Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Notices 3113 

apparent that the regulatory review 

period has and will continue beyond the 

extended expiration date of the patent 

(April 25, 2006), a second interim 

extension of the patent term under 35 

U.S.C. 156(d)(5) is appropriate. 

A second interim extension under 35 

U.S.C. 156(d)(5) of the term of U.S. 

Patent No. 4,650,787 is granted for a 

period of one year from the extended 

expiration date of the patent, i.e., until 

April 25, 2007. 

Dated: January 17, 2007. 

Jon W. Dudas, 

Under Secretary of Commerce for Intellectual 

Property and Director of the United States 

Patent and Trademark Office. 

[FR Doc. E7–1008 Filed 1–23–07; 8:45 am] 

BILLING CODE 3510–16–P 

CONSUMER PRODUCT SAFETY 

COMMISSION 

[CPSC Docket No. 07–C0003] 

Hoover Company, Inc., a Corporation, 

Provisional Acceptance of a 

Settlement Agreement and Order 

AGENCY: Consumer Product Safety 

Commission. 

ACTION: Notice. 

SUMMARY: It is the policy of the 

Commission to publish settlements 

which it provisionally accepts under the 

Consumer Product Safety Act in the 

Federal Register in accordance with the 

terms of 16 CFR 1118.20(e). Published 

below is a provisionally-accepted 

Settlement Agreement with Hoover 

Company, Inc., a corporation, 

containing a civil penalty of $750,000. 

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 February 

8, 2007. 

ADDRESSES: Persons wishing to 

comment on this Settlement Agreement 

should send written comments to the 

Comment 07–C0003, Office of the 

Secretary, Consumer Product Safety 

Commission, 4330 East West Highway, 

Bethesda, Maryland 20814–4408. 

FOR FURTHER INFORMATION CONTACT: 

Michelle F. Gillice, Trial Attorney, 

Office of Compliance and Field 

Operations, Consumer Product Safety 

Commission, 4330 East West Highway, 

Bethesda, Maryland 20814–4408; 

telephone (301) 504–7667. 

SUPPLEMENTARY INFORMATION: The text of 

the Agreement and Order appears 

below. 

Dated: January 18, 2007. 

Todd A. Stevenson, 

Secretary. 

United States of America Consumer 

Product Safety Commission 

[CPSC Docket No. 07–C0003] 

In the Matter of Hoover Company, Inc. 

a Corporation; Settlement Agreement 

and Order 

1. This Settlement Agreement is made 

by and between the staff (the ‘‘staff’’) of 

the U.S. Consumer Product Safety 

Commission (the ‘‘Commission’’) and 

Hoover Company, Inc. (‘‘Hoover’’), a 

corporation, in accordance with 16 CFR 

1118.20 of the Commission’s Procedures 

for Investigations, Inspections and 

Inquiries under the Consumer Product 

Safety Act (‘‘CPSA’’). This Settlement 

Agreement and the incorporated 

attached Order resolve the staff’s 

allegations set forth below. 

The Parties 

2. The Commission is an independent 

federal regulatory agency responsible for 

the enforcement of the CPSA, 15 U.S.C. 

2051–2084. 

3. Hoover is a corporation organized 

and existing under the laws of the State 

of Delaware, with its principal corporate 

office located in North Canton, Ohio. At 

all times relevant herein, Hoover 

designed and manufactured vacuum 

cleaners subject to the Settlement 

Agreement and Order. 

Staff Allegations 

4. Between may 1998 and November 

1999, Hoover manufactured 

approximately 636,000 Self-Propelled 

Wind Tunnel Upright vacuum cleaners 

under the following model numbers: 

U6423–900; U6445–900; U6425–900; 

U6445–960; U6451–900; U6425–950; 

U6449–900; and U6455–900, 

(hereinafter ‘‘vacuum cleaners’’). 

5. The vacuum cleaners are 

‘‘consumer product(s)’’ and, at the times 

relevant herein, Hoover was a 

‘‘manufacturer’’ of ‘‘consumer 

product(s)’’ which were ‘‘distributed in 

commerce’’ as those terms are defined 

in 3(a)(1), (4), (11), and (12) of the 

CPSA, 15 U.S.C. 2052(a)(1), (4), (11) and 

(12). 

6. The vacuum cleaners are defective 

because of a poor crimp connection at 

the wire termination which could cause 

overheating, melting and ultimately, fire 

in the switch/handle area. The vacuum 

cleaners could catch fire while in use 

and switched to the ‘‘ON’’ position and 

while switched to ‘‘Off’’ if plugged in to 

an outlet. 

7. On or about April 14, 1999, Hoover 

first learned of a vacuum cleaner switch 

overheating and melting. 

8. Between October and November 

1999, after receiving notice of at least 

four incidents, Hoover made several 

design changes to eliminate overheating 

in the switch area. Hoover also directed 

that all vacuum cleaners in inventory 

and any brought in by customers for 

repair for any reason be reworked in 

order to eliminate the switch 

overheating problem. 

9. On February 26, 2001, Hoover’s 

Safety Committee met and reviewed the 

vacuum cleaner incidents. At this time, 

Hoover had received notice of at least 46 

incidents with the vacuum cleaners, 23 

of which were allegations that the 

switch/handle area caught on fire. At 

least two reports indicated that the 

vacuum cleaner ignited while switched 

to the ‘‘OFF’’ position and consumers 

believed the vacuum cleaners to be off. 

The Safety Committee, however, 

decided that no report should be made 

to the Commission. 

10. On June 11, 2002, the Safety 

Committee met again to review 80 new 

incidents involving the switch defect. 

By this time, Hoover had received 

notice of at least 127 incidents. In 73 of 

these incidents, consumers reported that 

the vacuum cleaners caught on fire. 

11. On or about September 24, 2002, 

Hoover hired an outside consulting firm 

to examine and test the vacuum cleaners 

to determine the cause of the switch 

failures. 

12. On March 12, 2003, the consulting 

firm issued a report confirming that a 

poor crimp connection caused the 

switch to melt and malfunction. By this 

time, Hoover had received notice of 171 

incidents pertaining to switch 

overheating and/or melting. In 96 of 

these incidents, consumers reported that 

their vacuum cleaners caught on fire. 

13. On June 7, 2004, after receiving 

notice of several vacuum cleaner 

incidents, Commission staff sent Hoover 

a letter requesting submission of a full 

report pursuant to section 15(b) of the 

CPSA. 

14. On July 9, 2004, Hoover submitted 

a report in response to the staff’s 

request. At this time of its report, 

Hoover had received notice of at least 

260 consumer incidents, of which 141 

involved reports of fire. Other than one 

report of minor burns to hands, there 

were no report consumer injuries. 

15. Although Hoover had obtained 

sufficient information which could 

reasonably support the conclusion that 

the vacuum cleaners contained a defect 

which could create a substantial 

product hazard, or created an 

unreasonable risk of serious injury or 


pwalker on PROD1PC71 with NOTICES
3114 Federal Register / Vol. 72, No. 15 / Wednesday, January 24, 2007 / Notices 

death, it failed to immediately inform 

the Commission of such defect or risk as 

required by sections 15(b)(2) and (3) of 

the CPSA, 15 U.S.C. 2064(b)(2) and (3). 

In failing to do so, Hoover ‘‘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). 

16. Pursuant to section 20 of the 

CPSA, 15 U.S.C. 2069, Hoover is subject 

to civil penalties for its failure to make 

a timely report under section 15(b) of 

the CPSA, 15 U.S.C. 2064(b). 

Response of Hoover 

17. Hoover denies that the vacuum 

cleaners contain a defect which could 

create a substantial product hazard, or 

create a substantial risk of serious injury 

or death, and denies that it violated the 

reporting requirements of section 15(b) 

of the CPSA, 15 U.S.C. 2064(b). 

Agreement of the Parties 

18. The Commission has jurisdiction 

over this matter and over Hoover under 

the CPSA, 15 U.S.C. 2051–2084. 

19. In settlement of the staff’s 

allegations, Hoover agrees to pay a civil 

penalty of seven hundred fifty thousand 

dollars ($750,000.00) within twenty (20) 

calendar days of service of the Final 

Order of the Commission accepting this 

Settlement Agreement. This payment 

shall be made by check payable to the 

order of the United States Treasury. 

20. The parties enter this Settlement 

Agreement for settlement purposes only. 

The Settlement Agreement does not 

constitute an admission by Hoover or a 

determination by the Commission that 

Hoover violated the CPSA’s reporting 

requirements. 

21. Upon provisional acceptance of 

this Settlement Agreement and Order by 

the Commission, the Commission shall 

place this Agreement and Order on the 

public record and shall publish it in the 

Federal Register in accordance with the 

procedure set forth in 16 CFR 

1118.20(e). If the Commission does not 

receive any written requests not to 

accept the Settlement Agreement and 

Order within 15 calendar days, the 

Settlement Agreement and Order 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). 

22. Upon final acceptance of the 

Settlement Agreement by the 

Commission and issuance of the Final 

Order, Hoover 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 as 

to whether Hoover 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. The Commission may publicize 

the terms of the Settlement Agreement 

and Order. 

24. The Settlement Agreement shall 

apply to, and be binding upon Hoover 

and each of its successors and assigns, 

its parent entity, its parent’s 

subsidiaries, and each of their 

respective successors and assigns. 

25. The Commission’s Order in this 

matter is issued under the provisions of 

the CPSA, 15 U.S.C. 2051–2084, and a 

violation of the Order may subject those 

referenced in paragraph 24 above to 

appropriate legal action. 

26. This Settlement Agreement may 

be used in interpreting the Order. 

Agreements, understandings, 

representations, or interpretations made 

outside of this Settlement Agreement 

and Order may not be used to vary or 

to contradict its terms. 

27. This Settlement Agreement and 

Order shall not be waived, changed, 

amended, modified, or otherwise 

altered, without written agreement 

thereto executed by the party against 

whom such amendment, modification, 

alteration, or waiver is sought to be 

enforced, and approval by the 

Commission. 

28. If, after the effective date hereof, 

any provision of this Settlement 

Agreement and Order is held to be 

illegal, invalid, or unenforceable under 

present or future laws effective during 

the terms of the Settlement Agreement 

and Order, such provision shall be fully 

severable. The rest of the Settlement 

Agreement and Order shall remain in 

full effect, unless the Commission and 

Hoover determine that severing the 

provision materially changes the 

purpose of the Settlement Agreement 

and Order. 

Dated: January 2, 2007. 

Hoover Corporation. 

Karl R. Milam, 

Chief Executive Officer. 

Dated: January 4, 2007. 

U.S. Consumer Product Safety Commission. 

John Gibson Mullan, 

Director, Office of Compliance and Field 

Operations. 

Ronald G. Yelenik, 

Acting Legal Director, Compliance Legal 

Division. 

Michelle Faust Gillice, 

Trial Attorney, Compliance Legal Division. 

United States of America Consumer 

Product Safety Commission 

[CPSC Docket No. 07–C0003] 

In the Matter of Hoover Company, Inc., 

A Corporation 

Order 

Upon consideration of the Settlement 

Agreement entered into between Hoover 

Company, Inc. (‘‘Hoover’’) and the staff 

of the U.S. Consumer Product Safety 

Commission (the ‘‘Commission’’), and 

the Commission having jurisdiction 

over the subject matter and over Hoover, 

and it appearing the Settlement 

Agreement is in the public interest, it is 

Ordered, that the Settlement 

Agreement be, and hereby is, accepted; 

and it is 

Further ordered, that Hoover shall pay 

a civil penalty in the amount of seven 

hundred fifty thousand dollars 

($750,000.00). This payment shall be 

made payable to the United States 

Treasury within twenty (20) calendar 

days of service of the Final Order of the 

Commission upon Hoover. Upon the 

failure of Hoover to make full payment 

in the prescribed time, interest on the 

outstanding balance shall accrue and be 

paid at the federal rate of interest under 

the provisions of 28 U.S.C. 1961(a) and 

(b). 

Provisionally accepted and Provisional 

Order issued on the 18th day of January, 

2007. 

By Order of the Commission. 

Todd A. Stevenson, Secretary, Consumer 

Product Safety Commission. 

[FR Doc. 07–292 Filed 1–23–07; 8:45 am] 

BILLING CODE 6355–01–M 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

[OMB Control No. 9000–0034] 

Federal Acquisition Regulation; 

Information Collection; Examination of 

Recordsby Comptroller General and 

Contract Audit 

AGENCIES: Department of Defense (DOD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Notice of request for an 

extension to an existing OMB clearance. 

SUMMARY: Under the provisions of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. Chapter 35), the Federal 

Acquisition Regulation (FAR) 


pwalker on PROD1PC71 with NOTICES