Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 68589 

comments will become a matter of 

public record. 

Anthony May, 

Paperwork Reduction Act Officer, Consumer 

Financial Protection Bureau. 

[FR Doc. 2023–21910 Filed 10–3–23; 8:45 am] 

BILLING CODE 4810–25–P 

CONSUMER PRODUCT SAFETY 

COMMISSION 

[CPSC Docket No. 23–C0004] 

BJ’s Wholesale Club, Inc. 

AGENCY: Consumer Product Safety 

Commission. 

ACTION: Notice. 

SUMMARY: The Commission publishes in 

the Federal Register any settlement that 

it provisionally accepts under the 

Consumer Product Safety Act. 

Published below is a provisionally 

accepted Settlement Agreement with 

BJ’s Wholesale Club, Inc., containing a 

civil penalty in the amount of 

$9,000,000, subject to the terms and 

conditions of the Settlement Agreement. 

The Commission voted unanimously (4– 

0) to provisionally accept the proposed 

Settlement Agreement and Order 

pertaining to BJ’s Wholesale Club, Inc. 

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 

19, 2023. 

ADDRESSES: Persons wishing to 

comment on this Settlement Agreement 

should send written comments to 

Comment 23–C0004, Office of the 

Secretary, Consumer Product Safety 

Commission, 4330 East West Highway, 

Bethesda, MD 20814; telephone: (240) 

863–8938 (mobile), (301) 504–7479 

(office); email: cpsc-os@cpsc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Mark Raffman, Trial Attorney, Division 

of Enforcement and Litigation, Office of 

Compliance and Field Operations, 

Consumer Product Safety Commission, 

4330 East West Highway, Bethesda, 

Maryland 20814; mraffman@cpsc.gov, 

301–504–7602 (office). 

SUPPLEMENTARY INFORMATION: The text of 

the Settlement Agreement and Order 

appear below. 

Dated: September 29, 2023. 

Alberta E. Mills, 

Secretary. 

United States of America 

Consumer Product Safety Commission 

In the Matter of: BJ’S WHOLESALE CLUB, 

INC. 

CPSC Docket No.: 23–C0004 

Settlement Agreement 

1. In accordance with the Consumer 

Product Safety Act, 15 U.S.C. 2051– 

2089 (‘‘CPSA’’), and 16 CFR 1118.20, 

BJ’s Wholesale Club, Inc. (‘‘BJ’s’’ or the 

‘‘Firm’’), and the United States 

Consumer Product Safety Commission 

(‘‘Commission’’ or ‘‘CPSC’’), 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. BJ’s is a corporation, organized and 

existing under the laws of the state of 

Delaware, with its principal place of 

business in Marlborough, 

Massachusetts. 

Staff Charges 

4. During 2011 and 2012, BJ’s 

distributed in the United States 

approximately 1,778 portable air 

conditioners manufactured by Royal 

Sovereign International, Inc. (‘‘Royal 

Sovereign’’), model number PAC–3012 

(‘‘Subject Products’’). 

5. The Subject Products are 

‘‘consumer products’’ that were 

‘‘import[ed]’’ and ‘‘distribut[ed] in 

commerce,’’ as those terms are defined 

or used in sections 3(a)(5), (8), and (9) 

of the CPSA, 15 U.S.C. 2052(a)(5), (8), 

and (9). BJ’s is a ‘‘retailer’’ of the Subject 

Products, as such term is defined in 

section 3(a)(13) of the CPSA, 15 U.S.C. 

2052(a)(13). 

Violation of CPSA Section 19(a)(4) 

6. The Subject Products contain a 

defect which could create a substantial 

product hazard or create an 

unreasonable risk of serious injury or 

death because the motor in the portable 

air conditioner can ignite the plastic 

enclosure of the unit, posing a fire and 

burn hazard. 

7. Of the 1,778 units sold by BJ’s 

during 2011 and 2012, a total of 509 

units were returned to BJ’s by 

consumers. 

8. During the early morning hours of 

August 24, 2016, a Royal Sovereign 

Model PAC–3012 portable air 

conditioner purchased from BJ’s was 

involved in a house fire in Smithtown, 

New York. A mother and her two young 

children were rescued from the fire; the 

mother died of her injuries in December 

2016. 

9. BJ’s learned of the fire and pending 

investigation no later than March 2017. 

At that time, BJ’s received a claim letter 

from plaintiffs’ counsel and retained 

counsel for anticipated wrongful-death 

and personal-injury litigation arising out 

of the fire. 

10. In March 2021, BJ’s issued a 

notice to consumers who had purchased 

one of the Subject Products from BJ’s 

advising that the product ‘‘does not 

meet our safety standards’’ and that ‘‘out 

of an abundance of caution [they 

should] stop using this product 

immediately.’’ 

11. Despite possessing information 

that reasonably supported the 

conclusion that the Subject Products 

contained a defect that could create a 

substantial product hazard or created an 

unreasonable risk of serious injury or 

death, BJ’s never reported to the 

Commission. 

12. The Commission and Royal 

Sovereign jointly announced a recall of 

the Subject Products on December 22, 

2021. 

Failure To Timely Report 

13. Despite having information 

reasonably supporting the conclusion 

that the Subject Products contained a 

defect which could create a substantial 

product hazard or created an 

unreasonable risk of serious injury or 

death, BJ’s did not notify the 

Commission immediately of such defect 

or risk, as required by section 15(b)(3) 

and (4) of the CPSA, 15 U.S.C. 

2064(b)(3) and (4), in violation of 

section 19(a)(4) of the CPSA, 15 U.S.C. 

2068(a)(4). 

14. Because the information in BJ’s 

possession about the Subject Products 

constituted actual and presumed 

knowledge, BJ’s 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). 

15. Pursuant to section 20 of the 

CPSA, 15 U.S.C. 2069, BJ’s 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 BJ’s 

16. This Agreement does not 

constitute an admission by BJ’s to the 

staff’s charges as set forth in paragraphs 

4 through 15 above, including without 

limitation that the Subject Products 

contained a defect that could create a 

substantial product hazard or created an 

unreasonable risk of serious injury or 


lotter on DSK11XQN23PROD with NOTICES1
68590 Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 

death; that BJ’s failed to notify the 

Commission in a timely matter in 

accordance with section 15(b) of the 

CPSA, 15 U.S.C. 2064(b); and that BJ’s 

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). 

17. BJ’s enters into this Agreement to 

settle this matter and to avoid the cost, 

distraction, delay, uncertainty, and 

inconvenience of protracted litigation or 

other proceedings. BJ’s does not admit 

that it violated the CPSA or any other 

law, and BJ’s willingness to enter into 

this Agreement and Order does not 

constitute, nor is it evidence of, an 

admission by BJ’s of liability or 

violation of any law. 

18. At all relevant times, BJ’s has had 

a product safety compliance program, 

both to help ensure the safety of the 

products it sells before they are 

marketed and to identify, monitor and 

evaluate potential product safety issues 

on an ongoing basis. BJ’s maintains that 

upon learning of the issue regarding the 

Subject Products, it relied upon and 

understood that the manufacturer of the 

Subject Products, Royal Sovereign, 

would report to the CPSC. 

Agreement of the Parties 

19. Under the CPSA, the Commission 

has jurisdiction over the matter 

involving the Subject Products and over 

BJ’s. 

20. The parties enter into the 

Agreement for settlement purposes only. 

The Agreement does not constitute an 

admission by BJ’s or a determination by 

the Commission that BJ’s violated the 

CPSA. 

21. In settlement of staff’s charges, 

BJ’s shall pay a civil penalty in the 

amount of nine million dollars 

($9,000,000) (‘‘Total Civil Penalty 

Amount’’). The $9,000,000 Payment 

shall be paid 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 BJ’s under this Agreement. Failure to 

make such payment by the date 

specified in the Commission’s final 

Order shall constitute Default. 

22. The Commission or the United 

States may seek enforcement for any 

breach of, or any failure to comply with, 

any provision of this Agreement and 

Order in United States District Court, to 

seek relief including, but not limited to, 

collecting amounts due. 

23. All unpaid amounts, if any, due 

and owing under the Agreement, shall 

constitute a debt due and immediately 

owing by BJ’s to the United States, and 

interest shall accrue and be paid by BJ’s 

at the federal legal rate of interest set 

forth at 28 U.S.C. 1961(a) and (b) from 

the date of Default, until all amounts 

due have been paid in full (hereinafter 

‘‘Default Payment Amount’’ and 

‘‘Default Interest Balance’’). BJ’s 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 BJ’s agrees not to 

contest, and hereby waives and 

discharges any defenses to, any 

collection action undertaken by the 

United States, or its agents or 

contractors, pursuant to this paragraph. 

BJ’s shall pay the United States all 

reasonable costs of collection and 

enforcement under this paragraph, 

respectively, including reasonable 

attorney’s fees and expenses. 

24. After staff receives this Agreement 

executed on behalf of BJ’s, 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). 

25. 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 BJ’s, 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. 

26. Effective upon the later of: (1) the 

Commission’s final acceptance of the 

Agreement and service of the accepted 

Agreement upon BJ’s and (2) and the 

date of issuance of the final Order, for 

good and valuable consideration, BJ’s 

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 as between the 

parties: 

(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 BJ’s 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. 

27. BJ’s shall maintain a compliance 

program (‘‘Compliance Program’’) 

designed to ensure compliance with the 

CPSA with respect to any consumer 

product imported, manufactured, 

distributed or sold by BJ’s, 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 is 

conveyed effectively to personnel 

responsible for CPSA compliance, 

whether or not an injury has been 

reported; 

(ii) procedures and systems for 

tracking and reviewing claims, 

including warranty claims, and reports 

for safety concerns and for 

implementing corrective and preventive 

actions when compliance deficiencies 

or violations are identified; 

(iii) procedures requiring that 

information required to be disclosed by 

BJ’s to the Commission is recorded, 

processed, and reported in accordance 

with applicable law; 

(iv) procedures requiring that all 

reporting made to the Commission is 

timely, truthful, complete, accurate, and 

in accordance with applicable law; 

(v) procedures requiring that prompt 

disclosure is made to BJ’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, BJ’s ability to 

record, process and report to the 

Commission in accordance with 

applicable law; 

(vi) mechanisms to effectively 

communicate to all applicable BJ’s 

employees, through training programs 

or other means, compliance-related 

company policies and procedures to 

prevent violations of the CPSA; 

(vii) a mechanism for confidential 

employee reporting of compliancerelated questions or concerns to either a 

compliance officer or to another senior 


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Federal Register / Vol. 88, No. 191 / Wednesday, October 4, 2023 / Notices 68591 

manager with authority to act as 

necessary; 

(viii) BJ’s senior management 

responsibility for, and general board 

oversight of, CPSA compliance, 

including the implementation of steps 

to ensure that incident and injury data 

is reviewed and analyzed for purposes 

of CPSA Section 15(b) reporting; 

(ix) for at least three (3) years, an 

annual internal audit of the 

effectiveness of policies, procedures, 

systems, and training related to CPSA 

compliance that evaluates opportunities 

for improvement, deficiencies or 

weaknesses, and the Firm’s overall 

culture of compliance; and 

(x) retention of all CPSA compliancerelated records for at least five (5) years, 

and availability of such records to CPSC 

staff upon request. 

28. BJ’s shall submit a report, sworn 

to under penalty of perjury: 

(i) describing in detail its compliance 

program and internal controls and the 

actions BJ’s has taken to comply with 

each subparagraph of paragraph 27; 

(ii) affirming that during the reporting 

period, BJ’s has reviewed its compliance 

program and internal controls, 

including the actions referenced in 

subparagraph (i) of this paragraph, for 

effectiveness, and that it complies with 

each subparagraph of paragraph 27, or 

describing in detail any non-compliance 

with any such subparagraph; and 

(iii) identifying the results of the 

annual internal audit referenced in 

paragraph 27(ix) and any changes or 

modifications made during the reporting 

period to BJ’s compliance program or 

internal controls to ensure compliance 

with the terms of the CPSA and, in 

particular, the requirements of CPSA 

Section 15 related to timely reporting. 

Such reports shall be submitted 

annually to the Director, Office of 

Compliance, Division of Enforcement 

and Litigation, for a period of three (3) 

years. The first report shall be submitted 

30 days after the close of the first 12- 

month reporting period, which begins 

on the date of the Commission’s Final 

Order of Acceptance of the Agreement, 

and successive reports shall be due 

annually on the same date thereafter. 

29. Notwithstanding and in addition 

to the above, upon request of staff, BJ’s 

shall promptly provide written 

documentation of any changes or 

modifications to its compliance program 

or internal controls and procedures, 

including the effective dates of the 

changes or modifications thereto. BJ’s 

shall cooperate fully and truthfully with 

staff and shall make available all nonprivileged information and materials 

and personnel deemed necessary by 

staff to evaluate BJ’s compliance with 

the terms of the Agreement. 

30. The parties acknowledge and 

agree that the Commission may 

publicize the terms of the Agreement 

and the Order. 

31. BJ’s 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 BJ’s, enforceable against 

BJ’s in accordance with its terms. The 

individuals signing the Agreement on 

behalf of BJ’s represent and warrant that 

they are duly authorized by BJ’s to 

execute the Agreement. 

32. The signatories represent that they 

are authorized to execute this 

Agreement. 

33. The Agreement is governed by the 

laws of the United States. 

34. The Agreement and the Order 

shall apply to, and be binding upon, BJ’s 

and each of its parents, successors, 

transferees, and assigns; and a violation 

of the Agreement or Order may subject 

BJ’s, and each of its parents, successors, 

transferees, and assigns, to appropriate 

legal action. 

35. The Agreement, any attachments, 

and the Order constitute the complete 

agreement between the parties on the 

subject matter contained therein. 

36. 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. 

37. 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. 

38. 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 BJ’s agree in 

writing that severing the provision 

materially affects the purpose of the 

Agreement and the Order. 

(Signatures on next page) 

BJ’S WHOLESALE CLUB, INC. 

Dated: 9/7/2023 

By: /s/ lllllllllllllllll

Graham Luce, BJ’s Wholesale Club, Inc., EVP 

General Counsel 

Dated: 9/7/2023 

By: /s/ lllllllllllllllll

Erik Swanholt, Foley & Lardner, Counsel to 

BJ’s Wholesale Club, Inc. 

U.S. CONSUMER PRODUCT SAFETY 

COMMISSION 

Mary B. Murphy, Director, Leah Ippolito, 

Supervisory Attorney, Division of 

Enforcement and Litigation 

Dated: lllllllllllllllll

By: lllllllllllllllllll

Mark S. Raffman, Trial Attorney, Division of 

Enforcement and Litigation, Office of 

Compliance and Field Operations 

United States of America 

Consumer Product Safety Commission 

In the Matter of: BJ’S WHOLESALE CLUB, 

INC. 

CPSC Docket No.: 23–C0004 

Order 

Upon consideration of the Settlement 

Agreement entered into between BJ’s 

Wholesale Club, Inc. (‘‘BJ’s’’) and the 

U.S. Consumer Product Safety 

Commission (‘‘Commission’’ or 

‘‘CPSC’’), and the Commission having 

jurisdiction over the subject matter and 

over BJ’s, and it appearing that the 

Settlement Agreement is in the public 

interest, the Settlement Agreement is 

incorporated by reference and it is: 

Provisionally accepted and this Order 

issued on the 29th day of September, 

2023. 

BY ORDER OF THE COMMISSION: 

/s/ lllllllllllllllllll

Alberta E. Mills, Secretary, U.S. Consumer 

Product Safety Commission 

[FR Doc. 2023–21985 Filed 10–3–23; 8:45 am] 

BILLING CODE 6355–01–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Docket ID: DoD–2023–OS–0095] 

Submission for OMB Review; 

Comment Request 

AGENCY: All-domain Anomaly 

Resolution Office (AARO), Office of the 

Secretary of Defense (OSD), Department 

of Defense (DoD). 

ACTION: Emergency information 

collection notice. 

SUMMARY: Consistent with the 

Paperwork Reduction Act of 1995 and 

its implementing regulations, this 

document provides notice that DoD is 

submitting an Information Collection 


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