80_FR_11221 80 FR 11181 - General Electric Company, Provisional Acceptance of a Settlement Agreement and Order

80 FR 11181 - General Electric Company, Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

Federal Register Volume 80, Issue 40 (March 2, 2015)

Page Range11181-11183
FR Document2015-04154

It is the policy of the Commission to publish settlements which it provisionally accepts under the Consumer Product Safety Act in the Federal Register in accordance with the terms of 16 CFR 1118.20(e). Published below is a provisionally-accepted Settlement Agreement with General Electric Company, containing a civil penalty of $3,500,000, within twenty (20) days of service of the Commission's final Order accepting the Settlement Agreement.

Federal Register, Volume 80 Issue 40 (Monday, March 2, 2015)
[Federal Register Volume 80, Number 40 (Monday, March 2, 2015)]
[Notices]
[Pages 11181-11183]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-04154]


=======================================================================
-----------------------------------------------------------------------

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 15-C0003]


General Electric Company, Provisional Acceptance of a Settlement 
Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR 1118.20(e). 
Published below is a provisionally-accepted Settlement Agreement with 
General Electric Company, containing a civil penalty of $3,500,000, 
within twenty (20) 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 March 17, 2015.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 15-C0003 Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Jennifer C. Argabright, Trial 
Attorney, Office of the General Counsel, Division of Compliance, 
Consumer Product Safety Commission, 4330 East West Highway, Bethesda, 
Maryland 20814-4408; telephone (301) 504-7808.

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

    Dated: February 24, 2015.
Alberta E. Mills,
Acting Secretary.

UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: GENERAL ELECTRIC COMPANY, CPSC Docket No.: 15-
C0003

SETTLEMENT AGREEMENT

    1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 
Sec. Sec.  2051-2089 (CPSA) and 16 CFR 1118.20, General Electric 
Company (``GE'' or ``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. Sec. Sec.  2051-2089. By executing the Agreement, 
staff is acting on behalf of the Commission, pursuant to 16 CFR 
Sec.  1118.20(b). The Commission issues the Order under the 
provisions of the CPSA.
    3. GE is a corporation, organized and existing under the laws of 
the state of New York, with its principal place of business in 
Fairfield, CT. GE Appliances (``GEA'' or ``GE Appliances'') is an 
unincorporated business unit of GE that is located in Louisville, 
KY.

STAFF CHARGES

GE RANGES

    4. Between June 2002 through December 2004, GE imported into the 
United States approximately 28,000 dual fuel ranges (the Range). The 
Range was sold through department and appliance stores nationwide 
for approximately $1,300 to $2,000 between June 2002 and December 
2005.
    5. The Range is a 30-inch wide GE Profile Dual Fuel Freestanding 
Range with an electric range with gas cooktop burners. The Range is 
a ``consumer product'' ``distributed in commerce,'' as those terms 
are defined or used in sections 3(a)(5), (8), and (11) of the CPSA, 
15 U.S.C. Sec.  2052(a)(5), (8), and (11). At all relevant times, GE 
was a ``manufacturer'' of the Range, as such term is defined or used 
in sections 3(a)(11) of the CPSA, 15 U.S.C. Sec.  2052(a)(11).
    6. The Range is defective because a connector in the wire 
harness at the rear of the Range can overheat, posing a fire and 
burn hazard to consumers.
    7. GE first received notice of a possible Range failure in 2003, 
when a consumer reported to GE that she had called the fire 
department because the Range had caught fire while it was pre-
heating. A GE technician noted that the wiring had shorted out. By 
the end of 2004, GE received four more consumer complaints of fire 
or melted wires. In 2004, GE technicians examined several of the 
Ranges involved in the consumer complaints and confirmed that the 
wiring harness at the rear of the Range could overheat, causing a 
fire hazard.
    8. In December 2004, to reduce the risk of an overheated 
connector, GE redesigned the Range to remove the connectors in the 
wiring harness. By this time, GE had obtained sufficient information 
that reasonably supported the conclusion that the Range contained a 
defect or possible defect which could create a substantial product 
hazard or created an unreasonable risk of serious injury or death. 
GE was required to inform the Commission immediately of such defect 
or risk, as required by sections 15(b)(3) and (4) of the CPSA, 15 
U.S.C. Sec.  2064(b)(3) and (4).
    9. After the redesign of the Range, GE continued to receive 
reports from consumers of overheated wiring and fires that occurred 
in the back of the Range.
    10. Despite having information regarding the Range's defect or 
risk, GE failed to inform the Commission immediately of such defect 
or risk, as required by sections 15(b)(3) and (4) of the CPSA, 15 
U.S.C. Sec. Sec.  2064(b)(3) and (4).
    11. GE did not file its Full Report with the Commission until 
February 25, 2009. GE recalled the Range on April 8, 2009. By that 
time, GE was aware of an additional eight reports of harness and 
wiring overheating in the back of the Range, including five in which 
the consumer reported that the unit or wiring caught fire. GE failed 
to update the Commission regarding these new incidents.

GE DISHWASHERS

    12. Between July 2003 and December 2006, GE manufactured 
approximately 174,000 stainless steel tub dishwashers (the 
Dishwasher). The Dishwasher was sold through department and 
appliance stores nationwide for approximately $750 to $1,400 between 
July 2003 and October 2010.
    13. The Dishwasher was sold under brand name of GE Profile or GE 
Monogram. The Dishwasher is a ``consumer product'' ``distributed in 
commerce,'' as those terms are defined or used in sections 3(a)(5), 
(8), and (11) of the CPSA, 15 U.S.C. Sec.  2052(a)(5), (8), and 
(11). At all relevant times, GE was a ``manufacturer'' of the 
Dishwasher, as such term is defined or used in sections 3(a)(11) of 
the CPSA, 15 U.S.C. Sec.  2052(a)(11).

[[Page 11182]]

    14. The Dishwasher is defective because it can short circuit due 
to electrolytic condensate on the control board. The short circuit 
can result in an overheated connector in the dishwasher, posing a 
fire and burn hazard to consumers.
    15. GE first received notice of a possible Dishwasher control-
related incident in 2007, when a consumer reported to GE that his 
dishwasher had caught fire in the middle of the night due to an 
overheated control panel. In 2008 and 2009, GE received more reports 
of Dishwasher control-related fires, and GE paid out insurance 
settlements to several consumers based on these reports. Many of 
these reports explicitly alleged a fire that originated at the 
control panel within the Dishwasher's metal door.
    16. Despite this information, GE did not file a Full Report 
concerning the Dishwasher with the Commission until September 14, 
2010. GE recalled the Dishwasher on October 26, 2010.
    17. In failing to inform the Commission about the Range or 
Dishwasher (together, ``Subject Products'') immediately, GE 
knowingly violated section 19(a)(4) of the CPSA, 15 U.S.C. Sec.  
2068(a)(4), as the term ``knowingly'' is defined in section 20(d) of 
the CPSA, 15 U.S.C. Sec.  2069(d).
    18. Pursuant to section 20 of the CPSA, 15 U.S.C. Sec.  2069, GE 
is subject to civil penalties for its knowing failure to report, as 
required under section 15(b) of the CPSA, 15 U.S.C. Sec.  2064(b).

RESPONSE OF GENERAL ELECTRIC COMPANY

    19. GE does not admit the staff's charges set forth in 
paragraphs 4 through 18 above, including, but not limited to, the 
charge that the Subject Products contained a defect that could 
create a substantial product hazard or created an unreasonable risk 
of serious injury or death, and the charge that GE failed to notify 
the Commission in a timely manner, in accordance with section 15(b) 
of the CPSA, 15 U.S.C. Sec.  2064(b).
    20. GE enters into this Agreement to settle this matter without 
the delay and expense of litigation. GE enters into this Agreement 
and agrees to pay the amount referenced below in compromise of the 
staff's charges.
    21. GE voluntarily notified the Commission in connection with 
the Ranges in February 2009. GE was (and is) not aware of any report 
of injury associated with the Ranges and reported issue. GE 
voluntarily notified the Commission in connection with the 
Dishwashers in August 2010. GE was (and is) not aware of any report 
of serious injury associated with the Dishwashers and reported 
issue. GE carried out voluntary recalls in cooperation with the 
Commission and acted to reduce the potential risk of injury.
    22. At all relevant times, GEA has had a product safety 
compliance program, including dedicated product safety personnel, 
new product qualification design and testing safety-related 
requirements, written product safety compliance policies, and 
written procedures for notifying the Commission about potential 
safety issues, in accordance with section 15(b) of the CPSA. GEA's 
product safety compliance program, including its policies and 
procedures, has been enhanced over time, as appropriate.

AGREEMENT OF THE PARTIES

    23. Under the CPSA, the Commission has jurisdiction over the 
matter involving the Products described herein and over GE.
    24. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by GE or a 
determination by the Commission that GE violated the CPSA's 
reporting requirements.
    25. In settlement of staff's charges, and to avoid the cost, 
distraction, delay, uncertainty, and inconvenience of protracted 
litigation or other proceedings, GE shall pay a civil penalty in the 
amount of three million, five hundred thousand dollars ($3,500,000) 
within twenty (20) 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.
    26. After staff receives this Agreement executed on behalf of 
GE, 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 Sec.  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 Sec.  1118.20(f).
    27. 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 C.F.R Sec.  1118.20(h). Upon the later of: 
(i) Commission's final acceptance of this Agreement and service of 
the accepted Agreement upon GE, 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.
    28. Effective upon the later of: (i) the Commission's final 
acceptance of the Agreement and service of the accepted Agreement 
upon GE, and (ii) the date of issuance of the final Order, for good 
and valuable consideration, GE 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 GE 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.
    29. GE represents and agrees that GEA has and shall maintain a 
compliance program designed to ensure compliance with sections 15(b) 
of the CPSA with respect to any consumer product imported, 
manufactured, and/or distributed by GEA. In addition to the program 
components set out in paragraph 22 of this Agreement, GE represents 
and agrees that GEA's compliance program contains and shall continue 
to contain the following elements: (i) written standards and 
policies; (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 CPSA sections 15(b) to all 
applicable employees through training programs or otherwise; (iv) 
GEA senior management responsibility for, and general board 
oversight of, compliance; and (v) retention of all compliance-
related records for at least five (5) years, and availability of 
such records to staff upon reasonable request.
    30. GE represents and agrees that GEA 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, and/or distributed by GEA: (i) information required to 
be disclosed by GE 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 GE'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, 
GEA's ability to record, process, and report to the Commission in 
accordance with applicable law.
    31. Upon reasonable request of staff, GE shall cause GEA to 
provide written documentation of its internal controls and 
procedures, including, but not limited to, the effective dates of 
the procedures and improvements thereto. GE shall cause GEA to 
cooperate fully and truthfully with staff and shall make available 
all non-privileged information and materials, and personnel deemed 
necessary by staff to evaluate GE's compliance with the terms of the 
Agreement.
    32. The parties acknowledge and agree that the Commission may 
publicize the terms of the Agreement and the Order. Any press 
release shall substantially conform to the terms of this Settlement 
Agreement.
    33. GE 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 GE, enforceable against GE in 
accordance with its terms. GE also represents that GE 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 GE pursuant to the Agreement and Order. 
The individuals signing the Agreement on behalf of GE represent and 
warrant that they are duly authorized by GE to execute the 
Agreement.
    34. The Commission signatories represent that they are signing 
the Agreement in their official capacities and that they are 
authorized to execute this Agreement.
    35. The Agreement is governed by the laws of the United States.

[[Page 11183]]

    36. Except as set forth in Paragraph 37, the Agreement and the 
Order shall apply to, and be binding upon, GE and each of its 
successors, transferees, and assigns, and a violation of the 
Agreement or Order may subject GE, and each of its successors, 
transferees and assigns, to appropriate legal action.
    37. Paragraphs 29-31 of the Agreement shall apply to, and be 
binding upon, GE, unless and until GE no longer owns GEA, at which 
time Paragraphs 29-31 only shall apply to, and be binding upon, each 
of GE's successors, transferees, and assigns that acquire GEA.
    38. The Agreement and the Order constitute the complete 
agreement between the parties on the subject matter contained 
therein.
    39. 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.
    40. The Agreement may not be waived, amended, modified, or 
otherwise altered, except as in accordance with the provisions of 16 
CFR Sec.  1118.20(h). The Agreement may be executed in counterparts.
    41. 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 GE agree in writing that severing the provision 
materially affects the purpose of the Agreement and the Order.

GENERAL ELECTRIC COMPANY

Dated: February 4, 2015

By:--------------------------------------------------------------------

Kevin Nolan
Vice President, Technology
GE Appliances, a division of the General Electric Company
Buechel Bank Road
Louisville, KY 40225

Dated: February 3, 2015

By:--------------------------------------------------------------------

Eric A. Rubel
Counsel to General Electric Company
Arnold & Porter LLP
555 Twelfth Street, NW
Washington, DC 20004-1206

U.S. CONSUMER PRODUCT SAFETY COMMISSION

Stephanie Tsacoumis
General Counsel

Mary Boyle
Deputy General Counsel

Mary B. Murphy
Assistant General Counsel

Dated: February 3, 2015

By:--------------------------------------------------------------------

Jennifer C. Argabright, Trial Attorney
Division of Compliance
Office of the General Counsel

UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: General Electric Company

CPSC Docket No.: 15-C0003

ORDER

    Upon consideration of the Settlement Agreement entered into between 
General Electric Company (GE), and the U.S. Consumer Product Safety 
Commission (Commission), and the Commission having jurisdiction over 
the subject matter and over GE, 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 GE shall comply with the terms of the 
Settlement Agreement and shall pay a civil penalty in the amount of 
three million, five hundred thousand dollars ($3,500,000) within twenty 
(20) 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 
GE to make the foregoing payment when due, interest on the unpaid 
amount shall accrue and be paid by GE at the federal legal rate of 
interest set forth at 28 U.S.C. Sec.  1961(a) and (b). If GE 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 13th day 
of February, 2015.
    BY ORDER OF THE COMMISSION:
-----------------------------------------------------------------------
Alberta Mills, Acting Secretary
U.S. Consumer Product Safety Commission

[FR Doc. 2015-04154 Filed 2-27-15; 8:45 am]
BILLING CODE 6355-01-P



                                                                                   Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices                                                 11181

                                                      The total (non-hour) respondent cost                  agreement or otherwise comment on its                 electric range with gas cooktop burners. The
                                                    burden for this collection in the form of               contents by filing a written request with             Range is a ‘‘consumer product’’ ‘‘distributed
                                                    postage costs is estimated to be                        the Office of the Secretary by March 17,              in commerce,’’ as those terms are defined or
                                                                                                                                                                  used in sections 3(a)(5), (8), and (11) of the
                                                    $3,801.42 per year.                                     2015.                                                 CPSA, 15 U.S.C. § 2052(a)(5), (8), and (11). At
                                                                                                            ADDRESSES: Persons wishing to                         all relevant times, GE was a ‘‘manufacturer’’
                                                    IV. Request for Comments
                                                                                                            comment on this Settlement Agreement                  of the Range, as such term is defined or used
                                                       Comments are invited on: (a) Whether                 should send written comments to the                   in sections 3(a)(11) of the CPSA, 15 U.S.C.
                                                    the proposed collection of information                  Comment 15–C0003 Office of the                        § 2052(a)(11).
                                                    is necessary for the proper performance                 Secretary, Consumer Product Safety                       6. The Range is defective because a
                                                    of the functions of the agency, including               Commission, 4330 East West Highway,                   connector in the wire harness at the rear of
                                                    whether the information shall have                                                                            the Range can overheat, posing a fire and
                                                                                                            Room 820, Bethesda, Maryland 20814–                   burn hazard to consumers.
                                                    practical utility; (b) the accuracy of the              4408.                                                    7. GE first received notice of a possible
                                                    agency’s estimate of the burden                         FOR FURTHER INFORMATION CONTACT:                      Range failure in 2003, when a consumer
                                                    (including hours and cost) of the                       Jennifer C. Argabright, Trial Attorney,               reported to GE that she had called the fire
                                                    proposed collection of information,                     Office of the General Counsel, Division               department because the Range had caught
                                                    including the validity of the                           of Compliance, Consumer Product                       fire while it was pre-heating. A GE technician
                                                    methodology and assumptions used; (c)                   Safety Commission, 4330 East West                     noted that the wiring had shorted out. By the
                                                    ways to enhance the quality, utility, and                                                                     end of 2004, GE received four more consumer
                                                                                                            Highway, Bethesda, Maryland 20814–                    complaints of fire or melted wires. In 2004,
                                                    clarity of the information to be                        4408; telephone (301) 504–7808.
                                                    collected; and (d) ways to minimize the                                                                       GE technicians examined several of the
                                                                                                            SUPPLEMENTARY INFORMATION: The text of                Ranges involved in the consumer complaints
                                                    burden of the collection of information
                                                                                                            the Agreement and Order appears                       and confirmed that the wiring harness at the
                                                    on respondents, including through the                                                                         rear of the Range could overheat, causing a
                                                                                                            below.
                                                    use of automated collection techniques                                                                        fire hazard.
                                                    or other forms of information                             Dated: February 24, 2015.                              8. In December 2004, to reduce the risk of
                                                    technology, e.g., permitting electronic                 Alberta E. Mills,                                     an overheated connector, GE redesigned the
                                                    submission of responses.                                Acting Secretary.                                     Range to remove the connectors in the wiring
                                                       Comments submitted in response to                                                                          harness. By this time, GE had obtained
                                                    this notice will be summarized or                       UNITED STATES OF AMERICA                              sufficient information that reasonably
                                                    included in the request for OMB                         CONSUMER PRODUCT SAFETY                               supported the conclusion that the Range
                                                    approval of this information collection;                COMMISSION                                            contained a defect or possible defect which
                                                                                                                                                                  could create a substantial product hazard or
                                                    they will also become a matter of public                 In the Matter of: GENERAL ELECTRIC                   created an unreasonable risk of serious injury
                                                    record.                                                 COMPANY, CPSC Docket No.: 15–C0003                    or death. GE was required to inform the
                                                      Dated: February 20, 2015.                             SETTLEMENT AGREEMENT                                  Commission immediately of such defect or
                                                    Marcie Lovett,                                                                                                risk, as required by sections 15(b)(3) and (4)
                                                                                                               1. In accordance with the Consumer
                                                                                                                                                                  of the CPSA, 15 U.S.C. § 2064(b)(3) and (4).
                                                    Records Management Division Director,                   Product Safety Act, 15 U.S.C. §§ 2051–2089
                                                                                                                                                                     9. After the redesign of the Range, GE
                                                    USPTO, Office of the Chief Information                  (CPSA) and 16 CFR 1118.20, General Electric
                                                                                                                                                                  continued to receive reports from consumers
                                                    Officer.                                                Company (‘‘GE’’ or ‘‘Firm’’), and the United
                                                                                                                                                                  of overheated wiring and fires that occurred
                                                                                                            States Consumer Product Safety Commission
                                                    [FR Doc. 2015–04212 Filed 2–27–15; 8:45 am]                                                                   in the back of the Range.
                                                                                                            (‘‘Commission’’), through its staff, hereby
                                                    BILLING CODE 3510–16–P                                                                                           10. Despite having information regarding
                                                                                                            enter into this Settlement Agreement
                                                                                                                                                                  the Range’s defect or risk, GE failed to inform
                                                                                                            (‘‘Agreement’’). The Agreement, and the
                                                                                                                                                                  the Commission immediately of such defect
                                                                                                            incorporated attached Order, resolve staff’s
                                                                                                                                                                  or risk, as required by sections 15(b)(3) and
                                                    CONSUMER PRODUCT SAFETY                                 charges set forth below.
                                                                                                                                                                  (4) of the CPSA, 15 U.S.C. §§ 2064(b)(3) and
                                                    COMMISSION                                              THE PARTIES                                           (4).
                                                    [CPSC Docket No. 15–C0003]                                 2. The Commission is an independent                   11. GE did not file its Full Report with the
                                                                                                            federal regulatory agency, established                Commission until February 25, 2009. GE
                                                    General Electric Company, Provisional                   pursuant to, and responsible for the                  recalled the Range on April 8, 2009. By that
                                                                                                            enforcement of, the CPSA, 15 U.S.C. §§ 2051–          time, GE was aware of an additional eight
                                                    Acceptance of a Settlement Agreement                                                                          reports of harness and wiring overheating in
                                                    and Order                                               2089. By executing the Agreement, staff is
                                                                                                            acting on behalf of the Commission, pursuant          the back of the Range, including five in
                                                    AGENCY: Consumer Product Safety                         to 16 CFR § 1118.20(b). The Commission                which the consumer reported that the unit or
                                                                                                            issues the Order under the provisions of the          wiring caught fire. GE failed to update the
                                                    Commission.
                                                                                                            CPSA.                                                 Commission regarding these new incidents.
                                                    ACTION: Notice.
                                                                                                               3. GE is a corporation, organized and              GE DISHWASHERS
                                                    SUMMARY:   It is the policy of the                      existing under the laws of the state of New              12. Between July 2003 and December 2006,
                                                    Commission to publish settlements                       York, with its principal place of business in         GE manufactured approximately 174,000
                                                                                                            Fairfield, CT. GE Appliances (‘‘GEA’’ or ‘‘GE         stainless steel tub dishwashers (the
                                                    which it provisionally accepts under the
                                                                                                            Appliances’’) is an unincorporated business           Dishwasher). The Dishwasher was sold
                                                    Consumer Product Safety Act in the                      unit of GE that is located in Louisville, KY.
                                                    Federal Register in accordance with the                                                                       through department and appliance stores
                                                                                                            STAFF CHARGES                                         nationwide for approximately $750 to $1,400
                                                    terms of 16 CFR 1118.20(e). Published                                                                         between July 2003 and October 2010.
                                                    below is a provisionally-accepted                       GE RANGES                                                13. The Dishwasher was sold under brand
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    Settlement Agreement with General                         4. Between June 2002 through December               name of GE Profile or GE Monogram. The
                                                    Electric Company, containing a civil                    2004, GE imported into the United States              Dishwasher is a ‘‘consumer product’’
                                                    penalty of $3,500,000, within twenty                    approximately 28,000 dual fuel ranges (the            ‘‘distributed in commerce,’’ as those terms
                                                    (20) days of service of the Commission’s                Range). The Range was sold through                    are defined or used in sections 3(a)(5), (8),
                                                    final Order accepting the Settlement                    department and appliance stores nationwide            and (11) of the CPSA, 15 U.S.C. § 2052(a)(5),
                                                    Agreement.                                              for approximately $1,300 to $2,000 between            (8), and (11). At all relevant times, GE was
                                                                                                            June 2002 and December 2005.                          a ‘‘manufacturer’’ of the Dishwasher, as such
                                                    DATES: Any interested person may ask                      5. The Range is a 30-inch wide GE Profile           term is defined or used in sections 3(a)(11)
                                                    the Commission not to accept this                       Dual Fuel Freestanding Range with an                  of the CPSA, 15 U.S.C. § 2052(a)(11).



                                               VerDate Sep<11>2014   16:55 Feb 27, 2015   Jkt 235001   PO 00000   Frm 00028   Fmt 4703   Sfmt 4703   E:\FR\FM\02MRN1.SGM   02MRN1


                                                    11182                          Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices

                                                       14. The Dishwasher is defective because it           including its policies and procedures, has            program components set out in paragraph 22
                                                    can short circuit due to electrolytic                   been enhanced over time, as appropriate.              of this Agreement, GE represents and agrees
                                                    condensate on the control board. The short                                                                    that GEA’s compliance program contains and
                                                    circuit can result in an overheated connector           AGREEMENT OF THE PARTIES                              shall continue to contain the following
                                                    in the dishwasher, posing a fire and burn                  23. Under the CPSA, the Commission has             elements: (i) written standards and policies;
                                                    hazard to consumers.                                    jurisdiction over the matter involving the            (ii) a mechanism for confidential employee
                                                       15. GE first received notice of a possible           Products described herein and over GE.                reporting of compliance-related questions or
                                                    Dishwasher control-related incident in 2007,               24. The parties enter into the Agreement           concerns to either a compliance officer or to
                                                    when a consumer reported to GE that his                 for settlement purposes only. The Agreement           another senior manager with authority to act
                                                    dishwasher had caught fire in the middle of             does not constitute an admission by GE or a           as necessary; (iii) effective communication of
                                                    the night due to an overheated control panel.           determination by the Commission that GE               company compliance-related policies and
                                                    In 2008 and 2009, GE received more reports              violated the CPSA’s reporting requirements.           procedures regarding CPSA sections 15(b) to
                                                    of Dishwasher control-related fires, and GE                25. In settlement of staff’s charges, and to       all applicable employees through training
                                                    paid out insurance settlements to several               avoid the cost, distraction, delay,                   programs or otherwise; (iv) GEA senior
                                                    consumers based on these reports. Many of               uncertainty, and inconvenience of protracted          management responsibility for, and general
                                                    these reports explicitly alleged a fire that            litigation or other proceedings, GE shall pay         board oversight of, compliance; and (v)
                                                    originated at the control panel within the              a civil penalty in the amount of three million,       retention of all compliance-related records
                                                    Dishwasher’s metal door.                                five hundred thousand dollars ($3,500,000)            for at least five (5) years, and availability of
                                                       16. Despite this information, GE did not             within twenty (20) calendar days after                such records to staff upon reasonable request.
                                                    file a Full Report concerning the Dishwasher            receiving service of the Commission’s final              30. GE represents and agrees that GEA has
                                                    with the Commission until September 14,                 Order accepting the Agreement. The payment            and shall maintain and enforce a system of
                                                    2010. GE recalled the Dishwasher on October             shall be made by electronic wire transfer to          internal controls and procedures designed to
                                                    26, 2010.                                               the Commission via: http://www.pay.gov.               ensure that, with respect to all consumer
                                                       17. In failing to inform the Commission                 26. After staff receives this Agreement            products imported, manufactured, and/or
                                                    about the Range or Dishwasher (together,                executed on behalf of GE, staff shall promptly        distributed by GEA: (i) information required
                                                                                                            submit the Agreement to the Commission for            to be disclosed by GE to the Commission is
                                                    ‘‘Subject Products’’) immediately, GE
                                                                                                            provisional acceptance. Promptly following            recorded, processed, and reported in
                                                    knowingly violated section 19(a)(4) of the
                                                                                                            provisional acceptance of the Agreement by            accordance with applicable law; (ii) all
                                                    CPSA, 15 U.S.C. § 2068(a)(4), as the term
                                                                                                            the Commission, the Agreement shall be                reporting made to the Commission is timely,
                                                    ‘‘knowingly’’ is defined in section 20(d) of
                                                                                                            placed on the public record and published in          truthful, complete, accurate, and in
                                                    the CPSA, 15 U.S.C. § 2069(d).                                                                                accordance with applicable law; and (iii)
                                                       18. Pursuant to section 20 of the CPSA, 15           the Federal Register, in accordance with the
                                                                                                                                                                  prompt disclosure is made to GE’s
                                                    U.S.C. § 2069, GE is subject to civil penalties         procedures set forth in 16 CFR § 1118.20(e).
                                                                                                                                                                  management of any significant deficiencies
                                                    for its knowing failure to report, as required          If the Commission does not receive any
                                                                                                                                                                  or material weaknesses in the design or
                                                    under section 15(b) of the CPSA, 15 U.S.C.              written request not to accept the Agreement
                                                                                                                                                                  operation of such internal controls that are
                                                    § 2064(b).                                              within fifteen (15) calendar days, the
                                                                                                                                                                  reasonably likely to affect adversely, in any
                                                                                                            Agreement shall be deemed finally accepted            material respect, GEA’s ability to record,
                                                    RESPONSE OF GENERAL ELECTRIC                            on the 16th calendar day after the date the
                                                    COMPANY                                                                                                       process, and report to the Commission in
                                                                                                            Agreement is published in the Federal                 accordance with applicable law.
                                                       19. GE does not admit the staff’s charges            Register, in accordance with 16 CFR                      31. Upon reasonable request of staff, GE
                                                    set forth in paragraphs 4 through 18 above,             § 1118.20(f).                                         shall cause GEA to provide written
                                                    including, but not limited to, the charge that             27. This Agreement is conditioned upon,            documentation of its internal controls and
                                                    the Subject Products contained a defect that            and subject to, the Commission’s final                procedures, including, but not limited to, the
                                                    could create a substantial product hazard or            acceptance, as set forth above, and it is             effective dates of the procedures and
                                                    created an unreasonable risk of serious injury          subject to the provisions of 16 C.F.R                 improvements thereto. GE shall cause GEA to
                                                    or death, and the charge that GE failed to              § 1118.20(h). Upon the later of: (i)                  cooperate fully and truthfully with staff and
                                                    notify the Commission in a timely manner,               Commission’s final acceptance of this                 shall make available all non-privileged
                                                    in accordance with section 15(b) of the                 Agreement and service of the accepted                 information and materials, and personnel
                                                    CPSA, 15 U.S.C. § 2064(b).                              Agreement upon GE, and (ii) the date of               deemed necessary by staff to evaluate GE’s
                                                       20. GE enters into this Agreement to settle          issuance of the final Order, this Agreement           compliance with the terms of the Agreement.
                                                    this matter without the delay and expense of            shall be in full force and effect and shall be           32. The parties acknowledge and agree that
                                                    litigation. GE enters into this Agreement and           binding upon the parties.                             the Commission may publicize the terms of
                                                    agrees to pay the amount referenced below in               28. Effective upon the later of: (i) the           the Agreement and the Order. Any press
                                                    compromise of the staff’s charges.                      Commission’s final acceptance of the                  release shall substantially conform to the
                                                       21. GE voluntarily notified the Commission           Agreement and service of the accepted                 terms of this Settlement Agreement.
                                                    in connection with the Ranges in February               Agreement upon GE, and (ii) the date of                  33. GE represents that the Agreement: (i) is
                                                    2009. GE was (and is) not aware of any report           issuance of the final Order, for good and             entered into freely and voluntarily, without
                                                    of injury associated with the Ranges and                valuable consideration, GE hereby expressly           any degree of duress or compulsion
                                                    reported issue. GE voluntarily notified the             and irrevocably waives and agrees not to              whatsoever; (ii) has been duly authorized;
                                                    Commission in connection with the                       assert any past, present, or future rights to the     and (iii) constitutes the valid and binding
                                                    Dishwashers in August 2010. GE was (and is)             following, in connection with the matter              obligation of GE, enforceable against GE in
                                                    not aware of any report of serious injury               described in this Agreement: (i) an                   accordance with its terms. GE also represents
                                                    associated with the Dishwashers and                     administrative or judicial hearing; (ii)              that GE will not directly or indirectly receive
                                                    reported issue. GE carried out voluntary                judicial review or other challenge or contest         any reimbursement, indemnification,
                                                    recalls in cooperation with the Commission              of the Commission’s actions; (iii) a                  insurance-related payment, or other payment
                                                    and acted to reduce the potential risk of               determination by the Commission of whether            in connection with the civil penalty to be
                                                    injury.                                                 GE failed to comply with the CPSA and the             paid by GE pursuant to the Agreement and
                                                       22. At all relevant times, GEA has had a             underlying regulations; (iv) a statement of           Order. The individuals signing the
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    product safety compliance program,                      findings of fact and conclusions of law; and          Agreement on behalf of GE represent and
                                                    including dedicated product safety                      (v) any claims under the Equal Access to              warrant that they are duly authorized by GE
                                                    personnel, new product qualification design             Justice Act.                                          to execute the Agreement.
                                                    and testing safety-related requirements,                   29. GE represents and agrees that GEA has             34. The Commission signatories represent
                                                    written product safety compliance policies,             and shall maintain a compliance program               that they are signing the Agreement in their
                                                    and written procedures for notifying the                designed to ensure compliance with sections           official capacities and that they are
                                                    Commission about potential safety issues, in            15(b) of the CPSA with respect to any                 authorized to execute this Agreement.
                                                    accordance with section 15(b) of the CPSA.              consumer product imported, manufactured,                 35. The Agreement is governed by the laws
                                                    GEA’s product safety compliance program,                and/or distributed by GEA. In addition to the         of the United States.



                                               VerDate Sep<11>2014   16:55 Feb 27, 2015   Jkt 235001   PO 00000   Frm 00029   Fmt 4703   Sfmt 4703   E:\FR\FM\02MRN1.SGM   02MRN1


                                                                                   Federal Register / Vol. 80, No. 40 / Monday, March 2, 2015 / Notices                             11183

                                                       36. Except as set forth in Paragraph 37, the         Jennifer C. Argabright, Trial Attorney    In accordance with the
                                                                                                                                                                  SUMMARY:
                                                    Agreement and the Order shall apply to, and             Division of Compliance        Paperwork Reduction Act of 1995 (44
                                                    be binding upon, GE and each of its                     Office of the General Counsel U.S.C. chapter 3501 et seq.), ED is
                                                    successors, transferees, and assigns, and a                                           proposing an extension of an existing
                                                    violation of the Agreement or Order may  UNITED STATES OF AMERICA
                                                    subject GE, and each of its successors,  CONSUMER PRODUCT SAFETY                      information collection.
                                                                                             COMMISSION
                                                    transferees and assigns, to appropriate legal                                         DATES: Interested persons are invited to
                                                    action.                                    In the Matter of: General Electric Company
                                                                                                                                          submit comments on or before April 1,
                                                       37. Paragraphs 29–31 of the Agreement                                              2015.
                                                    shall apply to, and be binding upon, GE, CPSC Docket No.: 15–C0003
                                                                                                                                          ADDRESSES: Comments submitted in
                                                    unless and until GE no longer owns GEA, at
                                                                                             ORDER                                        response to this notice should be
                                                    which time Paragraphs 29–31 only shall
                                                    apply to, and be binding upon, each of GE’s Upon consideration of the Settlement submitted electronically through the
                                                                                             Agreement entered into between               Federal eRulemaking Portal at http://
                                                    successors, transferees, and assigns that
                                                    acquire GEA.                             General Electric Company (GE), and the www.regulations.gov by selecting
                                                       38. The Agreement and the Order       U.S. Consumer Product Safety                 Docket ID number ED–2014–ICCD–0158
                                                    constitute the complete agreement betweenCommission (Commission), and the             or via postal mail, commercial delivery,
                                                    the parties on the subject matter contained
                                                                                             Commission having jurisdiction over          or hand delivery. If the regulations.gov
                                                    therein.                                 the subject matter and over GE, and it       site is not available to the public for any
                                                       39. The Agreement may be used in                                                   reason, ED will temporarily accept
                                                                                             appearing that the Settlement
                                                    interpreting the Order. Understandings,                                               comments at ICDocketMgr@ed.gov.
                                                    agreements, representations, or          Agreement and the Order are in the
                                                                                             public interest, it is:                      Please note that comments submitted by
                                                    interpretations apart from those contained in                                         fax or email and those submitted after
                                                    the Agreement and the Order may not be      ORDERED that the Settlement
                                                                                             Agreement be, and is, hereby, accepted; the comment period will not be
                                                    used to vary or contradict their terms. For
                                                    purposes of construction, the Agreement  and it is                                    accepted; ED will ONLY accept
                                                    shall be deemed to have been drafted by bothFURTHER ORDERED that GE shall             comments during the comment period
                                                                                             comply with the terms of the Settlement in this mailbox when the
                                                    of the parties and shall not, therefore, be
                                                                                             Agreement and shall pay a civil penalty regulations.gov site is not available.
                                                    construed against any party for that reason in
                                                    any subsequent dispute.                  in the amount of three million, five         Written requests for information or
                                                       40. The Agreement may not be waived,  hundred thousand dollars ($3,500,000)        comments submitted by postal mail or
                                                    amended, modified, or otherwise altered, within twenty (20) days after service of     delivery should be addressed to the
                                                    except as in accordance with the provisions                                           Director of the Information Collection
                                                                                             the Commission’s final Order accepting
                                                    of 16 CFR § 1118.20(h). The Agreement may
                                                    be executed in counterparts.             the Settlement Agreement. The payment Clearance Division, U.S. Department of
                                                                                             shall be made by electronic wire transfer Education, 400 Maryland Avenue SW.,
                                                       41. If any provision of the Agreement or
                                                                                             to the Commission via: http://
                                                    the Order is held to be illegal, invalid, or                                          LBJ, Mailstop L–OM–2–2E319, Room
                                                                                             www.pay.gov. Upon the failure of GE to
                                                    unenforceable under present or future laws                                            2E105, Washington, DC 20202.
                                                                                             make the foregoing payment when due,
                                                    effective during the terms of the Agreement                                           FOR FURTHER INFORMATION CONTACT: For
                                                    and the Order, such provision shall be fully
                                                                                             interest on the unpaid amount shall          specific questions related to collection
                                                    severable. The balance of the Agreement and
                                                                                             accrue and be paid by GE at the federal      activities, please contact Beth
                                                    the Order shall remain in full force and legal rate of interest set forth at 28       Grebeldinger, 202–377–4018.
                                                    effect, unless the Commission and GE agree
                                                                                             U.S.C. § 1961(a) and (b). If GE fails to     SUPPLEMENTARY INFORMATION: The
                                                    in writing that severing the provision
                                                                                             make such payment or to comply in full Department of Education (ED), in
                                                    materially affects the purpose of the
                                                    Agreement and the Order.                 with any other provision of the              accordance with the Paperwork
                                                                                             Settlement Agreement, such conduct           Reduction Act of 1995 (PRA) (44 U.S.C.
                                                    GENERAL ELECTRIC COMPANY                 will be considered a violation of the        3506(c)(2)(A)), provides the general
                                                    Dated: February 4, 2015                  Settlement Agreement and Order.              public and Federal agencies with an
                                                    By: lllllllllllllllllll                     Provisionally accepted and                opportunity to comment on proposed,
                                                    Kevin Nolan                              provisional Order issued on the 13th         revised, and continuing collections of
                                                    Vice President, Technology               day of February, 2015.                       information. This helps the Department
                                                    GE Appliances, a division of the General   BY ORDER OF THE COMMISSION:                assess the impact of its information
                                                    Electric Company                         lllllllllllllllllllll
                                                                                             Alberta Mills, Acting Secretary
                                                                                                                                          collection requirements and minimize
                                                    Buechel Bank Road                                                                     the public’s reporting burden. It also
                                                    Louisville, KY 40225                     U.S. Consumer   Product   Safety Commission
                                                                                                                                          helps the public understand the
                                                    Dated: February 3, 2015                  [FR Doc. 2015–04154 Filed 2–27–15; 8:45 am]
                                                                                                                                          Department’s information collection
                                                    By: lllllllllllllllllll BILLING CODE 6355–01–P                                        requirements and provide the requested
                                                    Eric A. Rubel                                                                         data in the desired format. ED is
                                                    Counsel to General Electric Company                                                   soliciting comments on the proposed
                                                    Arnold & Porter LLP                      DEPARTMENT OF EDUCATION                      information collection request (ICR) that
                                                    555 Twelfth Street, NW
                                                    Washington, DC 20004–1206                [Docket   No.: ED–2014–ICCD–0158]            is described below. The Department of
                                                                                                                                          Education is especially interested in
                                                    U.S. CONSUMER PRODUCT SAFETY             Agency Information Collection                public comment addressing the
                                                    COMMISSION                               Activities; Submission to the Office of      following issues: (1) Is this collection
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    Stephanie Tsacoumis                      Management and Budget for Review             necessary to the proper functions of the
                                                    General Counsel                          and Approval; Comment Request;               Department; (2) will this information be
                                                    Mary Boyle                               Student Assistance General                   processed and used in a timely manner;
                                                    Deputy General Counsel                   Provisions—Subpart A—General                 (3) is the estimate of burden accurate;
                                                    Mary B. Murphy                                                                        (4) how might the Department enhance
                                                                                             AGENCY: Federal Student Aid (FSA),
                                                    Assistant General Counsel                                                             the quality, utility, and clarity of the
                                                                                             Department of Education (ED).
                                                    Dated: February 3, 2015                                                               information to be collected; and (5) how
                                                                                             ACTION: Notice
                                                    By: lllllllllllllllllll                                                               might the Department minimize the


                                               VerDate Sep<11>2014   16:55 Feb 27, 2015   Jkt 235001   PO 00000   Frm 00030   Fmt 4703   Sfmt 4703   E:\FR\FM\02MRN1.SGM   02MRN1



Document Created: 2015-12-18 12:07:42
Document Modified: 2015-12-18 12:07:42
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesAny 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 March 17, 2015.
ContactJennifer C. Argabright, Trial Attorney, Office of the General Counsel, Division of Compliance, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7808.
FR Citation80 FR 11181 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR