80_FR_44223 80 FR 44081 - LG Electronics Tianjin Appliance Co., Ltd. and LG Electronics USA Inc., Provisional Acceptance of a Settlement Agreement and Order

80 FR 44081 - LG Electronics Tianjin Appliance Co., Ltd. and LG Electronics USA Inc., Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

Federal Register Volume 80, Issue 142 (July 24, 2015)

Page Range44081-44083
FR Document2015-18150

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 CFR1118.20(e). Published below is a provisionally-accepted Settlement Agreement with LG Electronics Tianjin Appliance Co., Ltd. and LG Electronics USA Inc. containing a civil penalty of $1,825,000, within twenty (20) days of service of the Commission's final Order accepting the Settlement Agreement.

Federal Register, Volume 80 Issue 142 (Friday, July 24, 2015)
[Federal Register Volume 80, Number 142 (Friday, July 24, 2015)]
[Notices]
[Pages 44081-44083]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18150]



[[Page 44081]]

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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 15-C0005]


LG Electronics Tianjin Appliance Co., Ltd. and LG Electronics USA 
Inc., Provisional Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission

ACTION: Notice.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR1118.20(e). 
Published below is a provisionally-accepted Settlement Agreement with 
LG Electronics Tianjin Appliance Co., Ltd. and LG Electronics USA Inc. 
containing a civil penalty of $1,825,000, 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 August 10, 2015.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 15-C0005 Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, General Attorney, 
Office of the General Counsel, Division of Enforcement and Information, 
Consumer Product Safety Commission, 4330 East West Highway, Bethesda, 
Maryland 20814-4408; telephone (301) 504-7587.

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

    Dated: July 21, 2015.
Todd A. Stevenson,
Secretary.

UNITED STATES OF AMERICA

CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: LG Electronics Tianjin Appliance Co., Ltd. and LG 
Electronics USA Inc.

CPSC Docket No.: 15-C0005

SETTLEMENT AGREEMENT

    1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 
2051-2089 (``CPSA'') and 16 CFR 1118.20, LG Electronics Tianjin 
Appliance Co., Ltd. and its affiliated U.S. company LG Electronics USA 
Inc. (collectively ``LG'' 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. LG Electronics Tianjin Appliance Co., Ltd. is a Chinese 
corporation with its principal corporate offices in Tianjin, China. LG 
Electronics USA, Inc. is a Delaware corporation with its principal 
corporate offices located in Englewood Cliffs, NJ.

STAFF CHARGES

Dehumidifiers

    4. From 2003 to 2005 LG manufactured and imported about 795,000 
Dehumidifiers (``Dehumidifiers'' or ``Subject Products'') under a major 
U.S. retailer's brand name. The retailer sold the Subject Products 
until 2009. The dehumidifiers consist of the following models: (a) 70-
pint, model nos. 580.53701300/400/500; (b) 35-pint, model no. 
580.54351400; and (c) 50-pint, model no. 580.5309300.
    5. The Dehumidifiers are ``consumer products'' ``distributed in 
commerce,'' as those terms are defined or used in section 3(a)(5) and 
(8) of the CPSA, 15 U.S.C. 2052(a)(5) and (8). LG Electronics Tianjin 
Appliance Co., Ltd. and LG Electronics USA Inc. were ``manufacturers'' 
of the Subject Products, as such term is defined in section 3(a)(11) of 
the CPSA, 15 U.S.C. 2052(a)(11).
    6. The Dehumidifiers contain a defect which could create a 
substantial product hazard or creates an unreasonable risk of serious 
injury or death in that the Dehumidifiers' motors posed a fire and burn 
risk to consumers.
    7. Between 2003 and 2009 LG received complaints of smoke and fire 
damage resulting from overheating of the motors and electrical failures 
in the Subject Products. During this period three consumers reported 
smoke inhalation injuries. The Subject Products' failures also resulted 
in serious fires causing extensive property damage.
    8. Despite having information regarding the defect and the 
unreasonable risk of serious injury or death LG did not immediately 
notify the Commission, as required by section 15(b)(3) and (4) of the 
CPSA, 15 U.S.C. 2064(b)(3) and (4). LG notified the Commission about 
the Dehumidifiers only after its principal retailer notified the 
Commission.

Failure to Report

    9. In failing to inform the Commission immediately about the 
Dehumidifiers, LG knowingly violated section 19(a)(4) of the CPSA, 15 
U.S.C. 2068(a)(4), as the term ``knowingly'' is defined in section 
20(d) of the CPSA, 15 U.S.C. 2069(d).
    10. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, LG 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 LG

    11. LG does not admit the charges set forth in paragraphs 4 through 
10 above, including, but not limited to, the charge that the Subject 
Products contained a defect that could create a substantial product 
hazard or creates an unreasonable risk of serious injury or death, the 
charge that LG 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), and 
the charge that LG ``knowingly'' violated section 19(a)(4) of the CPSC, 
15 U.S.C. 2068(a)(4).
    12. At all relevant times, LG has had a product safety compliance 
program and has improved that program over time. LG has voluntarily 
reported to the Commission in the past when it believed an obligation 
to report existed under the CPSA.
    13. LG enters into this Agreement to settle this matter without the 
delay and expense of litigation.

AGREEMENT OF THE PARTIES

    14. Under the CPSA, the Commission has jurisdiction over the matter 
involving the Subject Products described herein and over LG Electronics 
USA, Inc. LG Tianjin Appliance Co., Ltd., has agreed to a limited 
waiver of its jurisdictional defenses solely for the purpose of 
resolving this dispute.
    15. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by LG or a 
determination by

[[Page 44082]]

the Commission that LG violated the CPSA's reporting requirements.
    16. The parties agree that LG's conduct set forth in the staff's 
allegations is subject to the civil penalty amounts in effect from 
January 1, 2005 to August 13, 2009.
    17. In settlement of staff's charges, and to avoid the cost, 
distraction, delay, uncertainty, and inconvenience of protracted 
litigation or other proceedings, LG shall pay a civil penalty in the 
amount of one million, eight hundred twenty-five thousand dollars 
($1,825,000) within thirty (30) calendar days after receiving service 
of the Commission's final Order accepting the Agreement. The payment 
shall be made by electronic wire transfer to the Commission via: http://www.pay.gov.
    18. After staff receives this Agreement executed on behalf of LG, 
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).
    19. 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 Sec.  1118.20(h). Upon the later of: (i) 
Commission's final acceptance of this Agreement and service of the 
accepted Agreement upon LG, 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.
    20. Effective upon the later of: (i) the Commission's final 
acceptance of the Agreement and service of the accepted Agreement upon 
LG, and (ii) and the date of issuance of the final Order, for good and 
valuable consideration, LG 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 LG 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.
    21. LG 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 LG in the United States, 
and which shall contain the following elements:
    (i) written standards, policies and procedures, including those 
designed to ensure that information that may relate to or impact CPSA 
compliance (including information obtained by quality control 
personnel) is conveyed effectively to personnel responsible for CPSA 
compliance;
    (ii) a mechanism for confidential employee reporting of compliance-
related questions or concerns to either a compliance officer or to 
another senior manager with authority to act as necessary;
    (iii) effective communication of company compliance-related 
policies and procedures regarding CPSA to all applicable employees 
through training programs or otherwise;
    (iv) LG senior management responsibility for, and general board 
oversight of, CPSA compliance; and
    (v) retention of all CPSA compliance-related records for at least 
five (5) years, and availability of such records to staff upon 
reasonable request.
    22. LG 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 LG in 
the United States: (i) information required to be disclosed by LG 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 LG'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, LG's ability to record, process and report to the 
Commission in accordance with applicable law.
    23. Upon reasonable request of staff, LG shall provide written 
documentation of its internal controls and procedures, including, but 
not limited to, the effective dates of the procedures and improvements 
thereto. LG 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 LG's compliance with 
the terms of the Agreement.
    24. The parties acknowledge and agree that the Commission may 
publicize the terms of the Agreement and the Order.
    25. LG 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 LG, enforceable against LG in accordance with its 
terms. LG 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 LG pursuant to the 
Agreement and Order. The individuals signing the Agreement on behalf of 
LG represent that they are duly authorized by LG to execute the 
Agreement.
    26. The Agreement is governed by the laws of the United States.
    27. The Agreement and the Order shall apply to, and be binding 
upon, LG and each of its successors, transferees, and assigns, and a 
violation of the Agreement or Order may subject LG, and each of its 
successors, transferees and assigns, to appropriate legal action.
    28. The Agreement and the Order constitute the complete agreement 
between the parties on the subject matter contained therein.
    29. 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.
    30. 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.
    31. 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 LG agree in writing that severing the provision materially affects 
the purpose of the Agreement and the Order.

LG ELECTRONICS TIANJIN APPLIANCE CO., LTD.

By:
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[[Page 44083]]

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Zhide Pang
Manager of External/Legal Affairs Part, LG Electronics Tianjin 
Appliance Co., Ltd. JinWei Road, BeiChen District, Tianjin, China

Date: July 2, 2015

LG ELECTRONICS USA, INC.
By:
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Chris Kim
Senior Counsel, NA Product Safety, LG Electronics USA, Inc., 910 
Sylvan Avenue, Englewood Cliffs, New Jersey 07632.

Date: June 30, 2015

By:
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John W. Moss, Esq.
Winston & Strawn LLP, 1700 K Street NW., Washington, DC 20006-3817

Date: July 2, 2015

U.S. CONSUMER PRODUCT SAFETY COMMISSION

Stephanie Tsacoumis
General Counsel

Melissa V. Hampshire
Assistant General Counsel

By:
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Dennis C. Kacoyanis
Alexander W. Dennis
General Attorneys, Division of Enforcement and Information, Office 
of the General Counsel

Date: July 2, 2015

UNITED STATES OF AMERICA

CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: LG Electronics Tianjin Appliance Co., Ltd. and LG 
Electronics USA Inc.

CPSC Docket No.: 15-C0005

ORDER

    Upon consideration of the Settlement Agreement entered into between 
LG Electronics Tianjin Appliance Co., Ltd. and LG Electronics USA Inc. 
(``LG''), and the U.S. Consumer Product Safety Commission 
(``Commission''), and the Commission having jurisdiction over the 
subject matter and over LG, 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 LG shall comply with the terms of the 
Settlement Agreement and shall pay a civil penalty in the amount of one 
million, eight hundred twenty-five thousand dollars ($1,825,000) 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 LG to make the foregoing payment when due, interest 
on the unpaid amount shall accrue and be paid by LG at the federal 
legal rate of interest set forth at 28 U.S.C. 1961(a) and (b). If LG 
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 21st day 
of July, 2015.

    By Order of the Commission.
Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 2015-18150 Filed 7-23-15; 8:45 am]
BILLING CODE 6355-01-P



                                                                                     Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Notices                                           44081

                                                    CONSUMER PRODUCT SAFETY                                  2089 (‘‘CPSA’’) and 16 CFR 1118.20, LG                inhalation injuries. The Subject
                                                    COMMISSION                                               Electronics Tianjin Appliance Co., Ltd.               Products’ failures also resulted in
                                                                                                             and its affiliated U.S. company LG                    serious fires causing extensive property
                                                    [CPSC Docket No. 15–C0005]
                                                                                                             Electronics USA Inc. (collectively ‘‘LG’’             damage.
                                                    LG Electronics Tianjin Appliance Co.,                    or ‘‘Firm’’), and the United States                     8. Despite having information
                                                    Ltd. and LG Electronics USA Inc.,                        Consumer Product Safety Commission                    regarding the defect and the
                                                    Provisional Acceptance of a                              (‘‘Commission’’), through its staff,                  unreasonable risk of serious injury or
                                                    Settlement Agreement and Order                           hereby enter into this Settlement                     death LG did not immediately notify the
                                                                                                             Agreement (‘‘Agreement’’). The                        Commission, as required by section
                                                    AGENCY: Consumer Product Safety                          Agreement, and the incorporated                       15(b)(3) and (4) of the CPSA, 15 U.S.C.
                                                    Commission                                               attached Order, resolve staff’s charges               2064(b)(3) and (4). LG notified the
                                                    ACTION: Notice.                                          set forth below.                                      Commission about the Dehumidifiers
                                                                                                             THE PARTIES                                           only after its principal retailer notified
                                                    SUMMARY:   It is the policy of the                                                                             the Commission.
                                                    Commission to publish settlements                           2. The Commission is an independent
                                                    which it provisionally accepts under the                 federal regulatory agency, established                Failure to Report
                                                    Consumer Product Safety Act in the                       pursuant to, and responsible for the                    9. In failing to inform the Commission
                                                    Federal Register in accordance with the                  enforcement of, the CPSA, 15 U.S.C.                   immediately about the Dehumidifiers,
                                                    terms of 16 CFR1118.20(e). Published                     2051–2089. By executing the                           LG knowingly violated section 19(a)(4)
                                                    below is a provisionally-accepted                        Agreement, staff is acting on behalf of               of the CPSA, 15 U.S.C. 2068(a)(4), as the
                                                    Settlement Agreement with LG                             the Commission, pursuant to 16 CFR                    term ‘‘knowingly’’ is defined in section
                                                    Electronics Tianjin Appliance Co., Ltd.                  1118.20(b). The Commission issues the                 20(d) of the CPSA, 15 U.S.C. 2069(d).
                                                    and LG Electronics USA Inc. containing                   Order under the provisions of the CPSA.                 10. Pursuant to section 20 of the
                                                    a civil penalty of $1,825,000, within                       3. LG Electronics Tianjin Appliance                CPSA, 15 U.S.C. 2069, LG is subject to
                                                    twenty (20) days of service of the                       Co., Ltd. is a Chinese corporation with               civil penalties for its knowing failure to
                                                    Commission’s final Order accepting the                   its principal corporate offices in Tianjin,           report, as required under section 15(b)
                                                    Settlement Agreement.                                    China. LG Electronics USA, Inc. is a                  of the CPSA, 15 U.S.C. 2064(b).
                                                    DATES: Any interested person may ask                     Delaware corporation with its principal
                                                    the Commission not to accept this                        corporate offices located in Englewood                RESPONSE OF LG
                                                    agreement or otherwise comment on its                    Cliffs, NJ.                                             11. LG does not admit the charges set
                                                    contents by filing a written request with                STAFF CHARGES                                         forth in paragraphs 4 through 10 above,
                                                    the Office of the Secretary by August 10,                                                                      including, but not limited to, the charge
                                                    2015.                                                    Dehumidifiers                                         that the Subject Products contained a
                                                    ADDRESSES: Persons wishing to                               4. From 2003 to 2005 LG                            defect that could create a substantial
                                                    comment on this Settlement Agreement                     manufactured and imported about                       product hazard or creates an
                                                    should send written comments to the                      795,000 Dehumidifiers                                 unreasonable risk of serious injury or
                                                    Comment 15–C0005 Office of the                           (‘‘Dehumidifiers’’ or ‘‘Subject                       death, the charge that LG failed to notify
                                                    Secretary, Consumer Product Safety                       Products’’) under a major U.S. retailer’s             the Commission in a timely manner in
                                                    Commission, 4330 East West Highway,                      brand name. The retailer sold the                     accordance with section 15(b) of the
                                                    Room 820, Bethesda, Maryland 20814–                      Subject Products until 2009. The                      CPSA, 15 U.S.C. § 2064(b), and the
                                                    4408.                                                    dehumidifiers consist of the following                charge that LG ‘‘knowingly’’ violated
                                                    FOR FURTHER INFORMATION CONTACT:                         models: (a) 70-pint, model nos.                       section 19(a)(4) of the CPSC, 15 U.S.C.
                                                    Dennis C. Kacoyanis, General Attorney,                   580.53701300/400/500; (b) 35-pint,                    2068(a)(4).
                                                    Office of the General Counsel, Division                  model no. 580.54351400; and (c) 50-                     12. At all relevant times, LG has had
                                                    of Enforcement and Information,                          pint, model no. 580.5309300.                          a product safety compliance program
                                                    Consumer Product Safety Commission,                         5. The Dehumidifiers are ‘‘consumer                and has improved that program over
                                                    4330 East West Highway, Bethesda,                        products’’ ‘‘distributed in commerce,’’               time. LG has voluntarily reported to the
                                                    Maryland 20814–4408; telephone (301)                     as those terms are defined or used in                 Commission in the past when it
                                                    504–7587.                                                section 3(a)(5) and (8) of the CPSA, 15               believed an obligation to report existed
                                                    SUPPLEMENTARY INFORMATION: The text of                   U.S.C. 2052(a)(5) and (8). LG Electronics             under the CPSA.
                                                    the Agreement and Order appears                          Tianjin Appliance Co., Ltd. and LG                      13. LG enters into this Agreement to
                                                    below.                                                   Electronics USA Inc. were                             settle this matter without the delay and
                                                                                                             ‘‘manufacturers’’ of the Subject                      expense of litigation.
                                                      Dated: July 21, 2015.
                                                                                                             Products, as such term is defined in
                                                    Todd A. Stevenson,                                                                                             AGREEMENT OF THE PARTIES
                                                                                                             section 3(a)(11) of the CPSA, 15 U.S.C.
                                                    Secretary.                                               2052(a)(11).                                            14. Under the CPSA, the Commission
                                                    UNITED STATES OF AMERICA                                    6. The Dehumidifiers contain a defect              has jurisdiction over the matter
                                                                                                             which could create a substantial                      involving the Subject Products
                                                    CONSUMER PRODUCT SAFETY                                  product hazard or creates an                          described herein and over LG
                                                    COMMISSION                                               unreasonable risk of serious injury or                Electronics USA, Inc. LG Tianjin
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                      In the Matter of: LG Electronics                       death in that the Dehumidifiers’ motors               Appliance Co., Ltd., has agreed to a
                                                    Tianjin Appliance Co., Ltd. and LG                       posed a fire and burn risk to consumers.              limited waiver of its jurisdictional
                                                    Electronics USA Inc.                                        7. Between 2003 and 2009 LG                        defenses solely for the purpose of
                                                    CPSC Docket No.: 15–C0005                                received complaints of smoke and fire                 resolving this dispute.
                                                                                                             damage resulting from overheating of                    15. The parties enter into the
                                                    SETTLEMENT AGREEMENT                                     the motors and electrical failures in the             Agreement for settlement purposes only.
                                                      1. In accordance with the Consumer                     Subject Products. During this period                  The Agreement does not constitute an
                                                    Product Safety Act, 15 U.S.C. 2051–                      three consumers reported smoke                        admission by LG or a determination by


                                               VerDate Sep<11>2014   19:59 Jul 23, 2015   Jkt 235001   PO 00000   Frm 00063   Fmt 4703   Sfmt 4703   E:\FR\FM\24JYN1.SGM   24JYN1


                                                    44082                            Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Notices

                                                    the Commission that LG violated the                      conclusions of law; and (v) any claims                   24. The parties acknowledge and
                                                    CPSA’s reporting requirements.                           under the Equal Access to Justice Act.                agree that the Commission may
                                                       16. The parties agree that LG’s                          21. LG has and shall maintain a                    publicize the terms of the Agreement
                                                    conduct set forth in the staff’s                         compliance program designed to ensure                 and the Order.
                                                    allegations is subject to the civil penalty              compliance with the CPSA with respect                    25. LG represents that the Agreement:
                                                    amounts in effect from January 1, 2005                   to any consumer product imported,                     (i) is entered into freely and voluntarily,
                                                    to August 13, 2009.                                      manufactured, distributed or sold by LG               without any degree of duress or
                                                       17. In settlement of staff’s charges,                 in the United States, and which shall                 compulsion whatsoever; (ii) has been
                                                    and to avoid the cost, distraction, delay,               contain the following elements:                       duly authorized; and (iii) constitutes the
                                                    uncertainty, and inconvenience of                           (i) written standards, policies and                valid and binding obligation of LG,
                                                    protracted litigation or other                           procedures, including those designed to               enforceable against LG in accordance
                                                    proceedings, LG shall pay a civil                        ensure that information that may relate               with its terms. LG will not directly or
                                                    penalty in the amount of one million,                    to or impact CPSA compliance                          indirectly receive any reimbursement,
                                                    eight hundred twenty-five thousand                       (including information obtained by                    indemnification, insurance-related
                                                    dollars ($1,825,000) within thirty (30)                  quality control personnel) is conveyed                payment, or other payment in
                                                    calendar days after receiving service of                 effectively to personnel responsible for              connection with the civil penalty to be
                                                    the Commission’s final Order accepting                   CPSA compliance;                                      paid by LG pursuant to the Agreement
                                                    the Agreement. The payment shall be                         (ii) a mechanism for confidential                  and Order. The individuals signing the
                                                    made by electronic wire transfer to the                  employee reporting of compliance-                     Agreement on behalf of LG represent
                                                    Commission via: http://www.pay.gov.                      related questions or concerns to either a             that they are duly authorized by LG to
                                                       18. After staff receives this Agreement               compliance officer or to another senior               execute the Agreement.
                                                    executed on behalf of LG, staff shall                    manager with authority to act as                         26. The Agreement is governed by the
                                                    promptly submit the Agreement to the                     necessary;                                            laws of the United States.
                                                    Commission for provisional acceptance.                      (iii) effective communication of
                                                                                                                                                                      27. The Agreement and the Order
                                                    Promptly following provisional                           company compliance-related policies
                                                                                                                                                                   shall apply to, and be binding upon, LG
                                                    acceptance of the Agreement by the                       and procedures regarding CPSA to all
                                                                                                                                                                   and each of its successors, transferees,
                                                    Commission, the Agreement shall be                       applicable employees through training
                                                                                                                                                                   and assigns, and a violation of the
                                                    placed on the public record and                          programs or otherwise;
                                                                                                                (iv) LG senior management                          Agreement or Order may subject LG,
                                                    published in the Federal Register, in
                                                                                                             responsibility for, and general board                 and each of its successors, transferees
                                                    accordance with the procedures set
                                                                                                             oversight of, CPSA compliance; and                    and assigns, to appropriate legal action.
                                                    forth in 16 CFR 1118.20(e). If the
                                                                                                                (v) retention of all CPSA compliance-                 28. The Agreement and the Order
                                                    Commission does not receive any
                                                                                                             related records for at least five (5) years,          constitute the complete agreement
                                                    written request not to accept the
                                                                                                             and availability of such records to staff             between the parties on the subject
                                                    Agreement within fifteen (15) calendar
                                                                                                             upon reasonable request.                              matter contained therein.
                                                    days, the Agreement shall be deemed
                                                                                                                22. LG has, and shall maintain and                    29. The Agreement may be used in
                                                    finally accepted on the 16th calendar
                                                    day after the date the Agreement is                      enforce, a system of internal controls                interpreting the Order. Understandings,
                                                    published in the Federal Register, in                    and procedures designed to ensure that,               agreements, representations, or
                                                    accordance with 16 CFR 1118.20(f).                       with respect to all consumer products                 interpretations apart from those
                                                       19. This Agreement is conditioned                     imported, manufactured, distributed or                contained in the Agreement and the
                                                    upon, and subject to, the Commission’s                   sold by LG in the United States: (i)                  Order may not be used to vary or
                                                    final acceptance, as set forth above, and                information required to be disclosed by               contradict their terms. For purposes of
                                                    it is subject to the provisions of 16 CFR                LG to the Commission is recorded,                     construction, the Agreement shall be
                                                    § 1118.20(h). Upon the later of: (i)                     processed and reported in accordance                  deemed to have been drafted by both of
                                                    Commission’s final acceptance of this                    with applicable law; (ii) all reporting               the parties and shall not, therefore, be
                                                    Agreement and service of the accepted                    made to the Commission is timely,                     construed against any party for that
                                                    Agreement upon LG, and (ii) the date of                  truthful, complete, accurate and in                   reason in any subsequent dispute.
                                                    issuance of the final Order, this                        accordance with applicable law; and                      30. The Agreement may not be
                                                    Agreement shall be in full force and                     (iii) prompt disclosure is made to LG’s               waived, amended, modified, or
                                                    effect and shall be binding upon the                     management of any significant                         otherwise altered, except as in
                                                    parties.                                                 deficiencies or material weaknesses in                accordance with the provisions of 16
                                                       20. Effective upon the later of: (i) the              the design or operation of such internal              CFR 1118.20(h). The Agreement may be
                                                    Commission’s final acceptance of the                     controls that are reasonably likely to                executed in counterparts.
                                                    Agreement and service of the accepted                    affect adversely, in any material respect,               31. If any provision of the Agreement
                                                    Agreement upon LG, and (ii) and the                      LG’s ability to record, process and                   or the Order is held to be illegal,
                                                    date of issuance of the final Order, for                 report to the Commission in accordance                invalid, or unenforceable under present
                                                    good and valuable consideration, LG                      with applicable law.                                  or future laws effective during the terms
                                                    hereby expressly and irrevocably waives                     23. Upon reasonable request of staff,              of the Agreement and the Order, such
                                                    and agrees not to assert any past,                       LG shall provide written documentation                provision shall be fully severable. The
                                                    present, or future rights to the following,              of its internal controls and procedures,              balance of the Agreement and the Order
                                                    in connection with the matter described                  including, but not limited to, the                    shall remain in full force and effect,
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    in this Agreement: (i) an administrative                 effective dates of the procedures and                 unless the Commission and LG agree in
                                                    or judicial hearing; (ii) judicial review                improvements thereto. LG shall                        writing that severing the provision
                                                    or other challenge or contest of the                     cooperate fully and truthfully with staff             materially affects the purpose of the
                                                    Commission’s actions; (iii) a                            and shall make available all non-                     Agreement and the Order.
                                                    determination by the Commission of                       privileged information and materials,                 LG ELECTRONICS TIANJIN APPLIANCE
                                                    whether LG failed to comply with the                     and personnel deemed necessary by                     CO., LTD.
                                                    CPSA and the underlying regulations;                     staff to evaluate LG’s compliance with                By:
                                                    (iv) a statement of findings of fact and                 the terms of the Agreement.                           lllllllllllllllllllll



                                               VerDate Sep<11>2014   19:59 Jul 23, 2015   Jkt 235001   PO 00000   Frm 00064   Fmt 4703   Sfmt 4703   E:\FR\FM\24JYN1.SGM   24JYN1


                                                                                           Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Notices                                                      44083

                                                    Zhide Pang                                                       the subject matter and over LG, and it                   ACTION: Notice of revised non-foreign
                                                    Manager of External/Legal Affairs Part, LG                       appearing that the Settlement                            overseas per diem rates.
                                                    Electronics Tianjin Appliance Co., Ltd.                          Agreement and the Order are in the
                                                    JinWei Road, BeiChen District, Tianjin, China
                                                                                                                     public interest, it is:                                  SUMMARY:   The Defense Travel
                                                    Date: July 2, 2015                                                 ORDERED that the Settlement                            Management Office is publishing
                                                    LG ELECTRONICS USA, INC.                                         Agreement be, and is, hereby, accepted;
                                                    By:                                                                                                                       Civilian Personnel Per Diem Bulletin
                                                                                                                     and it is                                                Number 298. This bulletin lists
                                                    lllllllllllllllllllll
                                                                                                                       FURTHER ORDERED that LG shall                          revisions in the per diem rates
                                                    Chris Kim                                                        comply with the terms of the Settlement
                                                    Senior Counsel, NA Product Safety, LG                                                                                     prescribed for U.S. Government
                                                    Electronics USA, Inc., 910 Sylvan Avenue,                        Agreement and shall pay a civil penalty
                                                                                                                                                                              employees for official travel in Alaska,
                                                    Englewood Cliffs, New Jersey 07632.                              in the amount of one million, eight
                                                                                                                                                                              Hawaii, Puerto Rico, the Northern
                                                    Date: June 30, 2015                                              hundred twenty-five thousand dollars
                                                                                                                     ($1,825,000) within thirty (30) days after               Mariana Islands and Possessions of the
                                                    By:                                                                                                                       United States when applicable. AEA
                                                    lllllllllllllllllllll                                            service of the Commission’s final Order
                                                                                                                     accepting the Settlement Agreement.                      changes announced in Bulletin Number
                                                    John W. Moss, Esq.                                                                                                        194 remain in effect. Bulletin Number
                                                    Winston & Strawn LLP, 1700 K Street NW.,                         The payment shall be made by
                                                    Washington, DC 20006–3817                                        electronic wire transfer to the                          298 is being published in the Federal
                                                    Date: July 2, 2015                                               Commission via: http://www.pay.gov.                      Register to assure that travelers are paid
                                                                                                                     Upon the failure of LG to make the                       per diem at the most current rates.
                                                    U.S. CONSUMER PRODUCT SAFETY
                                                    COMMISSION                                                       foregoing payment when due, interest                     DATES:     Effective Date: August 1, 2015.
                                                    Stephanie Tsacoumis                                              on the unpaid amount shall accrue and
                                                    General Counsel                                                  be paid by LG at the federal legal rate                  FOR FURTHER INFORMATION CONTACT:            Ms.
                                                    Melissa V. Hampshire                                             of interest set forth at 28 U.S.C. 1961(a)               Sonia Malik, 571–372–1276.
                                                    Assistant General Counsel                                        and (b). If LG fails to make such                        SUPPLEMENTARY INFORMATION:      This
                                                    By:                                                              payment or to comply in full with any                    document gives notice of revisions in
                                                    lllllllllllllllllllll                                            other provision of the Settlement
                                                                                                                                                                              per diem rates prescribed by the Defense
                                                    Dennis C. Kacoyanis                                              Agreement, such conduct will be
                                                                                                                                                                              Travel Management Office for non-
                                                    Alexander W. Dennis                                              considered a violation of the Settlement
                                                    General Attorneys, Division of Enforcement                       Agreement and Order.                                     foreign areas outside the contiguous
                                                    and Information, Office of the General                             Provisionally accepted and                             United States. It supersedes Civilian
                                                    Counsel                                                          provisional Order issued on the 21st day                 Personnel Per Diem Bulletin Number
                                                    Date: July 2, 2015                                               of July, 2015.                                           297. Per Diem Bulletins published
                                                                                                                                                                              periodically in the Federal Register now
                                                    UNITED STATES OF AMERICA                                           By Order of the Commission.
                                                                                                                                                                              constitute the only notification of
                                                    CONSUMER PRODUCT SAFETY                                          Todd A. Stevenson,
                                                                                                                                                                              revisions in per diem rates to agencies
                                                    COMMISSION                                                       Secretary, U.S. Consumer Product Safety                  and establishments outside the
                                                                                                                     Commission.
                                                      In the Matter of: LG Electronics                                                                                        Department of Defense. For more
                                                                                                                     [FR Doc. 2015–18150 Filed 7–23–15; 8:45 am]
                                                    Tianjin Appliance Co., Ltd. and LG                                                                                        information or questions about per diem
                                                                                                                     BILLING CODE 6355–01–P
                                                    Electronics USA Inc.                                                                                                      rates, please contact your local travel
                                                    CPSC Docket No.: 15–C0005                                                                                                 office. Civilian Bulletin 298 includes
                                                                                                                                                                              updated rates for the U.S. Virgin
                                                    ORDER                                                            DEPARTMENT OF DEFENSE                                    Islands.
                                                      Upon consideration of the Settlement
                                                    Agreement entered into between LG                                Office of the Secretary                                    Dated: July 21, 2015.
                                                    Electronics Tianjin Appliance Co., Ltd.                                                                                   Aaron Siegel,
                                                                                                                     Revised Non-Foreign Overseas Per
                                                    and LG Electronics USA Inc. (‘‘LG’’),                            Diem Rates                                               Alternate OSD Federal Register Liaison
                                                    and the U.S. Consumer Product Safety                                                                                      Officer, Department of Defense.
                                                    Commission (‘‘Commission’’), and the                             AGENCY:  Defense Travel Management
                                                    Commission having jurisdiction over                              Office, DoD.

                                                     MAXIMUM PER DIEM RATES FOR OFFICIAL TRAVEL IN ALASKA, HAWAII, THE COMMONWEALTHS OF PUERTO RICO AND THE
                                                        NORTHERN ISLANDS AND POSSESSIONS OF THE UNITED STATES BY FEDERAL GOVERNMENT CIVILIAN EMPLOYEES
                                                                                                                                              Maximum                   Meals and                Maximum per
                                                                                         Locality                                              lodging           +      incidentals        =                     Effective date
                                                                                                                                                                                                  diem rate
                                                                                                                                               amount                       rate

                                                                                                                                                    (A)                     (B)                      (C)

                                                    ALASKA:
                                                       [OTHER]
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                          01/01–12/31 ....................................................................                110                      99                      209      03/01/2015
                                                       ADAK
                                                          11/01–03/31 ....................................................................                150                      70                      220      03/01/2015
                                                          04/01–10/31 ....................................................................                192                      74                      266      03/01/2015
                                                       ANCHORAGE [INCL NAV RES]
                                                          05/16–09/30 ....................................................................                339                     126                      465      07/01/2015
                                                          10/01–05/15 ....................................................................                 99                     102                      201      07/01/2015
                                                       BARROW
                                                          01/01–12/31 ....................................................................                177                      78                      255      03/01/2015
                                                       BARTER ISLAND LRRS



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Document Created: 2018-02-23 09:25:00
Document Modified: 2018-02-23 09:25:00
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 August 10, 2015.
ContactDennis C. Kacoyanis, General Attorney, Office of the General Counsel, Division of Enforcement and Information, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7587.
FR Citation80 FR 44081 

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