[Federal Register Volume 80, Number 85 (Monday, May 4, 2015)]
[Rules and Regulations]
[Pages 25216-25226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-10342]


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CONSUMER PRODUCT SAFETY COMMISSION

16 CFR Part 1120

[CPSC Docket No. CPSC-2014-0024]


Substantial Product Hazard List: Seasonal and Decorative Lighting 
Products

AGENCY: Consumer Product Safety Commission.

ACTION: Final rule.

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SUMMARY: The Consumer Product Safety Commission (``CPSC'' or 
``Commission'') is issuing a final rule to specify that seasonal and 
decorative lighting products that do not contain any one of three 
readily observable characteristics (minimum wire size, sufficient 
strain relief, or overcurrent protection), as addressed in a voluntary 
standard, are deemed a substantial product hazard under the Consumer 
Product Safety Act (``CPSA''). Additionally, the Commission is making a 
technical amendment to reformat incorporations by reference in this 
part.

DATES: Effective date: The rule takes effect on June 3, 2015. The 
incorporation by reference of the publication listed in this rule is 
approved by the Director of the Federal Register as of June 3, 2015.

FOR FURTHER INFORMATION CONTACT: Mary Kroh, Office of Compliance and 
Field Operations, Consumer Product Safety Commission, 4330 East West 
Highway, Bethesda, MD 20814; telephone: 301-987-7886; [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background and Statutory Authority

A. Statutory Authority

    Section 223 of the Consumer Product Safety Improvement Act of 2008 
(``CPSIA''), amended section 15 of the CPSA, 15 U.S.C. 2064, to add a 
new subsection (j). Section 15(j) of the CPSA provides the Commission 
with the authority to specify, by rule, for any consumer product or 
class of consumer products, characteristics whose existence or absence 
are deemed a substantial product hazard under section 15(a)(2) of the 
CPSA. Section 15(a)(2) of the CPSA defines a ``substantial product 
hazard,'' in relevant part, as a product defect which (because of the 
pattern of defect, the number of defective products distributed in 
commerce, the severity of the risk, or otherwise) creates a substantial 
risk of injury to the public. A rule under section 15(j) of the CPSA (a 
``15(j) rule'') is not a consumer product safety rule that imposes 
performance or labeling requirements for newly manufactured products. 
Rather, a 15(j) rule is a Commission determination of a product defect 
based upon noncompliance with specific product characteristics that are 
addressed in an effective voluntary standard. For the Commission to 
issue a 15(j) rule, the product characteristics involved must be 
``readily observable'' and have been addressed by a voluntary standard. 
Moreover, the voluntary standard must be effective in reducing the risk 
of injury associated with the consumer products, and there must be 
substantial compliance with the voluntary standard.

B. Background

    On October 16, 2014, the Commission issued a notice of proposed 
rulemaking (``NPR'') in the Federal Register to amend the substantial 
product hazard list in 16 CFR part 1120 (``part 1120'') to add seasonal 
and decorative lighting products that lack certain readily observable 
safety characteristics addressed by a voluntary standard because such 
products pose a risk of electrical shock or fire. 79 FR 62081. The 
comment period on the proposed rule closed on December 30, 2014. As 
detailed in section II of this preamble, the Commission received 62 
comments on the proposed rule.
    The Commission is now issuing a final rule to amend part 1120 by 
adding three readily observable characteristics of seasonal and 
decorative lighting products: (1) Minimum wire size; (2) sufficient 
strain relief; and (3) overcurrent protection. After reviewing the 
comments, the Commission made

[[Page 25217]]

two clarifications in the final rule to define more clearly products 
that do not fall within the scope of the rule. Additionally, based on 
the comments, the Commission has corrected a citation to Underwriters 
Laboratories (``UL''), Standard for Safety for Seasonal and Holiday 
Decorative Products, UL 588, 18th Edition, approved on August 21, 2000 
(``UL 588''), in the final rule. As of the effective date of this rule, 
seasonal and decorative lighting products that do not contain any one 
of these three readily observable characteristics, as set forth in UL 
588, are deemed to create a substantial product hazard under section 
15(a)(2) of the CPSA.

C. Seasonal and Decorative Lighting Products

    The final rule uses the phrase ``seasonal and decorative lighting 
products'' to identify the lighting products that are within the scope 
of the rule. The final rule defines ``seasonal and decorative lighting 
products'' consistent with the description of products subject to UL 
588, as set forth in section 1 of UL 588. ``Seasonal and decorative 
lighting products'' are portable, plug-connected, temporary-use 
lighting products and accessories that have a nominal 120-volt input 
voltage rating. Lighting products within the scope of the rule are 
factory-assembled with push-in, midget- or miniature-screw base 
lampholders connected in series or with candelabra- or intermediate-
screw base lampholders connected in parallel, directly across the 120 
volt input. Such lighting products include lighted decorative outfits, 
such as stars, wreathes, candles without shades, light sculptures, 
blow-molded (plastic) figures, and animated figures. Lighting products 
outside the scope of the rule include: Battery-operated products; 
solar-powered products; products that operate from a transformer or 
low-voltage power supply; flexible lighting products incorporating non-
replaceable series and series/parallel-connected lamps enclosed within 
a flexible polymeric tube or extrusion; and portable electric lamps 
that are used to illuminate seasonal decorations.
    This definition of ``seasonal and decorative lighting products'' is 
adapted from descriptions of lighting products defined in section 1 of 
UL 588. All in-scope products are covered by UL 588. Lighting products 
within the scope of the rule are typically used seasonally and provide 
only decorative lumination. The products typically are displayed for a 
relatively short period of time and are then removed and stored until 
needed again. UL 588 section 2.43 defines the term ``seasonal (holiday) 
product'' as: ``[a] product painted in colors to suggest a holiday 
theme or a snow covering, a figure in a holiday costume, or any 
decoration associated with a holiday or particular season of the 
year.'' UL 588 defines ``decorative light products'' (decorative 
outfits) as factory-assembled, electrically powered units providing a 
seasonal or holiday decorative display having illumination or other 
decorative effects. A decorative product may contain a lighting string 
as part of the decorative illumination. A lighting string provided with 
decorative covers over the lamps is a decorative outfit. If not 
constructed properly, lighting powered by 120 volts can be damaged 
easily and can pose a risk of electrical shock or fire.
    Lighting products that are excluded from the scope of the rule are 
subject to different voluntary standards or do not present the same 
risk of injury. Based on the comments to the proposed rule, the final 
rule clarifies that ``solar-powered products'' are not within the scope 
of the rule because solar-powered seasonal lights are not connected to 
a 120-volt branch circuit and do not present the same risk of injury 
due to shock and fire. Additionally, the final rule clarifies the type 
of tube lighting that is not within the scope of the rule. The proposed 
rule used the phrase ``flexible tube lighting strings of lights 
intended for illumination.'' The final rule replaces this phrase with: 
``flexible lighting products incorporating non-replaceable series and 
series/parallel connected lamps enclosed within a flexible polymeric 
tube or extrusion.'' The description of tube lighting was revised to 
clarify that such tube lighting is not covered by UL 588 but is covered 
by another UL standard, UL 2388 Flexible Lighting Products. This 
clarification is not intended to alter the scope of products covered by 
the rule; the revision is intended to clarify that flexible lighting 
products covered by UL 2388 are not within the scope of the rule. Staff 
Briefing Package: Final Rule to Amend 16 CFR part 1120 to Add Seasonal 
and Decorative Lighting Products, dated April 22, 2015 (``Staff Final 
Rule Briefing Package'') at 3, available at: http://www.cpsc.gov/Global/Newsroom/FOIA/CommissionBriefingPackages/2015/Final-Rule-to-Amend-Substantial-Product-Hazard-List-to-Include-Seasonal-and-Decorative-Lighting-Products.pdf.

D. Applicable Voluntary Standard

    UL 588-2000 is the current voluntary standard applicable to 
seasonal and decorative lighting products. UL 588 has been updated over 
the years to address various safety issues to make seasonal and 
decorative lighting products safer, see 79 FR 62083; Staff's Briefing 
Package on Seasonal and Decorative Lighting Products, dated October 2, 
2014 (``Staff NPR Briefing Package''), Tab B, Abbreviated History of 
Seasonal and Decorative Lighting Products and the Associated UL 
Standard, at: http://www.cpsc.gov/Global/Newsroom/FOIA/CommissionBriefingPackages/2015/ProposedRuletoAmendSubstantialProductHazardListtoIncludeSeasonalandDecorativeLightingProducts.pdf. Specifically, UL 588, made effective on 
January 1, 1997, set forth the current requirements for overcurrent 
protection and minimum wire size; and the current strain relief 
requirement has been in effect since 1994.
    Table 2 in the preamble to the NPR, at 79 FR at 62083, summarized 
the readily observable characteristics for seasonal and decorative 
lighting products. Table 2 was intended to present a summary of the 
relevant provisions of UL 588. As one commenter noted, the ``strain 
relief'' column shown in Table 2 in the preamble to the NPR cited SB16 
of UL 588, instead of section SB15, and showed the strain relief load 
as 24 lbs. instead of 20 lbs. Table 1, below, is a revised version of 
Table 2 from the preamble to the NPR. Table 1 shows the correct 
citation to section SB15 of UL 588 and the correct strain relief loads. 
Staff Final Rule Briefing Package at 3-4.

[[Page 25218]]



            Table 1--Readily Observable Characteristics for Seasonal and Decorative Lighting Products
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                                                         Readily observable characteristics
                                   -----------------------------------------------------------------------------
                                                               Sufficient strain relief (load
 Seasonal and decorative lighting                                         weight)                   Overcurrent
             products                 Minimum wire size   ---------------------------------------   protection
                                     (AWG) UL 588 Section   Plugs/load fittings   Lampholders UL    qty. UL 588
                                              6              UL 588 Sections 15    588 Sections      Section 7
                                                                   and 71           79 and SB15
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Series-connected lighting product:
    With Load Fitting.............  20 (Polarized Plug)..  20 lbs (smaller than               20               1
                                    22 (Non-Polarized       18 AWG).                           8               2
                                     Plug).                .....................
    Without Load Fitting..........  22 (Polarized Plug)..  .....................               8               1
                                    22 (Non-Polarized      .....................               8               2
                                     Plug.
Parallel-connected light product:
    With or Without Load Fitting..  20 (XTW), 18 (all      20 lbs. (20 AWG).....              20               1
                                     others).              30 lbs. (18 AWG).....
                                    All Polarized Plugs..
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E. Risk of Injury

1. Electrocution and Fire Hazards
    The preamble to the NPR explained that consumers can be seriously 
injured or killed by electrical shocks or fires if seasonal and 
decorative lighting products are not made using minimum wire size, 
sufficient strain reliefs, or overcurrent protection. 79 FR at 62083-
84. Lighting products that conform to the minimum wire size requirement 
in UL 588 will support the product's electrical load without causing 
overheating. Additionally, lighting products that conform to the 
minimum wire size requirement provide the necessary mechanical strength 
to endure handling and other forces imposed on a seasonal lighting 
product during expected use of the product. Likewise, lighting products 
that conform to the strain relief requirements in UL 588 will endure 
use, including pulling and twisting the product, without mechanical 
damage to the electrical connections. Damaged electrical connections, 
such as broken strands of copper conductor inside the insulated wiring, 
could cause overheating (leading to a fire), despite overcurrent 
protection, or separation of wires from their terminal connections, 
which could expose bare energized conductors leading to electrical 
shock. Finally, UL 588's requirements for overcurrent protection 
prevent products from overheating and melting due to faults, damage, or 
excessive loads. Such failures carry a potential risk of fire.
2. Incident Data
    For the NPR, CPSC staff conducted a search of the Injury or 
Potential Injury Database (``IPII''), National Electronic Injury 
Surveillance System (``NEISS''), and the Death Certificate Database 
(``DTHS'') for incidents that involved seasonal and decorative lighting 
products reported between 1980 and May 2014. CPSC staff has updated 
this data and found a total of 133 fatal incidents causing 258 deaths, 
and 1,405 nonfatal incidents that involved seasonal and decorative 
lighting products that were in-scope and that occurred between 1980 and 
2013.\1\ For the final rule, staff searched for in-scope incidents 
reported from January 2014 through March 2015. CPSC staff found an 
additional 25 in-scope incidents that occurred in 2014, and staff 
identified seven incidents that occurred in 2015. All of the 25 
incidents in 2014 were nonfatal incidents. One of the seven incidents 
in 2015 was a fatal incident that caused one death.
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    \1\ Staff has updated incident data from 1980 to 2013 to include 
retailer reports.
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    Table 2 shows the annual average number of incidents for five 
different periods for each of the fatal incidents, deaths, and nonfatal 
incidents. The 35-year period is broken up into five, 7-year periods. 
Reporting may not be complete for the most recent period because 
sometimes CPSC receives reports of incidents years after they have 
occurred. Note that the average number of incidents and deaths has 
declined over the 35-year period represented in Table 2. See Tab E of 
Staff Final Rule Briefing Package.

    Table 2--Seasonal and Decorative Lighting Product Annual Average of Fatal Incidents, Deaths, and Nonfatal
                                            Incidents From 1980-2014
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                                                                                                    Nonfatal
                         Years                            Fatal incidents         Deaths           incidents
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1980-1986..............................................                6.7               12.6               54.1
1987-1993..............................................                6.3               13.6               40.9
1994-2000..............................................                2.9                5.9               37.4
2001-2007..............................................                2.3                3.9               38.6
2008-2014..............................................                0.9                1.0               33.3
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F. Compliance Efforts To Address the Hazard

    As noted in the preamble to the NPR, in numerous instances, CPSC 
staff has considered the absence of one or more of three readily 
observable characteristics (minimum wire size, sufficient strain 
relief, and overcurrent protection) to present a substantial product 
hazard and has sought appropriate corrective action to prevent injury 
to the public. 79 FR at 62084. Since the Commission published the NPR 
(from September 2014 to February 2015), CPSC has not conducted any 
recalls of seasonal and decorative lighting products, and identified 11 
shipments at import involving a total of

[[Page 25219]]

approximately 37,000 lighting units, where the seasonal and decorative 
lighting products may not comply with UL 588. See Tab D of Staff Final 
Rule Briefing Package.

II. Summary of Comments on the Proposed Rule and CPSC's Responses

    The Commission received 62 comments and questions in response to 
the NPR. Substantive comments from several manufacturers expressed 
general support for the proposed rule, while the consumer commenters 
were generally opposed to the NPR. Commenters who opposed the rule 
often appeared to misunderstand the nature of the rulemaking, the 
Commission's authority to issue such a rule, and the effect of such a 
rule on industry and consumers. The Commission received one comment 
that addressed technical issues associated with UL 588. We summarize 
the comments and the Commission's responses below. Three clarifications 
were made in the final rule based on the comments, described in 
sections I.C and I.D of this preamble, and in responses to comments 14, 
15, and 18.

A. General Comments

    Comment 1: Many commenters argued that the proposed rule represents 
government waste, government overreach, or would result in a ``waste of 
money'' because the incident data do not demonstrate a relationship 
between the incident data and gaps in the UL standard.
    Response 1: The Commission disagrees with these commenters. The 
CPSC's mission is to protect consumers from unreasonable risks of 
injury or death from consumer products. The rule would further this 
mission by allowing staff to remove more effectively seasonal and 
decorative lighting products from commerce if these products present a 
risk of fire or electrical shock to consumers. The rule will not result 
in waste, nor will the rule increase costs. In fact, the rule should 
decrease CPSC's costs associated with an existing practice of 
determining that seasonal and decorative lighting products that do not 
conform to UL 588 present a defect that rises to a substantial product 
hazard.
    Currently, when CPSC staff encounters seasonal and decorative 
lighting products that do not appear to meet the requirements of UL 
588, field and import staff must collect samples of the products and 
send them to CPSC's National Product Testing and Evaluation Center 
(``NPTEC'') for further testing. CPSC engineers evaluate and test the 
samples and provide their assessment to Compliance staff. Compliance 
staff, relying on CPSC technical staff's assessment, makes a 
preliminary determination of whether the product presents a substantial 
product hazard. If Compliance staff makes a preliminary determination 
of a substantial product hazard, CPSC staff informs the manufacturer or 
importer of the defective products. Compliance staff then proceeds to 
negotiate seizure, destruction, or a recall (or some combination of 
actions) with the firm. Firms may dispute CPSC staff's preliminary 
determination of a substantial product hazard for failure to conform to 
UL 588, which can add delay in removing defective products from the 
market and increase CPSC staff's costs related to supporting a finding 
of a substantial product hazard.
    When nonconforming seasonal and decorative lighting products are 
identified, CPSC staff must address with each manufacturer or importer 
the missing safety requirements from UL 588 that staff determined 
created a substantial product hazard. This process can be time-
consuming and resource intensive. Congress has provided the Commission 
with the ability to streamline the administrative process of 
substantial product hazard determinations if certain criteria are met. 
Section 15(j) of the CPSA allows the Commission through a rulemaking to 
specify for consumer products, or a class of consumer products, 
characteristics whose presence or absence shall be deemed a substantial 
product hazard under section 15(a)(2) of the CPSA. A ``substantial 
product hazard'' is a defined term in our statute. Failure to comply 
with a consumer product safety rule is one way a product can present a 
substantial product hazard under section 15(a)(1) of the CPSA. A hazard 
addressed under section 15(j) is deemed to be ``a product defect which 
(because of the pattern of defect, the number of defective product 
distributed in commerce, the severity of the risk, or otherwise) 
creates a substantial risk of injury to the public'' under section 
15(a)(2).
    A rule under section 15(j) of the CPSA is not a consumer product 
safety rule. Further, the Commission is not defining mandatory 
requirements for seasonal and decorative lighting products that must be 
tested and certified to a regulation, as a rule issued under sections 7 
and 9 of the CPSA would require. The Commission is not required to 
provide incident data for a rule under section 15(j) of the CPSA to 
demonstrate ``gaps'' in the UL standard, because the rule will not 
impose additional requirements on seasonal and decorative lighting 
products beyond the identified three readily observable characteristics 
embodied in UL 588. Instead, the Commission is determining that 
seasonal and decorative lighting products that do not conform to three 
elements of the voluntary standard, UL 588, have a product defect that 
presents a substantial risk of injury to the public. A substantial 
product hazard determination under section 15(a)(2) of the CPSA seeks 
to remove already-manufactured defective products from the stream of 
commerce.
    The Commission can only determine that products that do not conform 
to a voluntary standard present a substantial product hazard under 
section 15(j) of the CPSA if four criteria are met:
     The characteristics involved must be ``readily 
observable'';
     the characteristics must be addressed by a voluntary 
standard;
     the voluntary standard must be effective in reducing the 
risk of injury associated with the consumer products; and
     there must be substantial compliance with the voluntary 
standard.
    Essentially, when a voluntary standard is working effectively to 
reduce a risk of injury to the public, the Commission can rely on the 
voluntary standard and take enforcement action to remove products from 
the stream of commerce when products do not comply with that voluntary 
standard. The purpose of the NPR was to provide notice to the public 
that the Commission believes that UL 588 is an effective voluntary 
standard. When CPSC staff finds products in the stream of commerce that 
do not comply with one or more of three readily observable safety 
characteristics, which are defined in UL 588, the Commission believes 
that those products are defective and present a substantial risk of 
injury, fire and electrical shock.
    Codifying that the absence of any of three safety characteristics 
for seasonal and decorative lighting products constitutes a substantial 
product hazard should streamline CPSC's enforcement efforts. Once the 
rule is final, CPSC will no longer need to rely on a staff preliminary 
determination of a substantial product hazard, and re-address this 
issue with each importer or manufacturer in each instance. Instead, 
CPSC can rely on the Commission's determination of a substantial 
product hazard for seasonal and decorative lighting products that are 
missing any of three readily observable characteristics, and then staff 
can proceed directly to negotiating a recall or seizure of the products 
without delay. Finally, when noncompliant lighting products are

[[Page 25220]]

found at the ports, CPSC can rely on the rule to request that Customs 
and Border Protection (``CBP'') seize the defective products through 
its authority under the Tariff Act. This streamlined process should 
reduce Commission staff and the monetary resources required to prevent 
defective products from entering the market.
    Comment 2: Many commenters stated that existing standards, such as 
UL standards, are sufficient in ``regulating'' seasonal lights and that 
the agency did not provide a rational basis for selecting seasonal and 
decorative lighting products for regulation. Another commenter opposed 
codifying the UL standard, arguing that codifying the standard would 
``ossify'' the voluntary standards process and make the UL standard 
``rigid,'' more difficult to improve, and ultimately make the public 
less safe.
    Response 2: This proceeding concerns a rule under section 15(j) of 
the CPSA and would not codify UL 588 or any other standard. Rather, 
under the rule, seasonal and decorative lighting products that do not 
have specified characteristics that conform to UL 588 would be 
considered to present a substantial product hazard. This means that 
such products could be stopped at the ports or otherwise prevented from 
distribution in the United States. The rule would not replace UL 588 or 
``ossify'' the standard; rather, the rule would work in tandem with the 
UL standard to help provide safer products to consumers. If UL revises 
the referenced provisions of UL 588 in the future, the Commission can 
revise the rule to reference the updated version. Pages 62083 and 62084 
of the NPR provided a rational basis for selecting seasonal and 
decorative lighting products. Lighting products that lack minimum 
safety characteristics pose a substantial risk of injury to consumers, 
and the Commission has the authority and obligation to remove such 
defective products from the stream of commerce.
    Comment 3: One commenter stated that the NPR violated the 
Administrative Procedure Act (``APA''), and was ``on its face arbitrary 
and capricious and without any reasonable foundation'' because no 
rational basis was described in the proposed rule for a new federal 
regulation on seasonal and decorative lighting products. Many 
commenters indicated that they considered the rule unnecessary, when 
CPSC's own data demonstrate that the UL standard appears to be 
effective at reducing the risk of injury associated with seasonal and 
decorative lighting products. Some commenters stated that the proposed 
rule does not describe a ``substantial product hazard'' that needs to 
be addressed by a regulation, noting that the UL standard has already 
addressed the hazards associated with seasonal and decorative lighting 
products.
    Response 3: The commenters appear to misunderstand the nature and 
purpose of the NPR, as well as the Commission's authority to issue a 
rule under section 15(j) of the CPSA. The Commission disagrees that the 
NPR violated the APA and is arbitrary and capricious. The NPR provides 
adequate rationale for the proposed rule and meets the requirements of 
section 553(b) of the APA, which requires that a proposed rule:
     Be published in the Federal Register;
     provide a statement of the time, place, and nature of 
public rule making proceedings;
     reference the legal authority under which the rule is 
proposed; and
     provide either the terms or substance of the proposed rule 
or a description of the subjects and issues involved.
    As discussed in the NPR, seasonal and decorative lighting products 
have a history of causing deaths and injury. However, the Commission 
agrees with the commenters that UL 588 effectively addresses the risks 
caused by insufficient wire size, inadequate strain relief, and lack of 
overcurrent protection. UL 588 addresses these issues because the 
absence of these minimum safety characteristics poses a risk of injury, 
fire, and electric shock to consumers. The Commission's 15(j) rule 
recognizes that products that do not conform to UL 588 regarding 
minimum wire size, sufficient strain relief, and overcurrent 
protection, present a substantial product hazard.
    A rule under section 15(j) of the CPSA is not a consumer product 
safety rule, but rather, is a Commission determination of a substantial 
product hazard. No injury data are required to find that a product 
presents a substantial product hazard under section 15(a)(2) of the 
CPSA. Instead, under section 15(a)(2), products are evaluated for 
defects that have the potential to cause a substantial risk of injury 
to the public. Even if the Commission has no reported injuries, the 
Commission could still find that a product has a defect which creates a 
substantial risk of injury to the public.
    Comment 4: One commenter stated that CPSC misused the data cited in 
the proposed rule, making three fundamental errors:
     Implicitly assuming that no older versions of lighting 
products manufactured before 2000 are in use, which CPSC allegedly uses 
to show that UL is only partially effective. The commenter asserts that 
lighting products are used for many years;
     failing to show any recent deaths or injuries since 2000 
when UL was allegedly last updated; and
     failing to show that any deaths associated with lighting 
products were caused by product defects related to the three properties 
that the UL standards address (safe wire size, safety fuse, and strain 
protection).
    The commenter stated that the proposed rule provides no rational 
basis for assuming that any residual hazard related to the UL standards 
exists.
    Response 4: This commenter also seems to misunderstand the 15(j) 
rule. The data presented in the NPR are intended to demonstrate the 
effectiveness of the voluntary standard, UL 588, not that additional 
regulation is necessary because UL 588 is only partially effective.
    Comment 5: One commenter requested confirmation that current 
certification markings from UL, Intertek Co (``ETL''), or the CSA 
Group, or products carrying a listing, are considered to be in 
conformance with these requirements and the proposed rule does not 
require any paperwork, such as certificates or permits.
    Response 5: The Commission agrees that, unless an importer or 
retailer has reason to believe that UL, ETL, or CSA certification 
markings are counterfeit, such marks should indicate compliance with UL 
588. Because a rule under section 15(j) of the CPSA is not a consumer 
product safety rule, a final rule will not impose additional paperwork 
such as certificates of compliance on importers or manufacturers.
    Comment 6: One commenter questioned the definition of ``readily 
observable,'' and two commenters questioned whether all three readily 
observable characteristics need to be met.
    Response 6: All three readily observable characteristics on a 
seasonal and decorative lighting product must be in conformance with UL 
588. Under the rule, if one or more characteristics are missing, the 
product presents a substantial product hazard under section 15(a)(2) of 
the CPSA.
    The Commission has not defined the term ``readily observable,'' 
preferring instead to evaluate the concept on a case-by-case basis. The 
proposed rule states:

    The Commission did not define a ``readily observable'' 
characteristic in either [previous]

[[Page 25221]]

rule. In the proposed drawstring rule (75 FR 27497, 27499, May 17, 
2010), the Commission found that the requirements detailed in the 
relevant voluntary standard could be evaluated with ``simple 
manipulations of the garment, simple measurements of portions of the 
garments, and unimpeded visual observation.'' The Commission stated: 
``more complicated or difficult actions to determine the presence or 
absence of defined product characteristics also may be consistent 
with `readily observable.' '' Finally, the Commission stated its 
intent to evaluate ``readily observable'' characteristics on a case-
by-case basis.

75 FR at 27499. The Commission considers the three characteristics of 
seasonal and decorative lighting products described in the rule to be 
readily observable, consistent with the Commission's previous 
statement.
    Comment 7: One commenter questioned how CPSC will enforce the 
requirements for imported products that are proposed in the NPR.
    Response 7: The Commission anticipates continuing the existing 
enforcement policy at ports of entry and at retail outlets, at least in 
the near future. Currently, CPSC identifies seasonal lighting products 
that lack certification marks or that appear to have irregular or 
counterfeit certification marks or that have other characteristics that 
might suggest noncompliance with applicable standards. After adoption 
of the rule, CPSC would evaluate such products to assess whether the 
products meet all three readily observable safety characteristics. If 
the products do not meet every one of the three readily observable 
safety characteristics, CPSC generally anticipates requesting that CBP 
detain the product if offered for importation. Additionally, CPSC 
practice is to inform the manufacturer or importer of the defect. 
Depending on the facts and circumstances, other legally-authorized 
measures may be taken.
    Comment 8: One commenter asked whether the readily observable 
characteristics apply to both indoor and outdoor seasonal and 
decorative lighting products.
    Response 8: The rule applies to both indoor and outdoor seasonal 
and decorative lighting products. The three readily observable 
characteristics are independent of the environment for which the 
products are rated.
    Comment 9: Some commenters generally opposed the NPR, stating 
reasons such as the ``lie of global warming,'' limiting electrical 
power consumption by consumers, or that CPSC should regulate other 
types of products.
    Response 9: These comments are out of scope for this rulemaking.

B. Comments on Economic Issues

    Comment 10: To demonstrate the potential safety benefits of the 
proposal, one commenter who supported the NPR suggested that the CPSC 
estimate the societal costs of fires and electrocutions associated with 
holiday and seasonal lights. Several commenters opposing the proposed 
rule stated that the likely safety benefits of the proposal would be 
small.
    Response 10: The estimated numbers and societal costs of deaths, 
injuries, and property damage associated with seasonal and decorative 
lighting-related fires and electrocutions are very small, and 
generally, the numbers have declined to near zero in recent years, 
consistent with safety improvements made over time to the voluntary 
standard, UL 588. The rule is not designed to yield further safety 
benefits; rather, the rule would maintain the current high level of 
safety and help prevent distribution of nonconforming, seasonal and 
decorative lighting products that present a substantial product hazard.
    Comment 11: Eleven consumer commenters opposing the proposed rule 
stated that the rule could impose compliance costs on industry, and 
that any such costs should be weighed against the minimal likely safety 
benefits of a rule. One commenter stated that the proposed rule failed 
to adequately address the full scope of the legal and financial impacts 
of the regulation. Four commenters suggested that cost increases would 
result in retail price increases. One commenter asked whether the CPSC 
could justify ``millions of dollars'' in costs.
    Response 11: The final rule does not impose any new design, 
manufacturing, testing, certification, reporting, labeling, or other 
cost burdens on industry. Rather than add ``millions of dollars,'' as 
the commenter posited, because the rule is predicated on an existing 
voluntary standard, the cost of the rule should be essentially zero. In 
the NPR, the Commission estimated that the level of conformance to the 
existing voluntary standard is well in excess of 90 percent. The 
Commission has identified very few nonconforming seasonal and 
decorative lighting products on the market, even among the lowest-
priced products. Thus, no significant wholesale or retail price 
increases are likely to occur as a result of finalizing the rule. To 
the extent that any importers market nonconforming seasonal and 
decorative lighting products, these firms could incur minimal costs of 
up to a few cents per typical 50-light string to incorporate the 
correct wire size, proper strain relief, and overcurrent protection. 
Nonconforming goods, however, are already subject to CPSC enforcement 
action, including recall, seizure, or forfeiture upon importation. 
Thus, because no changes to products or importation practices will be 
needed, the rule will likely have little, if any, impact on costs or 
consumer choice.
    As noted previously, the final rule will create efficiencies for 
the agency's enforcement programs.
    Comment 12: One commenter opposed to the NPR asserted that a CPSC 
rule would be duplicative of other existing regulations (presumably 
referring to the voluntary standard), thereby impacting costs and 
consumer choices.
    Response 12: The final rule designates as a substantial product 
hazard any seasonal and decorative lighting products that do not 
conform to three elements of the existing voluntary standard, UL 588. 
This is consistent with current CPSC enforcement practice. The rule 
will impose no new requirements or cost burdens on industry. Similarly, 
because no products will have to be discontinued or withdrawn from the 
market, the final rule will not affect consumer choice.
    Comment 13: One commenter opposed to the NPR questioned whether the 
proposed rule would maintain ``fair and equitable market access for 
trade partners,'' and whether the Commission had explored less 
restrictive regulatory alternatives.
    Response 13: The final rule is not expected to deny or restrict 
market access in any way. All known products subject to a final rule 
are imported. Because virtually all such products are estimated to 
conform to the voluntary standard already, no new restrictions on 
importation into the United States will occur. Any noncomplying 
products will be subject to CPSC enforcement action. This has been the 
case in the past, and this will continue to be the CPSC's practice even 
without the rule. No regulatory alternatives exist that would be less 
restrictive to industry. Under the rule, business practices will not 
have to change, and therefore, no restrictions on trade will result.

C. Technical Comments

    Comment 14: One commenter asked the Commission to affirm that the 
proposed rule would not apply to the following:
     Battery-operated products.
     Solar-powered products (either direct powered solar, or 
one with a storage system that is used when the sun is not out, such as 
a rechargeable battery to power the lights).

[[Page 25222]]

     Transformer or low-voltage power supplied products, such 
as adaptor-powered products that use a low voltage Class 2 power source 
or ITE power source, that are third party certified by an NRTL lab.
     Flexible Lighting Products, as covered in the scope of UL 
2388 (described as ``Flexible Tube Lighting Strings'' in the proposed 
rule).
    Response 14: The Commission agrees with the commenter that the 
scope of the rule is not intended to include the types of products 
listed above. Section 1120.2(d) of the final rule already states that 
battery-operated products, products that operate from a transformer or 
low-voltage power supply; flexible tube lighting [clarified in response 
15 below] intended for illumination; and portable electric lamps that 
are used to illuminate seasonal decorations are all outside the scope 
the rule. Products listed as out of scope are excluded because they are 
not subject to the same types of hazards as products within the scope 
of the rule; or, such products are not subject to UL 588, but rather, 
are subject to a different voluntary standard. The definition in Sec.  
1120.2(d) of the final rule has been clarified to state that solar-
powered lights are not within the scope of the rule because solar-
powered seasonal lights are not connected to a 120 volt branch circuit 
and do not present the same risk of injury of shock and fire. Thus, 
Sec.  1120.2(d) of the final rule now lists ``solar-powered products'' 
as outside the scope of the final rule.
    Comment 15: One commenter stated that the proposed rule should 
clarify which products are addressed by the term ``flexible tube 
lighting strings'' because CPSC could be excluding products that should 
fall within the scope of the rule, as they are addressed in UL 588. The 
commenter stated that use of the term ``flexible tube lighting 
strings'' could describe a UL 588-covered product connected directly 
across a 120V supply that uses a standard string of lights placed 
inside a rigid or flexible tube. The commenter suggested changing the 
term ``flexible tube lighting strings'' to ``flexible lighting 
products,'' in accordance with the scope of ANSI/UL 2388, Sections 1.1 
and 1.2 and add ``Flexible Lighting Products that conform with the 
ANSI/UL 2388 scope and definitions'' to the ``Rope, tube, . . ..'' 
listing in- ``out-of-scope'' products.
    Response 15: The Commission agrees that the term ``flexible tube 
lighting strings'' could be misconstrued to exempt some products that 
are covered by UL 588. Accordingly, the definition of ``seasonal and 
decorative lighting products'' in Sec.  1120.2(d) of the final rule has 
been changed from the phrase ``flexible tube lighting strings of lights 
intended for illumination'' to the phrase ``flexible lighting products 
incorporating non-replaceable series and series/parallel connected 
lamps enclosed within a flexible polymeric tube or extrusion'' to 
describe out-of-scope lighting products. The Commission believes that 
this language, taken from UL 2388, the voluntary standard that applies 
to flexible lighting, will clarify that flexible lighting products 
subject to UL 2388 are not within the scope of the rule. This 
clarification is not intended to alter the scope of products covered by 
the rule; the revision merely clarifies that flexible tube lighting 
products covered by UL 2388 are not within the scope of the rule.
    Comment 16: One commenter asked for confirmation that seasonal and 
decorative lighting products that are third party certified to ANSI/UL 
588 by a Nationally Recognized Testing Laboratory (``NRTL''), such as 
UL, CSA, or ETL, ``would be considered in compliance with this rule and 
would not require further review.'' Additionally, the commenter 
requested confirmation that products such as a pre-lit artificial tree, 
or a pre-lit artificial wreath, as long as the decorative lighting (for 
example, a 120V cord connected incandescent or LED light string that is 
series or parallel connected and has push in, screw in or non-
replaceable bulbs) is third party certified by an NRTL (such as UL, 
CSA, or ETL) to ANSI/UL 588, are considered to be in compliance with 
the proposed rule and would not require further review, even if the 
entire pre-lit artificial tree or wreath, as a whole with lights, is 
not UL, CSA, or ETL certified.
    Response 16: According to the Occupational Health and Safety 
Administration (``OSHA''), an NRTL is a private sector organization 
recognized by OSHA to perform required product certification to 
electrical standard requirements:

Each NRTL has a scope of test standards that they are recognized 
for, and each NRTL uses its own unique registered certification 
mark(s) to designate product conformance to the applicable product 
safety test standards. After certifying a product, the NRTL 
authorizes the manufacturer to apply a registered certification mark 
to the product. If the certification is done under the NRTL program, 
this mark signifies that the NRTL tested and certified the product, 
and that the product complies with the requirements of one or more 
appropriate product safety test standards. Users of the product can 
generally rely on the mark as evidence that the product complies 
with the applicable OSHA approval requirement(s) and is safe for use 
in the workplace.

OSHA's Web site as of February 23, 2015 (https://www.osha.gov/dts/otpca/nrtl/).
    The Commission interprets the comment to suggest that if a product 
has a mark indicating certification by an NRTL, CPSC should consider 
the product to be compliant with the applicable provisions of UL 588 
and not conduct any further review of the product. The Commission 
believes that products that are legitimately listed to UL 588 by an 
NRTL are likely to be in compliance with UL 588 and not likely to 
present a substantial product hazard. However, because such marks are 
sometimes counterfeit, CPSC will use product labeling as but one factor 
in its decision process when determining which products to investigate 
for compliance.
    Regardless of labeling, CPSC may evaluate any electrical product 
for whether it poses a substantial product hazard. For example, CPSC 
staff's existing practice is to evaluate products at the ports to 
assess whether they present a substantial product hazard, and non-
compliance to a relevant voluntary standard may provide evidence of a 
hazard. Even if electrical products are not subject to a rule under 
section 15(j) of the CPSA, CPSC field staff can collect samples of non-
conforming products and send them to CPSC's lab, NPTEC, for further 
testing and evaluation.
    Comment 17: The commenter asked why ``unlighted ornaments that 
replace a push-in mini-bulb'' are exempt from this rule, suggesting 
that these ornaments have the same fire and shock hazard as ornaments 
that are lighted, have the same strain relief and wire gauge 
requirements as lighted ornaments in UL 588, and should be treated as 
in-scope. He added that the only difference between lighted and 
unlighted ornaments of this type is that they are not required by UL 
588 to have fusing.
    Response 17: Table 1 in the NPR provided a non-exhaustive list of 
examples of lighting products that fall within, and outside of, the 
scope of the proposed rule. Ornaments that replace a push-in mini-bulb 
do not fall within the definition of products in Sec.  1120.2(d) of the 
rule because these products do not have 120 volt input ratings. 
Additionally, in the experience of CPSC staff, ornaments, regardless of 
whether they are lighted or unlighted (including motorized and 
electronic items), have not presented the same hazard as products 
within the scope of the rule. In fact, CPSC has not found any such 
products in its archives to present a substantial product hazard.

[[Page 25223]]

    Comment 18: One commenter pointed out a typographical error in 
section II of the NPR, item 2, on page 62085, ``Sufficient Strain 
Relief,'' of the preamble. The commenter states the correct reference 
for the method of strain relief testing demonstrated in the NPR should 
be section SB15 instead of section SB16, which also changes the strain 
relief load cited in Table 2 from 24 lb. weight to a 20 lb. weight. The 
commenter also suggested changing the reference of section 79 to 
paragraph 79.2 in section II of the NPR, item 2, on page 62085 because 
of the method of testing demonstrated in the NPR. In addition, the 
commenter noted that the testing method in section II of the NPR, item 
2, on page 62085, ``Sufficient Strain Relief,'' is vague and 
unrepeatable by specifying that wire is not allowed to ``stretch,'' as 
the wire will normally stretch in this test. UL 588 specifies that the 
wire not stretch more than \1/16\'' at the entry point of the wire to 
the lampholder, not that the wire below that point cannot stretch.
    Response 18: The Commission agrees with the commenter with regard 
to the correct citation for strain relief requirements, and has revised 
the citation to UL 588 in Sec.  1120.3(c)(2) regarding strain relief in 
the final rule to incorporate section SB15 of UL 588, instead of 
section SB16. We have also published a corrected version of the Table 
summarizing requirements from UL 588 in the preamble to the final rule, 
Table 1 in section I.D of this preamble. Table 1 updates the strain 
relief load from 24 lbs. to 20 lbs. and references SB15 instead of 
SB16. The Commission declines to revise the Table 1 to include 
paragraph 79.2, because the strain relief method called out in section 
79 of UL 588 includes paragraph 79.2.
    In the NPR, the Commission summarized the failure criteria for 
strain relief to demonstrate that strain relief is readily observable 
by hanging the appropriate weight and evaluating the results. However, 
the regulation text adopts the specific requirements for strain relief 
in UL 588. Section 1120.3(c)(2) specifies that sufficient strain relief 
requirements are according to UL 588 sections 15, 71, 79, and SB15 
(changed from SB16 to SB 15). Although the cord is allowed to 
``stretch'' within limits as permitted by UL 588 during the strain 
relief test, CPSC staff's experience in observing non-conforming 
seasonal and decorative lighting products is that such non-complying 
products, in an overwhelming majority of observations, tend to be 
constructed in a way that they fail catastrophically--the conductors 
shred apart, with individual strands stretching to their breaking 
points.
    Comment 19: One commenter stated that, in Section II of the NPR, 
the measurement of wire size (``AWG'') as shown in Picture 3 is not a 
very accurate method of measurement and is intended for solid core 
wire, not stranded as required to be used in decorative lighting 
strings covered by UL 588. The commenter is concerned that using a wire 
gauge with stranded wire can give false positives for undersized wire, 
or false negatives for properly sized wires, depending on twisting and 
other relevant factors. The commenter states that the ANSI UL wire 
standard uses a different method of determining wire size by measuring 
the circular mil area. While the wire gauge method may be sufficient to 
determine the initial need for further examination, the commenter 
states, it should not be used as the final determination for undersize 
wiring.
    Response 19: The final rule incorporates by reference the minimum 
wire size requirements in section 6 of UL 588. Section 6 of UL 588 does 
not state a method for determining or measuring the wire size. 
Accordingly, the rule does not require any particular test; it requires 
compliance with section 6 of UL 588 with regard to minimum wire size. 
The NPR provided an example of one method for measuring wire size.
    The purpose of providing a picture of measuring minimum wire size 
in the NPR was not to favor one method of measuring wire size over 
another, but to demonstrate that wire size is readily observable 
through a direct measurement of the wire. The Commission acknowledges 
that other methods of directly measuring wire size exist that also can 
be done quickly and easily. The Commission notes that CPSC staff's 
experience in observing nonconforming seasonal and decorative lighting 
products demonstrates that such products typically fall short of 
conformance to wire size by a large margin, regardless of the method 
used to determine compliance with section 6 of UL 588.

III. Information Supporting Substantial Product Hazard Determination

A. Defined Characteristics Are Readily Observable and Addressed by UL 
588

    Sections 6, 7, 15, 71, 79, and SB15 of UL 588 set forth the 
requirements for the three readily observable characteristics in the 
final rule: minimum wire size, sufficient strain relief, and 
overcurrent protection. Table 1 in section I.D of this preamble 
summarizes the technical requirements for the three readily observable 
characteristics in UL 588. The final rule deems the absence of any one 
of these characteristics to be a substantial product hazard under 
section 15(a)(2) of the CPSA. The preamble to the NPR set forth 
information to support a finding that minimum wire size, sufficient 
strain relief, and overcurrent protection, are readily observable 
characteristics from UL 588. See 79 FR 62084-86. We summarize and 
update that information here.
1. Minimum Wire Size
    Section 6 of UL 588 requires that series-connected lighting 
products have a minimum wire size of 20 or 22 AWG, depending on whether 
the lighting product has a load fitting, and whether the plug is 
polarized. Minimum wire size, as required in section 6 of UL 588, is a 
readily observable characteristic of seasonal and decorative lighting 
products that can be observed visually by taking a measurement of the 
product's bare wire. 79 FR 62084-85.
2. Sufficient Strain Relief
    Sections 15, 71, 79, and SB15 of UL 588 set forth the requirements 
for sufficient strain relief in seasonal and decorative lighting 
products. Strain relief is observed in several locations: At the plugs 
and load fittings, as well as at the lampholders. Sufficient strain 
relief, as required in sections 15, 71, 79, and SB15 of UL 588, is a 
readily observable characteristic of seasonal and decorative lighting 
products that can be determined by suspending the applicable load from 
the plug, load fitting, or lampholder, and by observing for conformance 
with SB15 of UL 588. 79 FR at 62085-86.
3. Overcurrent Protection
    Section 7 of UL 588 specifies overcurrent protection for every 
seasonal and decorative lighting product. Lighting products must 
contain at least one fuse if the plug is polarized (parallel-connected 
strings must have a polarized plug) or two fuses if the plug is not 
polarized. Overcurrent protection, as required in section 7 of UL 588, 
is a readily observable characteristic of seasonal and decorative 
lighting products that can be determined by a visual observation of 
whether the lighting product has a fuse holder containing the correct 
number of fuses. 79 FR at 62086.

B. Conformance to UL 588 Has Been Effective in Reducing the Risk of 
Injury

    Conformance to sections 6, 7, 15, 71, 79, and SB15 of UL 588, as 
summarized in Table 1 in section I.D of this

[[Page 25224]]

preamble, has been effective in reducing the risk of injury from shock 
and fire associated with below-minimum wire size, insufficient strain 
relief, and lack of overcurrent protection. CPSC's incident data 
demonstrate that conformance to UL 588 has coincided with, and may have 
contributed to, a decline in the risk of injury associated with 
seasonal and decorative lighting products.
    The preamble to the NPR reviewed the reported death and nonfatal 
incident data from 1980 through 2013, which demonstrated a decline 
during that period. See 79 FR at 62086-87. On January 1, 1997, UL 588's 
requirements for overcurrent protection and minimum wire size took 
effect; and the current strain relief requirement has been in effect 
since 1994. Table 3 lists the incidents associated with seasonal and 
decorative lighting products for the periods 1980-1996 and 2000-2014. 
The years from 1997 to 1999 would have been transitional years, where 
older products in consumer homes were being replaced with light strings 
incorporating the January 1, 1997 changes (minimum wire size and 
overcurrent protection) in the UL standard. The average number of 
deaths per year and the average number of nonfatal incidents per year 
were higher before 1997, and the numbers dropped after 1999. See Tab E 
of Staff Final Rule Briefing Package.

   Table 3--Incidents Associated With Seasonal and Decorative Lighting
                                Products
------------------------------------------------------------------------
                 Period                      1980-1996       2000-2014
------------------------------------------------------------------------
Deaths..................................             202              45
Nonfatal Incidents......................             762             545
Average Deaths per year.................            11.9             3.0
Average Nonfatal Incidents per year.....            44.8            36.3
------------------------------------------------------------------------

C. Lighting Products Substantially Comply With UL 588

    The Commission has not articulated a bright-line rule for 
substantial compliance. Rather, in the rulemaking context, the 
Commission has stated that the determination of substantial compliance 
should be made on a case-by-case basis. Seasonal and decorative 
lighting products' compliance with UL 588 is ``substantial,'' as that 
term is used in section 15(j) of the CPSA. The Commission estimates 
that a majority of seasonal and decorative lighting products, well in 
excess of 90 percent, sold for consumer use in the United States, 
likely conforms to UL 588. See 79 FR at 62088. Since issuing the NPR, 
CPSC has not received any information in the comments, or otherwise, 
that would change the estimated level of compliance with UL 588.

IV. Description of the Rule

    The rule regarding seasonal and decorative lighting products 
creates two new paragraphs in part 1120: one defines the products 
covered by the rule and the other states the characteristics that must 
be present for the products not to present a substantial product 
hazard.
    Definition. Section 1120.2(d) defines a ``seasonal and decorative 
lighting product'' as portable, plug-connected, temporary-use lighting 
products and accessories that have a nominal 120 volt input voltage 
rating. Lighting products within the scope of the rule are factory-
assembled with push-in, midget- or miniature-screw base lampholders 
connected in series or with candelabra- or intermediate-screw base 
lampholders connected in parallel, directly across the 120 volt input. 
Such lighting products include lighted decorative outfits, such as 
stars, wreathes, candles without shades, light sculptures, blow-molded 
(plastic) figures, and animated figures. Lighting products outside the 
scope of the rule include: battery-operated products; solar-powered 
products; products that operate from a transformer or low-voltage power 
supply; flexible lighting products incorporating non-replaceable series 
and series/parallel connected lamps enclosed within a flexible 
polymeric tube or extrusion; and portable electric lamps that are used 
to illuminate seasonal decorations.
    This definition is adapted from descriptions of lighting products 
defined in section 1 of UL 588. Lighting products within the scope of 
the rule are typically used seasonally (temporarily) and provide only 
decorative lumination. The products typically are displayed for a 
relatively short period of time, and then the lighting products are 
removed and stored until needed again. Lighting products that are 
excluded from the scope of the rule are subject to different voluntary 
standards or do not present the same risk of injury.
    Substantial product hazard list. Section 1120.3(c) states that 
seasonal and decorative lighting products that do not conform to one or 
more of the following characteristics required in sections 6, 7, 15, 
71, 79, and SB15 of UL 588 are deemed substantial product hazards under 
section 15(a)(2) of the CPSA:
    (1) Minimum wire size requirements in section 6 of UL 588;
    (2) sufficient strain relief requirements in sections 15, 71, 79, 
and SB15 of UL 588; or
    (3) overcurrent protection requirements in section 7 of UL 588.
    Standards incorporated by reference. Additionally, at the request 
of the Office of the Federal Register (``OFR''), the Commission is 
making a technical amendment to part 1120. This technical amendment 
adds a new section, 1120.4, listing all of the incorporations by 
reference (``IBR'') for products added to the substantial product 
hazard list. Thus, the IBR for hand-supported hair dryers and draw 
strings on children's upper outwear is moved from Sec.  1120.3 to the 
new Sec.  1120.4. No substantive change is being made to the rule 
regarding hand-supported hair dryers or drawstrings on children's upper 
outerwear. The IBR for seasonal and decorative lighting products is 
also included in the new Sec.  1120.4.
    Incorporation by reference. The OFR has regulations concerning 
incorporation by reference. 1 CFR part 51. The OFR recently revised 
these regulations to require that, for a final rule, agencies must 
discuss, in the preamble of the rule, ways that the materials the 
agency incorporates by reference are reasonably available to interested 
persons and how interested parties can obtain the materials. In 
addition, the preamble of the rule must summarize the material. 1 CFR 
51.5(b).
    In accordance with the OFR's requirements, this preamble summarizes 
the relevant provisions of UL 588. Table 1 in section I.D of this 
preamble summarizes the requirements of UL 588. Interested persons may 
purchase a copy of UL 588 from UL either through UL's Web site, 
www.UL.com, or by mail at the address provided in the rule. A copy of 
the standard also can be inspected at the CPSC's Office of the 
Secretary, U.S. Consumer Product Safety Commission, or at NARA, as 
provided in the rule.

[[Page 25225]]

V. Commission Determination That Seasonal and Decorative Lighting 
Products That Lack Any One of Three Readily Observable Characteristics 
Present a Substantial Product Hazard

    To place a product (or class of products) on the list of 
substantial product hazards pursuant to section 15(j) of the CPSA, the 
Commission must determine that: (1) The characteristics involved are 
``readily observable''; (2) the characteristics are addressed by a 
voluntary standard; (3) the voluntary standard is effective in reducing 
the risk of injury associated with the consumer products; and (4) 
products are in substantial compliance with the voluntary standard. 
Accordingly, based on the information provided in this preamble, for 
seasonal and decorative lighting products, the Commission determines 
that:
     Minimum wire size, sufficient strain relief, and 
overcurrent protection are all readily observable characteristics of 
seasonal and decorative lighting products. Measurement of minimum wire 
size and sufficient strain relief can be visually observed, and the 
presence of overcurrent protection can be visually observed;
     minimum wire size, sufficient strain relief, and 
overcurrent protection in seasonal and decorative lighting products are 
addressed by a voluntary standard, UL 588. Minimum wire size is 
addressed in section 6 of UL 588. Sufficient strain relief is addressed 
in sections 15, 71, 79, and SB15 of UL 588. Overcurrent protection is 
addressed in section 7 of UL 588;
     conformance to UL 588 has been effective in reducing the 
risk of injury from shock and fire associated with seasonal and 
decorative lighting products. From 1980 to 1996, the reported average 
number of deaths per year was 11.9, and the reported average number of 
nonfatal incidents per year was 44.8. After changes to the UL standard, 
from 2000 to 2014, the reported average number of deaths dropped to 
3.0, and the reported average number of nonfatal incidents per year 
dropped to 36.3. Although decreasing numbers of death and injury may be 
a result of several factors, conformance with UL 588 coincided with, 
and likely contributed to, the decline in deaths and injuries 
associated with seasonal and decorative lighting products; and
     seasonal and decorative lighting products sold in the 
United States substantially comply with UL 588. We estimate that more 
than 90 percent of seasonal and decorative lighting products for sale 
in the United States comply with the minimum wire size, sufficient 
strain relief, and overcurrent protection provisions in UL 588.

VI. Effect of the 15(j) Rule

    Section 15(j) of the CPSA allows the Commission to issue a rule 
specifying that a consumer product or class of consumer products has 
characteristics whose presence or absence creates a substantial product 
hazard. A rule under section 15(j) of the CPSA is not a consumer 
product safety rule, and thus, does not create a mandatory standard 
that triggers testing or certification requirements under section 14(a) 
of the CPSA.
    Although a rule issued under section 15(j) of the CPSA is not a 
consumer product safety rule, placing a consumer product on the 
substantial product hazard list in 16 CFR part 1120 has some 
ramifications. A product that is or has a substantial product hazard is 
subject to the reporting requirements of section 15(b) of the CPSA, 15 
U.S.C. 2064(b). A manufacturer, importer, distributor, or retailer that 
fails to report a substantial product hazard to the Commission is 
subject to civil penalties under section 20 of the CPSA, 15 U.S.C. 
2069, and possibly to criminal penalties under section 21 of the CPSA, 
15 U.S.C. 2070.
    A product that is or contains a substantial product hazard is also 
subject to corrective action under sections 15(c) and (d) of the CPSA, 
15 U.S.C. 2064(c) and (d). Thus, a rule issued under section 15(j) for 
seasonal and decorative lighting allows the Commission to order that a 
manufacturer, importer, distributor, or retailer of lighting products 
that do not contain one or more of the three readily observable 
characteristics to offer to repair or replace the product, or to refund 
the purchase price to the consumer.
    A product that is offered for import into the United States and is 
or contains a substantial product hazard shall be refused admission 
into the United States under section 17(a) of the CPSA, 15 U.S.C. 
2066(a). Additionally, CBP has the authority to seize certain products 
offered for import under the Tariff Act of 1930 (19 U.S.C. 1595a) 
(``Tariff Act''), and to assess civil penalties that CBP, by law, is 
authorized to impose. Section 1595a(c)(2)(A) of the Tariff Act states 
that CBP may seize merchandise, and such merchandize may be forfeited 
if: ``its importation or entry is subject to any restriction or 
prohibition which is imposed by law relating to health, safety, or 
conservation and the merchandise is not in compliance with the 
applicable rule, regulation, or statute.''

VII. Regulatory Flexibility Act Analysis

    The Regulatory Flexibility Act (``RFA'') requires that proposed and 
final rules be reviewed for the potential economic impact on small 
entities, including small businesses. 5 U.S.C. 601-612. In the preamble 
to the proposed rule (79 FR at 62089) the Commission stated that the 
rule will not have a significant impact on a substantial number of 
small entities. This statement was based on CPSC staff's review of the 
roughly 500 companies that import seasonal and decorative lighting 
products into the United States, finding that a very high percentage, 
probably in excess of 90 percent of lighting products sold in the 
United States, already conform to UL 588. Although the Commission 
received comments stating that a rule would increase costs for 
manufacturers and consumers, none of the commenters included any data 
to support their contention. CPSC has not found any data that would 
alter the analysis provided in the NPR. Accordingly, the Commission 
finds that the rule will not have a significant impact on a substantial 
number of small businesses.

VIII. Environmental Considerations

    Generally, the Commission's regulations are considered to have 
little or no potential for affecting the human environment, and 
environmental assessments and impact statements are not usually 
required. See 16 CFR 1021.5(a). The final rule to deem seasonal and 
decorative lighting products that do not contain one or more of three 
readily observable characteristics to be a substantial product hazard 
will not have an adverse impact on the environment and is considered to 
fall within the ``categorical exclusion'' for the purposes of the 
National Environmental Policy Act. 16 CFR 1021.5(c).

IX. Paperwork Reduction Act

    The rule does not require any stakeholder to create, maintain, or 
disclose information. Thus, no paperwork burden is associated with this 
final rule, and the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520) does not apply.

X. Preemption

    A rule under section 15(j) of the CPSA does not establish a 
consumer product safety rule. Accordingly, the preemption provisions in 
section 26(a) of the CPSA, 15 U.S.C. 2075(a), do not apply to this 
rule.

[[Page 25226]]

XI. Effective Date

    The preamble to the proposed rule stated that a final rule deeming 
that any seasonal and decorative lighting product that does not conform 
to sections 6, 7, 15, 71, 79, and SB15 of UL 588 with regard to minimum 
wire size, sufficient strain relief, and overcurrent protection is a 
substantial product hazard would take effect 30 days after publication 
of the rule in the Federal Register. We received no comments on the 
effective date. Accordingly, the final rule will apply to seasonal and 
decorative lighting products imported or introduced into commerce on 
June 3, 2015.

List of Subjects in 16 CFR Part 1120

    Administrative practice and procedure, Clothing, Consumer 
protection, Household appliances, Imports, Incorporation by reference, 
Infants and children, Lighting.

    For the reasons stated above, and under the authority of 15 U.S.C. 
2064(j), 5 U.S.C. 553, and section 3 of Public Law 110-314, 122 Stat. 
3016 (August 14, 2008), the Consumer Product Safety Commission amends 
16 CFR part 1120 to read as follows:

PART 1120--SUBSTANTIAL PRODUCT HAZARD LIST

0
1. The authority citation for part 1120 continues to read as follows:

    Authority: 15 U.S.C. 2064(j).


0
2. In Sec.  1120.2, add paragraph (d) to read as follows:


Sec.  1120.2  Definitions.

* * * * *
    (d) Seasonal and decorative lighting product means portable, plug-
connected, temporary-use lighting products and accessories that have a 
nominal 120 volt input voltage rating. Lighting products within the 
scope of the rule are factory-assembled with push-in, midget- or 
miniature-screw base lampholders connected in series or with 
candelabra- or intermediate-screw base lampholders connected in 
parallel, directly across the 120 volt input. Such lighting products 
include lighted decorative outfits, such as stars, wreathes, candles 
without shades, light sculptures, blow-molded (plastic) figures, and 
animated figures. Lighting products outside the scope of the rule 
include: Battery-operated products; solar-powered products; products 
that operate from a transformer or low-voltage power supply; flexible 
lighting products incorporating non-replaceable series and series/
parallel connected lamps enclosed within a flexible polymeric tube or 
extrusion; and portable electric lamps that are used to illuminate 
seasonal decorations.

0
3. In Sec.  1120.3, republish the introductory text, revise paragraphs 
(a) and (b)(1), and add paragraph (c), to read as follows:


Sec.  1120.3  Products deemed to be substantial product hazards.

    The following products or class of products shall be deemed to be 
substantial product hazards under section 15(a)(2) of the CPSA:
    (a) Hand-supported hair dryers that do not provide integral 
immersion protection in compliance with the requirements of section 5 
of UL 859, or section 6 of UL 1727 (incorporated by reference, see 
Sec.  1120.4).
    (b)(1) Children's upper outerwear in sizes 2T to 16 or the 
equivalent, and having one or more drawstrings, that is subject to, but 
not in conformance with, the requirements of ASTM F 1816-97 
(incorporated by reference, see Sec.  1120.4).
* * * * *
    (c) Seasonal and decorative lighting products that lack one or more 
of the following characteristics in conformance with requirements in 
sections 6, 7, 15, 71, 79, and SB15 of UL 588 (incorporated by 
reference, see Sec.  1120.4):
    (1) Minimum wire size requirements in section 6 of UL 588;
    (2) Sufficient strain relief requirements in sections 15, 71, 79, 
and SB15 of UL 588; or
    (3) Overcurrent protection requirements in section 7 of UL 588.

0
4. Add Sec.  1120.4 to read as follows:


Sec.  1120.4  Standards incorporated by reference.

    (a) The standards required in this part are incorporated by 
reference (``IBR'') into this section with the approval of the Director 
of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. You 
may inspect all approved material at the Office of the Secretary, U.S. 
Consumer Product Safety Commission, Room 820, 4330 East West Highway, 
Bethesda, MD 20814, telephone 301-504-7923, or at the National Archives 
and Records Administration (``NARA''). For information on the 
availability of this material at NARA, call 202-741-6030, or go to: 
http://www.archives.gov/federal-register/cfr/ibr-locations.html.
    (b) ASTM International, 100 Barr Harbor Drive, P.O. Box C700, West 
Conshohocken, PA 19428-2959 USA, telephone: 610-832-9585; http://www2.astm.org/.
    (1) ASTM F 1816-97, Standard Safety Specification for Drawstrings 
on Children's Upper Outerwear, approved June 10, 1997, published August 
1998 (``ASTM F 1816-97''), IBR approved for Sec.  1120.3(b).
    (2) [Reserved]
    (c) Underwriters Laboratories, Inc (``UL''), 333 Pfingsten Road, 
Northbrook, IL 60062 or through UL's Web site: www.UL.com.
    (1) UL 588, Standard for Safety for Seasonal and Holiday Decorative 
Products, 18th Edition, approved August 21, 2000 (``UL 588''), IBR 
approved for Sec.  1120.3(c).
    (2) UL 859, Standard for Safety for Household Electric Personal 
Grooming Appliances, 10th Edition, approved August 30, 2002, and 
revised through June 3, 2010 (``UL 859''), IBR approved for Sec.  
1120.3(a).
    (3) UL 1727, Standard for Safety for Commercial Electric Personal 
Grooming Appliances, 4th Edition, approved March 25, 1999, and revised 
through June 25, 2010 (``UL 1727''), IBR approved for Sec.  1120.3(a).

Alberta E. Mills,
Acting Secretary, Consumer Product Safety Commission.
[FR Doc. 2015-10342 Filed 5-1-15; 8:45 am]
 BILLING CODE 6355-01-P