[Federal Register Volume 64, Number 16 (Tuesday, January 26, 1999)]
[Notices]
[Pages 3932-3933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1779]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 99-1]


Cadet Manufacturing Company; Complaint

AGENCY: Consumer Product Safety Commission.

ACTION: Publication of a complaint under the Consumer Product Safety 
Act.

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SUMMARY: Under provisions of its Rules of Practice for Adjudicative 
Proceeding (16 CFR Part 1025), the Consumer Product Safety Commission 
must publish in the Federal Register Complaints which it issues. 
Published below is a Complaint in the matter of Cadet Manufacturing 
Company.

SUPPLEMENTARY INFORMATION: The text of the Complaint appears below.

    Dated: January 21, 1999.

Sadye E. Dunn,
Secretary.

    In the Matter of Cadet Manufacturing Company, 2500 W. Fourth 
Plain Boulevard, Vancouver, Washington 98660, a Domestic 
Corporation.

COMPLAINT

Nature of Proceedings

    1. This is an administrative enforcement proceeding pursuant to 
section 15 of the Consumer Product Safety Act (``CPSA''), as amended, 
15 U.S.C. 2064, for public notification and remedial action to protect 
the public from substantial risks of injury presented by certain 
electric in-wall heaters manufactured by Cadet Manufacturing Company of 
Vancouver, Washington. This proceeding is governed by the Rules of 
Practice for Adjudicative Proceedings before the Consumer Product 
Safety Commission, 16 CFR Part 1025.

Jurisdiction

    2. This proceeding is instituted pursuant to the authority 
contained in sections 15(c), (d), and (f) of the CPSA, 15 U.S.C. 
2064(c), (d), and (f).

Parties

    3. Complaint Counsel is the staff of the Legal Division, Office of 
Compliance, Consumer Product Safety Commission, an independent federal 
regulatory commission established pursuant to section 4 of the CPSA, 15 
U.S.C. 2053.
    4. Respondent Cadet Manufacturing Company (``Cadet'') is a domestic 
corporation last organized and existing under the laws of the State of 
Washington, since 1993, with its principal place of business located at 
2500 W. Fourth Plain Boulevard, Vancouver, Washington 98660.
    5. Cadet manufactures electric heaters for use in or around a 
permanent or temporary household or residence; and is, therefore, a 
``manufacturer'' of ``consumer product[s],'' as those terms are defined 
in sections 3(a) (1) and (4) of the CPSA, 15 U.S.C. 2052(a) (1) and 
(4).

Consumer Products

    6. Since 1978, Cadet has manufactured and distributed in commerce 
electric in-wall heaters for use in homes and residences under the 
brand names ``Cadet'' and ``Encore,'' all models and variants within 
each model of the series FW (models FW-051, FW-101, FW-122, FW-202, FW-
202, and FW-751), manufactured between 1978 and 1989; series FX (Models 
FX-051, FX-052, FX-071, FX-072, FX-101, FX-102, FX-151, FX-122, FX-152, 
FX-202, and FX-242), manufactured between 1984 and 1995; series LX 
(models LX-242, LX-242, LX-302, LX-302, LX-402, LX-402, and LX-482), 
manufactured between 1984 and 1995; series TK (models TK-051, TK-071, 
TK-072, TK-101, TK-102, TK-151, and TK-152), manufactured between 1986 
and 1998; series ZA (models ZA-051, ZA-052, ZA-071, ZA-072, ZA-101, ZA-
102, ZA-122, ZA-151, ZA-152, ZA-202, ZA-242, manufactured between 1984 
and 1995); first generation series Z (models Z-072, Z-101, Z-102, Z-
152, Z-202, and Z-208), manufactured between 1993 and 1997; and/or all 
series and models of the same or functionally identical heaters

[[Page 3933]]

manufactured and distributed by Cadet under the Encore brand 
(hereinafter collectively, the ``heaters''). Each of the heaters is, 
therefore, a ``consumer product'' ``distributed in commerce'' within 
the meaning of sections 3(a)(1) and (11) of the CPSA, 15 U.S.C. 
2052(a)(1), and (11), respectively.
    7. Each of the heaters consists of a motor-driven fan, a heating 
element, and an over-temperature limit control switch (``OTC'') housed 
in a metal box that is intended to be installed in a wall or under 
cabinets. The heater is connected to the main electric power supply in 
the home or residence. When energized with electric current, the fan of 
the heater pulls room air over the heating element, and pushes the 
heated air back into the room.

Product Defect

    8. The heaters within series FW, FX, LX, TK, ZA, and/or the same or 
functionally identical Encore brand heaters, are defective because 
their design causes the heaters to overheat, fail, and catch fire; and/
or allow lint, dirt, or debris within the heaters to catch fire. The 
heater design can also cause the heaters to spew flames and/or burning 
or molten particles, or eject sparks into the living space of a home or 
residence, or energize the heaters creating a risk of electric shock.
    9. The heaters within the series FW, FX, LX, TK, ZA heaters, and/or 
same or functionally identical Encore brand heaters, are defective 
because they were manufactured or assembled with inadequate or faulty 
components, electrical connections, and/or contacts, which cause the 
components, electrical connections, and/or contacts to fail, overheat, 
and catch fire; and/or allow lint, dirt, or debris within the heaters 
to catch fire. These defects can also cause the heaters to spew flames 
and/or burning or molten particles, or eject sparks into the living 
space of a home or residence.
    10. The heaters within the first generation Z series, and/or the 
same or functionally identical Encore heaters are defective in design 
or manufacture because the heater element can overheat, explode, and 
spew molten metal particles into the living space of a home or 
residence.

Substantial Product Hazards and Risks of Injury

    11. The design defects in the series FW, FX, LX, TK, ZA heaters, 
and/or the same or functionally identical Encore brand heaters, 
identified in paragraph 8 above are prevalent within those heaters.
    12. The manufacturing or assembly defects in the series FW, FX, LX, 
TK, ZA heaters, and/or the same or functionally identical Encore brand 
heaters, identified in paragraph 9 above are prevalent within those 
heaters.
    13. The design or manufacturing defects in the first generation 
series Z heaters, and/or the same or functionally identical Encore 
brand heaters, identified in paragraph 10 above are prevalent within 
those heaters.
    14. The defects identified and described in paragraphs 8 through 10 
above have caused or contributed to serious thermal burns and death, 
and are likely to cause serious electric shock injury and death.
    15. The staff knows of at least 183 instances of electrical fire or 
malfunction involving the heaters: 85 units of series FX; 18 units of 
series FW; 2 units of series LX; 49 units of series ZA; 2 units of 
series TK; and 27 units of series Z (first generation); including 131 
heaters that allegedly smoked, sparked, caught fire, emitted flame, 
and/or ejected burning particles or molten metal particles as the 
result of the defects identified and described in paragraphs 8 through 
10 above. These incidents have resulted in three deaths and two burn 
injuries.
    16. Between 1978 and 1998, Cadet manufactured approximately 
1,800,000 potentially defective heaters that present the hazards and 
risks of injury described in paragraphs 14 and 15 above.
    17. It is likely that the series FX, FW, LX, TK, first generation 
Z, ZA heaters, and/or the same or functionally identical Encore brand 
heaters, will continue to fail in the same way and to present the same 
hazards and risks of injury as a result of the defects described in 
paragraphs 8 through 10 above, if public notice and remedial actions 
are not taken to eliminate or reduce the risk of injury presented by 
the heaters. Each of the heaters, therefore, presents a ``substantial 
product hazard'' within the meaning of sections 15(a)(2) of the CPSA, 
15 U.S.C. 2064(a)(2), by reason of the substantial risk of injury or 
death alleged in paragraphs 11 through 17 above.

Relief Sought

    Complaint Counsel requests the Commission to issue the following 
relief.
    A. Determine that the heaters present a substantial product hazard 
within the meaning of section 15(a)(2), 15 U.S.C. 2064(a)(2).
    B. Determine that public notification under section 15(c) of the 
CPSA, 15 U.S.C. 2064(c), is required to protect the public adequately 
from the risks of injury presented by the heaters.
    C. Order Cadet, under section 15(c) of the CPSA, 15 U.S.C. 2064(c), 
to give such notice as is reasonably necessary to protect the public.
    D. Order Cadet, under section 15(d) of the CPSA, 15 U.S.C. 2064(d), 
to cease manufacturing for sale, offering for sale, and distributing in 
commerce the defective heaters.
    E. Order Cadet under section 15(d) of the CPSA, 15 U.S.C. 2064(d), 
to elect one of the following remedial actions:
    1. Repair each heater in such a manner that it is free of defect 
and works in a proper and safe manner.
    2. Replace each heater with a new heater, free of any defect, that 
works in a proper and safe manner.
    3. Refund the purchase price of each heater, including the costs of 
materials, labor, and profit.
    F. Order Cadet to submit a corrective action plan satisfactory to 
the Commission that requires Cadet to undertake public notice and 
remedial actions in accordance with paragraphs C, D, and E above, 
pursuant to section 15(d) of the CPSA, 15 U.S.C. 2064(d).
    G. Order Cadet for a period of five (5) years after issuance of the 
Final Order in this matter, to notify the Commission at least sixty 
(60) days prior to any change in its business (such as incorporation, 
dissolution, assignment, sale, or petition for bankruptcy) that results 
in, or is intended to result in, the emergence of a successor 
corporation, going out of business, or any other change that might 
affect compliance obligations under a Final Order issued by the 
Commission in this matter.
    H. Grant such other and further relief as the Commission may deem 
necessary.

    Issued by Order of the Commission.

    Dated: January 14, 1999.
Alan H. Schoem,
Assistant Executive Director, Office of Compliance, Consumer Product 
Safety Commission, Washington, DC 20207, Tel: (301) 504-0621, ext. 
1349.
Eric L. Stone,
Director, Legal Division, Office of Compliance, Consumer Product Safety 
Commission, Washington, DC 20207, Tel: (301) 504-06261, ext. 1350.
Earl A. Gershenow,
Howard N. Tarnoff,
Trial Attorneys, Complaint Counsel, Legal Division, Office of 
Compliance, Consumer Product Safety Commission, Washington, DC 20207, 
Tel: (301) 504-9626, ext. 1343.
Hand Delivery Address: 4330 East West Highway, Room 613, Bethesda, 
Maryland 20814.
[FR Doc. 99-1779 Filed 1-25-99; 8:45 am]
BILLING CODE 6350-01-P