johnson PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 Health Tech to the staff’s charges set forth in paragraphs 5 through 12 above, including, but not limited to, the charge that the Trainers contained a defect that could create a substantial product hazard or created an unreasonable risk of serious injury or death; that Johnson Health Tech failed to notify the Commission in a timely manner, in accordance with Section 15(b) of the CPSA, 15 U.S.C. 2064(b); and that there was any ‘‘knowing’’ violation of the CPSA as that term is defined in 15 U.S.C. 2069(d). 14. Johnson Health Tech enters into this Agreement to settle this matter without the delay and expense of litigation. Johnson Health Tech enters into this Agreement and agrees to pay the amount referenced below in compromise of the staff’s charges. 15. JHTNA voluntarily notified the Commission in connection with the Trainers. JHTNA is not aware of any report of injury or property damage associated with the Trainers and reported issue but carried out a voluntary recall in cooperation with the Commission. 16. At all relevant times, JHTNA had a product safety compliance program, including dedicated quality control/ product safety personnel and appropriate product safety testing. Agreement of the Parties 17. Under the CPSA, the Commission has jurisdiction over the matter involving the Trainers and over JHTNA. JHT has agreed to a limited waiver of jurisdictional defenses solely for the purpose of entering into this Settlement Agreement. 18. The parties enter into the Agreement for settlement purposes only. The Agreement does not constitute an admission by Johnson Health Tech or a determination by the Commission that Johnson Health Tech violated the CPSA’s reporting requirements. 19. In settlement of staff’s charges, and to avoid the cost, distraction, delay, uncertainty, and inconvenience of protracted litigation or other proceedings, Johnson Health Tech shall pay a civil penalty in the amount of three million dollars ($3,000,000) within thirty (30) calendar days after receiving service of the Commission’s final Order accepting the Agreement. All payments to be made under the Agreement shall constitute debts owing to the United States and shall be made by electronic wire transfer to the United States via: https://www.pay.gov for allocation to and credit against the payment obligations of Johnson Health Tech under this Agreement. Failure to make such payment by the date E:\FR\FM\18AUN1.SGM 18AUN1 asabaliauskas on DSK5VPTVN1PROD with NOTICES Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices specified in the Commission’s final Order shall constitute Default. 20. All unpaid amounts, if any, due and owing under the Agreement shall constitute a debt due and immediately owing by Johnson Health Tech to the United States, and interest shall accrue and be paid by Johnson Health Tech at the federal legal rate of interest set forth at 28 U.S.C. 1961(a) and (b) from the date of Default until all amounts due have been paid in full (hereinafter ‘‘Default Payment Amount’’ and ‘‘Default Interest Balance’’). Johnson Health Tech shall consent to a Consent Judgment in the amount of the Default Payment Amount and Default Interest Balance, and the United States, at its sole option, may collect the entire Default Payment Amount and Default Interest Balance or exercise any other rights granted by law or in equity, including but not limited to referring such matters for private collection, and Johnson Health Tech agrees not to contest, and hereby waives and discharges any defenses to, any collection action undertaken by the United States or its agents or contractors pursuant to this paragraph. Johnson Health Tech shall pay the United States all reasonable costs of collection and enforcement under this paragraph, respectively, including reasonable attorney’s fees and expenses. 21. After staff receives this Agreement executed on behalf of Johnson Health Tech, staff shall promptly submit the Agreement to the Commission for provisional acceptance. Promptly following provisional acceptance of the Agreement by the Commission, 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). 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 16th calendar day after the date the Agreement is published in the Federal Register, in accordance with 16 CFR 1118.20(f). 22. This Agreement is conditioned upon, and subject to, the Commission’s final acceptance, as set forth above, and it is subject to the provisions of 16 CFR 1118.20(h). Upon the later of: (i) Commission’s final acceptance of this Agreement and service of the accepted Agreement upon Johnson Health Tech, and (ii) the date of issuance of the final Order, this Agreement shall be in full force and effect and shall be binding upon the parties. 23. Effective upon the later of: (i) The Commission’s final acceptance of the VerDate Sep<11>2014 17:02 Aug 17, 2015 Jkt 235001 Agreement and service of the accepted Agreement upon Johnson Health Tech, and (ii) and the date of issuance of the final Order, for good and valuable consideration, Johnson Health Tech hereby expressly and irrevocably waives and agrees not to assert any past, present, or future rights to the following, in connection with the matter described in this Agreement: (i) An administrative or judicial hearing; (ii) judicial review or other challenge or contest of the Commission’s actions; (iii) a determination by the Commission of whether Johnson Health Tech failed to comply with the CPSA and the underlying regulations; (iv) a statement of findings of fact and conclusions of law; and (v) any claims under the Equal Access to Justice Act. 24. JHTNA has, and shall maintain, a program designed to ensure compliance with the CPSA with respect to any consumer product imported, manufactured, distributed, or sold by JHTNA. This program contains, or will be modified to include, the following elements: a. written standards and policies; b. written procedures that provide for the appropriate forwarding to compliance personnel and the product hazard incident review committee of all information that may relate to, or impact, CPSA compliance including all reports and complaints involving consumer products, whether an injury is referenced or not; c. a mechanism for confidential employee reporting of compliancerelated questions or concerns to either a compliance officer or to another senior manager with authority to act as necessary; d. effective communication of company compliance-related policies and procedures regarding the CPSA to all applicable employees through training programs or otherwise; e. JHTNA senior management responsibility for CPSA compliance and for violations of the statutes and regulations enforced by the Commission; f. board oversight of CPSA compliance; and g. retention of all CPSA compliancerelated records for at least five (5) years, and availability of such records to staff upon reasonable request. 25. JHTNA shall implement, maintain, and enforce a system of internal controls and procedures designed to ensure that, with respect to all consumer products imported, PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 49993 manufactured, distributed, or sold by JHTNA: a. information required to be disclosed by JHTNA to the Commission is recorded, processed, and reported in accordance with applicable law; b. all reporting made to the Commission is timely, truthful, complete, accurate, and in accordance with applicable law; and c. prompt disclosure is made to JHTNA’s management of any significant deficiencies or material weaknesses in the design or operation of such internal controls that are reasonably likely to affect adversely, in any material respect, JHTNA’s ability to record, process, and report to the Commission in accordance with applicable law. 26. Upon reasonable request of staff, JHTNA shall provide written documentation of its internal controls and procedures, including, but not limited to, the effective dates of the procedures and improvements thereto. JHTNA shall cooperate fully and truthfully with staff and shall make available all non-privileged information and materials, and personnel deemed necessary by staff to evaluate JHTNA’s compliance with the terms of the Agreement. 27. The parties acknowledge and agree that the Commission may publicize the terms of the Agreement and the Order. 28. Johnson Health Tech represents that the Agreement: (i) Is entered into freely and voluntarily, without any degree of duress or compulsion whatsoever; (ii) has been duly authorized; and (iii) constitutes the valid and binding obligation of Johnson Health Tech, enforceable against Johnson Health Tech in accordance with its terms. Johnson Health Tech will not directly or indirectly receive any reimbursement, indemnification, insurance-related payment, or other payment in connection with the civil penalty to be paid by Johnson Health Tech pursuant to the Agreement and Order. The individuals signing the Agreement on behalf of Johnson Health Tech represent and warrant that they are duly authorized by Johnson Health Tech to execute the Agreement. 29. The signatories represent that they are authorized to execute this Agreement. 30. The Agreement is governed by the laws of the United States. 31. The Agreement and the Order shall apply to, and be binding upon, Johnson Health Tech and each of its E:\FR\FM\18AUN1.SGM 18AUN1 49994 Federal Register / Vol. 80, No. 159 / Tuesday, August 18, 2015 / Notices asabaliauskas on DSK5VPTVN1PROD with NOTICES successors, transferees, and assigns, and a violation of the Agreement or Order may subject Johnson Health Tech, and each of its successors, transferees, and assigns, to appropriate legal action. 32. The Agreement and the Order constitute the complete agreement between the parties on the subject matter contained therein. 33. 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. For purposes of construction, the Agreement shall be deemed to have been drafted by both of the parties and shall not, therefore, be construed against any party for that reason in any subsequent dispute. 34. The Agreement may not be waived, amended, modified, or otherwise altered, except as in accordance with the provisions of 16 CFR 1118.20(h). The Agreement may be executed in counterparts. 35. If any provision of the Agreement or 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 Johnson Health Tech agree in writing that severing the provision materially affects the purpose of the Agreement and the Order. Assistant General Counsel Dated: July 31, 2015 By: lllllllllllllllllll Gregory M. Reyes Trial Attorney Division of Compliance Office of the General Counsel DEPARTMENT OF DEFENSE United States of America Consumer Product Safety Commission AGENCY: In the Matter of: Johnson Health Tech Co. LTD. and Johnson Health Tech North America, Inc. CPSC Docket No.: 15–C0006 Office of the Secretary National Commission on the Future of the Army; Notice of Federal Advisory Committee Meeting Department of Defense (DoD), Deputy Chief Management Officer. ACTION: Notice of Federal Advisory Committee Meeting. The DoD is publishing this notice to announce two days of meetings of the National Commission on Order the Future of the Army (‘‘the Commission’’). The meetings will be Upon consideration of the Settlement partially closed to the public. Agreement entered into between DATES: Date of the Closed Meetings: Johnson Health Tech Co. Ltd. and Monday, August 24, 2015, from 9:00 Johnson Health Tech North America, a.m. to 11:25 a.m. and Monday, August Inc. (‘‘Johnson Health Tech’’), and the 24 2015, from 12:25 p.m. to 4:30 p.m. U.S. Consumer Product Safety Date of the Open Meeting: Tuesday, Commission (‘‘Commission’’), and the August 25, 2015, from 8:00 a.m. to 10:00 Commission having jurisdiction over a.m. the subject matter and over Johnson ADDRESSES: Address of Closed Meeting, Health Tech, and it appearing that the August 24, 2015 from 9:00 a.m. to 11:25 Settlement Agreement and the Order are a.m.: Operations Group Conference Room, Building 990, National Training in the public interest, it is: Center, Fort Irwin, CA 92310. ORDERED that the Settlement Address of Closed Meeting, August Agreement be, and is, hereby, accepted; 24, 2015 from 12:25 p.m. to 4:30 p.m.: and it is Operations Group Conference Room, FURTHER ORDERED that Johnson Building 990, National Training Center, Health Tech shall comply with the Fort Irwin, CA 92310. Address of Open Meeting, August 25, terms of the Settlement Agreement and 2015: Long Beach Marriott Conference shall pay a civil penalty in the amount Room, Long Beach Marriott, 4700 of three million dollars ($3,000,000) Airport Plaza Drive, Long Beach, CA within thirty (30) days after service of 90815. the Commission’s final Order accepting Johnson Health Tech Co. LTD. the Settlement Agreement. The payment FOR FURTHER INFORMATION CONTACT: Mr. Dated: July 31, 2015 shall be made by electronic wire transfer Don Tison, Designated Federal Officer, By: lllllllllllllllllll to the Commission via: https:// National Commission on the Future of Jason Lo the Army, 700 Army Pentagon, Room www.pay.gov. Upon the failure of Chief Executive Officer 3E406, Washington, DC 20310–0700, Johnson Health Tech to make the Johnson Health Tech Co. Ltd. Email: dfo.public@ncfa.ncr.gov. Desk foregoing payment when due, interest #999, Sec. 2, DongDa Rd., Ta-Ya Dist. (703) 692–9099. Facsimile (703) 697– Taichung City, 428, Taiwan on the unpaid amount shall accrue and 8242. be paid by Johnson Health Tech at the Johnson Health Tech North America, Inc. SUPPLEMENTARY INFORMATION: Due to federal legal rate of interest set forth at Dated: July 31, 2015 circumstances beyond the control of the By: lllllllllllllllllll 28 U.S.C. 1961(a) and (b). If Johnson Nathan Pyles Health Tech fails to make such payment Designated Federal Officer and the President Department of Defense, the National or to comply in full with any other Johnson Health Tech North America, Inc. Commission on the Future of the Army provision of the Settlement Agreement, 1600 Landmark Drive was unable to provide public such conduct will be considered a Cottage Grove, WI 53527 notification of its meeting of August 24– violation of the Settlement Agreement Dated: July 29, 2015 25, 2015, as required by 41 CFR 102– By: lllllllllllllllllll and Order. 3.150(a). Accordingly, the Advisory Matthew R. Howsare Provisionally accepted and provisional Order Committee Management Officer for the Counsel to Johnson Health Tech North issued on the 13th day of August, 2015. Department of Defense, pursuant to 41 America, Inc. By Order of the Commission: CFR 102–3.150(b), waives the 15Mintz Levin 701 Pennsylvania Avenue NW, Suite 900 lllllllllllllllllllll calendar day notification requirement. Washington, DC 20004 This meeting will be held under the Todd A. Stevenson, Secretary U.S. Consumer Product Safety Commission provisions of the Federal Advisory U.S. Consumer Product Safety Commission Committee Act (FACA) of 1972 (5 Stephanie Tsacoumis [FR Doc. 2015–20332 Filed 8–17–15; 8:45 am] General Counsel U.S.C., Appendix, as amended), the BILLING CODE 6355–01–P Mary T. Boyle Government in the Sunshine Act of Deputy General Counsel 1976 (5 U.S.C. 552b, as amended), and Mary B. Murphy 41 CFR 102–3.150. VerDate Sep<11>2014 17:02 Aug 17, 2015 Jkt 235001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 SUMMARY: E:\FR\FM\18AUN1.SGM 18AUN1

Agencies

[Federal Register Volume 80, Number 159 (Tuesday, August 18, 2015)]
[Notices]
[Pages 49991-49994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20332]


=======================================================================
-----------------------------------------------------------------------

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 15-C0006]


Johnson Health Tech Co. Ltd. and Johnson Health Tech North 
America, 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 
Johnson Health Tech Co. Ltd. and Johnson Health Tech North America, 
Inc. containing a civil penalty in the amount of three million dollars 
($3,000,000), within thirty (30) days of service of the Commission's 
final Order accepting the Settlement Agreement.\1\
---------------------------------------------------------------------------

    \1\ The Commission voted (3-2) to provisionally accept the 
Settlement Agreement and Order regarding Johnson Health Tech Co., 
Ltd. and Johnson Health Tech North America, Inc. Chairman Kaye, 
Commissioner Adler and Commissioner Robinson voted to provisionally 
accept the Settlement Agreement and Order. Commissioner Buerkle and 
Commissioner Mohorovic voted to reject the Settlement Agreement and 
Order.

---------------------------------------------------------------------------

[[Page 49992]]


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 September 2, 2015.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 15-C0006 Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Gregory M. Reyes, Trial Attorney, 
Office of the General Counsel, Division of Compliance, Consumer Product 
Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-7220.

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

    Dated: August 13, 2015.
Todd A. Stevenson,
Secretary.

United States Of America Consumer Product Safety Commission

In the Matter of: JOHNSON HEALTH TECH CO. LTD. and JOHNSON HEALTH 
TECH NORTH AMERICA, INC.
CPSC Docket No.: 15-C0006

Settlement Agreement

    1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 
2051-2089 (``CPSA'') and 16 CFR 1118.20, Johnson Health Tech Co. Ltd. 
(``JHT'') and Johnson Health Tech North America, Inc. (``JHTNA'') 
(collectively, ``Johnson Health Tech''), and the United States Consumer 
Product Safety Commission (``Commission''), through its staff, hereby 
enter into this Settlement Agreement (``Agreement''). The Agreement, 
and the incorporated attached Order, resolve staff's charges set forth 
below.

The Parties

    2. The Commission is an independent federal regulatory agency, 
established pursuant to, and responsible for the enforcement of, the 
CPSA, 15 U.S.C. 2051-2089. By executing the Agreement, staff is acting 
on behalf of the Commission, pursuant to 16 CFR 1118.20(b). The 
Commission issues the Order under the provisions of the CPSA.
    3. JHT is a Taiwanese corporation with its principal office located 
at #999, Sec. 2, DongDa Rd., Ta-Ya Dist. Taichung City, 428, Taiwan.
    4. JHTNA is a corporation, organized and existing under the laws of 
the state of Wisconsin, with its principal place of business in Cottage 
Grove, Wisconsin.

Staff Charges

    5. Between September 2011 and December 2012, JHTNA imported and 
sold approximately 3,025 Matrix Fitness Ascent Trainers and Elliptical 
Trainers (``Trainers'') in the United States. JHT manufactured the 
Trainers.
    6. The Trainers are a ``consumer product,'' ``distributed in 
commerce,'' as those terms are defined or used in sections 3(a)(5) and 
(8) of the CPSA, 15 U.S.C. 2052(a)(5) and (8). Johnson Health Tech was 
a ``manufacturer'' and ``retailer'' of the Trainers, as such terms are 
defined in sections 3(a)(11) and (13) of the CPSA, 15 U.S.C. 
2052(a)(11) and (13).
    7. The Trainers contain a defect which could create a substantial 
product hazard and create an unreasonable risk of serious injury or 
death because moisture from perspiration or cleaning liquids can build 
up in the Trainers' power socket, causing a short circuit. This poses a 
fire hazard.
    8. Between March 2012 and October 2013, Johnson Health Tech 
received incident reports of smoking, sparking, fire, and melted power 
components involving the Trainers. No property damage or injuries were 
reported.
    9. In response to these incident reports, Johnson Health Tech 
implemented two design changes to remedy the defect and unreasonable 
risk of serious injury or death associated with the Trainers.
    10. Despite having obtained information that the Trainers contained 
a defect or created an unreasonable risk, Johnson Health Tech did not 
notify the Commission immediately of such defect or risk, as required 
by sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. 2064(b)(3) and (4).
    11. In failing to inform the Commission immediately about the 
Trainers, Johnson Health Tech 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).
    12. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Johnson 
Health Tech is subject to civil penalties for its knowing violation of 
section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).

Response of Johnson Health Tech

    13. This agreement does not constitute an admission by Johnson 
Health Tech to the staff's charges set forth in paragraphs 5 through 12 
above, including, but not limited to, the charge that the Trainers 
contained a defect that could create a substantial product hazard or 
created an unreasonable risk of serious injury or death; that Johnson 
Health Tech failed to notify the Commission in a timely manner, in 
accordance with Section 15(b) of the CPSA, 15 U.S.C. 2064(b); and that 
there was any ``knowing'' violation of the CPSA as that term is defined 
in 15 U.S.C. 2069(d).
    14. Johnson Health Tech enters into this Agreement to settle this 
matter without the delay and expense of litigation. Johnson Health Tech 
enters into this Agreement and agrees to pay the amount referenced 
below in compromise of the staff's charges.
    15. JHTNA voluntarily notified the Commission in connection with 
the Trainers. JHTNA is not aware of any report of injury or property 
damage associated with the Trainers and reported issue but carried out 
a voluntary recall in cooperation with the Commission.
    16. At all relevant times, JHTNA had a product safety compliance 
program, including dedicated quality control/product safety personnel 
and appropriate product safety testing.

Agreement of the Parties

    17. Under the CPSA, the Commission has jurisdiction over the matter 
involving the Trainers and over JHTNA. JHT has agreed to a limited 
waiver of jurisdictional defenses solely for the purpose of entering 
into this Settlement Agreement.
    18. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Johnson Health 
Tech or a determination by the Commission that Johnson Health Tech 
violated the CPSA's reporting requirements.
    19. In settlement of staff's charges, and to avoid the cost, 
distraction, delay, uncertainty, and inconvenience of protracted 
litigation or other proceedings, Johnson Health Tech shall pay a civil 
penalty in the amount of three million dollars ($3,000,000) within 
thirty (30) calendar days after receiving service of the Commission's 
final Order accepting the Agreement. All payments to be made under the 
Agreement shall constitute debts owing to the United States and shall 
be made by electronic wire transfer to the United States via: https://www.pay.gov for allocation to and credit against the payment 
obligations of Johnson Health Tech under this Agreement. Failure to 
make such payment by the date

[[Page 49993]]

specified in the Commission's final Order shall constitute Default.
    20. All unpaid amounts, if any, due and owing under the Agreement 
shall constitute a debt due and immediately owing by Johnson Health 
Tech to the United States, and interest shall accrue and be paid by 
Johnson Health Tech at the federal legal rate of interest set forth at 
28 U.S.C. 1961(a) and (b) from the date of Default until all amounts 
due have been paid in full (hereinafter ``Default Payment Amount'' and 
``Default Interest Balance''). Johnson Health Tech shall consent to a 
Consent Judgment in the amount of the Default Payment Amount and 
Default Interest Balance, and the United States, at its sole option, 
may collect the entire Default Payment Amount and Default Interest 
Balance or exercise any other rights granted by law or in equity, 
including but not limited to referring such matters for private 
collection, and Johnson Health Tech agrees not to contest, and hereby 
waives and discharges any defenses to, any collection action undertaken 
by the United States or its agents or contractors pursuant to this 
paragraph. Johnson Health Tech shall pay the United States all 
reasonable costs of collection and enforcement under this paragraph, 
respectively, including reasonable attorney's fees and expenses.
    21. After staff receives this Agreement executed on behalf of 
Johnson Health Tech, staff shall promptly submit the Agreement to the 
Commission for provisional acceptance. Promptly following provisional 
acceptance of the Agreement by the Commission, 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). 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 16th calendar day after the date the 
Agreement is published in the Federal Register, in accordance with 16 
CFR 1118.20(f).
    22. This Agreement is conditioned upon, and subject to, the 
Commission's final acceptance, as set forth above, and it is subject to 
the provisions of 16 CFR 1118.20(h). Upon the later of: (i) 
Commission's final acceptance of this Agreement and service of the 
accepted Agreement upon Johnson Health Tech, and (ii) the date of 
issuance of the final Order, this Agreement shall be in full force and 
effect and shall be binding upon the parties.
    23. Effective upon the later of: (i) The Commission's final 
acceptance of the Agreement and service of the accepted Agreement upon 
Johnson Health Tech, and (ii) and the date of issuance of the final 
Order, for good and valuable consideration, Johnson Health Tech hereby 
expressly and irrevocably waives and agrees not to assert any past, 
present, or future rights to the following, in connection with the 
matter described in this Agreement: (i) An administrative or judicial 
hearing; (ii) judicial review or other challenge or contest of the 
Commission's actions; (iii) a determination by the Commission of 
whether Johnson Health Tech failed to comply with the CPSA and the 
underlying regulations; (iv) a statement of findings of fact and 
conclusions of law; and (v) any claims under the Equal Access to 
Justice Act.
    24. JHTNA has, and shall maintain, a program designed to ensure 
compliance with the CPSA with respect to any consumer product imported, 
manufactured, distributed, or sold by JHTNA. This program contains, or 
will be modified to include, the following elements:

    a. written standards and policies;
    b. written procedures that provide for the appropriate forwarding 
to compliance personnel and the product hazard incident review 
committee of all information that may relate to, or impact, CPSA 
compliance including all reports and complaints involving consumer 
products, whether an injury is referenced or not;
    c. a mechanism for confidential employee reporting of compliance-
related questions or concerns to either a compliance officer or to 
another senior manager with authority to act as necessary;
    d. effective communication of company compliance-related policies 
and procedures regarding the CPSA to all applicable employees through 
training programs or otherwise;
    e. JHTNA senior management responsibility for CPSA compliance and 
for violations of the statutes and regulations enforced by the 
Commission;
    f. board oversight of CPSA compliance; and
    g. retention of all CPSA compliance-related records for at least 
five (5) years, and availability of such records to staff upon 
reasonable request.

    25. JHTNA shall implement, maintain, and enforce a system of 
internal controls and procedures designed to ensure that, with respect 
to all consumer products imported, manufactured, distributed, or sold 
by JHTNA:

    a. information required to be disclosed by JHTNA to the Commission 
is recorded, processed, and reported in accordance with applicable law;
    b. all reporting made to the Commission is timely, truthful, 
complete, accurate, and in accordance with applicable law; and
    c. prompt disclosure is made to JHTNA's management of any 
significant deficiencies or material weaknesses in the design or 
operation of such internal controls that are reasonably likely to 
affect adversely, in any material respect, JHTNA's ability to record, 
process, and report to the Commission in accordance with applicable 
law.

    26. Upon reasonable request of staff, JHTNA shall provide written 
documentation of its internal controls and procedures, including, but 
not limited to, the effective dates of the procedures and improvements 
thereto. JHTNA shall cooperate fully and truthfully with staff and 
shall make available all non-privileged information and materials, and 
personnel deemed necessary by staff to evaluate JHTNA's compliance with 
the terms of the Agreement.
    27. The parties acknowledge and agree that the Commission may 
publicize the terms of the Agreement and the Order.
    28. Johnson Health Tech represents that the Agreement: (i) Is 
entered into freely and voluntarily, without any degree of duress or 
compulsion whatsoever; (ii) has been duly authorized; and (iii) 
constitutes the valid and binding obligation of Johnson Health Tech, 
enforceable against Johnson Health Tech in accordance with its terms. 
Johnson Health Tech will not directly or indirectly receive any 
reimbursement, indemnification, insurance-related payment, or other 
payment in connection with the civil penalty to be paid by Johnson 
Health Tech pursuant to the Agreement and Order. The individuals 
signing the Agreement on behalf of Johnson Health Tech represent and 
warrant that they are duly authorized by Johnson Health Tech to execute 
the Agreement.
    29. The signatories represent that they are authorized to execute 
this Agreement.
    30. The Agreement is governed by the laws of the United States.
    31. The Agreement and the Order shall apply to, and be binding 
upon, Johnson Health Tech and each of its

[[Page 49994]]

successors, transferees, and assigns, and a violation of the Agreement 
or Order may subject Johnson Health Tech, and each of its successors, 
transferees, and assigns, to appropriate legal action.
    32. The Agreement and the Order constitute the complete agreement 
between the parties on the subject matter contained therein.
    33. 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. For purposes of construction, the 
Agreement shall be deemed to have been drafted by both of the parties 
and shall not, therefore, be construed against any party for that 
reason in any subsequent dispute.
    34. The Agreement may not be waived, amended, modified, or 
otherwise altered, except as in accordance with the provisions of 16 
CFR 1118.20(h). The Agreement may be executed in counterparts.
    35. If any provision of the Agreement or 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 Johnson Health Tech agree in writing that severing the provision 
materially affects the purpose of the Agreement and the Order.

Johnson Health Tech Co. LTD.

Dated: July 31, 2015
By:--------------------------------------------------------------------
Jason Lo
Chief Executive Officer
Johnson Health Tech Co. Ltd.
#999, Sec. 2, DongDa Rd., Ta-Ya Dist.
Taichung City, 428, Taiwan

Johnson Health Tech North America, Inc.

Dated: July 31, 2015
By:--------------------------------------------------------------------
Nathan Pyles
President
Johnson Health Tech North America, Inc.
1600 Landmark Drive
Cottage Grove, WI 53527

Dated: July 29, 2015
By:--------------------------------------------------------------------
Matthew R. Howsare
Counsel to Johnson Health Tech North America, Inc.
Mintz Levin
701 Pennsylvania Avenue NW, Suite 900
Washington, DC 20004

U.S. Consumer Product Safety Commission

Stephanie Tsacoumis
General Counsel

Mary T. Boyle
Deputy General Counsel

Mary B. Murphy
Assistant General Counsel

Dated: July 31, 2015
By:--------------------------------------------------------------------
Gregory M. Reyes
Trial Attorney
Division of Compliance
Office of the General Counsel

United States of America Consumer Product Safety Commission

In the Matter of: Johnson Health Tech Co. LTD. and Johnson Health 
Tech North America, Inc.

CPSC Docket No.: 15-C0006

Order

    Upon consideration of the Settlement Agreement entered into between 
Johnson Health Tech Co. Ltd. and Johnson Health Tech North America, 
Inc. (``Johnson Health Tech''), and the U.S. Consumer Product Safety 
Commission (``Commission''), and the Commission having jurisdiction 
over the subject matter and over Johnson Health Tech, and it appearing 
that the Settlement Agreement and the Order are in the public interest, 
it is:
    ORDERED that the Settlement Agreement be, and is, hereby, accepted; 
and it is
    FURTHER ORDERED that Johnson Health Tech shall comply with the 
terms of the Settlement Agreement and shall pay a civil penalty in the 
amount of three million dollars ($3,000,000) within thirty (30) days 
after service of the Commission's final Order accepting the Settlement 
Agreement. The payment shall be made by electronic wire transfer to the 
Commission via: https://www.pay.gov. Upon the failure of Johnson Health 
Tech to make the foregoing payment when due, interest on the unpaid 
amount shall accrue and be paid by Johnson Health Tech at the federal 
legal rate of interest set forth at 28 U.S.C. 1961(a) and (b). If 
Johnson Health Tech fails to make such payment or to comply in full 
with any other provision of the Settlement Agreement, such conduct will 
be considered a violation of the Settlement Agreement and Order.

Provisionally accepted and provisional Order issued on the 13th day 
of August, 2015.

By Order of the Commission:

-----------------------------------------------------------------------
Todd A. Stevenson, Secretary
U.S. Consumer Product Safety Commission

[FR Doc. 2015-20332 Filed 8-17-15; 8:45 am]
BILLING CODE 6355-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.