[Federal Register Volume 61, Number 52 (Friday, March 15, 1996)]
[Notices]
[Pages 10734-10736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6195]



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[[Page 10735]]


CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 96-C0002]


The Singer Sewing Company, a Corporation; Provisional Acceptance 
of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Provisional acceptance of a settlement agreement under the 
Consumer Product Safety Act.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR 1118.20(e)-
(h). Published below is a provisionally-accepted Settlement Agreement 
with The Singer Sewing Company, a corporation.

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 April 1, 1996.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 96-C0002, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:
Dennis C. Kacoyanis, Trial Attorney, Office of Compliance and 
Enforcement, Consumer Product Safety Commission, Washington, DC 20207; 
telephone (301) 504-0626.

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

    Dated: March 7, 1996.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. The Singer Sewing Company (hereinafter, ``Singer'' or 
``Respondent''), a corporation, enters into this Settlement Agreement 
and Order (hereinafter, ``Agreement'') with the staff of the Consumer 
Product Safety Commission pursuant to the procedures set forth in 16 
CFR 1118.20 of the Commission's Procedures for Investigations, 
Inspections, and Inquiries under the Consumer Product Safety Act 
(``CPSA'').

I. The Parties

    2. The ``staff'' is the staff of the Consumer Product Safety 
Commission (hereinafter, ``Commission'' or ``CPSC''), an independent 
regulatory commission of the United States established pursuant to 
section 4 of the CPSA, 15 U.S.C. 2053.
    3. Singer is a corporation organized and existing under the laws of 
the State of Delaware, with its principal corporate offices located at 
135 Raritan Center Parkway, Edison, NJ. 08837-3642.

II. Allegations of the Staff

    4. Between 1991 and 1993, Singer distributed approximately 760,000 
units of the Juice Giant Juicer, Model No. 774 (hereinafter, ``Juice 
Giant''). Singer is, therefore, a ``distributor'' and a ``private 
labeler'' as those terms are defined in sections 3(a)(5) and (7)(A) of 
the Consumer Product Safety Act (CPSA), 15 U.S.C. 2052(a)(5) and 
(7)(A).
    5. The Juice Giant is a portable household appliance that pulps 
fruits and vegetables and turns them into juice. The Juice Giant is a 
``consumer product'' which was ``distributed in commerce'' as those 
terms are defined in sections 3(a) (1) and (11) of the CPSA, 15 U.S.C. 
2052(a) (1) and (11).
    6. The Juice Giant contains a defect which creates a ``substantial 
product hazard'' as that term is defined in section 15(a)(2) of the 
CPSA, 15 U.S.C. 2064(a)(2) in that the strainer basket of the Juice 
Giant can break apart dislodging or breaking the protective upper 
housing allowing parts of the basket to fly out of the unit.
    7. On or about September 10, 1992, Singer received its first report 
of a strainer basket failure involving the Juice Giant.
    8. In November, 1992, Singer received its second report of a 
strainer basket failure involving the Juice Giant.
    9. During the first quarter of 1993, Singer received six (6) more 
reports of failures involving the Juice Giant. Two (2) of these reports 
involved consumers sustaining injuries; the other four (4) involved 
consumers getting hit with debris. Singer examined some of the failed 
units and identified two types of failures: (a) A single failure in 
which the disc separated from the shredder basket; and (b) seven 
failures in which the wire mesh separated from the top/bottom rims of 
the strainer basket.
    10. On or about September 8, 1993, Singer had received a total of 
16 reports of failure involving the Juice Giant. Ten (10) of these 
reports involved consumers sustaining facial, eye, and arm injuries as 
a result of the Juice Giant exploding and scattering debris.
    11. On or about September 15, 1993, Singer contacted Mitco-Shannon, 
Inc., the U.S. importer (hereinafter, ``Mitco'') and Hop Shing, the 
foreign manufacturer, to discuss the following issues: (a) Notifying 
the Commission of the defect associated with the Juice Giant pursuant 
to section 15(b) of the CPSA, 15 U.S.C. 2064(b); (b) redesigning the 
Juice Giant's basket; and (c) determining the cause of the Juice 
Giant's failure.
    12. In October, 1993, Singer officials met with Mitco and Hop Shing 
representatives to discuss the failures of the Juice Giant and the 
manufacture of a replacement basket for the Juice Giant in the event 
CPSC ordered a recall of the Juice Giant.
    13. On or about January 4, 1994, Singer notified the Commission 
pursuant to section 15(b) of the CPSA 15 U.S.C. 2064(b) that the Juice 
Giant contained a defect which could create a substantial product 
hazard.
    14. Singer had obtained sufficient information on or about March 
31, 1993 to conclude that the Juice Giant contained a defect which 
could create a substantial product hazard or created an unreasonable 
risk of serious injury or death. Its failure to report such information 
in a timely manner to the Commission as required by section 15(b) of 
the CPSA, 15 U.S.C. 2064(b) constituted a knowing violation under 
section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4), and subjects Singer 
to civil penalties under section 20 of the CPSA, 15 U.S.C. 2069.

III. Response of Singer

    15. Singer denies the allegations of the staff set forth in 
paragraphs 4 through 14 above and specifically denies the allegations 
that the Juice Giant contains a defect which creates or could create a 
substantial product hazard pursuant to section 15(a) of the CPSA, 15 
U.S.C. 2064(a) or creates an unreasonable risk of serious injury or 
death.
    16. Singer denies that it knowingly violated the reporting 
requirements of section 15(b) of the CPSA, 15 U.S.C. 2064(b) pursuant 
to section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).

IV. Agreement of the Parties

    17. The Commission has jurisdiction over this matter under the 
Consumer Product Safety Act (CPSA), 15 U.S.C. 2051 et seq.
    18. Upon final acceptance by the Commission of this Settlement 
Agreement and Order, the Commission shall issue the attached Order 
incorporated herein by this reference.
    19. The Commission does not make any determination that the Juice 
Giant contains a defect which creates or could create a substantial 
product hazard or creates an unreasonable risk of serious injury or 
death; that Singer knowingly violated the reporting provisions of 
section 15(b) of the CPSA, 15 U.S.C. 2064(b) pursuant to section 
19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4). This

[[Page 10736]]
Agreement is entered for the purposes of settlement only.
    20. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, Singer knowingly, 
voluntarily, and completely waives any rights it may have in this 
matter (a) to an administrative or judicial hearing, (b) to judicial 
review or other challenge or contest of the validity of the 
Commission's actions, (c) to a determination by the Commission as to 
whether the Juice Giant contains a defect which creates or could create 
a substantial product hazard or creates an unreasonable risk of serious 
injury or death and as to whether Singer knowingly violated the 
reporting requirements of section 15(b) of the CPSA, 15 U.S.C. 2064(b) 
pursuant to section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a) (4), (d) to 
a statement of findings of facts and conclusions of law, and (e) to any 
claims under the Equal Access to Justice Act.
    21. For purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b), 
this matter shall be treated as if a complaint had been issued; and the 
Commission may publicize the terms of the Settlement Agreement and 
Order.
    22. Upon provisional acceptance of this Settlement Agreement and 
Order by the Commission, this Settlement Agreement and Order shall be 
placed on the public record and shall be published in the Federal 
Register in accordance with the procedures set forth in 16 CFR 1118.20 
(e)-(h). If the Commission does not receive any written request not to 
accept the Settlement Agreement and Order within 15 days, the 
Settlement Agreement and Order will be deemed finally accepted on the 
16th day after the date it is first published in the Federal Register.
    23. The parties further agree that the Commission shall issue the 
attached Order; and that a violation of the Order shall subject Singer 
to appropriate legal action.
    24. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.
    25. The provisions of the Settlement Agreement and Order shall 
apply to Singer and each of its successors and assigns.

Respondent the Singer Sewing Company.

    Dated: January 26, 1996.
Mark McGuiness,
President, The Singer Sewing Company.

Commission Staff.
David Schmeltzer,
Assistant Executive Director, Office of Compliance.
Eric L. Stone,
Acting Director, Division of Administrative Litigation, Office of 
Compliance.

    Dated: January 29, 1996.
Dennis C. Kacoyanis,
Trial Attorney, Division of Administrative Litigation, Office of 
Compliance.

Order

    Upon consideration of the Settlement Agreement entered into between 
Respondent, The Singer Sewing Company, a corporation, and the staff of 
the Consumer Product Safety Commission; and the Commission having 
jurisdiction over the subject matter and The Singer Sewing Company; and 
it appearing that the Settlement Agreement and Order is in the public 
interest, it is
    Ordered, that the Settlement Agreement be and hereby is accepted; 
and it is
    Further ordered, that upon final acceptance of the Settlement 
Agreement and Order, The Singer Sewing Company shall pay the Commission 
a civil penalty in the amount of one hundred twenty thousand and 00/100 
dollars ($120,000.00), within forth (40) days after service of this 
Final Order upon the Respondent, The Singer Sewing Company.
    Provisionally accepted and Provisional Order issued on the 7th day 
of March, 1996.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 96-6195 Filed 3-14-96; 8:45 am]
BILLING CODE 6355-01-M