[Federal Register Volume 72, Number 12 (Friday, January 19, 2007)]
[Notices]
[Pages 2496-2497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-214]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 07-C0002]


Nexgrill Industries, Inc., a 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(e). 
Published below is a provisionally-accepted Settlement Agreement with 
Nexgrill Industries, Inc., a corporation, containing a civil penalty of 
$300,000.

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 5, 2007.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 07-C0002, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 502, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney, 
Office of Compliance and Field Operations, Consumer Product Safety 
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; 
telephone (301) 504-7587.

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

    Dated: January 16, 2007.
Todd A. Stevenson,
Secretary.

In the Matter of Nexgrill Industries, Inc., a Corporation

I. Settlement Agreement and Order

    1. This Settlement Agreement is made by and between the staff 
(``the staff'') of the U.S. Consumer Product Safety Commission (``the 
Commission'') and Nexgrill Industries, Inc. (``Nexgrill''), a 
corporation, in accordance with 16 CFR 1118.20 of the Commission's 
Procedures for Investigations, Inspections, and Inquiries under the 
Consumer Product Safety Act (``CPSA''). This Settlement Agreement and 
the incorporated attached Order settle the staff's allegations set 
forth below.

II. The Parties

    2. The Commission is an independent Federal regulatory agency 
responsible for the enforcement of the CPSA, 15 U.S.C. 2051-2084.
    3. Nexgrill is a corporation organized and existing under the laws 
of the State of California with its principal corporate office located 
at 280 Machlin Ct., Walnut, CA 91789. Nexgrill is a manufacturer of gas 
grills, patio heaters, outdoor fire pits, and kitchen food prep carts.

III. Allegations of the Staff

    4. Between December 2003 and March 2005, Nexgrill manufactured and 
sold nationwide approximately 16,000 Nexgrill Gas Grills (``gas 
grills''), Model Number 720-0025.
    5. The gas grills are ``consumer products'' and, at the times 
relevant herein, Nexgrill was a ``manufacturer'' of those consumer 
products, which were ``distributed in commerce,'' as those terms are 
defined in sections 3(a)(1), (4), (11), and (12) of the CPSA, 15 U.S.C. 
2052(a)(1), (4), (11), and (12).
    6. Between April 2004 and October 2005, Nexgrill received 20 
reports of gas grill fires, including three reports of minor burn 
injuries.
    7. Although Nexgrill obtained sufficient information to support the 
conclusion that the gas grills contained a defect which could create a 
substantial product hazard, or created an unreasonable risk of serious 
injury or death at least 10 months before reporting, it failed to 
immediately inform the Commission of such defect or risk as required by 
sections 15(b)(2) and (3) of the CPSA, 15 U.S.C. 2064(b)(2) and (3).
    8. By failing to furnish information as required by section 15(b) 
of the CPSA, 15 U.S.C. 2064(b), Nexgrill 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).
    9. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Nexgrill is 
subject to civil penalties for its failure to make a timely report 
under section 15(b) of the CPSA, 15 U.S.C. 2064(b).

IV. Nexgrill's Response

    10. Nexgrill denies the staff's allegations that it violated the 
CPSA as set forth in paragraphs 4 through 9 above.
    11. Nexgrill enters into this Settlement Agreement to resolve the 
staff's allegations without the time and expense of litigation. By 
agreeing to this settlement, Nexgrill does not admit any of the staff's 
allegations of any fault, liability, or statutory or regulatory 
violation.
    12. Nexgrill voluntarily, and without the Commission or the staff 
having first requested information from Nexgrill, reported the above 
matter under section 15(b) of the CPSA, 15 U.S.C. 2064(b) and offered 
to implement a voluntary corrective action that was accepted by the 
staff.

V. Agreement of the Parties

    13. The Commission has jurisdiction over this matter and over 
Nexgrill under the Consumer Product Safety Act, 15 U.S.C. 2051-2084.
    14. In settlement of the staff's allegations, Nexgrill agrees to 
pay a civil penalty in the amount of $300,000.00 as set forth in the 
attached incorporated Order.
    15. The parties enter this Settlement Agreement for settlement 
purposes only. The Settlement Agreement does not constitute an 
admission by Nexgrill or a determination by the Commission that 
Nexgrill violated the CPSA's reporting requirements.
    16. Upon provisional acceptance of this Agreement by the 
Commission, the Commission shall place this Agreement and Order on the 
public record and shall publish it 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 
Settlement Agreement and Order within 15 calendar days, the Agreement 
will be deemed finally accepted on the 16th calendar day after the date 
it is published in the Federal Register.
    17. Upon final acceptance of the Agreement by the Commission and 
issuance of the Final Order, Nexgrill knowingly, voluntarily, and 
completely waives any rights it may have in this matter to the 
following: (i) An administrative or judicial hearing; (ii) judicial 
review or other challenge or contest of the validity of the 
Commission's actions; (iii) a determination by the Commission as to 
whether Nexgrill failed to comply with the CPSA and the underlying 
regulations; (iv) a statement of findings of fact or conclusions of 
law; and (v) any

[[Page 2497]]

claims under the Equal Access to Justice Act.
    18. The Commission may publicize the terms of the Settlement 
Agreement and Order.
    19. This Settlement Agreement and Order shall apply to, and be 
binding upon, Nexgrill and each of its successors and assigns.
    20. The Commission's Order in this matter is issued under the 
provisions of the CPSA, 15 U.S.C. 2051-2084, and a violation of this 
Order may subject Nexgrill to appropriate legal action.
    21. This Settlement Agreement may be used in interpreting the 
Order. Agreements, understandings, representations, or interpretations 
made outside of this Settlement Agreement and Order may not be used to 
vary or contradict its terms.
    22. This Settlement Agreement shall not be waived, changed, 
amended, modified, or otherwise altered without written agreement 
thereto executed by the party against whom such amendment, 
modification, alteration, or waiver is sought to be enforced.
    23. If after the effective date hereof, any provision of this 
Settlement Agreement and Order is held to be illegal, invalid, or 
unenforceable under present or future laws effective during the terms 
of the Settlement Agreement and Order, such provisions shall be fully 
severable. The rest of the Settlement Agreement and Order shall remain 
in full effect, unless the Commission and Nexgrill determine that 
severing the provision materially changes the purpose of the Settlement 
Agreement and Order.

Nexgrill Industries, Inc.

Dated: January 2, 2007.

Sherman Lin,
Vice President, Operations, Nexgrill Industries, Inc., 280 Machlin 
Court, Walnut, CA 91789.

Dated: January 3, 2007.

Mac. S. Dunaway,
Matthew F. Hall,
Dunaway & Cross, P.C., Attorneys for Nexgrill, Industries, Inc., 
1100 Connecticut Avenue, NW., Suite 410, Washington, DC 20036.

Commission.

John Gibson Mullan,
Assistant Executive Director, Office of Compliance and Field 
Operations, Consumer Product Safety Commission, 4330 East West 
Highway, Bethesda, MD 20814.

Ronald G. Yelenik,
Acting Director, Legal Division, Office of Compliance and Field 
Operations.

Dated: January 3, 2007.

Dennis C. Kacoyanis,
Trial Attorney, Legal Division, Office of Compliance and Field 
Operations.

Order

    Upon consideration of the Settlement Agreement entered into between 
Nexgrill Industries, Inc., (``Nexgrill'') and the staff of the Consumer 
Product Safety Commission (``the Commission''); and the Commission 
having jurisdiction over the subject matter and Nexgrill; 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 Nexgrill shall pay a civil 
penalty of THREE HUNDRED THOUSAND DOLLARS ($300,000.00) in three 
installments as follows: SEVENTY-FIVE THOUSAND DOLLARS ($75,000.00) 
shall be paid within twenty (20) calendar days of service of the Final 
Order upon Nexgrill; ONE-HUNDRED THOUSAND DOLLARS ($100,000.00) shall 
be paid within one (1) year of service of the Final Order upon 
Nexgrill; and ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,000.00) 
shall be paid within two (2) years of service of the Final Order upon 
Nexgrill. Upon the failure of Nexgrill to make any of the foregoing 
payments when due, the entire amount of the civil penalty shall become 
due and payable, and interest on the outstanding balance shall accrue 
and be paid at the Federal legal rate of interest under the provisions 
of 28 U.S.C. 1961(a) and (b).

    Provisionally accepted and provisional Order issued on the 12th 
day of January, 2007.

    By Order of the Commission.

Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. 07-214 Filed 1-18-07; 8:45 am]
BILLING CODE 6355-01-M