Clawfoot Supply, LLC, 57486-57489 [2022-20292]
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57486
Federal Register / Vol. 87, No. 181 / Tuesday, September 20, 2022 / Notices
mammal species is expected to result
from this activity, and none would be
authorized. Therefore, NMFS has
determined that consultation under
section 7 of the ESA is not required for
this action.
Proposed Renewal IHA and Request for
Public Comment
As a result of these preliminary
determinations, NMFS proposes to issue
a renewal IHA to the Navy for
conducting the Naval Base San Diego
Pier 6 Replacement Project in San
Diego, California, effective through
September 30, 2023, provided the
previously described mitigation,
monitoring, and reporting requirements
are incorporated. A draft of the
proposed and final initial IHA can be
found at https://
www.fisheries.noaa.gov/permit/
incidental-take-authorizations-undermarine-mammal-protection-act. We
request comment on our analyses, the
proposed renewal IHA, and any other
aspect of this Notice. Please include
with your comments any supporting
data or literature citations to help
inform our final decision on the request
for MMPA authorization.
Dated: September 14, 2022.
Kimberly Damon-Randall,
Director, Office of Protected Resources,
National Marine Fisheries Service.
COMMODITY FUTURES TRADING
COMMISSION
Sunshine Act Meetings
10:30 a.m. EDT,
Thursday, September 22, 2022.
PLACE: CFTC headquarters office,
Washington, DC.
STATUS: Closed.
MATTERS TO BE CONSIDERED:
Enforcement matters. In the event that
the time, date, or location of this
meeting changes, an announcement of
the change, along with the new time,
date, and/or place of the meeting will be
posted on the Commission’s website at
https://www.cftc.gov/.
CONTACT PERSON FOR MORE INFORMATION:
Christopher Kirkpatrick, 202–418–5964.
Authority: 5 U.S.C. 552b.
TIME AND DATE:
Dated: September 16, 2022.
Christopher Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2022–20483 Filed 9–16–22; 4:15 pm]
BILLING CODE 6351–01–P
CONSUMER PRODUCT SAFETY
COMMISSION
[CPSC Docket No. 22–C0005]
Clawfoot Supply, LLC
Consumer Product Safety
Commission.
ACTION: Notice.
AGENCY:
[FR Doc. 2022–20265 Filed 9–19–22; 8:45 am]
BILLING CODE 3510–22–P
The Commission publishes in
the Federal Register any settlement that
it provisionally accepts under the
Consumer Product Safety Act.
Published below is a provisionally
accepted Settlement Agreement with
Clawfoot Supply, LLC containing a civil
penalty in the amount of six million
($6,000,000), subject to the terms and
conditions of the Settlement Agreement.
The Commission voted unanimously (5–
0) to provisionally accept the proposed
Settlement Agreement and Order
pertaining to Clawfoot Supply, LLC.
Commissioner Feldman issued a
statement with his vote which can be
found here: https://www.CPSC.gov.
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 October 5,
2022.
ADDRESSES: Persons wishing to
comment on this Settlement Agreement
should send written comments to
Comment 22–C0005, Office of the
Secretary, Consumer Product Safety
Commission, 4330 East West Highway,
SUMMARY:
COMMODITY FUTURES TRADING
COMMISSION
Sunshine Act Meetings
10:30 a.m. EDT,
Wednesday, September 21, 2022.
PLACE: CFTC headquarters office,
Washington, DC.
STATUS: Closed.
MATTERS TO BE CONSIDERED:
Enforcement matters. In the event that
the time, date, or location of this
meeting changes, an announcement of
the change, along with the new time,
date, and/or place of the meeting will be
posted on the Commission’s website at
https://www.cftc.gov/.
CONTACT PERSON FOR MORE INFORMATION:
Christopher Kirkpatrick, 202–418–5964.
Authority: 5 U.S.C. 552b.
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TIME AND DATE:
Dated: September 16, 2022.
Christopher Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2022–20482 Filed 9–16–22; 4:15 pm]
BILLING CODE 6351–01–P
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Bethesda, MD 20814; telephone: (240)
863–8938 (mobile), (301) 504–7479
(office); email: cpsc-os@cpsc.gov.
FOR FURTHER INFORMATION CONTACT:
Madeleine Mietus, Trial Attorney,
Division, of Enforcement and Litigation,
Office of Compliance and Field
Operations, Consumer Product, Safety
Commission, 4330 East West Highway,
Bethesda, Maryland 20814–4408;
mmieuts@cpsc.gov.
SUPPLEMENTARY INFORMATION: The text of
the Agreement and Order appears
below.
Dated: September 15, 2022.
Alberta E. Mills,
Secretary.
United States of America
Consumer Product Safety Commission
In the Matter of: CLAWFOOT
SUPPLY, LLC
CPSC Docket No.: 22–C0005
Settlement Agreement
1. In accordance with the Consumer
Product Safety Act (‘‘CPSA’’), 15 U.S.C.
2051–2089, and 16 CFR 1118.20,
Clawfoot Supply, LLC (‘‘Clawfoot
Supply’’) 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. Clawfoot Supply is a wholly owned
subsidiary of Ferguson Enterprises, LLC
(‘‘Ferguson Enterprises’’) and is
organized and existing under the laws of
the state of Kentucky, with its principal
place of business in Erlanger, Kentucky.
Staff Charges
4. Between 2011 and 2018, Clawfoot
Supply imported, distributed, and
offered for sale approximately 7,200
Wall-Mounted Teak Folding Shower
Seats (‘‘Shower Seats’’ or ‘‘Subject
Products’’).
5. The Shower Seats are ‘‘consumer
products’’ that were ‘‘distribut[ed] 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), (8).
Clawfoot Supply is a ‘‘manufacturer’’
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and ‘‘distributor’’ of the Subject
Products, as such terms are defined in
sections 3(a)(7) and (11) of the CPSA, 15
U.S.C. 2052(a)(7), (11).
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Violation of CPSA Section 19(a)(4)
6. The Shower Seats contain a defect
which could create a substantial
product hazard and create an
unreasonable risk of serious injury or
death because the aluminum hardware
supporting the Shower Seat can corrode
and break, posing fall and laceration
hazards.
7. Between 2011 and 2018, Clawfoot
Supply received multiple reports of
corrosion and breakage with the Shower
Seats, including reports of consumers
who were injured when they were
sitting on the Shower Seat when it
failed.
8. During 2015, Clawfoot Supply
initiated a design change to strengthen
the support rods of the Shower Seats. In
late 2015 through early 2016, Clawfoot
Supply contacted consumers to advise
them of the potential defect and
corrosion problem occurring with the
Shower Seats.
9. Despite possessing information that
reasonably supported the conclusion
that the Subject Products contained a
defect that could create a substantial
product hazard or created an
unreasonable risk of serious injury or
death, Clawfoot Supply did not
immediately report to the Commission.
10. After the acquisition of Clawfoot
Supply by Ferguson Enterprises,
Clawfoot Supply’s compliance program
was enhanced in Spring 2018. It was at
this time that Ferguson Enterprises
learned of the corrosion issue.
11. In July 2018, Clawfoot Supply
filed an Initial Report with the
Commission and filed a Full Report in
August 2018 under 15 U.S.C. 2064(b)
concerning the Shower Seats.
12. Clawfoot Supply and the
Commission jointly announced a recall
of the Shower Seats on December 4,
2018. The press release announcing the
recall stated that the aluminum
hardware supporting the Shower Seats
can corrode, posing fall and laceration
hazards. The release noted that 194
incidents of the seat breaking, including
37 incidents of falls without injury and
23 injuries had been reported.
Failure to Timely Report
13. Despite having information
reasonably supporting the conclusion
that the Subject Products contained a
defect or created an unreasonable risk of
serious injury or death, Clawfoot Supply
did not notify the Commission
immediately of such defect or risk, as
required by sections 15(b)(3) and (4) of
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the CPSA, 15 U.S.C. 2064(b)(3), (4), in
violation of section 19(a)(4) of the
CPSA, 15 U.S.C. 2068(a)(4).
14. Because the information in
Clawfoot Supply’s possession about the
Subject Products constituted actual and
presumed knowledge, Clawfoot Supply
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).
15. Pursuant to section 20 of the
CPSA, 15 U.S.C. 2069, Clawfoot Supply
is subject to civil penalties for its
knowing violation of section 19(a)(4) of
the CPSA, 15 U.S.C. 2068(a)(4).
Compliance Program and Internal
Controls Reports
16. Failure to make timely and
accurate reports pursuant to CPSA
section 16(b), as required by paragraph
27 of this Agreement and Order may
constitute a violation of Section 19(a)(3)
of the CPSA.
Response of Clawfoot Supply
17. This Agreement does not
constitute an admission by Clawfoot
Supply of the staff’s charges set forth in
paragraphs 4 through 16 above,
including without limitation that the
Subject Products contained a defect that
could create a substantial product
hazard or created an unreasonable risk
of serious injury or death, that Clawfoot
Supply failed to notify the Commission
in a timely matter in accordance with
section 15(b) of the CPSA, 15 U.S.C.
2064(b), and that Clawfoot Supply
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).
18. Clawfoot Supply enters into this
Agreement to settle this matter without
the delay and unnecessary expense of
litigation. Clawfoot Supply does not
admit that it violated the CPSA or any
other law, and Clawfoot Supply’s
willingness to enter into this Agreement
and Order does not constitute, nor is it
evidence of, an admission by Clawfoot
Supply of liability or violation of any
law.
Agreement of the Parties
19. Under the CPSA, the Commission
has jurisdiction over the matter
involving the Subject Products and over
Clawfoot Supply.
20. The parties enter into the
Agreement for settlement purposes only.
The Agreement does not constitute an
admission by Clawfoot Supply or a
determination by the Commission that
Clawfoot Supply violated the CPSA’s
reporting requirements.
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21. In settlement of staff’s charges,
and to avoid the cost, distraction, delay,
uncertainty, and inconvenience of
protracted litigation or other
proceedings, Clawfoot Supply shall pay
a civil penalty in the amount of six
million dollars ($6,000,000) 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 Clawfoot Supply under
this Agreement. Failure to make such
payment by the date specified in the
Commission’s final Order shall
constitute Default.
22. All unpaid amounts, if any, due
and owing under the Agreement, shall
constitute a debt due and immediately
owing by Clawfoot Supply to the United
States, and interest shall accrue and be
paid by Clawfoot Supply 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’’). Clawfoot Supply 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 Clawfoot Supply 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.
Clawfoot Supply shall pay the United
States all reasonable costs of collection
and enforcement under this paragraph,
respectively, including reasonable
attorney’s fees and expenses.
23. After staff receives this Agreement
executed on behalf of Clawfoot Supply,
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
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calendar day after the date the
Agreement is published in the Federal
Register, in accordance with 16 CFR
1118.20(f).
24. 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) the
Commission’s final acceptance of this
Agreement and service of the accepted
Agreement upon Clawfoot Supply, 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.
25. Effective upon the later of: (i) the
Commission’s final acceptance of the
Agreement and service of the accepted
Agreement upon Clawfoot Supply and
(ii) the date of issuance of the final
Order, for good and valuable
consideration, Clawfoot Supply 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 Clawfoot
Supply 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.
26. Clawfoot Supply shall maintain a
compliance program and a system of
internal controls and procedures
designed to ensure compliance with the
CPSA with respect to any consumer
product imported, manufactured,
distributed, or sold by Clawfoot Supply,
and which shall contain the following
elements:
(i) written standards, policies, and
procedures, including those designed to
ensure that information that may relate
to or impact CPSA compliance is
conveyed effectively to personnel
responsible for CPSA compliance,
whether or not an injury has been
reported;
(ii) procedures for reviewing claims
and reports for safety concerns and for
implementing corrective and preventive
actions when compliance deficiencies
or violations are identified;
(iii) procedures requiring that
information required to be disclosed by
Clawfoot Supply to the Commission is
recorded, processed and reported in
accordance with applicable law;
(iv) procedures requiring that all
reporting made to the Commission is
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timely, truthful, complete, accurate and
in accordance with applicable law;
(v) procedures requiring that
immediate disclosure is made to
Clawfoot Supply’s senior management
of any significant deficiencies or
material weaknesses in the design or
operation of such compliance program
or internal controls that affect adversely,
in any material respect, Clawfoot
Supply’s ability to record, process and
report to the Commission in accordance
with applicable law;
(vi) mechanisms to effectively
communicate to all applicable Clawfoot
Supply’s employees through training
programs or other means, compliance
related company policies and
procedures to prevent violations of the
CPSA;
(vii) 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;
(viii) Clawfoot Supply’s senior
management responsibility for CPSA
compliance; and
(ix) retention of all CPSA compliancerelated records for at least five (5) years,
and availability of such records to CPSC
staff upon request.
27. The Firm shall submit a report
sworn to under penalty of perjury:
(i) describing in detail its compliance
program and internal controls and the
actions the Firm has taken to comply
with each subparagraph of paragraph
26,
(ii) affirming that during the reporting
period the Firm has reviewed its
compliance program and internal
controls including the actions
referenced in subparagraph (i) of this
paragraph for effectiveness, and that it
complies with each subparagraph of
paragraph 26 or describing in detail any
non-compliance with any such
subparagraph, and
(iii) identifying any changes or
modifications made during the reporting
period to the Firm’s compliance
program or internal controls to ensure
compliance with the terms of the CPSA
and in particular, the requirements of
CPSA Section 15 related to timely
reporting.
Such reports shall be submitted
annually to the Director, Office of
Compliance, Division of Enforcement
and Litigation, for a period of 3 years
beginning 12 months after the
Commission’s Final Order of
Acceptance of the Agreement. The first
report shall be submitted 30 days after
the close of the first 12-month reporting
period, and successive reports shall be
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due annually on the same date
thereafter.
28. Notwithstanding and in addition
to the above, upon request of staff,
Clawfoot Supply shall promptly provide
to CPSC written documentation
identifying any material changes or
improvements to the Firm’s compliance
program or internal controls and the
effective date of those changes or
improvements. Clawfoot Supply shall
cooperate fully and truthfully with staff
and shall make available all nonprivileged information and materials,
and any personnel deemed necessary by
staff, to evaluate Clawfoot Supply’s
compliance with the terms of the
Agreement.
29. The parties acknowledge and
agree that the Commission may
publicize the terms of the Agreement
and the Order.
30. Clawfoot Supply 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 Clawfoot Supply,
enforceable against Clawfoot Supply in
accordance with its terms. The
individuals signing the Agreement on
behalf of Clawfoot Supply represent and
warrant that they are duly authorized by
Clawfoot Supply to execute the
Agreement.
31. The signatories represent that they
are authorized to execute this
Agreement.
32. The Agreement is governed by the
laws of the United States.
33. The Agreement and the Order
shall apply to, and be binding upon,
Clawfoot Supply and each of its
successors, transferees, and assigns; and
a violation of the Agreement or Order
may subject Clawfoot Supply, and each
of its successors, transferees, and
assigns, to appropriate legal action.
34. The Agreement and the Order
constitute the complete agreement
between the parties on the subject
matter contained therein.
35. 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.
36. The Agreement may not be
waived, amended, modified, or
otherwise altered, except as in
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accordance with the provisions of 16
CFR 1118.20(h). The Agreement may be
executed in counterparts.
37. 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 Clawfoot
Supply agree in writing that severing
the provision materially affects the
purpose of the Agreement and the
Order.
Clawfoot Supply, LLC
Dated: 8/16/2022
By: /s/ lllllllllllllllll
Keith Hammond,
Clawfoot Supply, LLC, President.
Dated: 8/15/2022
By: /s/ lllllllllllllllll
Jennifer Karmonick,
Counsel to Clawfoot Supply, LLC.
U.S. Consumer Product Safety Commission
Dated: 8/16/2022
By: /s/ lllllllllllllllll
Madeleine Mietus,
Trial Attorney, Office of Compliance and
Field Operations.
United States of America
Consumer Product Safety Commission
In the Matter of: CLAWFOOT
SUPPLY, LLC
CPSC Docket No.: 22–C0005
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Order
Upon consideration of the Settlement
Agreement entered into between
Clawfoot Supply, LLC (‘‘Clawfoot
Supply’’) and the U.S. Consumer
Product Safety Commission
(‘‘Commission’’), and the Commission
having jurisdiction over the subject
matter and over Clawfoot Supply, and it
appearing that the Settlement
Agreement is in the public interest, the
Settlement Agreement is incorporated
by reference and it is:
COUNCIL OF THE INSPECTORS
GENERAL ON INTEGRITY AND
EFFICIENCY
Senior Executive Service Performance
Review Board Membership
Council of the Inspectors
General on Integrity and Efficiency.
ACTION: Notice.
AGENCY:
DATES:
Applicable October 1, 2022.
FOR FURTHER INFORMATION CONTACT:
Individual Offices of Inspectors General
at the telephone numbers listed below.
SUPPLEMENTARY INFORMATION:
I. Background
The Inspector General Act of 1978, as
amended, created the Offices of
Inspectors General as independent and
objective units to conduct and supervise
audits and investigations relating to
Federal programs and operations. The
Inspector General Reform Act of 2008
established the Council of the Inspectors
General on Integrity and Efficiency
(CIGIE) to address integrity, economy,
and effectiveness issues that transcend
individual Government agencies; and
increase the professionalism and
effectiveness of personnel by developing
policies, standards, and approaches to
aid in the establishment of a welltrained and highly skilled workforce in
the Offices of Inspectors General. CIGIE
is an interagency council whose
executive chair is the Deputy Director
for Management, Office of Management
and Budget, and is comprised
principally of the 75 Inspectors General
(IGs).
II. CIGIE Performance Review Board
Under 5 U.S.C. 4314(c)(1)–(5), and in
accordance with regulations prescribed
by the Office of Personnel Management,
each agency is required to establish one
or more Senior Executive Service (SES)
performance review boards. The
purpose of these boards is to review and
evaluate the initial appraisal of a senior
executive’s performance by the
Provisionally accepted and provisional
supervisor, along with any
Order issued on the 13th day of September,
recommendations to the appointing
2022.
authority relative to the performance of
By Order of the Commission:
the senior executive. The current
lllllllllllllllllllll
members of the Council of the
Alberta Mills, Secretary U.S. Consumer
Inspectors General on Integrity and
Product Safety Commission.
Efficiency Performance Review Board,
Finally accepted and final Order issued on
as of October 1, 2022, are as follows:
the __ day of ____, 2022.
By Order of the Commission:
lllllllllllllllllllll
Alberta Mills, Secretary U.S. Consumer
Product Safety Commission
[FR Doc. 2022–20292 Filed 9–19–22; 8:45 am]
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Agency for International Development
Phone Number: (202) 712–1150
CIGIE Liaison—Nicole Angarella (202) 712–
4630
Nicole Angarella—Acting Deputy Inspector
General.
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57489
Justin Brown—Counselor to the Inspector
General (SL).
Suzann Gallaher—Assistant Inspector
General for Investigations.
Marc Meyer—Deputy Assistant Inspector
General for Investigations.
Toayoa Aldridge—Assistant Inspector
General for Audit.
Alvin A. Brown—Deputy Assistant
Inspector General for Audit.
Sabrina Ferguson-Ward—Assistant
Inspector General for Management.
Will Young—Deputy Assistant Inspector
General for Management.
Department of Agriculture
Phone Number: (202) 720–8001
CIGIE Liaison—Angel N. Bethea (202) 720–
8001
Ann M. Coffey—Deputy Inspector General.
Steven H. Rickrode, Jr.—Deputy Assistant
Inspector General for Audit.
Yarisis Rivera Rojas—Deputy Assistant
Inspector General for Audit.
Kevin Tyrrell—Assistant Inspector General
for Investigation.
Virginia E.B. Rone—Assistant Inspector
General for Analytics and Innovation.
Department of Commerce
Phone Number: (202) 280–8374
CIGIE Liaison—Jacqueline G. Ruley (202)
280–8374
Roderick M. Anderson—Deputy Inspector
General.
Richard L. Bachman—Assistant Inspector
General for Audit and Evaluation.
E. Wade Green—Counsel to the Inspector
General.
Robert O. Johnston, Jr.—Chief of Staff.
Scott M. Kieffer—Assistant Inspector
General for Investigations.
Frederick J. Meny—Assistant Inspector
General for Audit & Evaluation.
Arthur L. Scott, Jr.—Assistant Inspector
General for Audit and Evaluation.
Mark H. Zabarsky—Principle Assistant
Inspector General for Audit and Evaluation.
Council of the Inspectors General on
Integrity and Efficiency
Phone Number: (202) 292–2600
CIGIE Liaison—Denise Mangra (202) 510–
5409
Alan F. Boehm—Executive Director.
Douglas Holt—Executive Director, CIGIE
Training Institute.
Department of Defense
Phone Number: (703) 604–8324
Acting CIGIE Liaison—Crystal Johnson (703)
601–3149
Leo J. Fitzharris IV—Assistant IG for
Strategic Planning and Performance.
Marguerite C. Garrison—Deputy Inspector
General for Administrative Investigations.
Carol N. Gorman—Assistant Inspector
General for Readiness and Cyber Operations.
Paul Hadjiyane—General Counsel.
Theresa S. Hull—Assistant Inspector
General for Acquisition and Sustainment
Management.
James R. Ives—Deputy Inspector General
for Overseas Contingency Operations.
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]]>Agencies
[Federal Register Volume 87, Number 181 (Tuesday, September 20, 2022)]
[Notices]
[Pages 57486-57489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-20292]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 22-C0005]
Clawfoot Supply, LLC
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
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SUMMARY: The Commission publishes in the Federal Register any
settlement that it provisionally accepts under the Consumer Product
Safety Act. Published below is a provisionally accepted Settlement
Agreement with Clawfoot Supply, LLC containing a civil penalty in the
amount of six million ($6,000,000), subject to the terms and conditions
of the Settlement Agreement. The Commission voted unanimously (5-0) to
provisionally accept the proposed Settlement Agreement and Order
pertaining to Clawfoot Supply, LLC. Commissioner Feldman issued a
statement with his vote which can be found here: https://www.CPSC.gov.
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 October 5, 2022.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to Comment 22-C0005, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Bethesda, MD 20814; telephone: (240) 863-8938 (mobile), (301) 504-7479
(office); email: [email protected].
FOR FURTHER INFORMATION CONTACT: Madeleine Mietus, Trial Attorney,
Division, of Enforcement and Litigation, Office of Compliance and Field
Operations, Consumer Product, Safety Commission, 4330 East West
Highway, Bethesda, Maryland 20814-4408; [email protected].
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: September 15, 2022.
Alberta E. Mills,
Secretary.
United States of America
Consumer Product Safety Commission
In the Matter of: CLAWFOOT SUPPLY, LLC
CPSC Docket No.: 22-C0005
Settlement Agreement
1. In accordance with the Consumer Product Safety Act (``CPSA''),
15 U.S.C. 2051-2089, and 16 CFR 1118.20, Clawfoot Supply, LLC
(``Clawfoot Supply'') 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. Clawfoot Supply is a wholly owned subsidiary of Ferguson
Enterprises, LLC (``Ferguson Enterprises'') and is organized and
existing under the laws of the state of Kentucky, with its principal
place of business in Erlanger, Kentucky.
Staff Charges
4. Between 2011 and 2018, Clawfoot Supply imported, distributed,
and offered for sale approximately 7,200 Wall-Mounted Teak Folding
Shower Seats (``Shower Seats'' or ``Subject Products'').
5. The Shower Seats are ``consumer products'' that were
``distribut[ed] 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), (8).
Clawfoot Supply is a ``manufacturer''
[[Page 57487]]
and ``distributor'' of the Subject Products, as such terms are defined
in sections 3(a)(7) and (11) of the CPSA, 15 U.S.C. 2052(a)(7), (11).
Violation of CPSA Section 19(a)(4)
6. The Shower Seats contain a defect which could create a
substantial product hazard and create an unreasonable risk of serious
injury or death because the aluminum hardware supporting the Shower
Seat can corrode and break, posing fall and laceration hazards.
7. Between 2011 and 2018, Clawfoot Supply received multiple reports
of corrosion and breakage with the Shower Seats, including reports of
consumers who were injured when they were sitting on the Shower Seat
when it failed.
8. During 2015, Clawfoot Supply initiated a design change to
strengthen the support rods of the Shower Seats. In late 2015 through
early 2016, Clawfoot Supply contacted consumers to advise them of the
potential defect and corrosion problem occurring with the Shower Seats.
9. Despite possessing information that reasonably supported the
conclusion that the Subject Products contained a defect that could
create a substantial product hazard or created an unreasonable risk of
serious injury or death, Clawfoot Supply did not immediately report to
the Commission.
10. After the acquisition of Clawfoot Supply by Ferguson
Enterprises, Clawfoot Supply's compliance program was enhanced in
Spring 2018. It was at this time that Ferguson Enterprises learned of
the corrosion issue.
11. In July 2018, Clawfoot Supply filed an Initial Report with the
Commission and filed a Full Report in August 2018 under 15 U.S.C.
2064(b) concerning the Shower Seats.
12. Clawfoot Supply and the Commission jointly announced a recall
of the Shower Seats on December 4, 2018. The press release announcing
the recall stated that the aluminum hardware supporting the Shower
Seats can corrode, posing fall and laceration hazards. The release
noted that 194 incidents of the seat breaking, including 37 incidents
of falls without injury and 23 injuries had been reported.
Failure to Timely Report
13. Despite having information reasonably supporting the conclusion
that the Subject Products contained a defect or created an unreasonable
risk of serious injury or death, Clawfoot Supply 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), (4), in violation
of section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).
14. Because the information in Clawfoot Supply's possession about
the Subject Products constituted actual and presumed knowledge,
Clawfoot Supply 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).
15. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Clawfoot
Supply is subject to civil penalties for its knowing violation of
section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).
Compliance Program and Internal Controls Reports
16. Failure to make timely and accurate reports pursuant to CPSA
section 16(b), as required by paragraph 27 of this Agreement and Order
may constitute a violation of Section 19(a)(3) of the CPSA.
Response of Clawfoot Supply
17. This Agreement does not constitute an admission by Clawfoot
Supply of the staff's charges set forth in paragraphs 4 through 16
above, including without limitation that the Subject Products contained
a defect that could create a substantial product hazard or created an
unreasonable risk of serious injury or death, that Clawfoot Supply
failed to notify the Commission in a timely matter in accordance with
section 15(b) of the CPSA, 15 U.S.C. 2064(b), and that Clawfoot Supply
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).
18. Clawfoot Supply enters into this Agreement to settle this
matter without the delay and unnecessary expense of litigation.
Clawfoot Supply does not admit that it violated the CPSA or any other
law, and Clawfoot Supply's willingness to enter into this Agreement and
Order does not constitute, nor is it evidence of, an admission by
Clawfoot Supply of liability or violation of any law.
Agreement of the Parties
19. Under the CPSA, the Commission has jurisdiction over the matter
involving the Subject Products and over Clawfoot Supply.
20. The parties enter into the Agreement for settlement purposes
only. The Agreement does not constitute an admission by Clawfoot Supply
or a determination by the Commission that Clawfoot Supply violated the
CPSA's reporting requirements.
21. In settlement of staff's charges, and to avoid the cost,
distraction, delay, uncertainty, and inconvenience of protracted
litigation or other proceedings, Clawfoot Supply shall pay a civil
penalty in the amount of six million dollars ($6,000,000) 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 Clawfoot Supply under this Agreement. Failure to make
such payment by the date specified in the Commission's final Order
shall constitute Default.
22. All unpaid amounts, if any, due and owing under the Agreement,
shall constitute a debt due and immediately owing by Clawfoot Supply to
the United States, and interest shall accrue and be paid by Clawfoot
Supply 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''). Clawfoot Supply 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
Clawfoot Supply 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. Clawfoot
Supply shall pay the United States all reasonable costs of collection
and enforcement under this paragraph, respectively, including
reasonable attorney's fees and expenses.
23. After staff receives this Agreement executed on behalf of
Clawfoot Supply, 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
[[Page 57488]]
calendar day after the date the Agreement is published in the Federal
Register, in accordance with 16 CFR 1118.20(f).
24. 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) the
Commission's final acceptance of this Agreement and service of the
accepted Agreement upon Clawfoot Supply, 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.
25. Effective upon the later of: (i) the Commission's final
acceptance of the Agreement and service of the accepted Agreement upon
Clawfoot Supply and (ii) the date of issuance of the final Order, for
good and valuable consideration, Clawfoot Supply 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 Clawfoot Supply
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.
26. Clawfoot Supply shall maintain a compliance program and a
system of internal controls and procedures designed to ensure
compliance with the CPSA with respect to any consumer product imported,
manufactured, distributed, or sold by Clawfoot Supply, and which shall
contain the following elements:
(i) written standards, policies, and procedures, including those
designed to ensure that information that may relate to or impact CPSA
compliance is conveyed effectively to personnel responsible for CPSA
compliance, whether or not an injury has been reported;
(ii) procedures for reviewing claims and reports for safety
concerns and for implementing corrective and preventive actions when
compliance deficiencies or violations are identified;
(iii) procedures requiring that information required to be
disclosed by Clawfoot Supply to the Commission is recorded, processed
and reported in accordance with applicable law;
(iv) procedures requiring that all reporting made to the Commission
is timely, truthful, complete, accurate and in accordance with
applicable law;
(v) procedures requiring that immediate disclosure is made to
Clawfoot Supply's senior management of any significant deficiencies or
material weaknesses in the design or operation of such compliance
program or internal controls that affect adversely, in any material
respect, Clawfoot Supply's ability to record, process and report to the
Commission in accordance with applicable law;
(vi) mechanisms to effectively communicate to all applicable
Clawfoot Supply's employees through training programs or other means,
compliance related company policies and procedures to prevent
violations of the CPSA;
(vii) 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;
(viii) Clawfoot Supply's senior management responsibility for CPSA
compliance; and
(ix) retention of all CPSA compliance-related records for at least
five (5) years, and availability of such records to CPSC staff upon
request.
27. The Firm shall submit a report sworn to under penalty of
perjury:
(i) describing in detail its compliance program and internal
controls and the actions the Firm has taken to comply with each
subparagraph of paragraph 26,
(ii) affirming that during the reporting period the Firm has
reviewed its compliance program and internal controls including the
actions referenced in subparagraph (i) of this paragraph for
effectiveness, and that it complies with each subparagraph of paragraph
26 or describing in detail any non-compliance with any such
subparagraph, and
(iii) identifying any changes or modifications made during the
reporting period to the Firm's compliance program or internal controls
to ensure compliance with the terms of the CPSA and in particular, the
requirements of CPSA Section 15 related to timely reporting.
Such reports shall be submitted annually to the Director, Office of
Compliance, Division of Enforcement and Litigation, for a period of 3
years beginning 12 months after the Commission's Final Order of
Acceptance of the Agreement. The first report shall be submitted 30
days after the close of the first 12-month reporting period, and
successive reports shall be due annually on the same date thereafter.
28. Notwithstanding and in addition to the above, upon request of
staff, Clawfoot Supply shall promptly provide to CPSC written
documentation identifying any material changes or improvements to the
Firm's compliance program or internal controls and the effective date
of those changes or improvements. Clawfoot Supply shall cooperate fully
and truthfully with staff and shall make available all non-privileged
information and materials, and any personnel deemed necessary by staff,
to evaluate Clawfoot Supply's compliance with the terms of the
Agreement.
29. The parties acknowledge and agree that the Commission may
publicize the terms of the Agreement and the Order.
30. Clawfoot Supply 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 Clawfoot
Supply, enforceable against Clawfoot Supply in accordance with its
terms. The individuals signing the Agreement on behalf of Clawfoot
Supply represent and warrant that they are duly authorized by Clawfoot
Supply to execute the Agreement.
31. The signatories represent that they are authorized to execute
this Agreement.
32. The Agreement is governed by the laws of the United States.
33. The Agreement and the Order shall apply to, and be binding
upon, Clawfoot Supply and each of its successors, transferees, and
assigns; and a violation of the Agreement or Order may subject Clawfoot
Supply, and each of its successors, transferees, and assigns, to
appropriate legal action.
34. The Agreement and the Order constitute the complete agreement
between the parties on the subject matter contained therein.
35. 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.
36. The Agreement may not be waived, amended, modified, or
otherwise altered, except as in
[[Page 57489]]
accordance with the provisions of 16 CFR 1118.20(h). The Agreement may
be executed in counterparts.
37. 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 Clawfoot Supply agree in writing that severing the provision
materially affects the purpose of the Agreement and the Order.
Clawfoot Supply, LLC
Dated: 8/16/2022
By: /s/----------------------------------------------------------------
Keith Hammond,
Clawfoot Supply, LLC, President.
Dated: 8/15/2022
By: /s/----------------------------------------------------------------
Jennifer Karmonick,
Counsel to Clawfoot Supply, LLC.
U.S. Consumer Product Safety Commission
Dated: 8/16/2022
By: /s/----------------------------------------------------------------
Madeleine Mietus,
Trial Attorney, Office of Compliance and Field Operations.
United States of America
Consumer Product Safety Commission
In the Matter of: CLAWFOOT SUPPLY, LLC
CPSC Docket No.: 22-C0005
Order
Upon consideration of the Settlement Agreement entered into between
Clawfoot Supply, LLC (``Clawfoot Supply'') and the U.S. Consumer
Product Safety Commission (``Commission''), and the Commission having
jurisdiction over the subject matter and over Clawfoot Supply, and it
appearing that the Settlement Agreement is in the public interest, the
Settlement Agreement is incorporated by reference and it is:
Provisionally accepted and provisional Order issued on the 13th
day of September, 2022.
By Order of the Commission:
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Alberta Mills, Secretary U.S. Consumer Product Safety Commission.
Finally accepted and final Order issued on the __ day of ____,
2022.
By Order of the Commission:
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Alberta Mills, Secretary U.S. Consumer Product Safety Commission
[FR Doc. 2022-20292 Filed 9-19-22; 8:45 am]
BILLING CODE 6355-01-P
