Proposed Settlement Agreement, Stipulation, Order and Judgement, etc.; Fitbit, LLC, 8201-8204 [2025-01753]
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Federal Register / Vol. 90, No. 16 / Monday, January 27, 2025 / Notices
meeting of the Consumer Advisory
Board (CAB or Board) of the Consumer
Financial Protection Bureau (CFPB).
The notice also describes the functions
of the Board.
DATES: The meeting date is Tuesday,
February 11, 2025, from approximately
1 p.m. to 3 p.m., eastern time. This
meeting will be held virtually and is
open to the general public. Members of
the public will receive the agenda and
dial-in information when they RSVP.
FOR FURTHER INFORMATION CONTACT: Kim
George, Outreach and Engagement
Associate, Advisory Board and
Councils, External Affairs Division, at
202–450–8617, or email: CFPB_
CABandCouncilsEvents@cfpb.gov. If
you require this document in an
alternative electronic format, please
contact CFPB_Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION:
provided to the CAB members for
consideration. Individuals who wish to
join this meeting must RSVP via this
link https://surveys.consumerfinance.
gov/jfe/form/SV_afLvZivfwA0YlsW.
I. Background
CONSUMER PRODUCT SAFETY
COMMISSION
Section 3 of the Charter of the Board
states that: The purpose of the CAB is
outlined in section 1014(a) of the DoddFrank Wall Street Reform and Consumer
Protection Act, which states that the
CAB shall ‘‘advise and consult with the
Bureau in the exercise of its functions
under the Federal consumer financial
laws’’ and ‘‘provide information on
emerging practices in the consumer
financial products or services industry,
including regional trends, concerns, and
other relevant information.’’
To carry out the CAB’s purpose, the
scope of its activities shall include
providing information, analysis, and
recommendations to the CFPB. The CAB
will generally serve as a vehicle for
trends and themes in the consumer
finance marketplace for the CFPB. Its
objectives will include identifying and
assessing the impact on consumers and
other market participants of new,
emerging, and changing products,
practices, or services.
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II. Agenda
The CAB will discuss broad policy
matters related to the Bureau’s Unified
Regulatory Agenda and general scope of
authority.
If you require any additional
reasonable accommodation(s) in order
to attend this event, please contact the
Reasonable Accommodations team at
CFPB_ReasonableAccommodations@
cfpb.gov 48 hours prior to the start of
this event.
Written comments will be accepted
from interested members of the public
and should be sent to CFPB_
CABandCouncilsEvents@cfpb.gov, a
minimum of seven (7) days in advance
of the meeting. The comments will be
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III. Availability
The Board’s agenda will be made
available to the public on Monday,
February 10, 2025, via
consumerfinance.gov.
A recording and summary of this
meeting will be available after the
meeting on the Bureau’s website
consumerfinance.gov.
Jocelyn Sutton,
Deputy Chief of Staff, Consumer Financial
Protection Bureau.
[FR Doc. 2025–01760 Filed 1–24–25; 8:45 am]
BILLING CODE 4810–AM–P
[CPSC Docket No. 25–C0002]
Proposed Settlement Agreement,
Stipulation, Order and Judgement,
etc.; Fitbit, LLC
Consumer Product Safety
Commission.
ACTION: Notice.
AGENCY:
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
Fitbit, LLC, containing a civil penalty in
the amount of $12,250,000 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
Fitbit, LLC.
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 February
11, 2025.
ADDRESSES: Persons wishing to
comment on this Settlement Agreement
should send written comments to
Comment 25–C0002, 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: cpsc-os@cpsc.gov.
FOR FURTHER INFORMATION CONTACT:
Mark Raffman, Senior Trial Attorney,
Division of Enforcement and Litigation,
Office of Compliance and Field
SUMMARY:
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8201
Operations, Consumer Product Safety
Commission, 4330 East West Highway,
Bethesda, Maryland 20814; mraffman@
cpsc.gov; 301–504–5906 (office).
SUPPLEMENTARY INFORMATION: The text of
the Settlement Agreement and Order
appear below.
Dated: January 22, 2025.
Brianna Bell,
Paralegal Specialist.
United States of America
Consumer Product Safety Commission
In the Matter of: Fitbit LLC, CPSC
Docket No.: 25–0002
Settlement Agreement
1. In accordance with the Consumer
Product Safety Act, 15 U.S.C. 2051–
2089 (‘‘CPSA’’), and 16 CFR 1118.20,
Fitbit LLC (‘‘Fitbit’’ or ‘‘the Firm’’), and
the United States Consumer Product
Safety Commission (‘‘Commission’’ or
‘‘CPSC’’), 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. Fitbit is a corporation, organized
and existing under the laws of the state
of Delaware, with its principal place of
business in San Francisco, California.
Staff Charges
4. Between 2017 and 2021, Fitbit
imported and distributed in the United
States approximately 1.02 million Fitbit
Ionic smartwatches (collectively, the
‘‘Subject Products’’).
5. The Subject Products are
‘‘consumer products’’ that were
‘‘manufactured’’ and ‘‘import[ed]’’ and
‘‘distribut[ed] in commerce,’’ as those
terms are defined or used in sections
3(a)(5), (8), and (9) of the CPSA, 15
U.S.C. 2052(a)(5), (8), and (9). Fitbit is
a ‘‘manufacturer’’ and ‘‘distributor’’ of
the Subject Products, as such terms are
defined in sections 3(a)(8) and (11) of
the CPSA, 15 U.S.C. 2052(a)(8) and (11).
Violation of CPSA Section 19(a)(4)
6. The Subject Products contain a
defect which could create a substantial
product hazard or create an
unreasonable risk of serious injury
because the batteries in the Subject
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Products can overheat, posing a serious
burn hazard to consumers.
7. During 2018 and 2019 and
continuing into 2020, Fitbit received
numerous reports of the Subject
Products overheating while being worn
by consumers, causing some consumers
to sustain burns including seconddegree and third-degree burns on their
arms or wrists.
8. In early 2020, Fitbit initiated a
firmware update to mitigate the
potential for battery overheating;
however, Fitbit continued to receive
reports of consumers suffering burns
due to the product overheating.
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,
Fitbit did not immediately report to the
Commission.
10. The Commission and Fitbit jointly
announced a recall of the Subject
Products on March 2, 2022. The press
release announcing the recall stated that
the Firm had received at least 115
reports in the United States of the
battery in the smartwatch overheating,
with 78 reports of burn injuries in the
United States including two reports of
third-degree burns and four reports of
second-degree burns.
Failure To Timely Report
11. Despite having information
reasonably supporting the conclusion
that the Subject Products contained a
defect which could create a substantial
product hazard or created an
unreasonable risk of serious injury or
death, Fitbit 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).
12. Because the information in Fitbit’s
possession about the Subject Products
constituted actual and presumed
knowledge, Fitbit 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).
13. Pursuant to section 20 of the
CPSA, 15 U.S.C. 2069, Fitbit 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 Fitbit
14. This Agreement does not
constitute an admission by Fitbit to the
staff’s charges as set forth in paragraphs
4 through 13 above, including without
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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 Fitbit 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 Fitbit
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. Fitbit notified the Commission
under Section 15(b) of the CPSA and
conducted a voluntary Fast Track recall
of the Subject Products, which was
announced on March 2, 2022.
16. Fitbit enters into this Agreement
to settle this matter and to avoid the
cost, distraction, delay, uncertainty, and
inconvenience of protracted litigation or
other proceedings. Fitbit does not admit
that it violated the CPSA or any other
law, and Fitbit’s willingness to enter
into this Agreement and Order does not
constitute, nor is it evidence of, an
admission by Fitbit of liability, or
violation of any law.
Agreement of the Parties
17. Under the CPSA, the Commission
has jurisdiction over the matter
involving the Subject Products and over
Fitbit.
18. The parties enter into the
Agreement for settlement purposes only.
The Agreement does not constitute an
admission by Fitbit or a determination
by the Commission that Fitbit violated
the CPSA.
19. In settlement of staff’s charges,
Fitbit shall pay a civil penalty in the
amount of twelve million, two-hundredfifty thousand dollars ($12,250,000).
The $12,250,000 Payment shall be paid
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 Fitbit under this
Agreement. Failure to make such
payment by the date specified in the
Commission’s final Order shall
constitute Default.
20. The Commission or the United
States may seek enforcement for any
breach of, or any failure to comply with,
any provision of this Agreement and
Order in United States District Court, to
seek relief including, but not limited to,
collecting amounts due.
21. All unpaid amounts, if any, due
and owing under the Agreement, shall
constitute a debt due and immediately
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owing by Fitbit to the United States, and
interest shall accrue and be paid by
Fitbit 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’’). Fitbit
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 Fitbit 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.
Fitbit shall pay the United States all
reasonable costs of collection and
enforcement under this paragraph,
respectively, including reasonable
attorney’s fees and expenses.
22. After staff receives this Agreement
executed on behalf of Fitbit, 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).
23. 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 Fitbit, 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.
24. Effective upon the later of: (1) the
Commission’s final acceptance of the
Agreement and service of the accepted
Agreement upon Fitbit and (2) and the
date of issuance of the final Order, for
good and valuable consideration, Fitbit
hereby expressly and irrevocably waives
and agrees not to assert any past,
present, or future rights to the following,
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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 Fitbit 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.
25. Fitbit shall maintain a compliance
program (‘‘Compliance Program’’)
designed to ensure compliance with the
CPSA with respect to any consumer
product imported, manufactured,
distributed or sold by Fitbit in the
United States, 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 and systems for
tracking and reviewing claims,
including warranty 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
Fitbit 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 prompt
disclosure is made to Fitbit 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, Fitbit’s ability to
record, process and report to the
Commission in accordance with
applicable law;
(vi) mechanisms to effectively
communicate to all applicable Fitbit
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;
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(viii) Fitbit’s senior management
responsibility for, and general board
oversight of, CPSA compliance,
including the implementation of steps
to ensure that incident and injury data
is reviewed and analyzed for purposes
of CPSA Section 15(b) reporting;
(ix) for one (1) year, an internal audit
of the Compliance Program that
evaluates opportunities for
improvement, deficiencies or
weaknesses, and the Firm’s overall
culture of compliance; and
(x) retention of all CPSA compliancerelated records for at least five (5) years,
and availability of such records to CPSC
staff upon request.
26. Fitbit shall submit a report under
CPSA Section 16(b), sworn to under
penalty of perjury:
(i) describing in detail its compliance
program and internal controls and the
actions Fitbit has taken to comply with
each subparagraph of paragraph 25;
(ii) affirming that during the reporting
period, Fitbit 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 25, or describing in detail any
non-compliance with any such
subparagraph; and
(iii) identifying the results of the
internal audit referenced in paragraph
25(ix) and any changes or modifications
made during the reporting period to
Fitbit’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 report shall be submitted to the
Director, Office of Compliance, Division
of Enforcement and Litigation, 30 days
after the close of the 12-month reporting
period, which begins on the date of the
Commission’s Final Order of
Acceptance of the Agreement. Without
limitation, Fitbit acknowledges and
agrees that failure to make such timely
and accurate reports, as required by this
Agreement and Order, may constitute a
violation of Section 19(a)(3) of the
CPSA, 15 U.S.C. 2068(a)(3), and may
subject Fitbit to enforcement under
Section 22 of the CPSA, 15 U.S.C. 2071.
27. Notwithstanding and in addition
to the above, during the one-year
reporting period, Fitbit shall promptly
provide written documentation of any
changes or modifications to its
compliance program or internal controls
and procedures, including the effective
dates of the changes or modifications
thereto. Fitbit shall cooperate fully and
truthfully with staff and shall make
available all non-privileged information
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8203
and materials and personnel deemed
necessary by staff to evaluate Fitbit’s
compliance with the terms of the
Agreement.
28. The parties acknowledge and
agree that the Commission may
publicize the terms of the Agreement
and the Order.
29. Fitbit 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 Fitbit, enforceable against
Fitbit in accordance with its terms. The
individuals signing the Agreement on
behalf of Fitbit represent and warrant
that they are duly authorized by Fitbit
to execute the Agreement.
30. The signatories represent that they
are authorized to execute this
Agreement.
31. The Agreement is governed by the
laws of the United States.
32. The Agreement and the Order
shall apply to, and be binding upon,
Fitbit and each of its parents,
successors, transferees, and assigns; and
a violation of the Agreement or Order
may subject Fitbit, and each of its
parents, successors, transferees, and
assigns, to appropriate legal action.
33. The Agreement, any attachments,
and the Order constitute the complete
agreement between the parties on the
subject matter contained therein.
34. 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.
35. 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.
36. 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 Fitbit agree
in writing that severing the provision
materially affects the purpose of the
Agreement and the Order.
(Signatures on next page)
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FITBIT LLC
Dated: 1/6/2025.
By:
/s/
lllllllllllllllllllll
Kenneth H. Yi,
Fitbit LLC Authorized Signatory.
Dated: 1/6/2025.
By:
/s/
lllllllllllllllllllll
Matthew Howsare,
Cooley LLP Counsel to Fitbit LLC.
U.S. CONSUMER PRODUCT SAFETY
COMMISSION
Leah W. Ippolito,
Supervisory Attorney.
Dated: 1/6/2025.
By:
/s/
lllllllllllllllllllll
Mark S. Raffman,
Senior Trial Attorney, Division of
Enforcement and Litigation, Office of
Compliance and Field Operations.
United States of America
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Consumer Product Safety Commission
In the Matter of: Fitbit LLC, CPSC
Docket No.: 25–0002
and regulatory concerns. After
publication of the Final EIS Notice of
Availability (NOA) in the Federal
Register on February 10, 2023, the Army
determined that additional analysis is
required prior to the Army executing a
Record of Decision.
DATES: The Army anticipates publishing
a NOA in 2025 for the Supplemental
Final EIS. The public will be invited to
comment on the Supplemental Final
EIS.
Digital copies of the EIS
documents are available online at:
https://home.army.mil/wainwright/
about/garrison/public-works/
environmental/national-environmentalpolicy-act-nepa/environmental-impactstatements/Heat-and-ElectricalUpgrades-Environmental-ImpactStatement.
ADDRESSES:
Mr.
Grant Sattler by: regular mail at Public
Affairs Office, AMIM–AKG–PA (Sattler),
Order
1060 Gaffney Road #5900, Fort
Upon consideration of the Settlement Wainwright, AK 99703–5900; telephone
Agreement entered into between Fitbit
at (907) 353–6701; or email at
LLC (‘‘Fitbit’’) and the U.S. Consumer
alan.g.sattler.civ@army.mil.
Product Safety Commission
SUPPLEMENTARY INFORMATION: Fort
(‘‘Commission’’ or ‘‘CPSC’’), and the
Wainwright is in the interior of Alaska
Commission having jurisdiction over
in the Fairbanks North Star Borough.
the subject matter and over Fitbit, and
Fort Wainwright is home to U.S. Army
it appearing that the Settlement
Garrison—Alaska (USAG-Alaska) and
Agreement is in the public interest, the
units of the 11th Airborne Division. The
Settlement Agreement is incorporated
soldiers, families, and civilian
by reference and it is:
employees who make up the Fort
Provisionally accepted and this Order
Wainwright population rely on a 68issued on the 22nd day of January, 2025.
year-old coal-fired CHPP and an aged
By Order of the Commission:
heat distribution system to heat and
/s/
lllllllllllllllllllll power more than 400 facilities. The
Alberta E. Mills,
CHPP is one of the oldest working coalSecretary, U.S. Consumer Product Safety
fired power plants in the United States
Commission.
and is operating beyond its design life.
[FR Doc. 2025–01753 Filed 1–24–25; 8:45 am]
Within the last decade, the installation
has experienced critical, nearBILLING CODE 6355–01–P
catastrophic failures of the CHPP and
unexpected, installation-wide outages
due to maintenance, repair, and
DEPARTMENT OF DEFENSE
operational issues.
Department of the Army
Unexpected outages present
substantial risk to safety and to mission
Supplemental Final Environmental
readiness. Constructing upgraded heat
Impact Statement Addressing Heat and and electrical infrastructure would
Electrical Upgrades at Fort Wainwright, reduce utility costs, minimize the risk of
Alaska
a catastrophic failure, help safeguard
mission readiness, meet energy
AGENCY: Department of the Army, DoD.
efficiency standards, comply with
ACTION: Public notice.
emissions standards, and conform to
Army-directed energy security criteria.
SUMMARY: The Department of the Army
USAG-Alaska is proposing to upgrade
(Army) is supplementing the Final
its coal-fired CHPP at Fort Wainwright
Environmental Impact Statement (Final
to a more reliable and sustainable
EIS) addressing heat and electrical
heating and electrical system that would
upgrades at Fort Wainwright, Alaska.
comply with Army installation energy
The current coal-fired central heat and
security requirements and with
power plant (CHPP) and its aging heat
applicable air quality standards. The
distribution system require an upgrade
purpose of the proposed action is to
that resolves safety, resiliency, fiscal,
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provide reliable heat and electrical
infrastructure for the installation in
order to resolve safety, resiliency, fiscal,
and regulatory concerns. The Army
needs to prevent the potential failure of
heat and power generation and
distribution. Such a failure could
require evacuation of the installation
and severely affect mission readiness.
The alternatives the Army is
considering are: (1) construction of a
new coal-fired CHPP; (2) construction of
a new, dual-fuel, combustion turbine
generator CHPP that would be primarily
fueled by natural gas; (3)
decentralization of heat and power,
whereby heat would be provided by
distributed natural gas boilers at
facilities across the installation and
electricity would be purchased from a
local utility provider; and (4) continued
operation of the current plant with
periodic upgrades (i.e., the No-Action
Alternative).
The Supplemental Final EIS will
update: information regarding fuel
source availability, transportation, and
infrastructure requirements; information
on alternative technologies; comparative
greenhouse gas emissions; and socioeconomic impacts. Updates regarding
greenhouse gas emissions will reflect
the Council on Environmental Quality’s
guidance on considering greenhouse
gases.
The Army anticipates publishing a
NOA in the Federal Register in 2025 to
invite the public to comment on the
Supplemental Final EIS. This process is
consistent with 40 Code of Federal
Regulations (CFR) 1502.9(d) and
1503.1(b), and with 32 CFR 651.5(g)(1),
651.24, and 651.45(l).
No earlier than 30 days after
publication of the Supplemental Final
EIS, the Army will sign a Record of
Decision.
James W. Satterwhite Jr.,
Army Federal Register Liaison Officer.
[FR Doc. 2025–01757 Filed 1–24–25; 8:45 am]
BILLING CODE 3711–CC–P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
Combined Notice of Filings #1
Take notice that the commission
received the following accounting
Request filings:
Docket Numbers: AC25–49–000.
Applicants: Entergy Services, LLC,
Entergy New Orleans, LLC.
Description: Entergy Services LLC, et
al. submits request for a limited waiver
E:\FR\FM\27JAN1.SGM
27JAN1
Agencies
[Federal Register Volume 90, Number 16 (Monday, January 27, 2025)]
[Notices]
[Pages 8201-8204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01753]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 25-C0002]
Proposed Settlement Agreement, Stipulation, Order and Judgement,
etc.; Fitbit, 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 Fitbit, LLC, containing a civil penalty in the amount of
$12,250,000 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
Fitbit, LLC.
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 February 11, 2025.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to Comment 25-C0002, 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: Mark Raffman, Senior Trial Attorney,
Division of Enforcement and Litigation, Office of Compliance and Field
Operations, Consumer Product Safety Commission, 4330 East West Highway,
Bethesda, Maryland 20814; [email protected]; 301-504-5906 (office).
SUPPLEMENTARY INFORMATION: The text of the Settlement Agreement and
Order appear below.
Dated: January 22, 2025.
Brianna Bell,
Paralegal Specialist.
United States of America
Consumer Product Safety Commission
In the Matter of: Fitbit LLC, CPSC Docket No.: 25-0002
Settlement Agreement
1. In accordance with the Consumer Product Safety Act, 15 U.S.C.
2051-2089 (``CPSA''), and 16 CFR 1118.20, Fitbit LLC (``Fitbit'' or
``the Firm''), and the United States Consumer Product Safety Commission
(``Commission'' or ``CPSC''), 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. Fitbit is a corporation, organized and existing under the laws
of the state of Delaware, with its principal place of business in San
Francisco, California.
Staff Charges
4. Between 2017 and 2021, Fitbit imported and distributed in the
United States approximately 1.02 million Fitbit Ionic smartwatches
(collectively, the ``Subject Products'').
5. The Subject Products are ``consumer products'' that were
``manufactured'' and ``import[ed]'' and ``distribut[ed] in commerce,''
as those terms are defined or used in sections 3(a)(5), (8), and (9) of
the CPSA, 15 U.S.C. 2052(a)(5), (8), and (9). Fitbit is a
``manufacturer'' and ``distributor'' of the Subject Products, as such
terms are defined in sections 3(a)(8) and (11) of the CPSA, 15 U.S.C.
2052(a)(8) and (11).
Violation of CPSA Section 19(a)(4)
6. The Subject Products contain a defect which could create a
substantial product hazard or create an unreasonable risk of serious
injury because the batteries in the Subject
[[Page 8202]]
Products can overheat, posing a serious burn hazard to consumers.
7. During 2018 and 2019 and continuing into 2020, Fitbit received
numerous reports of the Subject Products overheating while being worn
by consumers, causing some consumers to sustain burns including second-
degree and third-degree burns on their arms or wrists.
8. In early 2020, Fitbit initiated a firmware update to mitigate
the potential for battery overheating; however, Fitbit continued to
receive reports of consumers suffering burns due to the product
overheating.
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, Fitbit did not immediately report to the Commission.
10. The Commission and Fitbit jointly announced a recall of the
Subject Products on March 2, 2022. The press release announcing the
recall stated that the Firm had received at least 115 reports in the
United States of the battery in the smartwatch overheating, with 78
reports of burn injuries in the United States including two reports of
third-degree burns and four reports of second-degree burns.
Failure To Timely Report
11. Despite having information reasonably supporting the conclusion
that the Subject Products contained a defect which could create a
substantial product hazard or created an unreasonable risk of serious
injury or death, Fitbit 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).
12. Because the information in Fitbit's possession about the
Subject Products constituted actual and presumed knowledge, Fitbit
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).
13. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Fitbit 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 Fitbit
14. This Agreement does not constitute an admission by Fitbit to
the staff's charges as set forth in paragraphs 4 through 13 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 Fitbit 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 Fitbit 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. Fitbit notified the Commission under Section 15(b) of the CPSA
and conducted a voluntary Fast Track recall of the Subject Products,
which was announced on March 2, 2022.
16. Fitbit enters into this Agreement to settle this matter and to
avoid the cost, distraction, delay, uncertainty, and inconvenience of
protracted litigation or other proceedings. Fitbit does not admit that
it violated the CPSA or any other law, and Fitbit's willingness to
enter into this Agreement and Order does not constitute, nor is it
evidence of, an admission by Fitbit of liability, or violation of any
law.
Agreement of the Parties
17. Under the CPSA, the Commission has jurisdiction over the matter
involving the Subject Products and over Fitbit.
18. The parties enter into the Agreement for settlement purposes
only. The Agreement does not constitute an admission by Fitbit or a
determination by the Commission that Fitbit violated the CPSA.
19. In settlement of staff's charges, Fitbit shall pay a civil
penalty in the amount of twelve million, two-hundred-fifty thousand
dollars ($12,250,000). The $12,250,000 Payment shall be paid 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 Fitbit under this Agreement. Failure to make such
payment by the date specified in the Commission's final Order shall
constitute Default.
20. The Commission or the United States may seek enforcement for
any breach of, or any failure to comply with, any provision of this
Agreement and Order in United States District Court, to seek relief
including, but not limited to, collecting amounts due.
21. All unpaid amounts, if any, due and owing under the Agreement,
shall constitute a debt due and immediately owing by Fitbit to the
United States, and interest shall accrue and be paid by Fitbit 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''). Fitbit 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 Fitbit 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. Fitbit shall pay the United States all reasonable
costs of collection and enforcement under this paragraph, respectively,
including reasonable attorney's fees and expenses.
22. After staff receives this Agreement executed on behalf of
Fitbit, 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).
23. 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 Fitbit, 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.
24. Effective upon the later of: (1) the Commission's final
acceptance of the Agreement and service of the accepted Agreement upon
Fitbit and (2) and the date of issuance of the final Order, for good
and valuable consideration, Fitbit hereby expressly and irrevocably
waives and agrees not to assert any past, present, or future rights to
the following,
[[Page 8203]]
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 Fitbit 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.
25. Fitbit shall maintain a compliance program (``Compliance
Program'') designed to ensure compliance with the CPSA with respect to
any consumer product imported, manufactured, distributed or sold by
Fitbit in the United States, 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 and systems for tracking and reviewing claims,
including warranty 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 Fitbit 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 prompt disclosure is made to Fitbit
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, Fitbit's ability
to record, process and report to the Commission in accordance with
applicable law;
(vi) mechanisms to effectively communicate to all applicable Fitbit
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) Fitbit's senior management responsibility for, and general
board oversight of, CPSA compliance, including the implementation of
steps to ensure that incident and injury data is reviewed and analyzed
for purposes of CPSA Section 15(b) reporting;
(ix) for one (1) year, an internal audit of the Compliance Program
that evaluates opportunities for improvement, deficiencies or
weaknesses, and the Firm's overall culture of compliance; and
(x) retention of all CPSA compliance-related records for at least
five (5) years, and availability of such records to CPSC staff upon
request.
26. Fitbit shall submit a report under CPSA Section 16(b), sworn to
under penalty of perjury:
(i) describing in detail its compliance program and internal
controls and the actions Fitbit has taken to comply with each
subparagraph of paragraph 25;
(ii) affirming that during the reporting period, Fitbit 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
25, or describing in detail any non-compliance with any such
subparagraph; and
(iii) identifying the results of the internal audit referenced in
paragraph 25(ix) and any changes or modifications made during the
reporting period to Fitbit'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 report shall be submitted to the Director, Office of
Compliance, Division of Enforcement and Litigation, 30 days after the
close of the 12-month reporting period, which begins on the date of the
Commission's Final Order of Acceptance of the Agreement. Without
limitation, Fitbit acknowledges and agrees that failure to make such
timely and accurate reports, as required by this Agreement and Order,
may constitute a violation of Section 19(a)(3) of the CPSA, 15 U.S.C.
2068(a)(3), and may subject Fitbit to enforcement under Section 22 of
the CPSA, 15 U.S.C. 2071.
27. Notwithstanding and in addition to the above, during the one-
year reporting period, Fitbit shall promptly provide written
documentation of any changes or modifications to its compliance program
or internal controls and procedures, including the effective dates of
the changes or modifications thereto. Fitbit 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 Fitbit's compliance with the terms of the Agreement.
28. The parties acknowledge and agree that the Commission may
publicize the terms of the Agreement and the Order.
29. Fitbit 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 Fitbit,
enforceable against Fitbit in accordance with its terms. The
individuals signing the Agreement on behalf of Fitbit represent and
warrant that they are duly authorized by Fitbit to execute the
Agreement.
30. The signatories represent that they are authorized to execute
this Agreement.
31. The Agreement is governed by the laws of the United States.
32. The Agreement and the Order shall apply to, and be binding
upon, Fitbit and each of its parents, successors, transferees, and
assigns; and a violation of the Agreement or Order may subject Fitbit,
and each of its parents, successors, transferees, and assigns, to
appropriate legal action.
33. The Agreement, any attachments, and the Order constitute the
complete agreement between the parties on the subject matter contained
therein.
34. 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.
35. 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.
36. 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 Fitbit agree in writing that severing the provision materially
affects the purpose of the Agreement and the Order.
(Signatures on next page)
[[Page 8204]]
FITBIT LLC
Dated: 1/6/2025.
By: /s/
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Kenneth H. Yi,
Fitbit LLC Authorized Signatory.
Dated: 1/6/2025.
By: /s/
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Matthew Howsare,
Cooley LLP Counsel to Fitbit LLC.
U.S. CONSUMER PRODUCT SAFETY COMMISSION
Leah W. Ippolito,
Supervisory Attorney.
Dated: 1/6/2025.
By: /s/
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Mark S. Raffman,
Senior Trial Attorney, Division of Enforcement and Litigation,
Office of Compliance and Field Operations.
United States of America
Consumer Product Safety Commission
In the Matter of: Fitbit LLC, CPSC Docket No.: 25-0002
Order
Upon consideration of the Settlement Agreement entered into between
Fitbit LLC (``Fitbit'') and the U.S. Consumer Product Safety Commission
(``Commission'' or ``CPSC''), and the Commission having jurisdiction
over the subject matter and over Fitbit, 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 this Order issued on the 22nd day of
January, 2025.
By Order of the Commission:
/s/
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Alberta E. Mills,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 2025-01753 Filed 1-24-25; 8:45 am]
BILLING CODE 6355-01-P