83 FR 50647 - Costco Wholesale Corporation, Provisional Acceptance of a Settlement Agreement and Order
CONSUMER PRODUCT SAFETY COMMISSION Federal Register Volume 83, Issue 195 (October 9, 2018)
Federal Register Volume 83, Issue 195 (October 9, 2018)
| Page Range | 50647-50650 | |
| FR Document | 2018-21869 |
[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)] [Notices] [Pages 50647-50650] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-21869] ======================================================================= ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 19-C0001] Costco Wholesale 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 the Consumer Product Safety Commission's regulations. Published below is a provisionally-accepted Settlement Agreement with Costco Wholesale Corporation, containing a civil penalty in the amount of $3.85 million dollars ($3,850,000), to be paid 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 October 24, 2018. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 19-C0001, Office of the Secretary, Consumer Product Safety Commission, 4330 East-West Highway, Room 820, Bethesda, Maryland 20814-4408. FOR FURTHER INFORMATION CONTACT: Michele Melnick, Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814- 4408; telephone (301) 504-7592. [[Page 50648]] SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. Dated: October 3, 2018. Alberta E. Mills, Secretary. UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: COSTCO WHOLESALE CORPORATION CPSC Docket No.: 19-C0001 SETTLEMENT AGREEMENT 1. In accordance with the Consumer Product Safety Act, 15 U.S.C. Sec. Sec. 2051-2089 (``CPSA'') and 16 C.F.R. Sec. 1118.20, Costco Wholesale Corporation (``Costco'') and the United States Consumer Product Safety Commission (``Commission''), through its staff, hereby enter into this Settlement Agreement (``Agreement''). The Agreement and the incorporated attached Order resolve staff's charges set forth below. THE PARTIES 2. The Commission is an independent federal regulatory agency, established pursuant to, and responsible for, the enforcement of the CPSA, 15 U.S.C. Sec. Sec. 2051-2089. By executing the Agreement, staff is acting on behalf of the Commission, pursuant to 16 C.F.R. Sec. 1118.20(b). The Commission issues the Order under the provisions of the CPSA. 3. Costco Wholesale Corporation is a corporation, organized and existing under the laws of the state of Washington, with its principal place of business in Issaquah, Washington. STAFF CHARGES 4. Between December 2013 and May 2015, Costco imported and sold approximately 367,000 EKO Sensible Eco Living Trash Cans (``Subject Products'' or ``Trash Cans'') at its warehouse stores throughout the United States. 5. The Trash Cans are 80 liter stainless steel, metal-cylinder Trash Cans with a black plastic protective collar in the opening on the back of the Trash Can. 6. The Trash Cans are a ``consumer product,'' ``distribut[ed] in commerce,'' as those terms are defined or used in sections 3(a)(5) and (8) of the CPSA, 15 U.S.C. Sec. 2052(a)(5) and (8). Costco is a ``manufacturer'' and ``retailer'' of the Trash Cans, as such terms are defined in section 3(a)(11) and (13) of the CPSA, 15 U.S.C. Sec. 2052(a)(11) and (13). 7. The Trash Cans contain a defect which could create a substantial product hazard and create an unreasonable risk of serious injury because the black plastic protective collar in the opening on the back of the Trash Can can become dislodged and expose a sharp edge, posing a laceration hazard to consumers. 8. Between December 2013 and May 2015, Costco received 92 complaints about the Trash Cans, including 60 complaints from consumers who received injuries, including some serious injuries as defined in 16 C.F.R. Sec. 1115.6(c). 9. Despite having information that reasonably supported the conclusion that the Trash Cans contained a defect which could create a substantial product hazard or created an unreasonable risk of serious injury, Costco 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. Sec. Sec. 2064(b)(3) and (4). 10. The Trash Cans were recalled on July 17, 2015. 11. In failing to immediately inform the Commission about the defect or unreasonable risk associated with the Trash Cans, Costco knowingly violated section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4), as the term ``knowingly'' is defined in section 20(d) of the CPSA, 15 U.S.C. Sec. 2069(d). 12. Pursuant to Section 20 of the CPSA, 15 U.S.C. Sec. 2069, Costco is subject to civil penalties for its knowing violation of section 19(a)(4) of the CPSA, 15 U.S.C. Sec. 2068(a)(4). RESPONSE OF COSTCO 13. Costco's Product Safety Committee reviewed reports associated with the Trash Cans that Costco received over time. The large majority of reports that Costco received about the Trash Cans were comments from Members who were returning the Trash Cans to Costco for a refund. Further, in December 2014, the Safety Committee found that the black plastic protective collar in the opening on the back of the Trash Can could not be removed easily from the exemplar sample it reviewed. Based on the available information, the Safety Committee did not believe that Costco had a duty to notify CPSC pursuant to CPSA Section 15(b) before May 2015. Costco does not believe that it knowingly violated the CPSA as that term is defined in the statute. 14. During May 2015, Costco identified additional reported incidents, and learned that the vendor had made a design change to prevent the black plastic protective collar in the opening on the back of the Trash Cans from becoming loose and exposing a sharp metal edge. The Safety Committee also learned that the exemplar sample it had previously reviewed included the modified protective collar. Based on all of the available information, Costco voluntarily notified CPSC in May 2015 pursuant to CPSA Section 15(b). At Costco's request, the vendor also notified CPSC pursuant to CPSA Section 15(b) and then recalled the Trash Cans in cooperation with CPSC. 15. Costco's settlement of this matter does not constitute an admission of staff's charges as set forth in paragraphs 4 through 12 above. AGREEMENT OF THE PARTIES 16. Under the CPSA, the Commission has jurisdiction over the matter involving the Trash Cans and over Costco. 17. The parties enter into the Agreement for settlement purposes only. The Agreement does not constitute an admission by Costco or a determination by the Commission that Costco violated the CPSA's reporting requirements. 18. In settlement of staff's charges, and to avoid the cost, distraction, delay, uncertainty, and inconvenience of protracted litigation, Costco shall pay a civil penalty in the amount of $3.85 million (US $3,850,000) 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 Costco under this Agreement. Failure to make such payment by the date specified in the Commission's Order shall constitute Default. 19. All unpaid amounts, if any, due and owing under the Agreement shall constitute a debt due and immediately owing by Costco to the United States, and interest shall accrue and be paid by Costco at the federal legal rate of interest set forth at 28 U.S.C. Sec. 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''). Costco 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 Costco agrees not to contest, and hereby waives and [[Page 50649]] discharges any defenses, to any collection action undertaken by the United States, or its agents or contractors, pursuant to this paragraph. Costco shall pay the United States all reasonable costs of collection and enforcement under this paragraph, respectively, including reasonable attorney's fees and expenses. 20. After staff receives this Agreement executed on behalf of Costco, 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 C.F.R. Sec. 1118.20(e). If the Commission does not receive any written request not to accept the Agreement within fifteen (15) calendar days, the Agreement shall be deemed finally accepted on the 16th calendar day after the date the Agreement is published in the Federal Register, in accordance with 16 C.F.R. Sec. 1118.20(f). 21. This Agreement is conditioned upon, and subject to, the Commission's final acceptance, as set forth above, and it is subject to the provisions of 16 C.F.R. Sec. 1118.20(h). Upon the later of: (i) the Commission's final acceptance of this Agreement and service of the accepted Agreement upon Costco, and (ii) the date of the issuance of the final Order, this Agreement shall be in full force and effect and shall be binding upon the parties. 22. Effective upon the later of: (i) the Commission's final acceptance of this Agreement and service of the accepted Agreement upon Costco, and (ii) the date of the issuance of the final Order, for good and valuable consideration, Costco 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 Costco 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. 23. Costco has and will maintain a compliance program designed to achieve compliance with the CPSA, and which shall contain the following elements: (i) written standards, policies and procedures, including those designed to ensure that information relevant to CPSA compliance is conveyed effectively to personnel responsible for compliance, whether or not an injury is referenced; (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 CPSA compliance-related policies and procedures to all appropriate employees through regular training programs or otherwise; (iv) Costco's senior management participation in a compliance committee responsible for the review and oversight of compliance matters related to the CPSA; (v) retention of CPSA compliance-related records for at least five (5) years, and availability of such records to staff upon request, provided that retention of cumulative copies of such records shall not be required; and (vi) procedures designed to ensure that: information required to be disclosed by Costco to the Commission is recorded, processed and reported in accordance with applicable law; that all reporting made to the Commission is timely, truthful, complete, accurate and in accordance with applicable law; and that prompt disclosure is made to Costco'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, Costco's ability to record, process and report to the Commission in accordance with applicable law. 24. Upon reasonable request of staff, Costco shall provide written documentation of its internal controls and procedures, including, but not limited to, the effective dates of the procedures and improvements thereto. Costco shall cooperate fully and truthfully with staff and shall make available relevant non-privileged information and materials, and personnel deemed necessary by staff to evaluate Costco's compliance with the terms of the Agreement. 25. The parties acknowledge and agree that the Commission may publicize the terms of the Agreement and Order. 26. Costco 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 Costco, enforceable against Costco in accordance with its terms. Costco 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 Costco pursuant to the Agreement and Order. 27. The signatories represent that they are authorized to execute this Agreement. 28. The Agreement is governed by the law of the United States. 29. The Agreement and Order shall apply to, and be binding upon, Costco and each of its successors, transferees, and assigns, and a violation of the Agreement or Order may subject Costco, and each of its successors, transferees, and assigns, to appropriate legal action. 30. The Agreement and the Order constitute the complete agreement between the parties on the subject matter contained therein. 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. 31. The Agreement may not be waived, amended, modified or otherwise altered, except as in accordance with the provisions of 16 C.F.R. Sec. 1118.20(h). The Agreement may be executed in counterparts. 32. 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 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 Costco agree in writing that severing the provision materially affects the purpose of the Agreement and the Order. COSTCO WHOLESALE CORPORATION Dated:----------------------------------------------------------------- By:-------------------------------------------------------------------- John Sullivan, Senior Vice President and General Counsel, Costco Wholesale Corp. Dated: September 18, 2018 By:-------------------------------------------------------------------- Eric Rubel, Arnold & Porter Kaye Scholer, 601 Massachusetts Ave. N.W., Washington, D.C. 20001-3743, Counsel to Costco Wholesale Corp. U.S. CONSUMER PRODUCT SAFETY COMMISSION Patricia M. Hanz, General Counsel Mary B. Murphy, Assistant General Counsel Dated: September 20, 2018 [[Page 50650]] By:-------------------------------------------------------------------- Michele Melnick, Trial Attorney, Division of Compliance, Office of the General Counsel UNITED STATES OF AMERICA CONSUMER PRODUCT SAFETY COMMISSION In the Matter of: COSTCO WHOLESALE CORPORATION CPSC Docket No.: 19-C0001 ORDER Upon consideration of the Settlement Agreement entered into between Costco Wholesale Corporation (``Costco'') and the U.S. Consumer Product Safety Commission (``Commission''), and the Commission having jurisdiction over the subject matter and over the parties, 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 Costco shall comply with the terms of the Settlement Agreement and shall pay a civil penalty in the amount of $3.85 million dollars ($3,850,000), 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 Costco to make the foregoing payment when due, interest on the unpaid amount shall accrue and be paid by Costco at the federal legal rate of interest set forth at 28 U.S.C. Sec. 1961(a) and (b). If Costco 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 3rd day of October, 2018. By Order of the Commission: ----------------------------------------------------------------------- Alberta Mills, Secretary, U.S. Consumer Product Safety Commission. [FR Doc. 2018-21869 Filed 10-5-18; 8:45 am] BILLING CODE 6355-01-P
![Federal Register / Vol. 83, No. 195 / Tuesday, October 9, 2018 / Notices 50647
2. To provide Phase I awards as grants feasibility, and proof of concept for the Additional information concerning
in FY 2019 and all new NOAA SBIR proposed innovative solution. At NOAA DUNS and SAM can be obtained on the
awards, Phase I and Phase II, in FY 2020 SBIR, we anticipate awarding multiple Grants.gov website at http://
and beyond. Phase I grants, with a period of www.grants.gov. In addition, Grants.gov
For over thirty years—since FY performance of six (6) months and a not- provides access to technical support by
1985—NOAA has awarded contracts to to-exceed value of $120,000.00 each. calling 800–518–4726 or emailing
small, science and technology-focused Any organizations or individuals support@grants.gov).
companies under the Small Business receiving grants under Phase I is eligible FOR FURTHER INFORMATION CONTACT:
Administration (SBA) administered to compete for a follow-up Phase II Vince Garcia, SBIR Program Manager at
Small Business Innovation Research award. vincent.garcia@noaa.gov.
Program. Historically, NOAA has The FY19 SBIR Phase I Notice of
Dated: October 2, 2018.
carried out the goals and directives of Funding Opportunity (NOFO) will be
David Holst,
the program using contract procurement issued on or about October 22, 2018.
processes. However, given the increased The NAICS Code for this acquisition is Chief Financial Officer/Administrative
Officer, Office of Oceanic and Atmospheric
emphasis for broader participation, 541715. The NOAA SBIR NOFO will be
Research, National Oceanic and Atmospheric
specially by socially and economically available on the Grants.gov website. Administration.
disadvantaged persons and women- Please do not submit questions
[FR Doc. 2018–21788 Filed 10–5–18; 8:45 am]
owned small businesses, NOAA aims to regarding this specific NOFO at this
BILLING CODE 3510–KA–P
meet these programmatic goals by time. More detailed topic/subtopic
broadening the potential research areas information will be available in the
and engendering more innovative NOFO when it is published. After the
solutions that have potential for the release of this funding announcement, it CONSUMER PRODUCT SAFETY
commercial market. will be the offeror’s responsibility to COMMISSION
The SBIR program is a highly monitor Grants.gov for any amendments [CPSC Docket No. 19–C0001]
competitive program that encourages or updates.
domestic small businesses to engage in The NOFO is a restricted eligibility Costco Wholesale Corporation,
Federal Research/Research and solicitation which is limited to small Provisional Acceptance of a
Development with the potential for businesses. For purposes of this Settlement Agreement and Order
commercialization. Through a upcoming NOFO announcement for
AGENCY: Consumer Product Safety
competitive awards-based program, NOAA SBIR, eligibility requirements
Commission.
SBIR enables small businesses to can be found on http://www.sbir.gov.
explore their technological potential NOAA plans to select for award the ACTION: Notice.
and provides the incentive to profit application(s) judged to be of the SUMMARY: It is the policy of the
from its commercialization. By highest overall merit, with Commission to publish settlements
including qualified small businesses in consideration given to the quality of the which it provisionally accepts under the
the nation’s research and development technical approach, innovation, Consumer Product Safety Act in the
arena, high-tech innovation is commercial-potential, and company/ Federal Register in accordance with the
stimulated and the United States gains personnel experience and qualifications. terms of the Consumer Product Safety
entrepreneurial spirit as it meets its All potential grantees must be Commission’s regulations. Published
specific research and development registered with the federal government below is a provisionally-accepted
needs. System for Award Management (SAM)
Settlement Agreement with Costco
Beginning in FY19, however, all new through the SAM.gov website (formerly
Wholesale Corporation, containing a
Phase I awards will be made through a the Central Contractor Registration
civil penalty in the amount of $3.85
competitive grants process. During database). No award can be made unless
million dollars ($3,850,000), to be paid
Phase I of the NOAA SBIR Program, the vendor is registered in SAM.gov. For
within thirty (30) days of service of the
small businesses are invited to submit additional information and to register in
Commission’s final Order accepting the
innovative research proposals related to SAM, please go to https://sam.gov/ or
Settlement Agreement.
the research topic areas derived from call 1–866–606–8220. In order to
register in SAM and to be eligible to DATES: Any interested person may ask
the Department of Commerce Strategic
receive an award from this acquisition the Commission not to accept this
Plan, 2018–2022, https://
office, all offerors must have a Dun & agreement or otherwise comment on its
www.commerce.gov/file/us-department-
Bradstreet Universal Systems (DUNS) contents by filing a written request with
commerce-2018-2022-strategic-plan.
Number. A DUNS number may be the Office of the Secretary by October
While the specific subtopics that NOAA
acquired free of charge by contacting 24, 2018.
seeks to fund through the SBIR program
will be available at time of the funding Dun & Bradstreet on-line at http:// ADDRESSES: Persons wishing to
opportunity announcement, the broader fedgov.dnb.com/webform. comment on this Settlement Agreement
topic areas are as follows: Grant applicants must obtain a DUNS should send written comments to the
number and register in the SAM prior to Comment 19–C0001, Office of the
1. Aquaculture
2. Recreational and Commercial submitting an application pursuant to 2 Secretary, Consumer Product Safety
Fisheries CFR 25.200(b). If the applicant does not Commission, 4330 East-West Highway,
3. Weather Service Improvement and provide documentation that they are Room 820, Bethesda, Maryland 20814–
Evolution registered in SAM and their DUNS 4408.
amozie on DSK3GDR082PROD with NOTICES1
4. NOAA Big Data Partnerships number, the application will not be FOR FURTHER INFORMATION CONTACT:
5. Next Generation NOAA Platforms considered for funding. In addition, an Michele Melnick, Trial Attorney,
6. Next Generation Observation and entity applicant must maintain Division of Compliance, Office of the
Modeling Systems registration in SAM at all times during General Counsel, Consumer Product
7. Floods which it has an active Federal award or Safety Commission, 4330 East-West
Phase I gives small businesses the an application or plan under Highway, Bethesda, Maryland 20814–
opportunity to establish technical merit, consideration by the Agency. 4408; telephone (301) 504–7592.
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SUPPLEMENTARY INFORMATION: The text of product hazard and create an metal edge. The Safety Committee also
the Agreement and Order appears unreasonable risk of serious injury learned that the exemplar sample it had
below. because the black plastic protective previously reviewed included the
Dated: October 3, 2018. collar in the opening on the back of the modified protective collar. Based on all
Alberta E. Mills,
Trash Can can become dislodged and of the available information, Costco
expose a sharp edge, posing a laceration voluntarily notified CPSC in May 2015
Secretary.
hazard to consumers. pursuant to CPSA Section 15(b). At
UNITED STATES OF AMERICA 8. Between December 2013 and May Costco’s request, the vendor also
2015, Costco received 92 complaints notified CPSC pursuant to CPSA Section
CONSUMER PRODUCT SAFETY
about the Trash Cans, including 60 15(b) and then recalled the Trash Cans
COMMISSION
complaints from consumers who in cooperation with CPSC.
In the Matter of: COSTCO received injuries, including some 15. Costco’s settlement of this matter
WHOLESALE CORPORATION serious injuries as defined in 16 C.F.R. does not constitute an admission of
CPSC Docket No.: 19–C0001 § 1115.6(c). staff’s charges as set forth in paragraphs
9. Despite having information that 4 through 12 above.
SETTLEMENT AGREEMENT reasonably supported the conclusion
AGREEMENT OF THE PARTIES
1. In accordance with the Consumer that the Trash Cans contained a defect
Product Safety Act, 15 U.S.C. §§ 2051– which could create a substantial 16. Under the CPSA, the Commission
2089 (‘‘CPSA’’) and 16 C.F.R. § 1118.20, product hazard or created an has jurisdiction over the matter
Costco Wholesale Corporation unreasonable risk of serious injury, involving the Trash Cans and over
(‘‘Costco’’) and the United States Costco did not notify the Commission Costco.
Consumer Product Safety Commission immediately of such defect or risk, as 17. The parties enter into the
(‘‘Commission’’), through its staff, required by sections 15(b)(3) and (4) of Agreement for settlement purposes only.
the CPSA, 15 U.S.C. §§ 2064(b)(3) and The Agreement does not constitute an
hereby enter into this Settlement
(4). admission by Costco or a determination
Agreement (‘‘Agreement’’). The
10. The Trash Cans were recalled on by the Commission that Costco violated
Agreement and the incorporated
July 17, 2015. the CPSA’s reporting requirements.
attached Order resolve staff’s charges set 18. In settlement of staff’s charges,
forth below. 11. In failing to immediately inform
the Commission about the defect or and to avoid the cost, distraction, delay,
THE PARTIES unreasonable risk associated with the uncertainty, and inconvenience of
2. The Commission is an independent Trash Cans, Costco knowingly violated protracted litigation, Costco shall pay a
federal regulatory agency, established section 19(a)(4) of the CPSA, 15 U.S.C. civil penalty in the amount of $3.85
pursuant to, and responsible for, the § 2068(a)(4), as the term ‘‘knowingly’’ is million (US $3,850,000) within thirty
enforcement of the CPSA, 15 U.S.C. defined in section 20(d) of the CPSA, 15 (30) calendar days after receiving
§§ 2051–2089. By executing the U.S.C. § 2069(d). service of the Commission’s final Order
Agreement, staff is acting on behalf of 12. Pursuant to Section 20 of the accepting the Agreement. All payments
the Commission, pursuant to 16 C.F.R. CPSA, 15 U.S.C. § 2069, Costco is to be made under the Agreement shall
§ 1118.20(b). The Commission issues the subject to civil penalties for its knowing constitute debts owing to the United
Order under the provisions of the CPSA. violation of section 19(a)(4) of the States and shall be made by electronic
3. Costco Wholesale Corporation is a CPSA, 15 U.S.C. § 2068(a)(4). wire transfer to the United States via:
corporation, organized and existing http://www.pay.gov for allocation to,
RESPONSE OF COSTCO and credit against, the payment
under the laws of the state of
Washington, with its principal place of 13. Costco’s Product Safety obligations of Costco under this
business in Issaquah, Washington. Committee reviewed reports associated Agreement. Failure to make such
with the Trash Cans that Costco payment by the date specified in the
STAFF CHARGES received over time. The large majority of Commission’s Order shall constitute
4. Between December 2013 and May reports that Costco received about the Default.
2015, Costco imported and sold Trash Cans were comments from 19. All unpaid amounts, if any, due
approximately 367,000 EKO Sensible Members who were returning the Trash and owing under the Agreement shall
Eco Living Trash Cans (‘‘Subject Cans to Costco for a refund. Further, in constitute a debt due and immediately
Products’’ or ‘‘Trash Cans’’) at its December 2014, the Safety Committee owing by Costco to the United States,
warehouse stores throughout the United found that the black plastic protective and interest shall accrue and be paid by
States. collar in the opening on the back of the Costco at the federal legal rate of interest
5. The Trash Cans are 80 liter Trash Can could not be removed easily set forth at 28 U.S.C. § 1961(a) and (b)
stainless steel, metal-cylinder Trash from the exemplar sample it reviewed. from the date of Default, until all
Cans with a black plastic protective Based on the available information, the amounts due have been paid in full
collar in the opening on the back of the Safety Committee did not believe that (hereinafter ‘‘Default Payment Amount’’
Trash Can. Costco had a duty to notify CPSC and ‘‘Default Interest Balance’’). Costco
6. The Trash Cans are a ‘‘consumer pursuant to CPSA Section 15(b) before shall consent to a Consent Judgment in
product,’’ ‘‘distribut[ed] in commerce,’’ May 2015. Costco does not believe that the amount of the Default Payment
as those terms are defined or used in it knowingly violated the CPSA as that Amount and Default Interest Balance,
sections 3(a)(5) and (8) of the CPSA, 15 term is defined in the statute. and the United States, at its sole option,
amozie on DSK3GDR082PROD with NOTICES1
U.S.C. § 2052(a)(5) and (8). Costco is a 14. During May 2015, Costco may collect the entire Default Payment
‘‘manufacturer’’ and ‘‘retailer’’ of the identified additional reported incidents, Amount and Default Interest Balance, or
Trash Cans, as such terms are defined in and learned that the vendor had made exercise any other rights granted by law
section 3(a)(11) and (13) of the CPSA, 15 a design change to prevent the black or in equity, including, but not limited
U.S.C. § 2052(a)(11) and (13). plastic protective collar in the opening to, referring such matters for private
7. The Trash Cans contain a defect on the back of the Trash Cans from collection; and Costco agrees not to
which could create a substantial becoming loose and exposing a sharp contest, and hereby waives and
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By: llllllllllllllll DEPARTMENT OF DEFENSE Respondent’s Obligation: Voluntary.
OMB Desk Officer: Ms. Jasmeet
Michele Melnick, Trial Attorney, Department of the Air Force Seehra.
Division of Compliance, Office of the You may also submit comments and
General Counsel [Docket ID: USAF–2018–HQ–0005]
recommendations, identified by Docket
UNITED STATES OF AMERICA Submission for OMB Review; ID number and title, by the following
Comment Request method:
CONSUMER PRODUCT SAFETY • Federal eRulemaking Portal: http://
COMMISSION AGENCY: Department of the Air Force, www.regulations.gov. Follow the
DoD. instructions for submitting comments.
In the Matter of: Instructions: All submissions received
ACTION: 30-Day information collection
COSTCO WHOLESALE CORPORATION notice. must include the agency name, Docket
ID number, and title for this Federal
CPSC Docket No.: 19–C0001 SUMMARY: The Department of Defense Register document. The general policy
has submitted to OMB for clearance the for comments and other submissions
ORDER
following proposal for collection of from members of the public is to make
Upon consideration of the Settlement information under the provisions of the these submissions available for public
Agreement entered into between Costco Paperwork Reduction Act. viewing on the internet at http://
Wholesale Corporation (‘‘Costco’’) and DATES: Consideration will be given to all www.regulations.gov as they are
the U.S. Consumer Product Safety comments received by November 8, received without change, including any
2018. personal identifiers or contact
Commission (‘‘Commission’’), and the
information.
Commission having jurisdiction over Comments and
ADDRESSES: DOD Clearance Officer: Mr. Frederick
the subject matter and over the parties, recommendations on the proposed Licari.
and it appearing that the Settlement information collection should be Requests for copies of the information
Agreement and the Order are in the emailed to Ms. Jasmeet Seehra, DoD collection proposal should be sent to
public interest, it is: Desk Officer, at oira_submission@ Mr. Licari at whs.mc-alex.esd.mbx.dd-
ORDERED that the Settlement omb.eop.gov. Please identify the dod-information-collections@mail.mil.
Agreement be, and is, hereby, accepted; proposed information collection by DoD
Dated: October 3, 2018.
Desk Officer, Docket ID number, and
and it is Shelly E. Finke,
title of the information collection.
FURTHER ORDERED that Costco Alternate OSD Federal Register Liaison
FOR FURTHER INFORMATION CONTACT: Fred Officer, Department of Defense.
shall comply with the terms of the Licari, 571–372–0493, or whs.mc-
Settlement Agreement and shall pay a [FR Doc. 2018–21894 Filed 10–5–18; 8:45 am]
alex.esd.mbx.dd-dod-information-
civil penalty in the amount of $3.85 collections@mail.mil.
BILLING CODE 5001–06–P
million dollars ($3,850,000), within SUPPLEMENTARY INFORMATION:
thirty (30) days after service of the Title; Associated Form; and OMB
Commission’s final Order accepting the DEPARTMENT OF ENERGY
Number: Air Force Family Integrated
Settlement Agreement. The payment Results & Statistical Tracking (AFFIRST) Federal Energy Regulatory
shall be made by electronic wire transfer automated system; OMB Control Commission
to the Commission via: http:// Number 0701–0070.
www.pay.gov. Upon the failure of Type of Request: Reinstatement. [Docket No. IC18–20–000]
Costco to make the foregoing payment Number of Respondents: 37,500.
Commission Information Collection
when due, interest on the unpaid Responses per Respondent: 1.
Annual Responses: 37,500. Activities (FERC–919); Comment
amount shall accrue and be paid by Request; Extension
Costco at the federal legal rate of interest Average Burden per Response: 15
set forth at 28 U.S.C. § 1961(a) and (b). minutes. AGENCY: Federal Energy Regulatory
If Costco fails to make such payment or Annual Burden Hours: 9,375. Commission.
to comply in full with any other Needs and Uses: The information ACTION: Notice of information collection
provision of the Settlement Agreement, collection requirement is necessary to and request for comments.
such conduct will be considered a record demographic information on
Airman & Family Readiness Center SUMMARY: In compliance with the
violation of the Settlement Agreement requirements of the Paperwork
(A&FRC) customers, results of the
and Order. Reduction Act of 1995, the Federal
customer’s visits, determine customer
Provisionally accepted and provisional needs, service plan, referrals, workshop Energy Regulatory Commission
Order issued on the 3rd day of October, attendance and other related A&FRC (Commission or FERC) is soliciting
2018. activities and services accessed by the public comment on the currently
customer. Data is used to determine the approved information collection, FERC–
By Order of the Commission: 919 (Market Based Rates for Wholesale
effectiveness of A&FRC activities and
lllllllllllllllllll services (results management) as well as Sales of Electric Energy, Capacity and
Alberta Mills, Secretary, collect and provide return on Ancillary Services by Public Utilities).
investment data to leadership. DATES: Comments on the collection of
amozie on DSK3GDR082PROD with NOTICES1
U.S. Consumer Product Safety Information is compiled for statistical information are due December 10, 2018.
Commission. reporting to bases, major commands, ADDRESSES: You may submit comments
[FR Doc. 2018–21869 Filed 10–5–18; 8:45 am] Headquarters United States Air Force, (identified by Docket No. IC18–20–000)
BILLING CODE 6355–01–P Department of Defense and Congress. by either of the following methods:
Affected Public: Individuals or • eFiling at Commission’s website:
Households. http://www.ferc.gov/docs-filing/
Frequency: On occasion. efiling.asp
VerDate Sep<11>2014 19:13 Oct 05, 2018 Jkt 247001 PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 E:\FR\FM\09OCN1.SGM 09OCN1](https://thefederalregister.org/doc/83_FR_50842/page/4.svg)
Document Created: 2018-10-06 00:59:22
Document Modified: 2018-10-06 00:59:22
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | Any interested person may ask the Commission not to accept this agreement or otherwise comment on its contents by filing a written request with the Office of the Secretary by October 24, 2018. | |
| Contact | Michele Melnick, Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814- 4408; telephone (301) 504-7592. | |
| FR Citation | 83 FR 50647 |
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