[Federal Register Volume 74, Number 147 (Monday, August 3, 2009)]
[Notices]
[Pages 38417-38419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18506]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 09-C0030]


Haier America Trading, LLC, 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 
Haier America Trading, LLC, containing a civil penalty of $587,500.00.

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 August 18, 2009.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 09-C0030, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 502, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Seth B. Popkin, Lead Trial Attorney, 
Division of Compliance, Office of the General Counsel, Consumer Product 
Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-7612.

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

    Dated: July 29, 2009.
Todd A. Stevenson,
Secretary.

United States of America--Consumer Product Safety Commission

    In the Matter of Haier America Trading, LLC, CPSC Docket No. 09-
C0030.

Settlement Agreement

    1. In accordance with 16 CFR 1118.20, Haier America Trading, LLC 
(``Haier America'') and the staff (``Staff'') of the United States 
Consumer Product Safety Commission (``Commission'') enter into this 
Settlement Agreement (``Agreement''). The Agreement and the 
incorporated attached Order (``Order'') settle the Staff's 
allegations set forth below.

Parties

    2. The Commission is an independent Federal regulatory agency 
established pursuant to, and responsible for the enforcement of, the 
Consumer Product Safety Act, 15 U.S.C. 2051-2089 (``CPSA'').
    3. Haier America is a limited liability company organized and 
existing under the laws of New York, with its principal offices 
located in New York, New York. At all times relevant hereto, Haier 
America sold appliances.

Staff Allegations

    4. From on or about January to July 2004, Haier America 
distributed in commerce, including through importation and sale to 
retailers, multiple units of the Haier America Oscillating Tower Fan 
model FTM140GG (``Fan'').
    5. The Fans are ``consumer product[s],'' and, at all times 
relevant hereto, Haier America was a ``manufacturer'' of those 
consumer products, which were ``distributed in commerce,'' as those 
terms are defined in CPSA sections 3(a)(5), (8), and (11), 15 U.S.C. 
2052(a)(5), (8), and (11).

[[Page 38418]]

    6. From May to October 2004, Haier America received 14 reports 
of Fan incidents, some of which involved fires and injuries.
    7. From May to October 2004, Haier America obtained information 
about the Fans through investigation, testing, and analysis.
    8. The incident reports and other information that Haier America 
received about the Fans raised defect and hazard concerns for Haier 
America.
    9. On November 22, 2005, Haier America and the Commission 
announced a recall of the Fans. As indicated in part in the recall 
Press Release, the defect and hazard involved repeated bending of 
the Fan wires from the base to the tower during oscillation, which 
caused the wires to break and arc, resulting in a fire hazard.
    10. By no later than July 1, 2004, Haier America had obtained 
information that reasonably supported the conclusion that the Fans 
contained a defect that could create a substantial product hazard or 
that they created an unreasonable risk of serious injury or death. 
CPSA sections 15(b)(3) and (4), 15 U.S.C. 2064(b)(3) and (4), 
required Haier America to immediately inform the Commission of the 
Fans' defect and risk.
    11. Haier America did not report to the Commission regarding the 
Fans until December 22, 2004, after the Commission staff requested 
that Haier America report. In addition, at the time that it 
reported, Haier America failed to furnish all required information. 
Haier America thereby failed to immediately and adequately inform 
the Commission about the Fans' defect and risk as required by CPSA 
sections 15(b)(3) and (4), 15 U.S.C. 2064(b)(3) and (4). This 
failure constituted a prohibited act under CPSA section 19(a)(4), 15 
U.S.C. 2068(a)(4).
    12. Haier America knowingly committed this prohibited act, as 
the term ``knowingly'' is defined in CPSA section 20(d), 15 U.S.C. 
2069(d). Pursuant to CPSA section 20, 15 U.S.C. 2069, Haier 
America's prohibited act subjected it to civil penalties.

Haier America Response

    13. Haier America denies the Staff's allegations set forth in 
paragraphs 4-12 above, including, but not limited to, any allegation 
that Haier America failed timely to notify the Commission in 
accordance with section 15 of the CPSA.

Agreement of the Parties

    14. Under the CPSA, the Commission has jurisdiction over this 
matter and over Haier America.
    15. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Haier 
America, or a determination by the Commission, that Haier America 
knowingly violated the CPSA. Upon issuance of, and Haier America's 
compliance with, the final Order, the Commission regards this matter 
as resolved and agrees not to bring a civil penalty action against 
Haier America based upon the Staff's allegations set forth in 
paragraphs 4-12 above regarding the Fan.
    16. In settlement of the Staff's allegations, Haier America 
shall pay a civil penalty in the amount of five hundred eighty-seven 
thousand five hundred dollars ($587,500.00) within twenty (20) 
calendar days of service of the Commission's final Order accepting 
the Agreement. The payment shall be by check payable to the order of 
the United States Treasury.
    17. Upon provisional acceptance of the Agreement, 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). In accordance with 16 CFR 1118.20(f), if the Commission 
does not receive any written request not to accept the Agreement 
within fifteen (15) calendar days, the Agreement shall be deemed 
finally accepted on the sixteenth (16th) calendar day after the date 
it is published in the Federal Register.
    18. Upon the Commission's final acceptance of the Agreement and 
issuance of the final Order, Haier America knowingly, voluntarily, 
and completely waives any rights it may have in this matter to the 
following: (1) An administrative or judicial hearing; (2) judicial 
review or other challenge or contest of the validity of the Order or 
of the Commission's actions; (3) a determination by the Commission 
of whether Haier America failed to comply with the CPSA and its 
underlying regulations; (4) a statement of findings of fact and 
conclusions of law; and (5) any claims under the Equal Access to 
Justice Act.
    19. The Commission may publicize the terms of the Agreement and 
the Order.
    20. The Agreement and the Order shall apply to, and be binding 
upon, Haier America and each of its successors and assigns.
    21. The Commission issues the Order under the provisions of the 
CPSA, and violation of the Order may subject those persons or 
entities referenced in the preceding paragraph to appropriate legal 
action.
    22. The Agreement may be used in interpreting the Order. 
Understandings, agreements, representations, or interpretations 
apart from those contained in the Agreement and the Order may not be 
used to vary or contradict their terms. The Agreement shall not be 
waived, amended, modified, or otherwise altered without written 
agreement thereto executed by the party against whom such waiver, 
amendment, modification, or alteration is sought to be enforced.
    23. If 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 the Order, such 
provision shall be fully severable. The balance of the Agreement and 
the Order shall remain in full force and effect, unless the 
Commission and Haier America agree that severing the provision 
materially affects the purpose of the Agreement and the Order.

Haier America Trading, LLC.

Dated:-----------------------------------------------------------------

By:--------------------------------------------------------------------
Michael Jemal,
President and CEO, Haier America Trading, LLC, 1356 Broadway, New 
York, N.Y. 10018.

Dated: 6/1/09.

By:--------------------------------------------------------------------
Eric A. Rubel, Esq.,
Arnold & Porter LLP, 555 12th Street, NW., Washington, DC 20004-
1206, Counsel for Haier America Trading LLC.

U.S. CONSUMER PRODUCT SAFETY COMMISSION STAFF

Cheryl A. Falvey,
General Counsel.

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

Dated: 6/19/09.
By:--------------------------------------------------------------------
Seth B. Popkin,
Lead Trial Attorney, Division of Compliance, Office of the General 
Counsel.

United States of America--Consumer Product Safety Commission

    In the Matter of Haier America Trading, LLC, CPSC Docket No. 09-
C0030.

Order

    Upon consideration of the Settlement Agreement entered into 
between Haier America Trading, LLC (``Haier America'') and the U.S. 
Consumer Product Safety Commission (``Commission'') staff, and the 
Commission having jurisdiction over the subject matter and over 
Haier America, and it appearing that the Settlement Agreement and 
the Order are in the public interest, it is
    Ordered, that the Settlement Agreement be, and hereby is, 
accepted; and it is
    Further ordered, that Haier America shall pay a civil penalty in 
the amount of five hundred eighty-seven thousand five hundred 
dollars ($587,500.00) within twenty (20) calendar days of service of 
the Commission's final Order accepting the Agreement. The payment 
shall be made by check payable to the order of the United States 
Treasury. Upon the failure of Haier America to make the foregoing 
payment when due, interest on the unpaid amount shall accrue and be 
paid by Haier America 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 28th 
day of July, 2009.


[[Page 38419]]


    By Order of the Commission:
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Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety Commission.

[FR Doc. E9-18506 Filed 7-31-09; 8:45 am]
BILLING CODE 6355-01-P