[Federal Register Volume 73, Number 231 (Monday, December 1, 2008)]
[Notices]
[Pages 72777-72779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-28166]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 09-C0001]


IKEA North American Services, LLC, 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 Federal Hazardous Substances 
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 IKEA North American Services, LLC, a corporation, 
containing a civil penalty of $500,000.00.

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 December 16, 2008.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 09-C0001, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 502, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Belinda V. Bell, Trial Attorney, 
Office of Compliance and Field Operations, Consumer Product Safety 
Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; 
telephone (301) 504-7592.

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

    Dated: November 21, 2008.
Todd A. Stevenson,
Secretary.

United States of America Consumer Product Safety Commission

    [CPSC Docket No. 09-C0001]

In the Matter of IKEA North America Services, LLC, a Corporation

Settlement Agreement

    1. This Settlement Agreement (``Agreement'') is made by and between 
the staff (``staff'') of the U.S. Consumer Product Safety Commission 
(``Commission'') and IKEA North America Services, LLC (``IKEA''), 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 Agreement and the 
incorporated attached Order (``Order'') resolve the staffs allegations 
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.
    3. IKEA is a corporation organized and existing under the laws of 
the State of Delaware, with its principal corporate office located in 
Conshohocken, PA.
    4. At all times relevant herein, IKEA designed, manufactured and 
sold outdoor candles, including those that are the subject of the 
Agreement and Order.

Staff Allegations

    5. Between February 2001 and July 2005, IKEA manufactured and sold 
approximately 133,000 sets of outdoor candles (6 candles per set), 
under the style names of Angar and Samlas, at IKEA stores in the United 
States for about $4.00 per set (``candles'' or ``products''). The firm 
also sold 1.3 million candle sets internationally.
    6. The candles are ``consumer product(s)'' and, at all times 
relevant herein, IKEA was a ``manufacturer,'' and ``retailer'' of 
``consumer product(s),'' which were ``distributed in commerce'' as 
those terms are defined or used in sections 3(a)(5), (8), (11) and (13) 
of the CPSA, 15 U.S.C. 2052(a)(5), (8), (11) and (13).
    7. The candles are defective because: (1) The candle's flame can 
unexpectedly flare up, causing the entire top surface of the candle to 
ignite and spread flames beyond the container; (2) even in non-flare up 
situations, if a consumer attempts to extinguish a burning candle by 
blowing or dousing it with water, the candle's wax can spatter and burn 
the consumer's face; and (3) the product fails to provide adequate 
warning notice regarding the above mentioned hazards. These defects 
pose fire and burn hazards to consumers.

[[Page 72778]]

    8. Between July 2001 and March 2006, IKEA received approximately 32 
worldwide reports of incidents in which the candles unexpectedly flared 
up and/or consumers were spattered with hot candle wax. The firm is 
aware of 13 reports of property damage and at least 12 injuries to 
consumers.
    9. Despite being aware of the information set forth in paragraphs 7 
and 8 above, IKEA did not report to the Commission until March 2006, 
after the Commission had opened its own investigation and requested 
IKEA to report.
    10. Although IKEA had obtained sufficient information to reasonably 
support the conclusion that the candles contained a defect which could 
create a substantial product hazard, or created an unreasonable risk of 
serious injury or death, it failed to immediately inform the Commission 
of such defect or risk as required by sections 1 5(b)(3) and (4) of the 
CPSA, 15 U.S.C. 2064(b)(3) and (4). In failing to do so, IKEA 
``knowingly'' violated section l9(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).
    11. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, IKEA is 
subject to civil penalties for its failure to report as required under 
section 15(b) of the CPSA, 15 U.S.C. 2064(b).

Response of IKEA

    12. IKEA denies the allegations of the staff that the candles 
contain a defect which could create a substantial product hazard, or 
create an unreasonable risk of serious injury or death, and denies that 
it violated the reporting requirements of Section 15(b) of the CPSA, 15 
U.S.C. 2064(b).

Agreement of the Parties

    13. Under the CPSA, the Commission has jurisdiction over this 
matter and over IKEA.
    14. In settlement of the staff's allegations, IKEA agrees to pay a 
civil penalty of five hundred thousand dollars ($500,000.00), within 
twenty (20) calendar days of receiving service of the Commission's 
Final Order accepting the Agreement. This payment shall be made by 
check to the order of the United States Treasury.
    15. The parties enter the Agreement for settlement purposes only. 
The Agreement does not constitute an admission by IKEA or a 
determination by the Commission that IKEA violated the CPSA's reporting 
requirements.
    16. Upon 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 requests not 
to accept the Agreement within 15 calendar days, the Agreement shall be 
deemed finally accepted on the 16th calendar day after the date it is 
published in the Federal Register, in accordance with 16 CFR 
1118.20(1).
    17. Upon the Commission's final acceptance of the Agreement and 
issuance of the final Order, IKEA 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 Commission's actions; (iii) a determination 
by the Commission as to whether IKEA 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.
    18. The Commission may publicize the terms of the Agreement and 
Order.
    19. The Agreement and Order shall apply to, and be binding upon 
IKEA and each of its successors and assigns.
    20. The Commission's Order in this matter is issued under the 
provisions of the CPSA, and a violation of the Order may subject those 
referenced in paragraph 19 above to appropriate legal action.
    21. This Agreement may be used in interpreting the Order. 
Agreements, understandings, representations, or interpretations apart 
from those contained in the Agreement and Order may not be used to vary 
or to contradict their terms.
    22. The Agreement shall not be waived, 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 the 
Agreement and the order is held to be illegal, invalid, or 
unenforceable under present or future laws effective during the terms 
of the Agreement and Order, such provision shall be fully severable. 
The balance of the Agreement and Order shall remain in full force and 
effect, unless the Commission and IKEA agree that severing the 
provision materially affects the purpose of the Agreement and Order.

IKEA North America Services, LLC
Sept. 19, 2008.

By: Krister Hard af Segerstad,
Manager, Product Safety & Compliance, IKEA North America Services, LLC, 
420 Alan Wood Road, Conshohocken, PA 19428.

Sept. 19, 2008.

By: Rob Olson,
Chief Financial Officer, IKEA North America Services, LLC, 420 Alan 
Wood Road, Conshohocken, PA 19428.
U.S. Consumer Product Safety Commission
Cheryl Falvey,
General Counsel.

Ronald G. Yelenik,
Assistant General Counsel, Division of Compliance, Office of the 
General Counsel.

Nov. 21, 2008.

By: Belinda V. Bell,
Trial Attorney, Division of Compliance, Office of the General Counsel.

United States of America, Consumer Product Safety Commission.

[CPSC Docket No. 09-C0001]

In the Matter of Ikea North America Services, LLC

Order

    Upon consideration of the Settlement Agreement entered into between 
IKEA North America Services, LLC (``IKEA'') and the U.S. Consumer 
Product Safety Commission (``Commission'') staff, and the Commission 
having jurisdiction over the subject matter and over IKEA, and it 
appearing that the Settlement Agreement and order are in the public 
interest, it is
    Ordered that the Settlement Agreement be, and hereby is, accepted 
and it is
    Further Ordered that IKEA shall pay a civil penalty in the amount 
of five hundred thousand dollars ($500,000.00), within twenty (20) 
calendar days of service of the Commission's final Order accepting the 
Settlement Agreement. The payment shall be made by check payable to the 
order of the United States Treasury. Upon the failure of IKEA to make 
the foregoing payment when due, interest on the unpaid amount shall 
accrue and. be paid by IKEA at the Federal legal rate of interest set 
forth at 28 U.S.C. 1961(a) and (b).
    Provisionally accepted and Provisional Order issued on the 21st day 
of November, 2008.



[[Page 72779]]


    By Order of the Commission.

Todd A. Stevenson,
Secretary, Consumer Product Safety Commission.
[FR Doc. E8-28166 Filed 11-28-08; 8:45 am]
BILLING CODE 6355-01-M