[Federal Register Volume 77, Number 17 (Thursday, January 26, 2012)]
[Notices]
[Pages 4023-4025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1644]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 12-C0006]
Hewlett-Packard Company, Provisional Acceptance of a Settlement
Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
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SUMMARY: It is the policy of the Commission to publish settlements
which it provisionally accepts under the Consumer Product Safety Act in
the Federal Register in accordance with the terms of 16 CFR 1118.20(e).
Published below is a provisionally-accepted Settlement Agreement with
Hewlett-Packard Company, containing a civil penalty of $425,000.00,
within twenty (20) days of service of the Commission's final Order
accepting the Settlement Agreement.\1\
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\1\ The Commission voted 3-1 to provisionally accept this
Settlement Agreement and Order. Chairman Inez M. Tenenbaum and
Commissioners Nancy A. Nord and Anne M. Northup voted to
provisionally accept the Settlement Agreement and Order.
Commissioner Robert S. Adler voted to reject the Settlement
Agreement and Order. Chairman Tenenbaum and Commissioner Adler filed
statements concerning this action which may be viewed on the
Commission's Web site at http://www.cpsc.gov/pr/tenenbaum01192012.pdf and http://www.cpsc.gov/pr/adler01192012.pdf,
respectively, or obtained from the Commission's Secretariat.
DATES: Any interested person may ask the Commission not to accept this
agreement or otherwise comment on its contents by filing a written
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request with the Office of the Secretary by February 10, 2012.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 12-C0006, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Room 820, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Amy S. Colvin, General 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) 504-7639.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: January 20, 2012.
Todd A. Stevenson,
Secretary.
Settlement Agreement
1. In accordance with 16 CFR 1118.20, Hewlett-Packard Company
(``HP'') and the staff (``Staff'') of the United States Consumer
Product Safety Commission (``Commission'') hereby enter into this
Settlement Agreement (``Agreement'') under the Consumer Product Safety
Act (``CPSA''). The Agreement and the incorporated attached Order
(``Order'') resolve the Staff's allegations set forth below.
Parties
2. The Staff is the staff of the U.S. Consumer Product Safety
Commission, an independent federal regulatory agency established
pursuant to, and responsible for, the enforcement of the CPSA, 15
U.S.C. 2051-2089.
3. HP is a corporation, organized and existing under the laws of
Delaware, with its principal executive office located in Palo Alto,
California.
Staff Allegations
4. Between December 2004 and July 2006, HP imported approximately
32,000 lithium-ion battery packs (the ``Products'') that were shipped
with, sold as accessories for use with, or provided as spare parts for
the following HP notebook computers: the HP Pavilion dv1000, dv8000,
and zd8000 series; the Compaq Presario v2000 and v2400 series; and the
HP Compaq nc6110, nc6120, nc6140, nc6220, nc6230, nx4800, nx4820,
nx6110, nx6120, and nx9600 models. HP, in addition to computer and
electronics stores nationwide, as well as various Web retailers, sold
notebook computers that contained the Products for between $700 and
$3,000. The Products that were sold separately for use with the
[[Page 4024]]
notebook computers retailed for between $100 and $160.
5. The Products are ``consumer products'' and, at all relevant
times, HP was a ``manufacturer'' of these consumer products, which were
``distributed in commerce,'' as those terms are defined or used in
sections 3(a)(5), (8), and (11) of the CPSA, 15 U.S.C. 2052(a)(5), (8),
and (11).
6. The Products can overheat, posing a fire and burn hazard to
consumers.
7. Between June 2005 and March 2007, HP received 17 reports of
Product incidents, some of which involved flames or fires.
8. Between March 2007 and April 2007, HP conducted a study, from
which it obtained additional information about the Products.
9. By September 2007, HP knew of approximately 22 reports of
incidents involving the Products. In at least two of those incidents,
the Products caused injury to consumers. In at least one of those
incidents, the consumer apparently went to the hospital. HP did not
receive any information on the consumer's injuries or treatment, if
any.
10. Despite being aware of the information set forth in Paragraphs
6 through 9, HP did not report to the Commission until July 25, 2008.
By that time, HP was aware of at least 31 reports of incidents
involving the Products, which had caused injuries to at least two
consumers. HP also was aware that at least one consumer apparently went
to the hospital because of an incident involving the Product. Following
consultation with the Commission from July to October 2008, the
Products were recalled in October 2008.
11. Although HP had obtained sufficient information to reasonably
support the conclusion that the Products contained a defect which could
create a substantial product hazard, or created an unreasonable risk of
serious injury or death, HP failed to immediately inform the Commission
of such defect or risk, as required by sections 15(b)(3) and (4) of the
CPSA, 15 U.S.C. 2064(b)(3) and (4). In failing to immediately inform
the Commission, HP 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).
12. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, HP is
subject to civil penalties for its knowing failure to report, as
required under section 15(b) of the CPSA, 15 U.S.C. 2064(b).
Response Of Hewlett-Packard Company
13. On or about October 30, 2008, the Commission, in cooperation
with HP and other companies, announced a voluntary recall of the
Products. The recall announcement can be accessed at: http://www.cpsc.gov/cpscpub/prerel/prhtml09/09035.html.
14. HP denies all of the Staff's allegations, including, but not
limited to, the allegations that the Products (or the notebooks with
which the Products were used) could create an unreasonable risk of
serious injury or death, or that HP violated the reporting requirements
of the CPSA. HP further denies that it committed any violation of the
CPSA ``knowingly,'' as that term is defined in Section 20(d) of the
CPSA, 15 U.S.C. 2069(d). With respect to the voluntary recall of the
Products and the communications/reports leading up to that recall, HP
acted in accordance with the CPSA and in its customers' best interests.
Agreement of the Parties
15. Under the CPSA, the Commission has jurisdiction over this
matter and over HP.
16. In settlement of the Staff's allegations, HP shall pay a civil
penalty in the amount of four hundred twenty-five thousand dollars
($425,000.00) within 20 calendar days of receiving service of the
Commission's final Order accepting the Agreement. The payment shall be
made by check payable to the order of the United States Treasury.
17. In consideration of HP's payment, the Commission agrees to
release HP, as well as its current and former directors, officers,
trustees, employees, agents, and representatives from any civil claim
that the Commission has or may have against those parties arising out
of or relating to the recall of October 30, 2008, or the Staff's
allegations that HP failed to report in a timely manner a potential
hazard involving the Products.
18. The parties enter into this Agreement for settlement purposes
only. The Agreement does not constitute an admission by HP or a
determination by the Commission that HP knowingly violated the CPSA's
reporting requirements. The Agreement by the parties of the terms and
conditions set forth herein is without any adjudication of any issue of
fact or law.
19. Upon 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 it is published in the Federal Register, in accordance
with 16 CFR 1118.20(f).
20. Upon the Commission's final acceptance of the Agreement and
issuance of the final Order, HP knowingly, voluntarily, and completely
waives any rights it may have in this matter to the following: (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 HP failed to comply with the CPSA and the
underlying regulations; (iv) a statement of findings of fact and
conclusions of law; and (v) any claims under the Equal Access to
Justice Act.
21. The Commission may publicize the terms of the Agreement and the
Order.
22. The Agreement and the Order shall apply to, and be binding
upon, HP and each of its successors and/or assigns.
23. The Commission issues the Order under the provisions of the
CPSA, and a violation of the Order may subject HP and each of its
successors and/or assigns to appropriate legal action.
24. 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. The Agreement shall not be waived,
amended, modified, or otherwise altered without written agreement
executed by the party against whom such waiver, amendment,
modification, or alteration is sought to be enforced.
25. If any provision of the Agreement and 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 HP agree that severing the provision materially affects the purpose
of the Agreement and Order.
26. This Agreement may be signed in counterparts.
Hewlett-Packard Company
Dated: December 15, 2011.
By:--------------------------------------------------------------------
James Mouton,
Hewlett-Packard Company,
Senior Vice President & General Manager,
Personal Systems Group,
PC Global Business Unit,
11445 Compaq Center Dr W,
Houston, TX 77070.
Dated: December 20, 2011.
Sarah L. Wilson, Esquire,
Covington & Burling LLP,
[[Page 4025]]
1201 Pennsylvania Ave. NW.,
Washington, DC 20004,
Counsel for Hewlett-Packard Company.
U.S. Consumer Product Safety Commission Staff.
Cheryl A. Falvey,
General Counsel.
Melissa V. Hampshire,
Assistant General Counsel.
Dated: January 9, 2012.
By:--------------------------------------------------------------------
Amy S. Colvin,
General Attorney, Division of Enforcement and Information, Office of
the General Counsel.
Order
Upon consideration of the Settlement Agreement entered into between
Hewlett-Packard Company (``HP''), and the U.S. Consumer Product Safety
Commission (``Commission'') staff, and the Commission having
jurisdiction over the subject matter and over HP, and it appearing that
the Settlement Agreement and the Order are in the public interest, it
is
Ordered that the Settlement Agreement be, and hereby is, accepted;
and it is
Further ordered that HP shall pay a civil penalty in the amount of
four hundred twenty-five thousand dollars ($425,000.00) within twenty
(20) calendar days of service of the Commission's final Order accepting
the Settlement Agreement. The payment shall be made by check payable to
the order of the United States Treasury. Upon the failure of HP to make
the foregoing payment when due, interest on the unpaid amount shall
accrue and be paid by HP at the federal legal rate of interest set
forth at 28 U.S.C. 1961(a) and (b).
Provisionally accepted and provisional Order issued on the 20th
day of January, 2012.
By Order of the Commission:
Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. 2012-1644 Filed 1-25-12; 8:45 am]
BILLING CODE 6355-01-P