[Federal Register Volume 81, Number 109 (Tuesday, June 7, 2016)]
[Notices]
[Pages 36522-36524]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13362]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 16-C0004]


Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions, 
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 the Consumer 
Product Safety Commission's regulations. Published below is a 
provisionally-accepted Settlement Agreement with Sunbeam Products, Inc. 
d/b/a Jarden Consumer Solutions containing a civil penalty in the 
amount of four million, five hundred thousand dollars ($4,500,000) 
within thirty (30) days of service of the Commission's final Order 
accepting the Settlement Agreement.

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 June 22, 2016.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 16-C0004, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Alexander W. Dennis, Attorney, 
Division of Enforcement and Information, Office of the General Counsel, 
Consumer Product Safety Commission, 4330 East West Highway, Bethesda, 
Maryland 20814-4408; telephone (301) 504-7817.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order \1\ 
appears below.
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    \1\ The Commission voted (3-2) to provisionally accept the 
Settlement Agreement and Order regarding Sunbeam Products, Inc. d/b/
a Jarden Consumer Solutions. Chairman Kaye, Commissioner Adler, 
Commissioner Robinson voted to provisionally accept the Settlement 
Agreement and Order. Commissioner Buerkle and Commissioner Mohorovic 
voted to reject the Settlement Agreement and Order.

    Dated: June 2, 2016.
Todd A. Stevenson,
Secretary.
    Commissioner Mohorovic filed a statement regarding this matter. The 
statement is available at the Office of the Secretary or the CPSC Web 
site, www.cpsc.gov.

United States of America Consumer Product Safety Commission

    In the Matter of:
    Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions
CPSC Docket No.: 16-C0004

SETTLEMENT AGREEMENT

    1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 
2051-2089 (``CPSA'') and 16 CFR 1118.20, Sunbeam Products, Inc. d/b/a 
Jarden Consumer Solutions (``the Firm''), and the United States 
Consumer Product Safety Commission (``Commission''), through its staff, 
hereby enter into this Settlement Agreement (``Agreement''). The 
Agreement, and the incorporated attached Order, resolve staff's charges 
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. By executing the Agreement, staff is acting 
on behalf of the Commission, pursuant to 16 CFR 1118.20(b). The 
Commission issues the Order under the provisions of the CPSA.
    3. Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions is a 
Delaware corporation with its principal corporate offices in Boca 
Raton, FL.

STAFF CHARGES

    4. From 2010 to 2012 the Firm manufactured, imported, distributed, 
and sold about 520,000 Mr. Coffee Single Cup Brewing System BVMC-KG1 
series coffee makers (``Coffee Makers'' or ``Subject Products'').
    5. The Coffee Makers are ``consumer products'' ``distributed in 
commerce,'' as those terms are defined or used in section 3(a)(5) and 
(8) of the CPSA, 15 U.S.C. 2052(a)(5) and (8). The Firm is a 
``manufacturer'' of the Subject Products, as such term is defined in 
section 3(a)(11) of the CPSA, 15 U.S.C. 2052(a)(11).
    6. The Firm had information reasonably supporting the conclusion 
that the Coffee Makers are defective or created an unreasonable risk of 
serious injury or death in that a build-up of steam pressure can force 
the brewing chamber open and expel hot water and hot coffee grounds 
towards consumers, creating a burn risk to consumers.
    7. Between 2011 and 2012 the Firm received numerous complaints of 
the Subject Products' chamber opening and expelling hot water and hot 
coffee

[[Page 36523]]

grounds towards consumers. The complaints included reports of at least 
32 consumers being burned by the Subject Products.
    8. Despite having information reasonably supporting the conclusion 
that the Coffee Makers contain a defect which could create a 
substantial product hazard or created an unreasonable risk of serious 
injury or death, the Firm did not immediately notify the Commission, as 
required by section 15(b)(3) and (4) of the CPSA, 15 U.S.C. 2064(b)(3) 
and (4).
    9. In failing to inform the Commission immediately about the Coffee 
Makers, the Firm knowingly violated section 19(a)(4) of the CPSA, 15 
U.S.C. 2068(a)(4), as the term ``knowingly'' is defined in section 
20(d) of the CPSA, 15 U.S.C. 2069(d).
    10. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, the Firm is 
subject to civil penalties for its knowing violation of section 
19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).

RESPONSE OF SUNBEAM PRODUCTS, INC. D/B/A JARDEN CONSUMER SOLUTIONS

    11. The Firm's settlement of this matter does not constitute an 
admission that it had reportable information as set forth in paragraphs 
4 through 10.
    12. The Firm conducted an investigation about consumer complaints 
relating to the Subject Products' brewing chamber opening to try to 
determine the cause of these events. After an extensive investigation, 
the Firm eventually determined that these incidents were related to 
circumstances that it had not anticipated, i.e., a buildup of steam 
within the Subject Products' hot water tank, which the Firm believes 
was caused by brewing a second cup of coffee with four ounces or less 
of water added to the hot water tank immediately after an initial eight 
ounce brew, without changing the coffee pod. The Subject Products' 
instructions provided that coffee be brewed by filling the brewing 
chamber to its fill line (i.e. eight ounces of water). When filled to 
the fill line, the Subject Products did not create steam and thus did 
not result in the chamber opening. After its investigation, the Firm 
voluntarily filed a report under Section 15(b) of the CPSA with the 
Commission. 15 U.S.C. 2064(b).
    13. The Firm has agreed to pay this civil penalty because the CPSA 
defines a ``knowing'' violation of section 19(a)(4), 15 U.S.C. 2069(d), 
to include a party that is ``presumed [to] have[] knowledge deemed to 
be possessed by a reasonable man who acts in the circumstances . . .'' 
and has agreed to the terms in paragraphs 20 and 21 to enhance the 
Firm's continued and future compliance with the CPSA.

AGREEMENT OF THE PARTIES

    14. Under the CPSA, the Commission has jurisdiction over the matter 
involving the Subject Products described herein and over the Firm.
    15. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by the Firm or a 
determination by the Commission that the Firm violated the CPSA's 
reporting requirements.
    16. In settlement of staff's charges, and to avoid the cost, 
distraction, delay, uncertainty, and inconvenience of protracted 
litigation or other proceedings, the Firm shall pay a civil penalty in 
the amount of four million, five hundred thousand dollars ($4,500,000) 
within thirty (30) calendar days after receiving service of the 
Commission's final Order accepting the Agreement. The payment shall be 
made by electronic wire transfer to the Commission via: http://www.pay.gov.
    17. After staff receives this Agreement executed on behalf of the 
Firm, staff shall promptly submit the Agreement to the Commission for 
provisional acceptance. Promptly following 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 request not to accept the Agreement within 
fifteen (15) calendar days, the Agreement shall be deemed finally 
accepted on the 16th calendar day after the date the Agreement is 
published in the Federal Register, in accordance with 16 CFR 
1118.20(f).
    18. This Agreement is conditioned upon, and subject to, the 
Commission's final acceptance, as set forth above, and it is subject to 
the provisions of 16 CFR 1118.20(h). Upon the later of: (i) The 
Commission's final acceptance of this Agreement and service of the 
accepted Agreement upon the Firm, and (ii) the date of issuance of the 
final Order, this Agreement shall be in full force and effect and shall 
be binding upon the parties.
    19. Effective upon the later of: (i) The Commission's final 
acceptance of the Agreement and service of the accepted Agreement upon 
the Firm, and (ii) and the date of issuance of the final Order, for 
good and valuable consideration, the Firm hereby expressly and 
irrevocably waives and agrees not to assert any past, present, or 
future rights to the following, in connection with the matter described 
in this Agreement: (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 of whether the Firm 
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.
    20. The Firm shall maintain a compliance program designed to ensure 
compliance with the CPSA with respect to any consumer product imported, 
manufactured, distributed or sold by the Firm, and which shall contain 
the following elements:
    (i) written standards, policies and procedures, including those 
designed to ensure that information that may relate to or impact CPSA 
compliance (including information obtained by quality control 
personnel) is conveyed effectively to personnel responsible for CPSA 
compliance;
    (ii) a mechanism for confidential employee reporting of compliance-
related questions or concerns to either a compliance officer or to 
another senior manager with authority to act as necessary;
    (iii) effective communication of company compliance-related 
policies and procedures regarding the CPSA to all applicable employees 
through training programs or otherwise;
    (iv) the Firm's senior management responsibility for, and general 
board oversight of, CPSA compliance; and
    (v) retention of all CPSA compliance-related records for at least 
five (5) years, and availability of such records to staff upon 
reasonable request.
    21. The Firm has, and shall maintain and enforce, a system of 
internal controls and procedures designed to ensure that, with respect 
to all consumer products imported, manufactured, distributed or sold by 
the Firm: (i) Information required to be disclosed by the Firm to the 
Commission is recorded, processed and reported in accordance with 
applicable law; (ii) all reporting made to the Commission is timely, 
truthful, complete, accurate and in accordance with applicable law; and 
(iii) prompt disclosure is made to the Firm's management of any 
significant deficiencies or material weaknesses in the design or 
operation of such internal controls that are reasonably likely to 
affect adversely, in any material respect, the Firm's ability to 
record, process and

[[Page 36524]]

report to the Commission in accordance with applicable law.
    22. Upon reasonable request of staff, the Firm shall provide 
written documentation of its internal controls and procedures, 
including, but not limited to, the effective dates of the procedures 
and improvements thereto. The Firm shall cooperate fully and truthfully 
with staff and shall make available all non-privileged information and 
materials, and personnel deemed necessary by staff to evaluate the 
Firm's compliance with the terms of the Agreement.
    23. The parties acknowledge and agree that the Commission may 
publicize the terms of the Agreement and the Order.
    24. The Firm represents that the Agreement: (i) Is entered into 
freely and voluntarily, without any degree of duress or compulsion 
whatsoever; (ii) has been duly authorized; and (iii) constitutes the 
valid and binding obligation of the Firm, enforceable against the Firm 
in accordance with its terms. The Firm will not directly or indirectly 
receive any reimbursement, indemnification, insurance-related payment, 
or other payment in connection with the civil penalty to be paid by the 
Firm pursuant to the Agreement and Order. The individuals signing the 
Agreement on behalf of the Firm represent and warrant that they are 
duly authorized by the Firm to execute the Agreement.
    25. The Agreement is governed by the laws of the United States.
    26. The Agreement and the Order shall apply to, and be binding 
upon, the Firm and each of its successors, transferees, and assigns, 
and a violation of the Agreement or Order may subject the Firm, and 
each of its successors, transferees and assigns, to appropriate legal 
action.
    27. The Agreement and the Order constitute the complete agreement 
between the parties regarding the Firm's obligation to file a report 
about the Subject Products under sections 15(b)(3) and (4) of the CPSA, 
15 U.S.C. 2064(b)(3) and (4).
    28. 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. For purposes of construction, the 
Agreement shall be deemed to have been drafted by both of the parties 
and shall not, therefore, be construed against any party for that 
reason in any subsequent dispute.
    29. The Agreement may not be waived, amended, modified, or 
otherwise altered, except as in accordance with the provisions of 16 
CFR 1118.20(h). The Agreement may be executed in counterparts.
    30. If any provision of the Agreement or 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 the Firm agree in writing that severing the provision materially 
affects the purpose of the Agreement and the Order.

SUNBEAM PRODUCTS, INC. D/B/A JARDEN CONSUMER SOLUTIONS

By:--------------------------------------------------------------------
Date: May 25, 2016
Kyle E. Kaiser
Senior Vice President Operations
Sunbeam Products, Inc., d/b/a/ Jarden Consumer Solutions
2381 NW Executive Center Drive
Boca Raton, FL 33431

By:--------------------------------------------------------------------
Date: May 25, 2016
David P. Callet, Esq.
CalletLaw, LLC
5335 Wisconsin Ave. NW., Suite 440
Washington, DC 20015

U.S. CONSUMER PRODUCT SAFETY COMMISSION

By:--------------------------------------------------------------------
Mary T. Boyle
Acting General Counsel
Melissa V. Hampshire
Assistant General Counsel

By:--------------------------------------------------------------------
Date: May 25, 2016
Alexander W. Dennis
Attorney
Division of Enforcement and Information
Office of the General Counsel

United States of America Consumer Product Safety Commission

    In the Matter of:
    Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions
CPSC Docket No.: 16-C0004

ORDER

    Upon consideration of the Settlement Agreement entered into between 
Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions (the ``Firm'') 
and the U.S. Consumer Product Safety Commission (``Commission''), and 
the Commission having jurisdiction over the subject matter and over the 
Firm, and it appearing that the Settlement Agreement and the Order are 
in the public interest, it is:
    ORDERED that the Settlement Agreement be, and is, hereby, accepted; 
and it is
    FURTHER ORDERED that Sunbeam Products, Inc. d/b/a Jarden Consumer 
Solutions shall comply with the terms of the Settlement Agreement and 
shall pay a civil penalty in the amount of four million, five hundred 
thousand dollars ($4,500,000) within thirty (30) days after service of 
the Commission's final Order accepting the Settlement Agreement. The 
payment shall be made by electronic wire transfer to the Commission 
via: http://www.pay.gov. Upon the failure of the Firm to make the 
foregoing payment when due, interest on the unpaid amount shall accrue 
and be paid by the Firm at the federal legal rate of interest set forth 
at 28 U.S.C. 1961(a) and (b). If the Firm fails to make such payment or 
to comply in full with any other provision of the Settlement Agreement, 
such conduct will be considered a violation of the Settlement Agreement 
and Order.
    Provisionally accepted and provisional Order issued on the 2nd day 
of June, 2016.

BY ORDER OF THE COMMISSION:

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Todd A. Stevenson, Secretary
U.S. Consumer Product Safety Commission

[FR Doc. 2016-13362 Filed 6-6-16; 8:45 am]
BILLING CODE 6355-01-P