80 FR 31576 - Office Depot, Inc., Provisional Acceptance of a Settlement Agreement and Order
CONSUMER PRODUCT SAFETY COMMISSION Federal Register Volume 80, Issue 106 (June 3, 2015)
Federal Register Volume 80, Issue 106 (June 3, 2015)
| Page Range | 31576-31579 | |
| FR Document | 2015-13422 |
[Federal Register Volume 80, Number 106 (Wednesday, June 3, 2015)] [Notices] [Pages 31576-31579] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-13422] ======================================================================= ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 15-C0004] Office Depot, Inc., 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 Office Depot, Inc., containing a civil penalty of $3,400,000, within twenty (20) days of service of the Commission's final Order accepting the Settlement Agreement.\1\ --------------------------------------------------------------------------- \1\ Chairman Elliot F. Kaye and Commissioners Robert S. Adler and Marietta S. Robinson voted to provisionally accept the Settlement Agreement and Order. Commissioners Joseph P. Mohorovic and Ann Marie Buerkle voted to reject the Settlement Agreement and Order. Commissioner Mohorovic submitted a statement regarding the matter. The statement will be available from the Office of the Secretariat and the CPSC Web site, www.cpsc.gov. 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 18, 2015. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 15-C0004 Office of the Secretary, Consumer Product Safety Commission, 4330 East West Highway, Room 820, Bethesda, Maryland 20814-4408. FOR FURTHER INFORMATION CONTACT: Sean R. Ward, Trial Attorney, Office of the General Counsel, Division of Compliance, Consumer Product Safety Commission, 4330 East West Highway, [[Page 31577]] Bethesda, Maryland 20814-4408; telephone (301) 504-7602. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. Dated: May 28, 2015. Todd A. Stevenson, Secretary. UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: Office Depot, Inc. CPSC Docket No.: 15-C0004 SETTLEMENT AGREEMENT 1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 2051-2089 (``CPSA'') and 16 CFR 1118.20, Office Depot, Inc. (``Office Depot'' 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. 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. Office Depot is a corporation, organized and existing under the laws of the state of Delaware, with its principal place of business in Boca Raton, Florida. STAFF CHARGES Quantum Chair 4. Between May 2006 and August 2009, Office Depot sold in the United States approximately 150,000 Quantum Realspace PROTM 9000 Series Mid-Back Multifunction Mesh Chairs and Quantum Realspace PROTM 9000 Series Mid-Back Multifunction Mesh Chairs with Headrest (``Quantum Chair''). 5. The Quantum Chair is a ``consumer product'' ``distributed in commerce,'' as those terms are defined or used in sections 3(a)(5), (8) of the CPSA, 15 U.S.C. 2052(a)(5), (8). Office Depot was a ``retailer'' of the Quantum Chair, as such term is defined in section 3(a)(13) of the CPSA, 15 U.S.C. 2052(a)(13). 6. The Quantum Chair is defective and creates an unreasonable risk of serious injury because the bolts attaching the seatback on the Quantum Chair can loosen and detach, posing a fall and injury hazard to consumers. 7. Office Depot first received notice of a Quantum Chair failure in 2007 when a consumer reported to Office Depot that the seatback loosened or detached on the Quantum Chair, causing the consumer to sustain injuries. 8. In 2008, Office Depot became aware that, in an effort to eliminate seatback detachment, the manufacturer of the Quantum Chair made two design changes to the Quantum Chair and a change to the accompanying instructions. 9. In 2008 and 2009, Office Depot received 13 additional reports of injury, some requiring medical attention, and 33 total reports of the seatback detaching. 10. Despite having information regarding the defect in and risk of injury relating to the Quantum Chair, Office Depot did not notify the Commission immediately of such defect or risk, as required by section 15(b)(3) and (4) of the CPSA, 15 U.S.C. 2064(b)(3) and (4). Office Depot never notified the Commission about the Quantum Chair as required by the CPSA. Gibson Chair 11. Between 2003 and 2012, Office Depot imported into the United States and sold approximately 1.4 million Gibson Leather Task Chairs (``Gibson Chair''). 12. The Gibson Chair is a ``consumer product'' ``distributed in commerce,'' as those terms are defined or used in sections 3(a)(5), (8) of the CPSA, 15 U.S.C. 2052(a)(5), (8). Office Depot was a ``manufacturer'' of the Gibson Chair, as such term is defined in section 3(a)(11) of the CPSA, 15 U.S.C. 2052(a)(11). Office Depot also was a ``retailer'' of the Gibson Chair, as such term is defined in section 3(a)(13) of the CPSA, 15 U.S.C. 2052(a)(13). 13. The Gibson Chair is defective and creates an unreasonable risk of serious injury because the mounting weld can break and separate the seat from the base of the Gibson Chair, posing a fall hazard to consumers. 14. Office Depot first received notice of a Gibson Chair failure in 2005, when one consumer reported to Office Depot that the seat broke and separated from the base of the Gibson Chair, causing the consumer to sustain injuries. 15. Office Depot continued to receive reports of injuries and incidents involving breakage of the Gibson Chair mounting plate weld and the resulting separation of the seat from the base of the Gibson Chair, with some injuries requiring medical attention. Office Depot settled the claims of several consumers who reported injuries resulting from the Gibson Chair's failure. 16. In all, Office Depot received 25 reports of injuries and 153 incident reports from consumers of the seat breaking and separating from the base of the Gibson Chair. 17. Despite having information regarding the defect in and risk of injury relating to the Gibson Chair, Office Depot did not notify the Commission immediately of such defect or risk, as required by section 15(b)(3) and (4) of the CPSA, 15 U.S.C. 2064(b)(3) and (4). Office Depot failed to notify the Commission about the Gibson Chair until December 14, 2012, after receiving staff's letter requesting a Full Report. Office Depot recalled the Gibson Chair on May 22, 2014. Failure to Report 18. In failing to inform the Commission immediately about the Quantum Chair and the Gibson Chair (together, ``Subject Products''), Office Depot 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). 19. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Office Depot is subject to civil penalties for its knowing failure to report, as required under section 15(b) of the CPSA, 15 U.S.C. 2064(b). RESPONSE OF OFFICE DEPOT 20. This Agreement does not constitute an admission by Office Depot that the law has been violated. Office Depot neither admits nor denies the staff's charges set forth above, including but not limited to the contention that the Subject Products ``contain[] a defect which could create a substantial product hazard . . . or create[] an unreasonable risk of serious injury or death,'' 15 U.S.C. 2064(b); that Office Depot did not notify the Commission in a timely manner, in accordance with 15 U.S.C. 2064(b); and that there was any allegedly ``knowing'' violation of the CPSA as that term is defined in 15 U.S.C. 2069(d). 21. The Quantum recall notice states that Office Depot received 14 reports of injuries in connection with about 150,000 Quantum chairs sold. There were fewer reports of consumers seeking medical treatment in connection with any reported injuries. The Gibson recall notice states that Office Depot received 25 reports of injuries in connection with about 1.4 million Gibson chairs sold. There were fewer reports of consumers seeking medical treatment in connection [[Page 31578]] with any reported injuries. Office Depot investigated the reports, including by contacting the manufacturers of the Subject Products and the consumers making the reports. 22. The Subject Products passed multiple safety tests administered by independent third party testing organizations. 23. Following discussions with Office Depot, the manufacturer of the Quantum Chair reported the Quantum Chair to the CPSC in April 2009. Therefore, Office Depot did not make its own report. 24. At all relevant times, Office Depot has had a product safety compliance program, including dedicated product safety personnel and appropriate product safety testing. 25. As a retailer, Office Depot sells thousands of products and relies on product testing, conducted pursuant to voluntary industry standards, in order to protect its consumers. Office Depot reviews and reacts to consumer complaints and parts requests associated with office chairs. 26. Office Depot enters into this Agreement to settle this matter without the delay and expense of litigation. Office Depot enters into this Agreement and agrees to pay the amount referenced below in compromise of staff's charges. AGREEMENT OF THE PARTIES 27. Under the CPSA, the Commission has jurisdiction over the matter involving the Subject Products described herein and over Office Depot. 28. The parties enter into the Agreement for settlement purposes only. The Agreement does not constitute an admission by Office Depot or a determination by the Commission that Office Depot violated the CPSA's reporting requirements. 29. In settlement of staff's charges, and to avoid the cost, distraction, delay, uncertainty, and inconvenience of protracted litigation or other proceedings, Office Depot shall pay a civil penalty in the amount of three million, four hundred thousand dollars ($3,400,000) (``Settlement Payment'') 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. 30. After staff receives this Agreement executed on behalf of Office Depot, 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). 31. 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) Commission's final acceptance of this Agreement and service of the accepted Agreement upon Office Depot, 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. 32. Effective upon the later of: (i) the Commission's final acceptance of the Agreement and service of the accepted Agreement upon Office Depot, and (ii) and the date of issuance of the final Order, for good and valuable consideration, Office Depot 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 Office Depot 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. 33. Office Depot has and shall maintain a compliance program designed to ensure compliance with the CPSA with respect to any consumer product imported, manufactured, distributed, or sold by Office Depot. Office Depot's compliance program shall contain the following elements: (i) written standards and policies, including those designed to convey effectively to personnel responsible for CPSA compliance information (whether in the form of complaints, parts requests, incident reports, or otherwise) that may relate to or impact 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 the appropriate employees through training programs or otherwise; (iv) Office Depot 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 reasonable availability of such records, insofar as they are not protected by attorney-client, work product, or other privilege, to staff upon reasonable request. 34. Office Depot 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 Office Depot: (i) information required to be disclosed by Office Depot 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 Office Depot'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, Office Depot's ability to record, process, and report to the Commission in accordance with applicable law. 35. Upon reasonable request of staff, Office Depot shall provide written documentation of its internal controls and procedures, including, but not limited to, the effective dates of the procedures and improvements thereto. Office Depot 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 Office Depot's compliance with the terms of the Agreement. 36. The parties acknowledge and agree that the Commission may publicize the terms of the Agreement and the Order. 37. Office Depot 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 Office Depot, enforceable against Office Depot in accordance with its terms. Office Depot 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 Office Depot pursuant to the Agreement and Order. The individuals signing the Agreement on behalf of Office Depot represent and [[Page 31579]] warrant that they are duly authorized by Office Depot to execute the Agreement. 38. The signatories represent that they are authorized to execute this Agreement. 39. The Agreement is governed by the laws of the United States. 40. The Agreement and the Order shall apply to, and be binding upon, Office Depot and each of its successors, transferees, and assigns, and a violation of the Agreement or Order may subject Office Depot, and each of its successors, transferees and assigns, to appropriate legal action. 41. The Agreement and the Order constitute the complete agreement between the parties on the subject matter contained therein. 42. 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. 43. 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. 44. 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 Office Depot agree in writing that severing the provision materially affects the purpose of the Agreement and the Order. Dated: May 11, 2015 OFFICE DEPOT, INC. By:-------------------------------------------------------------------- Heather Stern Vice President, Associate General Counsel Office Depot, Inc. 6600 North Military Trail Boca Raton, FL 33496 Dated: May 11, 2015 By:-------------------------------------------------------------------- Daniel F. Katz Luba Shur Counsel to Office Depot, Inc. Williams & Connolly LLP 725 Twelfth Street NW. Washington, DC 20005 U.S. CONSUMER PRODUCT SAFETY COMMISSION Stephanie Tsacoumis General Counsel Mary T. Boyle Deputy General Counsel Mary B. Murphy Assistant General Counsel Dated: May 11, 2015 By:-------------------------------------------------------------------- Sean R. Ward Trial Attorney Division of Compliance Office of the General Counsel UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: Office Depot, Inc. CPSC Docket No.: 15-C0004 ORDER Upon consideration of the Settlement Agreement entered into between Office Depot, Inc. (``Office Depot''), and the U.S. Consumer Product Safety Commission (``Commission''), and the Commission having jurisdiction over the subject matter and over Office Depot, 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 Office Depot shall comply with the terms of the Settlement Agreement and shall pay a civil penalty in the amount of three million, four hundred thousand dollars ($3,400,000) 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 Office Depot to make the foregoing payment when due, interest on the unpaid amount shall accrue and be paid by Office Depot at the federal legal rate of interest set forth at 28 U.S.C. 1961(a) and (b). If Office Depot 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 28th day of May, 2015. By order of the Commission. Todd A. Stevenson, Secretariat, U.S. Consumer Product Safety Commission. [FR Doc. 2015-13422 Filed 6-2-15; 8:45 am] BILLING CODE 6355-01-P
![31576 Federal Register / Vol. 80, No. 106 / Wednesday, June 3, 2015 / Notices
effort, scallop size selectivity, and fish Four vessels would conduct scallop twine top hanging ratio. Both dredge
bycatch. The study was funded in dredging in June-September 2015, on a aprons would use 4-inch (10.16-cm)
response to feedback from the fishing total of four 7-day trips, for a total of 28 rings. Each tow pair would be
industry that the TDD must be towed at DAS. Each trip would complete conducted in a straight line varying
relatively high speeds to perform approximately 15 tows per day for an between higher and lower speeds with
effectively. overall total of 420 tows for the project. dredge positions in an AB–BA
CFF is requesting exemptions that All trips would take place in the open alternating pattern with a wire scope of
would allow four commercial fishing areas of Southern New England and three to one plus ten fathoms.
vessels be exempt from the Atlantic sea Georges Bank as well as in Georges Bank For all tows the sea scallop catch
scallop days-at-sea (DAS) allocations at scallop closed areas. Trips would be would be counted into baskets and
50 CFR 648.53(b); crew size restriction centralized around areas with high weighed. One basket from each dredge
at § 648.51(c); Closed Area I Closed Area yellowtail and winter flounder bycatch would be randomly selected and the
at § 648.58(a), Closed Area II Closed and in areas that contain a wide range scallops would be measured in 5-mm
Area at § 648.58(b); and Nantucket of scallop sizes to examine changes in increments to determine size selectivity.
Lightship Closed Area at § 648.58(c). It size selectivity due to tow speed. Finfish catch would be sorted by species
would also exempt the from possession All tows would be conducted with and then counted, weighed and
limits and minimum size requirements two tandem 15-foot (4.57-meter) TDD measured in 1-mm increments.
specified in 50 CFR part 648, subparts dredges for a duration of 60 minutes Depending on the volume of scallops
B and D through O, for sampling with a tow speed range of 4–5.5 knots. and finfish captured, the catch would be
purposes only. Any fishing activity One dredge would be rigged with a 7- subsampled as necessary. No catch
conducted outside the scope of the row apron and twine top hanging ratio would be retained for longer than
exempted fishing activity would be of 2:1, while the other dredge would be needed to conduct sampling and no
prohibited. rigged with a 5-row ring apron and 1.5:1 catch would be landed for sale.
PROJECT CATCH ESTIMATES
SNE GB
Species
lbs mt lbs mt
Scallops ................................................................................... 52,300 23.72 22,700 10.30
Yellowtail .................................................................................. 1,100 0.50 2,200 1.00
Winter Flounder ....................................................................... 400 0.18 1,300 0.59
Windowpane Flounder ............................................................. 2,800 1.27 3,000 1.36
Monkfish ................................................................................... 3,100 1.41 9,400 4.26
Other Fish ................................................................................ 1,800 0.82 2,200 1.00
Barndoor Skate ........................................................................ 300 0.14 4,300 1.95
NE Skate Complex .................................................................. 84,000 38.10 60,900 27.62
CFF has requested these exemptions Dated: May 29, 2015. service of the Commission’s final Order
to allow them to conduct experimental Emily H. Menashes, accepting the Settlement Agreement.1
dredge towing without being charged Acting Director, Office of Sustainable DATES: Any interested person may ask
DAS, as well as deploy gear in access Fisheries, National Marine Fisheries Service. the Commission not to accept this
areas that are currently closed to scallop [FR Doc. 2015–13468 Filed 6–2–15; 8:45 am] agreement or otherwise comment on its
fishing. Participating vessels would BILLING CODE 3510–22–P contents by filing a written request with
need crew size waivers to accommodate the Office of the Secretary by June 18,
science personnel and possession 2015.
waivers would enable them to conduct CONSUMER PRODUCT SAFETY ADDRESSES: Persons wishing to
finfish sampling activities. COMMISSION comment on this Settlement Agreement
should send written comments to the
If approved, the applicant may [CPSC Docket No. 15–C0004]
Comment 15–C0004 Office of the
request minor modifications and Secretary, Consumer Product Safety
extensions to the EFP throughout the Office Depot, Inc., Provisional
Acceptance of a Settlement Agreement Commission, 4330 East West Highway,
year. EFP modifications and extensions Room 820, Bethesda, Maryland 20814–
and Order
may be granted without further notice if 4408.
they are deemed essential to facilitate AGENCY: Consumer Product Safety FOR FURTHER INFORMATION CONTACT:
completion of the proposed research Commission. Sean R. Ward, Trial Attorney, Office of
and have minimal impacts that do not ACTION: Notice. the General Counsel, Division of
change the scope or impact of the Compliance, Consumer Product Safety
initially approved EFP request. Any SUMMARY: It is the policy of the
Commission to publish settlements Commission, 4330 East West Highway,
fishing activity conducted outside the
which it provisionally accepts under the
scope of the exempted fishing activity 1 Chairman Elliot F. Kaye and Commissioners
tkelley on DSK3SPTVN1PROD with NOTICES
Consumer Product Safety Act in the Robert S. Adler and Marietta S. Robinson voted to
would be prohibited. Federal Register in accordance with the provisionally accept the Settlement Agreement and
Authority: 16 U.S.C. 1801 et seq. terms of 16 CFR 1118.20(e). Published Order. Commissioners Joseph P. Mohorovic and
below is a provisionally-accepted Ann Marie Buerkle voted to reject the Settlement
Agreement and Order. Commissioner Mohorovic
Settlement Agreement with Office submitted a statement regarding the matter. The
Depot, Inc., containing a civil penalty of statement will be available from the Office of the
$3,400,000, within twenty (20) days of Secretariat and the CPSC Web site, www.cpsc.gov.
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Bethesda, Maryland 20814–4408; Chair can loosen and detach, posing a consumers who reported injuries
telephone (301) 504–7602. fall and injury hazard to consumers. resulting from the Gibson Chair’s
SUPPLEMENTARY INFORMATION: The text of 7. Office Depot first received notice of failure.
the Agreement and Order appears a Quantum Chair failure in 2007 when 16. In all, Office Depot received 25
below. a consumer reported to Office Depot reports of injuries and 153 incident
that the seatback loosened or detached reports from consumers of the seat
Dated: May 28, 2015.
on the Quantum Chair, causing the breaking and separating from the base of
Todd A. Stevenson, consumer to sustain injuries. the Gibson Chair.
Secretary. 8. In 2008, Office Depot became aware 17. Despite having information
UNITED STATES OF AMERICA that, in an effort to eliminate seatback regarding the defect in and risk of injury
detachment, the manufacturer of the relating to the Gibson Chair, Office
CONSUMER PRODUCT SAFETY Quantum Chair made two design Depot did not notify the Commission
COMMISSION changes to the Quantum Chair and a immediately of such defect or risk, as
In the Matter of: change to the accompanying required by section 15(b)(3) and (4) of
Office Depot, Inc. instructions. the CPSA, 15 U.S.C. 2064(b)(3) and (4).
9. In 2008 and 2009, Office Depot Office Depot failed to notify the
CPSC Docket No.: 15–C0004
received 13 additional reports of injury, Commission about the Gibson Chair
SETTLEMENT AGREEMENT some requiring medical attention, and until December 14, 2012, after receiving
1. In accordance with the Consumer 33 total reports of the seatback staff’s letter requesting a Full Report.
Product Safety Act, 15 U.S.C. 2051– detaching. Office Depot recalled the Gibson Chair
2089 (‘‘CPSA’’) and 16 CFR 1118.20, 10. Despite having information on May 22, 2014.
Office Depot, Inc. (‘‘Office Depot’’ or regarding the defect in and risk of injury
relating to the Quantum Chair, Office Failure to Report
‘‘Firm’’), and the United States
Depot did not notify the Commission 18. In failing to inform the
Consumer Product Safety Commission
immediately of such defect or risk, as Commission immediately about the
(‘‘Commission’’), through its staff,
required by section 15(b)(3) and (4) of Quantum Chair and the Gibson Chair
hereby enter into this Settlement
the CPSA, 15 U.S.C. 2064(b)(3) and (4). (together, ‘‘Subject Products’’), Office
Agreement (‘‘Agreement’’). The
Office Depot never notified the Depot knowingly violated section
Agreement, and the incorporated
Commission about the Quantum Chair 19(a)(4) of the CPSA, 15 U.S.C.
attached Order, resolve staff’s charges
as required by the CPSA. 2068(a)(4), as the term ‘‘knowingly’’ is
set forth below.
defined in section 20(d) of the CPSA, 15
THE PARTIES Gibson Chair U.S.C. 2069(d).
11. Between 2003 and 2012, Office 19. Pursuant to section 20 of the
2. The Commission is an independent
Depot imported into the United States CPSA, 15 U.S.C. 2069, Office Depot is
federal regulatory agency, established
and sold approximately 1.4 million subject to civil penalties for its knowing
pursuant to, and responsible for the
Gibson Leather Task Chairs (‘‘Gibson failure to report, as required under
enforcement of, the CPSA, 15 U.S.C.
Chair’’). section 15(b) of the CPSA, 15 U.S.C.
2051–2089. By executing the
12. The Gibson Chair is a ‘‘consumer 2064(b).
Agreement, staff is acting on behalf of
product’’ ‘‘distributed in commerce,’’ as
the Commission, pursuant to 16 CFR RESPONSE OF OFFICE DEPOT
those terms are defined or used in
1118.20(b). The Commission issues the 20. This Agreement does not
sections 3(a)(5), (8) of the CPSA, 15
Order under the provisions of the CPSA. constitute an admission by Office Depot
U.S.C. 2052(a)(5), (8). Office Depot was
3. Office Depot is a corporation, that the law has been violated. Office
a ‘‘manufacturer’’ of the Gibson Chair,
organized and existing under the laws of Depot neither admits nor denies the
as such term is defined in section
the state of Delaware, with its principal staff’s charges set forth above, including
3(a)(11) of the CPSA, 15 U.S.C.
place of business in Boca Raton, Florida. but not limited to the contention that
2052(a)(11). Office Depot also was a
STAFF CHARGES ‘‘retailer’’ of the Gibson Chair, as such the Subject Products ‘‘contain[] a defect
term is defined in section 3(a)(13) of the which could create a substantial
Quantum Chair product hazard . . . or create[] an
CPSA, 15 U.S.C. 2052(a)(13).
4. Between May 2006 and August 13. The Gibson Chair is defective and unreasonable risk of serious injury or
2009, Office Depot sold in the United creates an unreasonable risk of serious death,’’ 15 U.S.C. 2064(b); that Office
States approximately 150,000 Quantum injury because the mounting weld can Depot did not notify the Commission in
Realspace PROTM 9000 Series Mid-Back break and separate the seat from the a timely manner, in accordance with 15
Multifunction Mesh Chairs and base of the Gibson Chair, posing a fall U.S.C. 2064(b); and that there was any
Quantum Realspace PROTM 9000 Series hazard to consumers. allegedly ‘‘knowing’’ violation of the
Mid-Back Multifunction Mesh Chairs 14. Office Depot first received notice CPSA as that term is defined in 15
with Headrest (‘‘Quantum Chair’’). of a Gibson Chair failure in 2005, when U.S.C. 2069(d).
5. The Quantum Chair is a ‘‘consumer one consumer reported to Office Depot 21. The Quantum recall notice states
product’’ ‘‘distributed in commerce,’’ as that the seat broke and separated from that Office Depot received 14 reports of
those terms are defined or used in the base of the Gibson Chair, causing the injuries in connection with about
sections 3(a)(5), (8) of the CPSA, 15 consumer to sustain injuries. 150,000 Quantum chairs sold. There
U.S.C. 2052(a)(5), (8). Office Depot was 15. Office Depot continued to receive were fewer reports of consumers seeking
tkelley on DSK3SPTVN1PROD with NOTICES
a ‘‘retailer’’ of the Quantum Chair, as reports of injuries and incidents medical treatment in connection with
such term is defined in section 3(a)(13) involving breakage of the Gibson Chair any reported injuries. The Gibson recall
of the CPSA, 15 U.S.C. 2052(a)(13). mounting plate weld and the resulting notice states that Office Depot received
6. The Quantum Chair is defective separation of the seat from the base of 25 reports of injuries in connection with
and creates an unreasonable risk of the Gibson Chair, with some injuries about 1.4 million Gibson chairs sold.
serious injury because the bolts requiring medical attention. Office There were fewer reports of consumers
attaching the seatback on the Quantum Depot settled the claims of several seeking medical treatment in connection
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![Federal Register / Vol. 80, No. 106 / Wednesday, June 3, 2015 / Notices 31579
warrant that they are duly authorized by Deputy General Counsel revocable license to US Patent number
Office Depot to execute the Agreement. Mary B. Murphy 7,702,473, issued April 20, 2010,
38. The signatories represent that they Assistant General Counsel entitled, ‘‘Submersible portable in-situ
are authorized to execute this Dated: May 11, 2015 automated water quality biomonitoring
Agreement. By: lllllllllllllllllll apparatus and method’’ and US Patent
39. The Agreement is governed by the Sean R. Ward number 6,988,394, issued January 24,
laws of the United States. Trial Attorney 2006, entitled, ‘‘Apparatus and method
40. The Agreement and the Order Division of Compliance
Office of the General Counsel of portable automated biomonitoring of
shall apply to, and be binding upon, water quality’’ and US Patent number
Office Depot and each of its successors, UNITED STATES OF AMERICA 6,393,899, issued May 28, 2002,
transferees, and assigns, and a violation CONSUMER PRODUCT SAFETY entitled, ‘‘Apparatus and method for
of the Agreement or Order may subject COMMISSION automated biomonitoring of water
Office Depot, and each of its successors, quality’’ and US Patent number
In the Matter of:
transferees and assigns, to appropriate 6,058,763 issued May 9, 2000, entitled,
Office Depot, Inc.
legal action. ‘‘Apparatus and method for automated
41. The Agreement and the Order CPSC Docket No.: 15–C0004
biomonitoring of water quality’’ and
constitute the complete agreement ORDER Canada Patent number 2,515,062 issued
between the parties on the subject Upon consideration of the Settlement April 17, 2012, entitled ‘‘Apparatus and
matter contained therein. Agreement entered into between Office method of portable automated
42. The Agreement may be used in Depot, Inc. (‘‘Office Depot’’), and the U.S. biomonitoring of water quality’’ to
interpreting the Order. Understandings, Consumer Product Safety Commission Solution Resources, LLC, with its
agreements, representations, or (‘‘Commission’’), and the Commission having
principal place of business at 7906
interpretations apart from those jurisdiction over the subject matter and over
Office Depot, and it appearing that the Juniper Drive, Frederick, MD 21702.
contained in the Agreement and the
Settlement Agreement and the Order are in ADDRESSES: Commander, U.S. Army
Order may not be used to vary or
the public interest, it is: Medical Research and Materiel
contradict their terms. For purposes of ORDERED that the Settlement Agreement Command, ATTN: Command Judge
construction, the Agreement shall be be, and is, hereby, accepted; and it is Advocate, MCMR–JA, 504 Scott Street,
deemed to have been drafted by both of FURTHER ORDERED that Office Depot Fort Detrick, MD 21702–5012.
the parties and shall not, therefore, be shall comply with the terms of the Settlement
construed against any party for that Agreement and shall pay a civil penalty in FOR FURTHER INFORMATION CONTACT: For
reason in any subsequent dispute. the amount of three million, four hundred licensing issues, Mr. Barry Datlof, Office
43. The Agreement may not be thousand dollars ($3,400,000) within thirty of Research & Technology Assessment,
waived, amended, modified, or (30) days after service of the Commission’s (301) 619–0033. For patent issues, Ms.
otherwise altered, except as in final Order accepting the Settlement Elizabeth Arwine, Patent Attorney, (301)
Agreement. The payment shall be made by 619–7808, both at telefax (301) 619–
accordance with the provisions of 16 electronic wire transfer to the Commission
CFR 1118.20(h). The Agreement may be 5034.
via: http://www.pay.gov. Upon the failure of
executed in counterparts. Office Depot to make the foregoing payment SUPPLEMENTARY INFORMATION: Anyone
44. If any provision of the Agreement when due, interest on the unpaid amount wishing to object to the grant of this
or the Order is held to be illegal, shall accrue and be paid by Office Depot at license can file written objections along
invalid, or unenforceable under present the federal legal rate of interest set forth at with supporting evidence, if any, within
or future laws effective during the terms 28 U.S.C. 1961(a) and (b). If Office Depot fails 15 days from the date of this
of the Agreement and the Order, such to make such payment or to comply in full
with any other provision of the Settlement
publication. Written objections are to be
provision shall be fully severable. The filed with the Command Judge Advocate
Agreement, such conduct will be considered
balance of the Agreement and the Order a violation of the Settlement Agreement and (see ADDRESSES).
shall remain in full force and effect, Order.
unless the Commission and Office Brenda S. Bowen,
Provisionally accepted and provisional Army Federal Register Liaison Officer.
Depot agree in writing that severing the Order issued on the 28th day of May, 2015.
provision materially affects the purpose [FR Doc. 2015–13419 Filed 6–2–15; 8:45 am]
By order of the Commission.
of the Agreement and the Order. BILLING CODE 3710–08–P
Todd A. Stevenson,
Dated: May 11, 2015
OFFICE DEPOT, INC. Secretariat, U.S. Consumer Product Safety
Commission. DEPARTMENT OF DEFENSE
By: lllllllllllllllllll
Heather Stern [FR Doc. 2015–13422 Filed 6–2–15; 8:45 am]
Vice President, Associate General Counsel BILLING CODE 6355–01–P Department of the Army
Office Depot, Inc.
6600 North Military Trail Intent To Grant an Exclusive License
Boca Raton, FL 33496 for a U.S. Government-Owned
DEPARTMENT OF DEFENSE
Dated: May 11, 2015 Invention
By: lllllllllllllllllll Department of the Army
Daniel F. Katz
AGENCY: Department of the Army, DoD.
Luba Shur Intent To Grant an Exclusive License ACTION: Notice.
Counsel to Office Depot, Inc. of U.S. Government-Owned Patents
Williams & Connolly LLP SUMMARY: In accordance with 35 U.S.C.
tkelley on DSK3SPTVN1PROD with NOTICES
725 Twelfth Street NW. AGENCY: Department of the Army, DoD. 209(e), and 37 CFR 404.7 (a)(1)(i),
Washington, DC 20005 ACTION: Notice. announcement is made of the intent to
U.S. CONSUMER PRODUCT SAFETY grant an exclusive, revocable license, to
COMMISSION SUMMARY: In accordance with 35 U.S.C. U.S. Provisional Patent No. 61/884,630,
Stephanie Tsacoumis 209 (e) and 37 CFR 404.7 (a)(1)(i), filed September 30, 2013, entitled
General Counsel announcement is made of the intent to ‘‘Intelligent Focused Assessment with
Mary T. Boyle grant an exclusive, royalty-bearing, Sonography for Trauma,’’ and foreign
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Document Created: 2015-12-15 15:08:35
Document Modified: 2015-12-15 15:08:35
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | Any interested person may ask the Commission not to accept this agreement or otherwise comment on its contents by filing a written | |
| Contact | Sean R. Ward, Trial Attorney, Office of the General Counsel, Division of Compliance, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7602. | |
| FR Citation | 80 FR 31576 |
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