80_FR_74316 80 FR 74088 - Philips Lighting North America Corporation, Provisional Acceptance of a Settlement Agreement and Order

80 FR 74088 - Philips Lighting North America Corporation, Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

Federal Register Volume 80, Issue 228 (November 27, 2015)

Page Range74088-74091
FR Document2015-30129

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 Philips Lighting North America Corporation containing a civil penalty in the amount of two million dollars ($2,000,000), within thirty (30) days of service of the Commission's final Order accepting the Settlement Agreement.\1\ ---------------------------------------------------------------------------

Federal Register, Volume 80 Issue 228 (Friday, November 27, 2015)
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)]
[Notices]
[Pages 74088-74091]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-30129]


=======================================================================
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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 16-C0001]


Philips Lighting North America Corporation, 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 
Philips Lighting North America Corporation containing a civil penalty 
in the amount of two million dollars ($2,000,000), within thirty (30) 
days of service of the Commission's final Order accepting the 
Settlement Agreement.\1\
---------------------------------------------------------------------------

    \1\ The Commission voted (4-1) to provisionally accept the 
Settlement Agreement and Order regarding Philips Lighting North 
America Corporation. Chairman Kaye, Commissioner Adler, Commissioner 
Robinson and Commissioner Mohorovic voted to provisionally accept 
the Settlement Agreement and Order. Commissioner Buerkle voted to 
reject the Settlement Agreement and Order.

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 December 14, 2015.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 16-C0001, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Amy S. Colvin, 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) 504-7639.

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

    Dated: November 23, 2015.
Todd A. Stevenson,
Secretary.

United States of America Consumer Product Safety Commission

In the Matter of: Philips Lighting North America Corporation

CPSC Docket No.: 16-C0001

Settlement Agreement

    1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 
2051-2089 (``CPSA'') and 16 CFR 1118.20, Philips Lighting North America 
Corporation (``Philips''), 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

[[Page 74089]]

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. Philips is a corporation, organized and existing under the laws 
of the state of Delaware, with its principal corporate offices located 
in Somerset, New Jersey.

Staff Charges

    4. Between March 2007 and July 2011, grocery and home center stores 
nationwide, online retailers, and professional electrical distributors 
sold in the United States approximately 1.86 million EnergySaver (a/k/a 
``Marathon'' or ``Marathon Classic'') compact fluorescent lamps 
enclosed inside glass envelopes (``Lamps''). Philips manufactured the 
Lamps.
    5. The Lamps are a ``consumer product'' that was ``distributed in 
commerce'' as those terms are defined or used in sections 3(a)(5) and 
(8) of the CPSA, 15 U.S.C. 2052(a)(5) and (8). Philips is a 
``manufacturer'' of the Lamps, as such term is defined in section 
3(a)(11) of the CPSA, 15 U.S.C. 2052(a)(11).
    6. The Lamps are defective and create an unreasonable risk of 
serious injury or death because the glue that attaches the glass outer 
envelope to the body of the Lamp can fail, allowing the glass envelope 
to fall and strike persons and objects below. This poses a laceration 
hazard to consumers.
    7. Philips received numerous reports that glass envelopes separated 
or were loose, including 10 reports of lacerations and seven reports of 
property damage.
    8. In response to these incident reports, Philips implemented 
multiple design changes to remedy the defect and unreasonable risk of 
serious injury or death associated with the Lamps.
    9. Despite having information of a defect and the unreasonable risk 
of serious injury or death associated with the Lamps, Philips did not 
notify the Commission immediately of such defect or risk, as required 
by sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. 2064(b)(3) and (4).
    10. Because the information in Philips's possession constituted 
actual and presumed knowledge, Philips 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).
    11. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Philips is 
subject to civil penalties for its knowing violation of section 
19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4).

Response of Philips

    12. Philips' settlement of this matter does not constitute an 
admission that Philips knew that the Lamps were defective and created 
an unreasonable risk of serious injury or death pursuant to section 
15(a) of the CPSA, 15 U.S.C. 2064(a), or that Philips knowingly 
violated the reporting requirements of section 15(b) of the CPSA, 15 
U.S.C. 2064(b). In particular, Philips notes that the ten reported 
injuries were minor, requiring no medical attention.

Agreement of the Parties

    13. Under the CPSA, the Commission has jurisdiction over the matter 
involving the Lamps and over Philips.
    14. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Philips or a 
determination by the Commission that Philips violated the CPSA's 
reporting requirements.
    15. In settlement of staff's charges as set forth in paragraphs 4 
through 11 above, and to avoid the cost, distraction, delay, 
uncertainty, and inconvenience of protracted litigation or other 
proceedings, Philips shall pay a civil penalty in the amount of two 
million dollars ($2,000,000) within thirty (30) calendar days after 
receiving service of the Commission's final Order accepting the 
Agreement. All payments to be made under the Agreement shall constitute 
debts owing to the United States and shall be made by electronic wire 
transfer to the United States via: http://www.pay.gov for allocation to 
and credit against the payment obligations of Philips under this 
Agreement. Failure to make such payment by the date specified in the 
Commission's final Order shall constitute Default.
    16. All unpaid amounts, if any, due and owing under the Agreement 
shall constitute a debt due and immediately owing by Philips to the 
United States, and interest shall accrue and be paid by Philips at the 
federal legal rate of interest set forth at 28 U.S.C. 1961(a) and (b) 
from the date of Default until all amounts due have been paid in full 
(hereinafter ``Default Payment Amount'' and ``Default Interest 
Balance''). Philips shall consent to a Consent Judgment in the amount 
of the Default Payment Amount and Default Interest Balance; and the 
United States, at its sole option, may collect the entire Default 
Payment Amount and Default Interest Balance, or exercise any other 
rights granted by law or in equity, including, but not limited to, 
referring such matters for private collection, and Philips agrees not 
to contest, and hereby waives and discharges any defenses to, any 
collection action undertaken by the United States or its agents or 
contractors pursuant to this paragraph. Philips shall pay the United 
States all reasonable costs of collection and enforcement under this 
paragraph, respectively, including reasonable attorney's fees and 
expenses.
    17. After staff receives this Agreement executed on behalf of 
Philips, staff shall promptly submit the Agreement to the Commission 
for provisional acceptance. Promptly following provisional acceptance 
of the Agreement by the Commission, the Agreement shall be placed on 
the public record and published in the Federal Register, in accordance 
with the procedures set forth in 16 CFR 1118.20(e). If the Commission 
does not receive any written request not to accept the Agreement within 
fifteen (15) calendar days, the Agreement shall be deemed finally 
accepted on the 16th calendar day after the date the Agreement is 
published in the Federal Register, in accordance with 16 CFR 
1118.20(f).
    18. This Agreement is conditioned upon, and subject to, the 
Commission's final acceptance, as set forth above, and it is subject to 
the provisions of 16 CFR 1118.20(h). Upon the later of: (i) 
Commission's final acceptance of this Agreement and service of the 
accepted Agreement upon Philips, and (ii) the date of issuance of the 
final Order, this Agreement shall be in full force and effect and shall 
be binding upon the parties.
    19. Effective upon the later of: (i) the Commission's final 
acceptance of the Agreement and service of the accepted Agreement upon 
Philips, and (ii) and the date of issuance of the final Order, for good 
and valuable consideration, Philips 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 Philips failed to comply 
with the CPSA and the underlying regulations; (iv) a statement of 
findings of fact and conclusions of law; and (v) any claims under the 
Equal Access to Justice Act.
    20. Philips shall implement, maintain, and enforce a system of 
internal controls and procedures designed to ensure that, with respect 
to all consumer products, as that term is defined or used in section 
3(a)(5) of the CPSA, 15 U.S.C. 2052(a)(5) (``consumer products''), 
imported, manufactured, distributed, or sold by Philips in the United 
States:

[[Page 74090]]

    a. information required to be disclosed by Philips to the 
Commission is recorded, processed, and reported in accordance with 
applicable law;
    b. all reporting made to the Commission is timely, truthful, 
complete, accurate, and in accordance with applicable law; and
    c. prompt disclosure is made to Philips'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, Philips's ability to record, 
process, and report to the Commission in accordance with applicable 
law.
    21. Philips shall implement and maintain a compliance program 
designed to ensure compliance with the CPSA and regulations enforced by 
the Commission with respect to any consumer product imported, 
manufactured, distributed, or sold by Philips in the United States, and 
which, at a minimum, shall contain the following elements:
    a. written standards and policies;
    b. written procedures that provide for the appropriate forwarding 
to compliance personnel of all information that may relate to, or 
impact, CPSA compliance, including all reports and complaints involving 
consumer products, whether an injury is referenced or not, and 
corresponding engineering analyses and risk assessments;
    c. 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;
    d. effective communication of company compliance-related policies 
and procedures regarding the CPSA to all applicable employees through 
training programs or otherwise;
    e. Philips senior management responsibility for CPSA compliance and 
accountability for violations of the statutes and regulations enforced 
by the Commission;
    f. Philips board oversight of CPSA compliance; and
    g. retention of all CPSA compliance-related records for at least 
five (5) years, and availability of such records to staff upon 
reasonable request.
    22. Upon reasonable request of staff, Philips shall provide written 
documentation of its improvements, processes, and controls, including, 
but not limited to, the effective dates of such improvements, 
processes, and controls as set forth in paragraphs 20 through 21 above. 
Philips shall cooperate fully and truthfully with staff and shall make 
available all information, materials, and personnel deemed necessary by 
staff to evaluate Philips's compliance with the terms of the Agreement.
    23. The parties acknowledge and agree that the Commission may 
publicize the terms of the Agreement and the Order.
    24. Philips 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 Philips, enforceable against Philips in 
accordance with its terms. Philips 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 
Philips pursuant to the Agreement and Order. The individuals signing 
the Agreement on behalf of Philips represent and warrant that they are 
duly authorized by Philips to execute the Agreement.
    25. The signatories represent that they are authorized to execute 
this 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, Philips and each of its successors, transferees, and assigns, and 
a violation of the Agreement or Order may subject Philips, 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 Philips agree in writing that severing the provision materially 
affects the purpose of the Agreement and the Order.

Philips Lighting North America Corporation

Dated: November 9, 2015
By:
Michael L. Manning-----------------------------------------------------
Vice President and General Counsel
Philips Lighting North America Corporation
3000 Minuteman Road
Andover, MA 01810

Dated: November 9, 2015
By:
Kathleen M. Sanzo------------------------------------------------------
Counsel to Philips Lighting North America Corporation
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue NW
Washington, DC 20004

U.S. Consumer Product Safety Commission

Stephanie Tsacoumis
General Counsel

Mary T. Boyle
Deputy General Counsel

Melissa V. Hampshire
Assistant General Counsel

Dated: November 10, 2015
By:
Amy S. Colvin----------------------------------------------------------
Attorney
Division of Enforcement and Information
Office of the General Counsel

United States of America Consumer Product Safety Commission

In the Matter of: Philips Lighting North America Corporation
CPSC Docket No.: 16-C0001

Order

    Upon consideration of the Settlement Agreement entered into between 
Philips Lighting North America Corporation (``Philips''), and the U.S. 
Consumer Product Safety Commission (``Commission''), and the Commission 
having jurisdiction over the subject matter and over Philips, 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 Philips shall comply with the terms of the 
Settlement Agreement and shall pay a civil penalty in the amount of two 
million dollars ($2,000,000) 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 Philips to make the 
foregoing payment when due, interest on the unpaid

[[Page 74091]]

amount shall accrue and be paid by Philips at the federal legal rate of 
interest set forth at 28 U.S.C. 1961(a) and (b). If Philips 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 23th day 
of November, 2015.

By Order of the Commission:


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

[FR Doc. 2015-30129 Filed 11-25-15; 8:45 am]
BILLING CODE 6355-01-P



                                                  74088                       Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices

                                                  services and could continue to perform                  contractors to determine whether severe               Lighting North America Corporation
                                                  with the best stewardship of the                        adverse impact will occur if a project is             containing a civil penalty in the amount
                                                  taxpayers’ money. The firm questioned                   added to the PL. The Commission did                   of two million dollars ($2,000,000),
                                                  whether the proposed nonprofit agency                   so in this instance and disagrees with                within thirty (30) days of service of the
                                                  could perform the required services                     the contractor’s assertion that the                   Commission’s final Order accepting the
                                                  within the restraints of the AbilityOne                 addition of this project to the PL will               Settlement Agreement.1
                                                  Program’s requirement to employ                         result in severe adverse impact to the                DATES: Any interested person may ask
                                                  people with severe disabilities and                     contractor company. The Commission                    the Commission not to accept this
                                                  noted that some of its employees were                   has reviewed the specific requirements                agreement or otherwise comment on its
                                                  contacted by the nonprofit agency and                   of this project and determined that this              contents by filing a written request with
                                                  offered employment. Finally, while                      project is suitable for performance by a              the Office of the Secretary by December
                                                  noting that the contract was not a major                nonprofit agency employing people who                 14, 2015.
                                                  portion of the contractor’s business                    are blind or severely disabled. Placing               ADDRESSES: Persons wishing to
                                                  portfolio, the loss of the contract would               this project on the PL will result in                 comment on this Settlement Agreement
                                                  have a significant financial impact since               employment and training opportunities                 should send written comments to the
                                                  it would result in the loss of a major                  for people with severe disabilities.                  Comment 16–C0001, Office of the
                                                  profit margin contract without                             Accordingly, following a deliberative              Secretary, Consumer Product Safety
                                                  providing specific information to                       review of the facts of this project, the              Commission, 4330 East West Highway,
                                                  substantiate the impact or how the                      Commission determines that this project               Room 820, Bethesda, Maryland 20814–
                                                  impact would be measured.                               is appropriate for the AbilityOne                     4408.
                                                     The U.S. AbilityOne Commission                       Program and will be added to the
                                                  (statutorily identified as the Committee                                                                      FOR FURTHER INFORMATION CONTACT:
                                                                                                          Procurement List.
                                                  for Purchase from People Who Are                                                                              Amy S. Colvin, Attorney, Office of the
                                                                                                             Service Type: Removal/Clean-up Bird                General Counsel, Division of
                                                  Blind or Severely Disabled)                             Dropping Service
                                                  (Commission) administers the                                                                                  Enforcement and Information,
                                                                                                             Service Is Mandatory For: Defense Logistics
                                                  AbilityOne® program under the                           Agency, Defense Supply Center, 8000
                                                                                                                                                                Consumer Product Safety Commission,
                                                  authority of the Javits-Wagner-O’Day                    Jefferson Davis Highway, Richmond, VA                 4330 East West Highway, Bethesda,
                                                  Act. Commission responsibilities                           Mandatory Source(s) of Supply: Richmond            Maryland 20814–4408; telephone (301)
                                                  include identifying products and                        Area Association for Retarded Citizens,               504–7639.
                                                  services produced or provided by                        Richmond, VA                                          SUPPLEMENTARY INFORMATION: The text of
                                                  qualified nonprofit agencies employing                     Contracting Activity: Defense Logistics            the Agreement and Order appears
                                                                                                          Agency Contracting Services Office,
                                                  people who are blind or severely                                                                              below.
                                                                                                          Richmond, VA
                                                  disabled that the Commission                               Service Type: Custodial and Related                  Dated: November 23, 2015.
                                                  determines are suitable for procurement                 Service                                               Todd A. Stevenson,
                                                  by the Government. Prior to adding any                     Service Is Mandatory For: GSA PBS Region           Secretary.
                                                  project to the Procurement List (PL), the               4, Benjamin P. Grogan and Jerry L. Dove
                                                  Commission reviews each project for                     Federal Building, 2030 SW. 145th Avenue,              United States of America Consumer
                                                  suitability including, employment                       Miramar, FL                                           Product Safety Commission
                                                  potential, nonprofit agency                                Mandatory Source(s) of Supply: CW
                                                                                                          Resources, Inc., New Britain, CT                      In the Matter of: Philips Lighting North
                                                  qualifications, capability, and level of                                                                        America Corporation
                                                                                                             Contracting Activity: Public Buildings
                                                  impact on the current contractor. If the                Service, Acquisition Division/Services                CPSC Docket No.: 16–C0001
                                                  Commission is satisfied that each of                    Branch, Atlanta, GA
                                                  these four criteria are met, then the                                                                         Settlement Agreement
                                                  service can be added to the PL and it                   Barry S. Lineback,
                                                                                                          Director, Business Operations.
                                                                                                                                                                   1. In accordance with the Consumer
                                                  becomes a mandatory requirement for
                                                                                                                                                                Product Safety Act, 15 U.S.C.
                                                  the government agency to obtain the                     [FR Doc. 2015–30145 Filed 11–25–15; 8:45 am]
                                                                                                                                                                2051¥2089 (‘‘CPSA’’) and 16 CFR
                                                  service from the designated nonprofit                   BILLING CODE 6353–01–P
                                                                                                                                                                1118.20, Philips Lighting North America
                                                  agency if available within the required
                                                                                                                                                                Corporation (‘‘Philips’’), and the United
                                                  time frame.
                                                     The Commission does not dispute                                                                            States Consumer Product Safety
                                                                                                          CONSUMER PRODUCT SAFETY                               Commission (‘‘Commission’’), through
                                                  that the contractor is effectively                      COMMISSION
                                                  performing the required services;                                                                             its staff, hereby enter into this
                                                  however, that does not mean that it is                  [CPSC Docket No. 16–C0001]                            Settlement Agreement (‘‘Agreement’’).
                                                  the only contractor that can effectively                                                                      The Agreement, and the incorporated
                                                  perform the services or that the                        Philips Lighting North America                        attached Order, resolve staff’s charges
                                                  AbilityOne Commission cannot add the                    Corporation, Provisional Acceptance                   set forth below.
                                                  work to the Procurement List for                        of a Settlement Agreement and Order
                                                                                                                                                                The Parties
                                                  performance by a nonprofit agency in                    AGENCY: Consumer Product Safety
                                                  the AbilityOne Program. The                                                                                     2. The Commission is an independent
                                                                                                          Commission.                                           federal regulatory agency, established
                                                  Commission has reviewed and                             ACTION: Notice.
                                                  determined that the project will result                                                                       pursuant to, and responsible for the
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  in employment for people with severe                    SUMMARY:   It is the policy of the                      1 The Commission voted (4–1) to provisionally
                                                  disabilities and the designated nonprofit               Commission to publish settlements                     accept the Settlement Agreement and Order
                                                  agency is qualified under the                           which it provisionally accepts under the              regarding Philips Lighting North America
                                                  Commission’s 75% ratio requirement                      Consumer Product Safety Act in the                    Corporation. Chairman Kaye, Commissioner Adler,
                                                  and otherwise and capable of                            Federal Register in accordance with the               Commissioner Robinson and Commissioner
                                                                                                                                                                Mohorovic voted to provisionally accept the
                                                  performing the services. Additionally,                  terms of 16 CFR 1118.20(e). Published                 Settlement Agreement and Order. Commissioner
                                                  the Commission reviews financial                        below is a provisionally-accepted                     Buerkle voted to reject the Settlement Agreement
                                                  information provided by current                         Settlement Agreement with Philips                     and Order.



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                                                                              Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices                                            74089

                                                  enforcement of, the CPSA, 15 U.S.C.                     Response of Philips                                   collection action undertaken by the
                                                  2051–2089. By executing the                                12. Philips’ settlement of this matter             United States or its agents or contractors
                                                  Agreement, staff is acting on behalf of                 does not constitute an admission that                 pursuant to this paragraph. Philips shall
                                                  the Commission, pursuant to 16 CFR                      Philips knew that the Lamps were                      pay the United States all reasonable
                                                  1118.20(b). The Commission issues the                   defective and created an unreasonable                 costs of collection and enforcement
                                                  Order under the provisions of the CPSA.                 risk of serious injury or death pursuant              under this paragraph, respectively,
                                                    3. Philips is a corporation, organized                                                                      including reasonable attorney’s fees and
                                                                                                          to section 15(a) of the CPSA, 15 U.S.C.
                                                  and existing under the laws of the state                                                                      expenses.
                                                                                                          2064(a), or that Philips knowingly
                                                  of Delaware, with its principal corporate                                                                        17. After staff receives this Agreement
                                                                                                          violated the reporting requirements of
                                                  offices located in Somerset, New Jersey.                                                                      executed on behalf of Philips, staff shall
                                                                                                          section 15(b) of the CPSA, 15 U.S.C.                  promptly submit the Agreement to the
                                                  Staff Charges                                           2064(b). In particular, Philips notes that            Commission for provisional acceptance.
                                                     4. Between March 2007 and July 2011,                 the ten reported injuries were minor,                 Promptly following provisional
                                                  grocery and home center stores                          requiring no medical attention.                       acceptance of the Agreement by the
                                                  nationwide, online retailers, and                       Agreement of the Parties                              Commission, the Agreement shall be
                                                  professional electrical distributors sold                                                                     placed on the public record and
                                                                                                            13. Under the CPSA, the Commission
                                                  in the United States approximately 1.86                                                                       published in the Federal Register, in
                                                                                                          has jurisdiction over the matter
                                                  million EnergySaver (a/k/a ‘‘Marathon’’                                                                       accordance with the procedures set
                                                                                                          involving the Lamps and over Philips.
                                                  or ‘‘Marathon Classic’’) compact                                                                              forth in 16 CFR 1118.20(e). If the
                                                                                                            14. The parties enter into the
                                                  fluorescent lamps enclosed inside glass                                                                       Commission does not receive any
                                                                                                          Agreement for settlement purposes only.
                                                  envelopes (‘‘Lamps’’). Philips                                                                                written request not to accept the
                                                                                                          The Agreement does not constitute an
                                                  manufactured the Lamps.                                                                                       Agreement within fifteen (15) calendar
                                                     5. The Lamps are a ‘‘consumer                        admission by Philips or a determination
                                                                                                                                                                days, the Agreement shall be deemed
                                                  product’’ that was ‘‘distributed in                     by the Commission that Philips violated
                                                                                                                                                                finally accepted on the 16th calendar
                                                  commerce’’ as those terms are defined                   the CPSA’s reporting requirements.                    day after the date the Agreement is
                                                  or used in sections 3(a)(5) and (8) of the                15. In settlement of staff’s charges as
                                                                                                                                                                published in the Federal Register, in
                                                  CPSA, 15 U.S.C. 2052(a)(5) and (8).                     set forth in paragraphs 4 through 11                  accordance with 16 CFR 1118.20(f).
                                                  Philips is a ‘‘manufacturer’’ of the                    above, and to avoid the cost, distraction,               18. This Agreement is conditioned
                                                  Lamps, as such term is defined in                       delay, uncertainty, and inconvenience                 upon, and subject to, the Commission’s
                                                  section 3(a)(11) of the CPSA, 15 U.S.C.                 of protracted litigation or other                     final acceptance, as set forth above, and
                                                  2052(a)(11).                                            proceedings, Philips shall pay a civil                it is subject to the provisions of 16 CFR
                                                     6. The Lamps are defective and create                penalty in the amount of two million                  1118.20(h). Upon the later of: (i)
                                                  an unreasonable risk of serious injury or               dollars ($2,000,000) within thirty (30)               Commission’s final acceptance of this
                                                  death because the glue that attaches the                calendar days after receiving service of              Agreement and service of the accepted
                                                  glass outer envelope to the body of the                 the Commission’s final Order accepting                Agreement upon Philips, and (ii) the
                                                  Lamp can fail, allowing the glass                       the Agreement. All payments to be                     date of issuance of the final Order, this
                                                  envelope to fall and strike persons and                 made under the Agreement shall                        Agreement shall be in full force and
                                                  objects below. This poses a laceration                  constitute debts owing to the United                  effect and shall be binding upon the
                                                  hazard to consumers.                                    States and shall be made by electronic                parties.
                                                     7. Philips received numerous reports                 wire transfer to the United States via:                  19. Effective upon the later of: (i) the
                                                  that glass envelopes separated or were                  http://www.pay.gov for allocation to and              Commission’s final acceptance of the
                                                  loose, including 10 reports of                          credit against the payment obligations of             Agreement and service of the accepted
                                                  lacerations and seven reports of                        Philips under this Agreement. Failure to              Agreement upon Philips, and (ii) and
                                                  property damage.                                        make such payment by the date                         the date of issuance of the final Order,
                                                     8. In response to these incident                     specified in the Commission’s final                   for good and valuable consideration,
                                                  reports, Philips implemented multiple                   Order shall constitute Default.                       Philips hereby expressly and
                                                  design changes to remedy the defect and                   16. All unpaid amounts, if any, due                 irrevocably waives and agrees not to
                                                  unreasonable risk of serious injury or                  and owing under the Agreement shall                   assert any past, present, or future rights
                                                  death associated with the Lamps.                        constitute a debt due and immediately                 to the following, in connection with the
                                                     9. Despite having information of a                   owing by Philips to the United States,                matter described in this Agreement: (i)
                                                  defect and the unreasonable risk of                     and interest shall accrue and be paid by              an administrative or judicial hearing; (ii)
                                                  serious injury or death associated with                 Philips at the federal legal rate of                  judicial review or other challenge or
                                                  the Lamps, Philips did not notify the                   interest set forth at 28 U.S.C. 1961(a)               contest of the Commission’s actions; (iii)
                                                  Commission immediately of such defect                   and (b) from the date of Default until all            a determination by the Commission of
                                                  or risk, as required by sections 15(b)(3)               amounts due have been paid in full                    whether Philips failed to comply with
                                                  and (4) of the CPSA, 15 U.S.C.                          (hereinafter ‘‘Default Payment Amount’’               the CPSA and the underlying
                                                  2064(b)(3) and (4).                                     and ‘‘Default Interest Balance’’). Philips            regulations; (iv) a statement of findings
                                                     10. Because the information in                       shall consent to a Consent Judgment in                of fact and conclusions of law; and (v)
                                                  Philips’s possession constituted actual                 the amount of the Default Payment                     any claims under the Equal Access to
                                                  and presumed knowledge, Philips                         Amount and Default Interest Balance;                  Justice Act.
                                                  knowingly violated section 19(a)(4) of                  and the United States, at its sole option,               20. Philips shall implement, maintain,
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                                                  the CPSA, 15 U.S.C. 2068(a)(4), as the                  may collect the entire Default Payment                and enforce a system of internal controls
                                                  term ‘‘knowingly’’ is defined in section                Amount and Default Interest Balance, or               and procedures designed to ensure that,
                                                  20(d) of the CPSA, 15 U.S.C. 2069(d).                   exercise any other rights granted by law              with respect to all consumer products,
                                                     11. Pursuant to section 20 of the                    or in equity, including, but not limited              as that term is defined or used in section
                                                  CPSA, 15 U.S.C. 2069, Philips is subject                to, referring such matters for private                3(a)(5) of the CPSA, 15 U.S.C. 2052(a)(5)
                                                  to civil penalties for its knowing                      collection, and Philips agrees not to                 (‘‘consumer products’’), imported,
                                                  violation of section 19(a)(4) of the                    contest, and hereby waives and                        manufactured, distributed, or sold by
                                                  CPSA, 15 U.S.C. 2068(a)(4).                             discharges any defenses to, any                       Philips in the United States:


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                                                  74090                       Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices

                                                     a. information required to be                        and shall make available all                          balance of the Agreement and the Order
                                                  disclosed by Philips to the Commission                  information, materials, and personnel                 shall remain in full force and effect,
                                                  is recorded, processed, and reported in                 deemed necessary by staff to evaluate                 unless the Commission and Philips
                                                  accordance with applicable law;                         Philips’s compliance with the terms of                agree in writing that severing the
                                                     b. all reporting made to the                         the Agreement.                                        provision materially affects the purpose
                                                  Commission is timely, truthful,                            23. The parties acknowledge and                    of the Agreement and the Order.
                                                  complete, accurate, and in accordance                   agree that the Commission may                         Philips Lighting North America Corporation
                                                  with applicable law; and                                publicize the terms of the Agreement                  Dated: November 9, 2015
                                                     c. prompt disclosure is made to                      and the Order.                                        By:
                                                  Philips’s management of any significant                    24. Philips represents that the                    Michael L. Manning lllllllllll
                                                  deficiencies or material weaknesses in                  Agreement: (i) is entered into freely and             Vice President and General Counsel
                                                  the design or operation of such internal                voluntarily, without any degree of                    Philips Lighting North America Corporation
                                                  controls that are reasonably likely to                  duress or compulsion whatsoever; (ii)                 3000 Minuteman Road
                                                  affect adversely, in any material respect,              has been duly authorized; and (iii)                   Andover, MA 01810
                                                  Philips’s ability to record, process, and               constitutes the valid and binding                     Dated: November 9, 2015
                                                  report to the Commission in accordance                  obligation of Philips, enforceable against            By:
                                                  with applicable law.                                    Philips in accordance with its terms.                 Kathleen M. Sanzo llllllllllll
                                                     21. Philips shall implement and                      Philips will not directly or indirectly               Counsel to Philips Lighting North America
                                                                                                                                                                Corporation
                                                  maintain a compliance program                           receive any reimbursement,
                                                                                                                                                                Morgan, Lewis & Bockius LLP
                                                  designed to ensure compliance with the                  indemnification, insurance-related                    1111 Pennsylvania Avenue NW
                                                  CPSA and regulations enforced by the                    payment, or other payment in                          Washington, DC 20004
                                                  Commission with respect to any                          connection with the civil penalty to be               U.S. Consumer Product Safety Commission
                                                  consumer product imported,                              paid by Philips pursuant to the
                                                                                                                                                                Stephanie Tsacoumis
                                                  manufactured, distributed, or sold by                   Agreement and Order. The individuals                  General Counsel
                                                  Philips in the United States, and which,                signing the Agreement on behalf of
                                                                                                                                                                Mary T. Boyle
                                                  at a minimum, shall contain the                         Philips represent and warrant that they               Deputy General Counsel
                                                  following elements:                                     are duly authorized by Philips to
                                                                                                                                                                Melissa V. Hampshire
                                                     a. written standards and policies;                   execute the Agreement.                                Assistant General Counsel
                                                     b. written procedures that provide for                  25. The signatories represent that they
                                                                                                                                                                Dated: November 10, 2015
                                                  the appropriate forwarding to                           are authorized to execute this                        By:
                                                  compliance personnel of all information                 Agreement.                                            Amy S. Colvin llllllllllllll
                                                  that may relate to, or impact, CPSA                        26. The Agreement is governed by the               Attorney
                                                  compliance, including all reports and                   laws of the United States.                            Division of Enforcement and Information
                                                  complaints involving consumer                              27. The Agreement and the Order                    Office of the General Counsel
                                                  products, whether an injury is                          shall apply to, and be binding upon,
                                                  referenced or not, and corresponding                    Philips and each of its successors,                   United States of America Consumer
                                                  engineering analyses and risk                           transferees, and assigns, and a violation             Product Safety Commission
                                                  assessments;                                            of the Agreement or Order may subject                 In the Matter of: Philips Lighting North
                                                     c. a mechanism for confidential                      Philips, and each of its successors,                    America Corporation
                                                  employee reporting of compliance-                       transferees, and assigns, to appropriate              CPSC Docket No.: 16–C0001
                                                  related questions or concerns to either a               legal action.                                         Order
                                                  compliance officer or to another senior                    28. The Agreement and the Order
                                                  manager with authority to act as                        constitute the complete agreement                        Upon consideration of the Settlement
                                                  necessary;                                              between the parties on the subject                    Agreement entered into between Philips
                                                     d. effective communication of                        matter contained therein.                             Lighting North America Corporation
                                                  company compliance-related policies                        29. The Agreement may be used in                   (‘‘Philips’’), and the U.S. Consumer
                                                  and procedures regarding the CPSA to                    interpreting the Order. Understandings,               Product Safety Commission
                                                  all applicable employees through                        agreements, representations, or                       (‘‘Commission’’), and the Commission
                                                  training programs or otherwise;                         interpretations apart from those                      having jurisdiction over the subject
                                                     e. Philips senior management                         contained in the Agreement and the                    matter and over Philips, and it
                                                  responsibility for CPSA compliance and                  Order may not be used to vary or                      appearing that the Settlement
                                                  accountability for violations of the                    contradict their terms. For purposes of               Agreement and the Order are in the
                                                  statutes and regulations enforced by the                construction, the Agreement shall be                  public interest, it is:
                                                  Commission;                                             deemed to have been drafted by both of                   ORDERED that the Settlement
                                                     f. Philips board oversight of CPSA                   the parties and shall not, therefore, be              Agreement be, and is, hereby, accepted;
                                                  compliance; and                                         construed against any party for that                  and it is
                                                     g. retention of all CPSA compliance-                 reason in any subsequent dispute.                        FURTHER ORDERED that Philips
                                                  related records for at least five (5) years,               30. The Agreement may not be                       shall comply with the terms of the
                                                  and availability of such records to staff               waived, amended, modified, or                         Settlement Agreement and shall pay a
                                                  upon reasonable request.                                otherwise altered, except as in                       civil penalty in the amount of two
                                                     22. Upon reasonable request of staff,                accordance with the provisions of 16                  million dollars ($2,000,000) within
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                                                  Philips shall provide written                           CFR 1118.20(h). The Agreement may be                  thirty (30) days after service of the
                                                  documentation of its improvements,                      executed in counterparts.                             Commission’s final Order accepting the
                                                  processes, and controls, including, but                    31. If any provision of the Agreement              Settlement Agreement. The payment
                                                  not limited to, the effective dates of                  or the Order is held to be illegal,                   shall be made by electronic wire transfer
                                                  such improvements, processes, and                       invalid, or unenforceable under present               to the Commission via: http://
                                                  controls as set forth in paragraphs 20                  or future laws effective during the terms             www.pay.gov. Upon the failure of
                                                  through 21 above. Philips shall                         of the Agreement and the Order, such                  Philips to make the foregoing payment
                                                  cooperate fully and truthfully with staff               provision shall be fully severable. The               when due, interest on the unpaid


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                                                                              Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Notices                                          74091

                                                  amount shall accrue and be paid by              Frequency: On occasion.                                       DATES: Date of the Closed Meetings:
                                                  Philips at the federal legal rate of            Respondent’s Obligation: Required to                          Wednesday, December 16, 2015, from
                                                  interest set forth at 28 U.S.C. 1961(a)      obtain or retain benefits.                                       1:00 p.m. to 5:00 p.m. and Thursday,
                                                  and (b). If Philips fails to make such          OMB Desk Officer: Ms. Jasmeet                                 December 17, 2015, from 8:00 a.m. to
                                                  payment or to comply in full with any        Seehra.                                                          12:00 p.m.
                                                  other provision of the Settlement               Comments and recommendations on                                 Date of the Open Meeting: Thursday,
                                                  Agreement, such conduct will be              the proposed information collection                              December 17, 2015, from 3:00 p.m. to
                                                  considered a violation of the Settlement     should be emailed to Ms. Jasmeet                                 5:00 p.m.
                                                  Agreement and Order.                         Seehra, DoD Desk Officer, at Oira_                               ADDRESSES: Address of Closed Meetings,
                                                  Provisionally accepted and provisional Order submission@omb.eop.gov. Please                                   December 16 and 17, 2015: Rm. 12110,
                                                  issued on the 23th day of November, 2015.    identify the proposed information                                5th Floor, Zachary Taylor Building,
                                                  By Order of the Commission:                  collection by DoD Desk Officer and the                           2530 Crystal Dr., Arlington, VA 22202.
                                                                                               Docket ID number and title of the                                  Address of Open Meeting, December
                                                  lllllllllllllllllllll information collection.                                                                 17, 2015: Polk Conference Room, Room
                                                  Todd A. Stevenson, Secretary,                   You may also submit comments and                              12158, James Polk Building, 2521 S.
                                                  U.S. Consumer Product Safety Commission      recommendations, identified by Docket                            Clark St., Arlington, VA 22202.
                                                  [FR Doc. 2015–30129 Filed 11–25–15; 8:45 am] ID number and title, by the following                            FOR FURTHER INFORMATION CONTACT: Mr.
                                                  BILLING CODE 6355–01–P                       method:                                                          Don Tison, Designated Federal Officer,
                                                                                                  • Federal eRulemaking Portal: http://                         National Commission on the Future of
                                                                                               www.regulations.gov. Follow the                                  the Army, 700 Army Pentagon, Room
                                                  DEPARTMENT OF DEFENSE                        instructions for submitting comments.                            3E406, Washington, DC 20310–0700,
                                                                                                  Instructions: All submissions received                        Email: dfo.public@ncfa.ncr.gov. Desk
                                                  Department of the Army                       must include the agency name, Docket                             (703) 692–9099. Facsimile (703) 697–
                                                                                               ID number and title for this Federal                             8242.
                                                  [Docket ID: USA–2015–0011]
                                                                                               Register document. The general policy                            SUPPLEMENTARY INFORMATION:      This
                                                  Submission for OMB Review;                   for comments and other submissions                               meeting will be held under the
                                                  Comment Request                              from members of the public is to make                            provisions of the Federal Advisory
                                                                                               these submissions available for public                           Committee Act (FACA) of 1972 (5
                                                  ACTION: Notice.                              viewing on the Internet at http://                               U.S.C., Appendix, as amended), the
                                                                                               www.regulations.gov as they are                                  Government in the Sunshine Act of
                                                  SUMMARY: The Department of Defense
                                                                                               received without change, including any                           1976 (5 U.S.C. 552b, as amended), and
                                                  has submitted to OMB for clearance, the personal identifiers or contact
                                                  following proposal for collection of                                                                          41 CFR 102–3.150.
                                                                                               information.                                                        Purpose of Meetings:
                                                  information under the provisions of the
                                                                                                  DOD Clearance Officer: Mr. Frederick                             During the closed meeting on
                                                  Paperwork Reduction Act.
                                                                                               Licari.                                                          Wednesday, December 16, 2015, the
                                                  DATES: Consideration will be given to all       Written requests for copies of the                            Commission will review the rationale
                                                  comments received by December 28,            information collection proposal should                           for potential recommendations sourced
                                                  2015.                                        be sent to Mr. Licari at WHS/ESD                                 by classified data.
                                                  FOR FURTHER INFORMATION CONTACT: Fred Directives Division, 4800 Mark Center                                      During the closed meeting on
                                                  Licari, 571–372–0493.                        Drive, East Tower, Suite 02G09,                                  Thursday, December 17, 2015, the
                                                  SUPPLEMENTARY INFORMATION:                   Alexandria, VA 22350–3100.                                       Commission will continue the review of
                                                     Title, Associated Form and OMB               Dated: November 23, 2015.                                     the rationale for potential
                                                  Number: Employee Travel Files; 0702–                                                                          recommendations sourced by classified
                                                                                               Aaron Siegel,
                                                  XXXX.                                                                                                         data.
                                                                                               Alternate OSD Federal Register Liaison                              During the open meeting on
                                                     Type of Request: Existing collection in Officer, Department of Defense.
                                                  use without an OMB Control Number.                                                                            Thursday, December 17, 2015, the
                                                                                               [FR Doc. 2015–30126 Filed 11–25–15; 8:45 am]
                                                     Number of Respondents: 350.                                                                                Commission will hear subcommittee
                                                                                               BILLING CODE 5001–06–P                                           interim reports and the public will have
                                                     Responses per Respondent: 1.
                                                     Annual Responses: 350.                                                                                     an opportunity to provide remarks.
                                                     Average Burden per Response: 45                                                                               Agendas:
                                                  minutes.                                     DEPARTMENT OF DEFENSE                                               December 16, 2015—Closed Meeting:
                                                     Annual Burden Hours: 263.                 Office of the Secretary                                          The Commission will hold a closed
                                                     Needs and Uses: The information                                                                            meeting to discuss the rationale for
                                                  collection requirement is necessary to       National Commission on the Future of                             proposals which the cited information
                                                  process official travel requests for         the Army; Notice of Federal Advisory                             will exceed report classification. All
                                                  military and civilian employees of the       Committee Meeting                                                presentations and resulting discussion
                                                  Army and Air Force Exchange Service;                                                                          are classified.
                                                  to determine eligibility of the              AGENCY: Deputy Chief Management                                     December 17, 2015—Closed Meeting:
                                                  individual’s dependents to travel; to        Officer, Department of Defense (DoD).                            The Commission will continue the
                                                  obtain the necessary clearance where         ACTION: Notice of Federal Advisory                               discussion on the rationale for proposals
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                                                  foreign travel is involved, including        Committee meeting.                                               which the cited information will exceed
                                                  assisting individuals in applying for                                                                         report classification. All presentations
                                                  passports and visas and counseling           SUMMARY: The DoD is publishing this                              and resulting discussion are classified.
                                                  where proposed travel involves visiting/ notice to announce two days of                                          December 17, 2015—Open Meeting:
                                                  transiting communist countries and           meetings of the National Commission on                           The Commission will receive interim
                                                  danger zones.                                the Future of the Army (‘‘the                                    reports from representatives from the
                                                     Affected Public: Individuals or           Commission’’). The meetings will be                              various subcommittees and time will be
                                                  households.                                  partially closed to the public.                                  allotted for public comments.


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Document Created: 2015-12-14 14:05:03
Document Modified: 2015-12-14 14:05:03
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
ContactAmy S. Colvin, 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) 504-7639.
FR Citation80 FR 74088 

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