[Federal Register Volume 64, Number 228 (Monday, November 29, 1999)]
[Notices]
[Pages 66613-66615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30938]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 00-C0001]


Black & Decker (U.S.), Inc., corporation, Provisional Acceptance 
of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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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. 
Published below is a provisionally-accepted Settlement Agreement with 
Black & Decker (U.S.), Inc., a corporation, containing a civil penalty 
of $575,000.

DATES: Any interested person may ask the Commission not to accept this

[[Page 66614]]

agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by December 14, 1999.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 00-C0001, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT: William J. Moore, Trial Attorney, 
Office of Compliance and Enforcement, Consumer Product Safety 
Commission, Washington, DC 20207; telephone (301) 504-0626, 1382.

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

    Dated: November 23, 1999.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. Black and Decker (U.S.), Inc., (``Black & Decker''), a 
corporation, enters into this Settlement Agreement and Order with the 
staff (``the staff'') of the U.S. Consumer Product Safety Commission 
(``the Commission'') in accordance with 16 CFR 1118.20 of the 
Commission's Procedures for Investigations, Inspections, and Inquires 
under the Consumer Product Safety Act (``CPSA'').

I. The Parties

    2. The Commission is an independent federal regulatory agency 
responsible for the enforcement of the Consumer Product Safety Act, 15 
U.S.C. 2051-2084.
    3. Black & Decker is a corporation organized and existing under the 
laws of the State of Maryland. Its principal offices are located at 701 
East Joppa Road, Baltimore, Maryland.

II. Staff Allegations

The Staff Alleges the Following

    4. Between February 1994 and January 1995, Black & Decker 
manufactured, distributed and sold in the United States a toaster, 
designed to be affixed to the underside of a cabinet, known as the 
Spacemaker Optima Model T1000 Type 1, (``Spacemaker Toaster Type 1,'' 
or ``the Toaster''). Black & Decker is, therefore, a manufacturer, 
distributor and retailer of a consumer product in U.S. commerce 
pursuant to 15 U.S.C. 2052(a)(1), (4), (5) and (6).
    5. The Spacemaker Toaster Type 1 has a glass door on its front 
side. Bread and other food products are inserted into the toaster 
horizontally onto a rack.
    6. When the toasting cycle is complete, the glass door on the front 
of the Spacemaker Type 1 toaster opens automatically and the Toaster 
rack containing the food product moves forward about one and one-half 
(1\1/2\) inches.
    7. Food fires have begun in the Spacemaker Toaster Type 1, 
sometimes when a food item is re-toasted. When food fires were 
underway, the door automatically opened, the food rack moved forward, 
and the newly available oxygen promoted continued burning. Flames from 
the fire can and did escape the Toaster and contacted the cabinet(s) 
above, exposing the contents and other nearby materials to fire.
    8. Soon after Black & Decker began distributing the Spacemaker 
toaster Type 1 in 1994, it received consumer complaints of fires in its 
product. By January 1995, Black & Decker had evaluated the Spacemaker 
toaster Type 1 and redesigned it so the front door would no longer open 
automatically. Black & Decker also stopped making the Spacemaker 
Toaster Type 1 and prepared to manufacture the newly designed 
Spacemaker Toaster Type 2.
    9. In April 1995, Black & Decker purported to file a ``full 
report'' with the Commission staff pursuant to 16 CFR part 1115. The 
company reported that it was aware of seventy-three (73) incidents of 
fire in the toaster. The staff requested copies of these complaints and 
accompanying documentation. Black & Decker furnished other information 
of the type required under the reporting regulations in 16 CFR part 
1115, but, unbeknownst to the staff, Black & Decker omitted important 
information and documents. By failing to provide the information, Black 
& Decker misled the staff and impeded its investigation and analysis of 
the risk. Black & Decker claimed consumer complaints of fires had been 
destroyed, when, in fact, they had not. Black & Decker also failed to 
reveal the existence of its engineering documents that identified 
design defects with the Spacemaker Toaster Type 1, identified the fire 
risk it posed, and supported redesigning the Type 1 Toaster with the 
Spacemaker Toaster Type 2. In doing so, Black & Decker failed to 
adequately inform the staff under section 15(b) of the CPSA, 15 U.S.C. 
2064(b).
    10. The information withheld or otherwise not submitted by Black & 
Decker contradicted the merits of Black & Decker's negotiation position 
and needlessly disputed that the Spacemaker Toaster Type 1 contained 
defects, presented a substantial product hazard, and should be the 
subject of a consumer recall.
    1. Black & Decker's failure to provide requested information forced 
the staff to prepare to litigate; and to engage unnecessarily in 
expensive and time-consuming testing.
    12. On October 29, 1997, the staff filed an administrative 
Complaint alleging that the Spacemaker Toaster Type 1 contained defects 
which created a substantial product hazard to the public. The case was 
settled on April 22, 1998 when the Commission accepted a corrective 
action plan for consumers crafted by the parties.
    13. Black & Decker obtained information which reasonably supported 
the conclusion that the Spacemaker Toaster Type 1 contained defects 
which could create a substantial product hazard but failed to report to 
the Commission in a timely manner as required by Sec. 15(b) of the 
CPSA, 15 U.S.C. 2064(b). Nor did Black & Decker adequately inform the 
Commission as required by section 15(b) of the CPSA and 16 CFR part 
1115.

III. Response of Black & Decker

    14. Black & Decker denies the allegations of the staff, set forth 
in paragraphs 4 through 13 above, that the Spacemaker Toaster Type 1 
contains any defect which could create a substantial product hazard 
pursuant to section 15(a) of the CPSA, 15 U.S.C. 2064(a), and further 
denies that it violated the reporting requirements of section 15(b) of 
the CPSA, 15 U.S.C. 2064(b) or 16 CFR part 115. This payment is made in 
settlement of the staff allegations. Neither the payment nor the fact 
of entering into this Settlement Agreement constitute evidence of or an 
admission of, any fault, liability or statutory or regulatory violation 
by Black & Decker, or of the truth of nay allegations made by the 
staff.

IV. Agreement of The Parties

    15. The Commission has jurisdiction over this matter under the 
Consumer Product Safety Act (CPSA), 15 U.S.C. 2051 et seq.
    16. This Settlement Agreement and Order is a compromise resolution 
of the matter described above, and the parties enter this Agreement 
solely for the purposes of settlement. Compliance by Black & Decker 
with this Settlement Agreement and Order resolves the allegations of 
violations of section 15(b) of the CPSC regarding the Spacemaker 
Toaster Type 1.
    17. Black & Decker knowingly, voluntarily and completely waives any 
rights it may have (1) to the issuance of a Complaint in this matter, 
(2) to administrative or judicial hearing with

[[Page 66615]]

respect to the staff allegations cited herein, (3) to judicial review 
or other challenge or contest of the validity of the Commission's 
Order, (4) to a determination by the Commission as to whether a 
violation of section 15(b) of the CPSA, 15 U.S.C. 2064(b), has 
occurred, and (5) to a statement of findings of fact and conclusions of 
law with regard to the staff allegations.
    18. The Commission has not, and does not, by virtue of this 
Settlement Agreement and Order, make any determination that the 
Spacemaker Toaster Type 1 contains a defect which creates or could 
create a substantial product hazard or creates an unreasonable risk of 
serious injury or death; or that Black & Decker knowingly violated the 
reporting provisions of section 15(b) of the CPSA, 15 U.S.C. 2064(b) or 
16 CFR part 1115.
    19. 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 16 CFR 1118.20.
    20. The Settlement Agreement and Order becomes effective upon final 
acceptance by the Commission and its service upon Black & Decker. Black 
& Decker shall pay a civil penalty in the amount of five hundred 
seventy-five thousand and no/dollars ($575,000.00) within 10 calendar 
days of receiving service of such final Settlement Agreement and order.
    21. for purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b), 
upon final acceptance by the commission, this matter shall be treated 
as if a Complaint had issued, and the Commission may publicize the 
terms of the Settlement Agreement and Order.
    22. Black & Decker agrees to entry of the attached Order, which is 
incorporated herein by reference, and agrees to be bound by its terms.
    23. This Settlement Agreement is binding upon Black & Decker and 
the assigns or successors of Black & Decker.
    24. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or to contradict its terms.

    Dated: October 27, 1999.

Black & Decker (U.S.), Inc.
James R. O'Brien,
Product Liability Counsel.
    Dated: November 19, 1999.

Consumer Product Safety Commission.
Alan H. Schoem,
Assistant Executive Director, Office of Compliance.
Eric L. Stone,
Director, Legal Division, Office of Compliance.
William J. Moore, Jr.,
Attorney, Legal Division, Office of Compliance.
Deborah J. Lewis,
Attorney, Legal Division, Office of Compliance.

Order

    Upon consideration of the Settlement Agreement entered into between 
Black & Decker (U.S.), Inc., a corporation, and the staff of the 
consumer Product Safety Commission; and the Commission having 
jurisdiction over the subject matter and Black & Decker (U.S.), Inc., 
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, Black & Decker (U.S.), Inc. shall pay the 
commission a civil penalty in the amount of FIVE HUNDRED SEVENTY FIVE 
THOUSAND AND no/100 dollars, ($575,000.00) within ten (10) calendar 
days after service of this Final Order upon the Black & Decker (U.S.), 
Inc.
    Provisionally accepted and Provisional Order issued on the 23rd day 
of November 1999.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 99-30938 Filed 11-26-99; 8:45 am]
BILLING CODE 6355-01-M