81_FR_36631 81 FR 36522 - Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions, Provisional Acceptance of a Settlement Agreement and Order

81 FR 36522 - Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions, Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

Federal Register Volume 81, Issue 109 (June 7, 2016)

Page Range36522-36524
FR Document2016-13362

It is the policy of the Commission to publish settlements which it provisionally accepts under the Consumer Product Safety Act in the Federal Register in accordance with the terms of the Consumer Product Safety Commission's regulations. Published below is a provisionally-accepted Settlement Agreement with Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions containing a civil penalty in the amount of four million, five hundred thousand dollars ($4,500,000) within thirty (30) days of service of the Commission's final Order accepting the Settlement Agreement.

Federal Register, Volume 81 Issue 109 (Tuesday, June 7, 2016)
[Federal Register Volume 81, Number 109 (Tuesday, June 7, 2016)]
[Notices]
[Pages 36522-36524]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-13362]


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

[CPSC Docket No. 16-C0004]


Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions, 
Provisional Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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

SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of the Consumer 
Product Safety Commission's regulations. Published below is a 
provisionally-accepted Settlement Agreement with Sunbeam Products, Inc. 
d/b/a Jarden Consumer Solutions containing a civil penalty in the 
amount of four million, five hundred thousand dollars ($4,500,000) 
within thirty (30) days of service of the Commission's final Order 
accepting the Settlement Agreement.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by June 22, 2016.

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

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

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order \1\ 
appears below.
---------------------------------------------------------------------------

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

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

United States of America Consumer Product Safety Commission

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

SETTLEMENT AGREEMENT

    1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 
2051-2089 (``CPSA'') and 16 CFR 1118.20, Sunbeam Products, Inc. d/b/a 
Jarden Consumer Solutions (``the Firm''), and the United States 
Consumer Product Safety Commission (``Commission''), through its staff, 
hereby enter into this Settlement Agreement (``Agreement''). The 
Agreement, and the incorporated attached Order, resolve staff's charges 
set forth below.

THE PARTIES

    2. The Commission is an independent federal regulatory agency, 
established pursuant to, and responsible for the enforcement of, the 
CPSA, 15 U.S.C. 2051-2089. By executing the Agreement, staff is acting 
on behalf of the Commission, pursuant to 16 CFR 1118.20(b). The 
Commission issues the Order under the provisions of the CPSA.
    3. Sunbeam Products, Inc. d/b/a Jarden Consumer Solutions is a 
Delaware corporation with its principal corporate offices in Boca 
Raton, FL.

STAFF CHARGES

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

[[Page 36523]]

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

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

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

AGREEMENT OF THE PARTIES

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

[[Page 36524]]

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

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

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

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

U.S. CONSUMER PRODUCT SAFETY COMMISSION

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

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

United States of America Consumer Product Safety Commission

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

ORDER

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

BY ORDER OF THE COMMISSION:

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

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



                                                    36522                           Federal Register / Vol. 81, No. 109 / Tuesday, June 7, 2016 / Notices

                                                    (MMPA; 16 U.S.C. 1361 et seq.), the                     CONSUMER PRODUCT SAFETY                                statement is available at the Office of the
                                                    regulations governing the taking and                    COMMISSION                                             Secretary or the CPSC Web site,
                                                    importing of marine mammals (50 CFR                                                                            www.cpsc.gov.
                                                                                                            [CPSC Docket No. 16–C0004]
                                                    part 216), the Endangered Species Act of                                                                       United States of America Consumer
                                                    1973, as amended (ESA; 16 U.S.C. 1531                   Sunbeam Products, Inc. d/b/a Jarden                    Product Safety Commission
                                                    et seq.), and the regulations governing                 Consumer Solutions, Provisional
                                                    the taking, importing, and exporting of                                                                          In the Matter of:
                                                                                                            Acceptance of a Settlement Agreement
                                                                                                                                                                     Sunbeam Products, Inc. d/b/a Jarden
                                                    endangered and threatened species (50                   and Order                                              Consumer Solutions
                                                    CFR 222–226).                                                                                                  CPSC Docket No.: 16–C0004
                                                                                                            AGENCY: Consumer Product Safety
                                                       The applicant requests authorization                 Commission.                                            SETTLEMENT AGREEMENT
                                                    for the continued maintenance of three                  ACTION: Notice.
                                                    non-releasable Guadalupe fur seals at                                                                             1. In accordance with the Consumer
                                                    Sea World of California (and other Sea                  SUMMARY:   It is the policy of the                     Product Safety Act, 15 U.S.C. 2051–
                                                    World facilities if relocation is                       Commission to publish settlements                      2089 (‘‘CPSA’’) and 16 CFR 1118.20,
                                                    necessary) for enhancement purposes.                    which it provisionally accepts under the               Sunbeam Products, Inc. d/b/a Jarden
                                                    These animals were taken into captivity                 Consumer Product Safety Act in the                     Consumer Solutions (‘‘the Firm’’), and
                                                    by the Marine Mammal Health and                         Federal Register in accordance with the                the United States Consumer Product
                                                                                                            terms of the Consumer Product Safety                   Safety Commission (‘‘Commission’’),
                                                    Stranding Network and were deemed
                                                                                                            Commission’s regulations. Published                    through its staff, hereby enter into this
                                                    non-releasable. Thus, release of these
                                                                                                            below is a provisionally-accepted                      Settlement Agreement (‘‘Agreement’’).
                                                    animals would not be in the best                                                                               The Agreement, and the incorporated
                                                    interest of their individual welfare and                Settlement Agreement with Sunbeam
                                                                                                            Products, Inc. d/b/a Jarden Consumer                   attached Order, resolve staff’s charges
                                                    that of the wild population. These                                                                             set forth below.
                                                                                                            Solutions containing a civil penalty in
                                                    animals are currently held by Sea World
                                                                                                            the amount of four million, five                       THE PARTIES
                                                    of California under Permit No. 14186–
                                                                                                            hundred thousand dollars ($4,500,000)
                                                    01. Furthermore, the applicant has                                                                               2. The Commission is an independent
                                                                                                            within thirty (30) days of service of the
                                                    agreed to provide additional space for                  Commission’s final Order accepting the                 federal regulatory agency, established
                                                    future non-releasable Guadalupe fur                     Settlement Agreement.                                  pursuant to, and responsible for the
                                                    seals, if necessary (up to 6 total animals                                                                     enforcement of, the CPSA, 15 U.S.C.
                                                                                                            DATES: Any interested person may ask
                                                    at any given time). These animals would                                                                        2051–2089. By executing the
                                                                                                            the Commission not to accept this
                                                    be provided with daily husbandry care                                                                          Agreement, staff is acting on behalf of
                                                                                                            agreement or otherwise comment on its
                                                    and treatment for current medical                                                                              the Commission, pursuant to 16 CFR
                                                                                                            contents by filing a written request with
                                                    conditions, routine veterinary care, and                                                                       1118.20(b). The Commission issues the
                                                                                                            the Office of the Secretary by June 22,
                                                    would be made available for                                                                                    Order under the provisions of the CPSA.
                                                                                                            2016.
                                                    opportunistic research. The applicant                                                                            3. Sunbeam Products, Inc. d/b/a
                                                                                                            ADDRESSES: Persons wishing to                          Jarden Consumer Solutions is a
                                                    has requested a five-year permit.                       comment on this Settlement Agreement                   Delaware corporation with its principal
                                                       In compliance with the National                      should send written comments to the                    corporate offices in Boca Raton, FL.
                                                    Environmental Policy Act of 1969 (42                    Comment 16–C0004, Office of the
                                                    U.S.C. 4321 et seq.), an initial                        Secretary, Consumer Product Safety                     STAFF CHARGES
                                                    determination has been made that the                    Commission, 4330 East West Highway,                       4. From 2010 to 2012 the Firm
                                                    activity proposed is categorically                      Room 820, Bethesda, Maryland 20814–                    manufactured, imported, distributed,
                                                    excluded from the requirement to                        4408.                                                  and sold about 520,000 Mr. Coffee
                                                    prepare an environmental assessment or                  FOR FURTHER INFORMATION CONTACT:                       Single Cup Brewing System BVMC–KG1
                                                    environmental impact statement.                         Alexander W. Dennis, Attorney,                         series coffee makers (‘‘Coffee Makers’’ or
                                                       Concurrent with the publication of                   Division of Enforcement and                            ‘‘Subject Products’’).
                                                    this notice in the Federal Register,                    Information, Office of the General                        5. The Coffee Makers are ‘‘consumer
                                                                                                            Counsel, Consumer Product Safety                       products’’ ‘‘distributed in commerce,’’
                                                    NMFS is forwarding copies of the
                                                                                                            Commission, 4330 East West Highway,                    as those terms are defined or used in
                                                    application to the Marine Mammal
                                                                                                            Bethesda, Maryland 20814–4408;                         section 3(a)(5) and (8) of the CPSA, 15
                                                    Commission and its Committee of                         telephone (301) 504–7817.                              U.S.C. 2052(a)(5) and (8). The Firm is a
                                                    Scientific Advisors.
                                                                                                            SUPPLEMENTARY INFORMATION: The text of                 ‘‘manufacturer’’ of the Subject Products,
                                                      Dated: June 1, 2016.                                  the Agreement and Order 1 appears                      as such term is defined in section
                                                    Julia Harrison,                                         below.                                                 3(a)(11) of the CPSA, 15 U.S.C.
                                                    Chief, Permits and Conservation Division,                 Dated: June 2, 2016.                                 2052(a)(11).
                                                    Office of Protected Resources, National                                                                           6. The Firm had information
                                                                                                            Todd A. Stevenson,
                                                    Marine Fisheries Service.                                                                                      reasonably supporting the conclusion
                                                                                                            Secretary.
                                                    [FR Doc. 2016–13351 Filed 6–6–16; 8:45 am]                                                                     that the Coffee Makers are defective or
                                                                                                              Commissioner Mohorovic filed a                       created an unreasonable risk of serious
                                                    BILLING CODE 3510–22–P                                  statement regarding this matter. The                   injury or death in that a build-up of
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                              1 The Commission voted (3–2) to provisionally
                                                                                                                                                                   steam pressure can force the brewing
                                                                                                            accept the Settlement Agreement and Order
                                                                                                                                                                   chamber open and expel hot water and
                                                                                                            regarding Sunbeam Products, Inc. d/b/a Jarden          hot coffee grounds towards consumers,
                                                                                                            Consumer Solutions. Chairman Kaye,                     creating a burn risk to consumers.
                                                                                                            Commissioner Adler, Commissioner Robinson                 7. Between 2011 and 2012 the Firm
                                                                                                            voted to provisionally accept the Settlement
                                                                                                            Agreement and Order. Commissioner Buerkle and
                                                                                                                                                                   received numerous complaints of the
                                                                                                            Commissioner Mohorovic voted to reject the             Subject Products’ chamber opening and
                                                                                                            Settlement Agreement and Order.                        expelling hot water and hot coffee


                                               VerDate Sep<11>2014   19:13 Jun 06, 2016   Jkt 238001   PO 00000   Frm 00007   Fmt 4703   Sfmt 4703   E:\FR\FM\07JNN1.SGM   07JNN1


                                                                                    Federal Register / Vol. 81, No. 109 / Tuesday, June 7, 2016 / Notices                                              36523

                                                    grounds towards consumers. The                          circumstances . . .’’ and has agreed to                waives and agrees not to assert any past,
                                                    complaints included reports of at least                 the terms in paragraphs 20 and 21 to                   present, or future rights to the following,
                                                    32 consumers being burned by the                        enhance the Firm’s continued and                       in connection with the matter described
                                                    Subject Products.                                       future compliance with the CPSA.                       in this Agreement: (i) An administrative
                                                      8. Despite having information                                                                                or judicial hearing; (ii) judicial review
                                                    reasonably supporting the conclusion         AGREEMENT OF THE PARTIES
                                                                                                                                                                   or other challenge or contest of the
                                                    that the Coffee Makers contain a defect         14. Under the CPSA, the Commission                             Commission’s actions; (iii) a
                                                    which could create a substantial             has jurisdiction over the matter                                  determination by the Commission of
                                                    product hazard or created an                 involving the Subject Products                                    whether the Firm failed to comply with
                                                    unreasonable risk of serious injury or       described herein and over the Firm.                               the CPSA and the underlying
                                                    death, the Firm did not immediately             15. The parties enter into the                                 regulations; (iv) a statement of findings
                                                    notify the Commission, as required by        Agreement for settlement purposes only.                           of fact and conclusions of law; and (v)
                                                    section 15(b)(3) and (4) of the CPSA, 15     The Agreement does not constitute an                              any claims under the Equal Access to
                                                    U.S.C. 2064(b)(3) and (4).                   admission by the Firm or a                                        Justice Act.
                                                      9. In failing to inform the Commission     determination by the Commission that                                 20. The Firm shall maintain a
                                                    immediately about the Coffee Makers,         the Firm violated the CPSA’s reporting                            compliance program designed to ensure
                                                    the Firm knowingly violated section          requirements.                                                     compliance with the CPSA with respect
                                                    19(a)(4) of the CPSA, 15 U.S.C.                 16. In settlement of staff’s charges,
                                                                                                                                                                   to any consumer product imported,
                                                    2068(a)(4), as the term ‘‘knowingly’’ is     and to avoid the cost, distraction, delay,
                                                                                                                                                                   manufactured, distributed or sold by the
                                                    defined in section 20(d) of the CPSA, 15     uncertainty, and inconvenience of
                                                                                                                                                                   Firm, and which shall contain the
                                                    U.S.C. 2069(d).                              protracted litigation or other
                                                                                                                                                                   following elements:
                                                      10. Pursuant to section 20 of the          proceedings, the Firm shall pay a civil
                                                                                                 penalty in the amount of four million,                               (i) written standards, policies and
                                                    CPSA, 15 U.S.C. 2069, the Firm is
                                                                                                 five hundred thousand dollars                                     procedures, including those designed to
                                                    subject to civil penalties for its knowing
                                                                                                 ($4,500,000) within thirty (30) calendar                          ensure that information that may relate
                                                    violation of section 19(a)(4) of the
                                                                                                 days after receiving service of the                               to or impact CPSA compliance
                                                    CPSA, 15 U.S.C. 2068(a)(4).
                                                                                                 Commission’s final Order accepting the                            (including information obtained by
                                                    RESPONSE OF SUNBEAM PRODUCTS, Agreement. The payment shall be made                                             quality control personnel) is conveyed
                                                    INC. D/B/A JARDEN CONSUMER                   by electronic wire transfer to the                                effectively to personnel responsible for
                                                    SOLUTIONS                                    Commission via: http://www.pay.gov.                               CPSA compliance;
                                                       11. The Firm’s settlement of this            17. After staff receives this Agreement                           (ii) a mechanism for confidential
                                                    matter does not constitute an admission executed on behalf of the Firm, staff                                  employee reporting of compliance-
                                                    that it had reportable information as set    shall promptly submit the Agreement to                            related questions or concerns to either a
                                                    forth in paragraphs 4 through 10.            the Commission for provisional                                    compliance officer or to another senior
                                                       12. The Firm conducted an                 acceptance. Promptly following                                    manager with authority to act as
                                                    investigation about consumer                 provisional acceptance of the                                     necessary;
                                                    complaints relating to the Subject           Agreement by the Commission, the                                     (iii) effective communication of
                                                    Products’ brewing chamber opening to         Agreement shall be placed on the public                           company compliance-related policies
                                                    try to determine the cause of these          record and published in the Federal                               and procedures regarding the CPSA to
                                                    events. After an extensive investigation, Register, in accordance with the                                     all applicable employees through
                                                    the Firm eventually determined that          procedures set forth in 16 CFR                                    training programs or otherwise;
                                                    these incidents were related to              1118.20(e). If the Commission does not                               (iv) the Firm’s senior management
                                                    circumstances that it had not                receive any written request not to accept                         responsibility for, and general board
                                                    anticipated, i.e., a buildup of steam        the Agreement within fifteen (15)                                 oversight of, CPSA compliance; and
                                                    within the Subject Products’ hot water       calendar days, the Agreement shall be                                (v) retention of all CPSA compliance-
                                                    tank, which the Firm believes was            deemed finally accepted on the 16th                               related records for at least five (5) years,
                                                    caused by brewing a second cup of            calendar day after the date the                                   and availability of such records to staff
                                                    coffee with four ounces or less of water     Agreement is published in the Federal                             upon reasonable request.
                                                    added to the hot water tank immediately Register, in accordance with 16 CFR                                       21. The Firm has, and shall maintain
                                                    after an initial eight ounce brew,           1118.20(f).                                                       and enforce, a system of internal
                                                    without changing the coffee pod. The            18. This Agreement is conditioned                              controls and procedures designed to
                                                    Subject Products’ instructions provided upon, and subject to, the Commission’s                                 ensure that, with respect to all
                                                    that coffee be brewed by filling the         final acceptance, as set forth above, and                         consumer products imported,
                                                    brewing chamber to its fill line (i.e. eight it is subject to the provisions of 16 CFR                         manufactured, distributed or sold by the
                                                    ounces of water). When filled to the fill    1118.20(h). Upon the later of: (i) The                            Firm: (i) Information required to be
                                                    line, the Subject Products did not create Commission’s final acceptance of this                                disclosed by the Firm to the
                                                    steam and thus did not result in the         Agreement and service of the accepted                             Commission is recorded, processed and
                                                    chamber opening. After its                   Agreement upon the Firm, and (ii) the                             reported in accordance with applicable
                                                    investigation, the Firm voluntarily filed date of issuance of the final Order, this                            law; (ii) all reporting made to the
                                                    a report under Section 15(b) of the          Agreement shall be in full force and                              Commission is timely, truthful,
                                                    CPSA with the Commission. 15 U.S.C.          effect and shall be binding upon the                              complete, accurate and in accordance
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                                                    2064(b).                                     parties.                                                          with applicable law; and (iii) prompt
                                                       13. The Firm has agreed to pay this          19. Effective upon the later of: (i) The                       disclosure is made to the Firm’s
                                                    civil penalty because the CPSA defines       Commission’s final acceptance of the                              management of any significant
                                                    a ‘‘knowing’’ violation of section           Agreement and service of the accepted                             deficiencies or material weaknesses in
                                                    19(a)(4), 15 U.S.C. 2069(d), to include a    Agreement upon the Firm, and (ii) and                             the design or operation of such internal
                                                    party that is ‘‘presumed [to] have[]         the date of issuance of the final Order,                          controls that are reasonably likely to
                                                    knowledge deemed to be possessed by          for good and valuable consideration, the                          affect adversely, in any material respect,
                                                    a reasonable man who acts in the             Firm hereby expressly and irrevocably                             the Firm’s ability to record, process and


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                                                    36524                           Federal Register / Vol. 81, No. 109 / Tuesday, June 7, 2016 / Notices

                                                    report to the Commission in accordance                  otherwise altered, except as in         ORDERED that the Settlement
                                                    with applicable law.                                    accordance with the provisions of 16  Agreement be, and is, hereby, accepted;
                                                       22. Upon reasonable request of staff,                CFR 1118.20(h). The Agreement may be  and it is
                                                    the Firm shall provide written                          executed in counterparts.               FURTHER ORDERED that Sunbeam
                                                    documentation of its internal controls                                                        Products, Inc. d/b/a Jarden Consumer
                                                                                                              30. If any provision of the Agreement
                                                    and procedures, including, but not                      or the Order is held to be illegal,   Solutions shall comply with the terms
                                                    limited to, the effective dates of the                                                        of the Settlement Agreement and shall
                                                                                                            invalid, or unenforceable under present
                                                    procedures and improvements thereto.                                                          pay a civil penalty in the amount of four
                                                                                                            or future laws effective during the terms
                                                    The Firm shall cooperate fully and                      of the Agreement and the Order, such  million, five hundred thousand dollars
                                                    truthfully with staff and shall make                                                          ($4,500,000) within thirty (30) days after
                                                                                                            provision shall be fully severable. The
                                                    available all non-privileged information                balance of the Agreement and the Orderservice of the Commission’s final Order
                                                    and materials, and personnel deemed                     shall remain in full force and effect,accepting the Settlement Agreement.
                                                    necessary by staff to evaluate the Firm’s               unless the Commission and the Firm    The payment shall be made by
                                                    compliance with the terms of the                        agree in writing that severing the    electronic wire transfer to the
                                                    Agreement.                                                                                    Commission via: http://www.pay.gov.
                                                                                                            provision materially affects the purpose
                                                       23. The parties acknowledge and                      of the Agreement and the Order.       Upon the failure of the Firm to make the
                                                    agree that the Commission may                                                                 foregoing payment when due, interest
                                                    publicize the terms of the Agreement                    SUNBEAM PRODUCTS, INC. D/B/A          on the unpaid amount shall accrue and
                                                    and the Order.                                          JARDEN CONSUMER SOLUTIONS             be paid by the Firm at the federal legal
                                                       24. The Firm represents that the                     By: llllllllllllllll rate of interest set forth at 28 U.S.C.
                                                    Agreement: (i) Is entered into freely and               Date: May 25, 2016                    1961(a) and (b). If the Firm fails to make
                                                    voluntarily, without any degree of                      Kyle E. Kaiser                        such payment or to comply in full with
                                                    duress or compulsion whatsoever; (ii)                   Senior Vice President Operations      any other provision of the Settlement
                                                    has been duly authorized; and (iii)                     Sunbeam Products, Inc., d/b/a/ Jarden Agreement, such conduct will be
                                                    constitutes the valid and binding                         Consumer Solutions                  considered a violation of the Settlement
                                                    obligation of the Firm, enforceable                                                           Agreement and Order.
                                                                                                            2381 NW Executive Center Drive
                                                    against the Firm in accordance with its                                                         Provisionally accepted and
                                                                                                            Boca Raton, FL 33431
                                                    terms. The Firm will not directly or                                                          provisional Order issued on the 2nd day
                                                    indirectly receive any reimbursement,                   By: llllllllllllllll
                                                                                                                                                  of June, 2016.
                                                    indemnification, insurance-related                      Date: May 25, 2016
                                                                                                            David P. Callet, Esq.                 BY ORDER OF THE COMMISSION:
                                                    payment, or other payment in
                                                    connection with the civil penalty to be                 CalletLaw, LLC
                                                    paid by the Firm pursuant to the                        5335 Wisconsin Ave. NW., Suite 440
                                                                                                            Washington, DC 20015                    llllllllllllllllll
                                                    Agreement and Order. The individuals                                                          Todd A. Stevenson, Secretary
                                                    signing the Agreement on behalf of the                  U.S. CONSUMER PRODUCT SAFETY          U.S. Consumer Product Safety
                                                    Firm represent and warrant that they are                COMMISSION                            Commission
                                                    duly authorized by the Firm to execute
                                                    the Agreement.                                          By: llllllllllllllll                                   [FR Doc. 2016–13362 Filed 6–6–16; 8:45 am]

                                                       25. The Agreement is governed by the                 Mary T. Boyle                                          BILLING CODE 6355–01–P

                                                    laws of the United States.                              Acting General Counsel
                                                       26. The Agreement and the Order                      Melissa V. Hampshire
                                                    shall apply to, and be binding upon, the                Assistant General Counsel                              DEPARTMENT OF DEFENSE
                                                    Firm and each of its successors,                        By: llllllllllllllll                                   Department of the Army
                                                    transferees, and assigns, and a violation               Date: May 25, 2016
                                                    of the Agreement or Order may subject                   Alexander W. Dennis                                    Advisory Committee on Arlington
                                                    the Firm, and each of its successors,                   Attorney                                               National Cemetery Honor and
                                                    transferees and assigns, to appropriate                 Division of Enforcement and                            Remember Subcommittees Meeting
                                                    legal action.                                             Information                                          Notice
                                                       27. The Agreement and the Order                      Office of the General Counsel
                                                    constitute the complete agreement                                                                              AGENCY: Department of the Army, DoD.
                                                    between the parties regarding the Firm’s                United States of America Consumer                      ACTION:Notice of open subcommittee
                                                    obligation to file a report about the                   Product Safety Commission                              meetings.
                                                    Subject Products under sections 15(b)(3)                  In the Matter of:
                                                    and (4) of the CPSA, 15 U.S.C.                            Sunbeam Products, Inc. d/b/a Jarden                  SUMMARY:   The Department of the Army
                                                    2064(b)(3) and (4).                                     Consumer Solutions                                     is publishing this notice to announce
                                                       28. The Agreement may be used in                     CPSC Docket No.: 16–C0004                              the following Federal advisory
                                                    interpreting the Order. Understandings,                                                                        committee meetings of the Honor and
                                                                                                            ORDER                                                  Remember Subcommittees of the
                                                    agreements, representations, or
                                                    interpretations apart from those                          Upon consideration of the Settlement                 Advisory Committee on Arlington
                                                    contained in the Agreement and the                      Agreement entered into between                         National Cemetery (ACANC). The
                                                    Order may not be used to vary or                        Sunbeam Products, Inc. d/b/a Jarden                    meetings are open to the public. For
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    contradict their terms. For purposes of                 Consumer Solutions (the ‘‘Firm’’) and                  more information about the Committee
                                                    construction, the Agreement shall be                    the U.S. Consumer Product Safety                       and the Subcommittees, please visit
                                                    deemed to have been drafted by both of                  Commission (‘‘Commission’’), and the                   http://www.arlingtoncemetery.mil/
                                                    the parties and shall not, therefore, be                Commission having jurisdiction over                    AboutUs/FocusAreas.aspx.
                                                    construed against any party for that                    the subject matter and over the Firm,                  DATES: The Subcommittees will meet on
                                                    reason in any subsequent dispute.                       and it appearing that the Settlement                   6 July, 2016. The Remember
                                                       29. The Agreement may not be                         Agreement and the Order are in the                     Subcommittee will meet from 9:00 a.m.
                                                    waived, amended, modified, or                           public interest, it is:                                to 10:00 a.m. and the Honor


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Document Created: 2018-02-08 07:32:13
Document Modified: 2018-02-08 07:32:13
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 June 22, 2016.
ContactAlexander W. Dennis, Attorney, Division of Enforcement and Information, Office of the General Counsel, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-4408; telephone (301) 504-7817.
FR Citation81 FR 36522 

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