This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

11883 

Vol. 74, No. 53 

Friday, March 20, 2009 

CONSUMER PRODUCT SAFETY 

COMMISSION 

16 CFR Part 1115 

Guidelines and Requirements for 

Mandatory Recall Notices: Notice of 

Proposed Rulemaking 

AGENCY: Consumer Product Safety 

Commission. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Consumer Product Safety 

Improvement Act of 2008 requires the 

United States Consumer Product Safety 

Commission (‘‘Commission’’) to 

establish by rule guidelines and 

requirements for recall notices ordered 

by the Commission or by a United States 

District Court under the Consumer 

Product Safety Act. This proposal 

would establish the guidelines and 

requirements to satisfy that requirement. 

DATES: Written comments must be 

received by April 20, 2009. 

ADDRESSES: Comments should be emailed to 

mandatoryrecallnotices@cpsc.gov. 

Comments also may be mailed, 

preferably in five copies, to the Office of 

the Secretary, Consumer Product Safety 

Commission, Room 502, 4330 East West 

Highway, Bethesda, Maryland 20814, or 

delivered to the same address 

(telephone (301) 504–7923. Comments 

may also be filed by facsimile to (301) 

504–0127. Comments should be 

captioned ‘‘Section 15(i) NPR.’’ 

FOR FURTHER INFORMATION CONTACT: 

Marc Schoem, Deputy Director, Office of 

Compliance and Field Operations, 

Consumer Product Safety Commission, 

4330 East West Highway, Bethesda, MD 

20814; telephone (301) 504–7520. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The Consumer Product Safety 

Improvement Act of 2008 (‘‘CPSIA’’, 

Pub. L. 110–314) was enacted on August 

14, 2008. The CPSIA amends statutes 

that the U.S. Consumer Product Safety 

Commission (‘‘Commission’’) 

administers, adding requirements with 

broad applicability and some productspecific provisions as well. 

B. CPSIA Requirements 

Section 214 of the CPSIA amends 

section 15 of the Consumer Product 

Safety Act (‘‘CPSA’’) to add a new 

subsection (i). That section requires 

that, ‘‘not later than 180 days after the 

date of enactment of the CPSIA, the 

Commission shall, by rule, establish 

guidelines setting forth a uniform class 

of information to be included in any 

notice required by an order under’’ 

sections 12, 15(c), or 15(d) of the CPSA 

(15 U.S.C. 2061, 2064(c), or 2064(d)). 

Public Law 110–314, section 214(c), 122 

Stat. 3016 (August 14, 2008). The 

guidelines must include information 

that would be helpful in identifying the 

product, hazard, and remedy associated 

with a recall. 15 U.S.C. 2064, as added 

by CPSIA § 214. 

Section 214 of the CPSIA also requires 

that a recall notice include certain 

specific information, unless the 

Commission determines otherwise. This 

information includes, but is not limited 

to, descriptions of the product, hazard, 

injuries, deaths, action being taken, and 

remedy; identification of the 

manufacturer and retailers; 

identification of relevant dates; and any 

other information the Commission 

deems appropriate. Id. 

C. Basis for Proposed Rule 

The Commission and Commission 

staff have been using recall notifications 

since the Commission’s inception. 

Under section 15(c) of the CPSA, if the 

Commission determines that 

notification is required to adequately 

protect the public from a substantial 

product hazard, the Commission may 

order a manufacturer, retailer, or 

distributor to provide notice to certain 

persons. 15 U.S.C. 2064(c). In addition, 

for many years, the Commission has 

made information concerning recall 

notices publicly available, including, for 

example, in the agency’s Recall 

Handbook (http://www.cpsc.gov/ 

BUSINFO/8002.html). 

This proposed rule has been written 

based upon, and with the benefit of, the 

Commission and Commission staff’s 

many years of experience with recalls 

and recall effectiveness. The proposal is 

also based on related agency expertise 

and on information contained in agency 

recall guidance materials, including, but 

not limited to, the Recall Handbook. 

D. Description of the Proposed Rule 

In general, the proposed rule would 

establish a new subpart C, titled, 

‘‘Guidelines and Requirements for 

Mandatory Recall Notices,’’ in part 1115 

of title 16 of the Code of Federal 

Regulations. 

1. Proposed § 1115.23—Purpose 

Proposed § 1115.23 would describe 

the purpose for a new subpart C, 

‘‘Guidelines and Requirements for 

Mandatory Recall Notices.’’ In 

accordance with direction in the CPSIA, 

the proposed rule would set out 

guidelines and requirements for recall 

notices issued under section 15(c) and 

(d) or section 12 of the CPSA. The 

proposed guidelines would provide 

guidance concerning the content and 

form of such notices. As required by the 

CPSIA, the proposed rule also would 

specify the content required in such 

recall notices. 

2. Proposed § 1115.24—Applicability 

Consistent with section 15(i) of the 

CPSA, as added by section 214 of the 

CPSIA, the proposed rule would apply 

only to mandatory recall notices, i.e., 

recall notices issued pursuant to an 

order of the Commission under section 

15(c) or (d) of the CPSA (15 U.S.C. 

2064(c) or (d)), or pursuant to an order 

of a U.S. district court under section 12 

of the CPSA (15 U.S.C. 2061). 

Proposed § 1115.24, therefore, would 

explain that the requirements in subpart 

C apply to manufacturers (including 

importers), retailers, and distributors of 

consumer products. 

The proposed rule would not contain 

requirements for recalls and recall 

notices that are voluntary and result 

from corrective action settlement 

agreements with Commission staff. If 

the Commission decides to extend the 

requirements to voluntary recalls, it 

would proceed with a separate 

rulemaking initiated by a separate 

notice of proposed rulemaking. Unless 

and until the Commission issues a rule 

containing requirements for voluntary 

recall notices, the proposed rule would 

serve as a guide for voluntary recall 

notices. 

3. Proposed § 1115.25—Definitions 

Proposed § 1115.25 would define 

certain terms used in subpart C. For 

11884 Federal Register / Vol. 74, No. 53 / Friday, March 20, 2009 / Proposed Rules 

example, proposed § 1115.25(a) would 

define ‘‘recall’’ as ‘‘any one or more of 

the actions required by an order under 

sections 12, 15(c), or 15(d) of the CPSA 

(15 U.S.C. 2061, 2064(c), or 2064(d)).’’ 

The proposed definitions in this section 

are based on the staff’s experience with 

recalls under section 15. Additionally, 

proposed § 1115.25 would state that the 

definitions in section 3 of the CPSA (15 

U.S.C. 2052) apply. 

4. Proposed § 1115.26—Guidelines and 

Policies 

Proposed § 1115.26 would provide 

general guidance and describe the 

policies pertaining to recall notices. The 

proposed guidelines would restate the 

goals delineated in section 214 of the 

CPSIA. The CPSIA requires the 

guidelines to include information 

helpful to consumers. The Commission 

believes, however, that recall notices are 

intended to be of benefit and 

importance not only to consumers, but 

also to ‘‘other persons,’’ and proposed 

§ 1115.26(a) would reflect this position. 

The latter broader category is intended 

to encompass the wide range of persons 

and broader public referenced in section 

15(c) or (d) and in section 12 of the 

CPSA (15 U.S.C. 2061, 2064(c) or (d)). 

As used here, the term ‘‘other persons’’ 

would include, but would not be 

limited to, consumer safety advocacy 

organizations, public interest groups, 

trade associations, other State, local and 

federal government agencies, and the 

media. Historically, these persons have 

played significant roles in assisting with 

the dissemination of recall notice 

information. The Commission 

anticipates that these roles will 

continue. 

In general, proposed § 1115.26(a) 

would state general principles that are 

important for recall notices to be 

effective. For example, proposed 

§ 1115.26(a)(1) would state that a recall 

notice should provide information that 

enables consumers and other persons to 

identify the product and take a stated 

action. Proposed § 1115.26(a)(2) through 

(a)(4) would provide guidance on the 

form of the recall notice, recognizing the 

various forms of notice and providing 

guidance concerning direct recall 

notices and Web site recall notices. 

Proposed § 1115.26(a)(4) would 

recognize that a direct recall notice is 

the most effective form of a recall 

notice, and proposed § 1115.26(b)(2) 

would state that when firms have 

contact information they should issue 

direct recall notices. By necessity due to 

lack of specific contact information, 

most recall notices are disseminated to 

broad or, on occasion, partially-targeted 

audiences. A direct recall notice, on the 

other hand, is sent directly to specific, 

identifiable consumers of the recalled 

product. In most instances, these 

consumers will be the purchasers of the 

recalled product. In other instances, the 

purchasers may have given the product 

to other consumers, for example, as a 

gift. In the latter case, if the purchaser 

received the recall notice, the purchaser 

will generally know to whom the 

purchaser gave the product and will 

likely be able to contact the recipient 

about the recall notice. In either case, 

the persons exposed to the product and 

its hazard will be more likely to receive 

the direct recall notice than to receive 

a broadly-disseminated recall notice. 

Proposed § 1115.26(b)(1) would 

describe other possible forms of recall 

notices (such as letters, electronic mail, 

and video news releases), and proposed 

§ 1115.26(b)(3) would discuss Web site 

recall notices. 

Proposed § 1115.26(c) would provide 

that, where the Commission or a court 

deems it to be necessary or appropriate, 

the Commission may direct that the 

recall notice be in languages in addition 

to English. 

5. Proposed § 1115.27—Recall Notice 

Content Requirements 

In addition to requiring the 

Commission to issue guidelines for 

recall notices required under sections 12 

and 15(c) and (d) of the CPSA, the 

CPSIA sets out specific content 

requirements. The CPSIA states that 

such recall notices shall include the 

specified information, including other 

information that the Commission or a 

court deems appropriate, unless the 

Commission or a court determines that 

including the information would not be 

appropriate in the particular recall 

notice. Thus, proposed § 1115.27 would 

set forth the recall notice content 

requirements specified in the CPSIA 

and would provide further details where 

appropriate. 

For example, proposed § 1115.27(a) 

would require that a recall notice 

include the word ‘‘recall’’ in the 

heading and text. Although the CPSIA 

does not explicitly require use of the 

word ‘‘recall,’’ it does require a 

‘‘description of the action being taken.’’ 

For many years, the Commission staff’s 

Recall Handbook has directed that this 

term should be used. The objectives of 

a recall include locating the recalled 

products, removing the recalled 

products from the distribution chain 

and from consumers, and 

communicating information to the 

public about the recalled product and 

the remedy offered to consumers. A 

recall notice should motivate firms and 

media to widely publicize the recall 

information, and it should motivate 

consumers to act on the recall for the 

sake of safety. To those ends, the word 

‘‘recall’’ draws media and consumer 

attention to the notice and to the 

information contained in the notice, and 

it does so more effectively than omitting 

the term or using an alternative term. A 

recall notice must be read to be 

effective, and drawing attention to the 

notice through the use of the word 

‘‘recall’’ increases the likelihood that it 

will be read and, therefore, effectuates 

the purposes of the CPSA and CPSIA. 

Proposed § 1115.27(b) would require 

the recall notice to contain the date of 

its release, issuance, posting, or 

publication. 

The CPSIA requires that a recall 

notice include a description of the 

product, including the model number or 

SKU number, the names of the product, 

and a photograph. Proposed § 1115.27(c) 

would further flesh out information 

needed to describe the product by 

adding such items as the product’s 

color, and identifying tags or labels. 

Proposed § 1115.27(d) would require 

the recall notice to contain a clear and 

concise statement of the actions that a 

firm is taking concerning the product. 

This is required by the CPSIA. 

Proposed § 1115.27(e) would require 

the recall notice to state the 

approximate number of units covered by 

the recall, including all product units 

manufactured, imported, and/or 

distributed in commerce. This 

information is required by the CPSIA. 

The statute requires that a recall 

notice include a description of the 

substantial product hazard. Proposed 

§ 1115.27(f) would clarify this 

requirement by stating that the 

description must enable consumers to 

identify the risks of potential injury or 

death associated with the product, and 

it must identify the problem giving rise 

to the recall and the type of hazard or 

risk at issue (e.g., burn, laceration). 

Proposed § 1115.27(f)(1) through (f)(2) 

would provide greater detail as to what 

the description must include; for 

example, the description must include 

the product defect, fault, failure, flaw, 

and/or problem giving rise to the recall. 

The statute requires identification of 

the manufacturers and significant 

retailers. Proposed § 1115.27(g) would 

state that the recall notice must identify 

the firm conducting the recall and also 

would clarify that, under the CPSA, the 

term ‘‘manufacturer’’ includes an 

importer. Proposed § 1115.27(h) would 

describe how the manufacturer must be 

identified (e.g., legal name, location of 

headquarters). 

The statute does not define 

‘‘significant retailer.’’ Identifying these 

Federal Register / Vol. 74, No. 53 / Friday, March 20, 2009 / Proposed Rules 11885 

retailers will help consumers determine 

whether or not they shopped at the 

identified retailer, and, in turn, whether 

or not they might have the product. In 

the absence of a statutory definition, 

and based on its experience with recalls, 

the Commission believes that a 

significant retailer can be determined on 

the basis of several factors, and 

proposed § 1115.27(i) would describe 

those factors. 

First, under proposed § 1115.27(i), a 

product’s retailer is significant if it was 

the exclusive retailer of the product. 

Identifying an exclusive retailer is 

valuable because it can help consumers 

to conclude that, if they did not shop at 

that retailer, they are not likely to have 

the product, and, conversely, if they did 

shop at that retailer, they may have the 

product. 

Second, a product’s retailer is 

significant if it was an importer of the 

product. As an importer, a retailer will 

typically have greater information, and 

greater access to information, about a 

product, than a retailer that was not an 

importer. 

Third, a product’s retailer is 

significant if it is a nationwide or 

regionally-located retailer. Retailers that 

are located nationwide will be likely to 

have sold more units of the product, or 

to have sold the product to more 

consumers, than retailers that are not 

located nationwide. Therefore, 

nationwide retailers are likely to be 

more familiar to consumers than are 

retailers that are not nationwide. In 

addition, a regionally-located retailer, 

such as a retailer with a number of 

stores in several states, will be likely to 

be better known to consumers in those 

states or that region. 

Fourth, a retailer that sold, or held for 

purposes of sale or distribution in 

commerce, a significant number of the 

total manufactured, imported, or 

distributed units of the product, will 

have sold the product to, and affected, 

more consumers, than a retailer that 

sold fewer units of the product. 

Fifth, a product’s retailer is significant 

if identification of the retailer is in the 

public interest. Recalls and products 

vary from one to the next, and there may 

be reasons other than those stated above 

that consumers will benefit from 

knowing the identities of certain 

retailers. Basing identification of a 

retailer on the public interest allows the 

Commission and firms flexibility to 

meet consumers’ needs in a particular 

recall and to, in general, seek the best 

possible recall effectiveness. 

Proposed § 1115.27(j) would require 

the recall notice to state the month and 

year in which the manufacture of the 

product began and ended and the month 

and year in which the retail sales began 

and ended. These dates would be 

included for each make and model of 

the product covered by the recall notice. 

This information is required by the 

CPSIA. 

Although the statute does not list 

price of the product among the 

information required in a recall notice, 

proposed § 1115.27(k) would require the 

recall notice to state the approximate 

price of the product or a price range. 

Information about the price will help 

consumers to identify the product and 

be aware of the appropriate amount for 

a refund if that is the remedy. 

Proposed § 1115.27(l) would require 

the recall notice to state the number and 

describe any injuries and deaths 

associated with the product, state the 

ages of any individuals injured or killed 

and the dates or range of dates on which 

the Commission received information 

about the injuries or deaths. Proposed 

§ 1115.27(m) would require the recall 

notice to provide a description of any 

remedy available to the consumer, what 

actions the consumer must take to 

obtain a remedy, and any information 

the consumer needs in order to obtain 

a remedy. Proposed § 1115.27(n) would 

require the recall notice to contain any 

other information that the Commission 

or a court deems appropriate and orders. 

This information is all required by the 

CPSIA. 

6. Proposed § 1115.28—Multiple 

Products or Models 

Proposed § 1115.28 would require the 

notice for each product or model 

covered by a recall notice to meet the 

requirements of this subpart. 

7. Proposed § 1115.29—Final 

Determination Regarding Form and 

Content 

Proposed § 1115.29(a) would provide, 

in accordance with the statute, that the 

Commission (in the case of a recall 

notice under section 15(c) or (d)) or a 

court (in the case of a recall notice 

under section 12) makes the final 

determination regarding the form and 

content of a recall notice. Additionally, 

proposed § 1115.29(b) would allow the 

Commission to determine that one or 

more recall notice requirements set forth 

in subpart C is not required and will not 

be included in a recall notice. Proposed 

§ 1115.29(c) would state that the 

Commission must review and agree, in 

writing, to all aspects of a recall notice 

before a firm may publish, broadcast, or 

otherwise disseminate a recall notice 

that is to be issued pursuant to an order 

under section 15(c) or (d) of the CPSA. 

E. Effective Date 

The Administrative Procedure Act 

(‘‘APA’’) generally requires that the 

effective date of a rule be at least 30 

days after publication of the final rule. 

Id. 553(d). However, an earlier effective 

date is permitted for statements of 

policy and ‘‘as otherwise provided by 

the agency for good cause found and 

published with the rule.’’ Id. The 

guidelines are essentially a statement of 

policy. The requirements for the content 

of mandatory recall notices are largely 

dictated by the CPSIA with some further 

clarifications by the Commission. The 

statutory requirements for the content of 

mandatory recall notices are already in 

effect. Therefore, the Commission finds 

that good cause exists for the guidelines 

and requirements to become effective 

when published in final and proposes 

that the effective date be the date of 

publication of a final rule in the Federal 

Register. 

F. Regulatory Flexibility Certification 

The Regulatory Flexibility Act 

(‘‘RFA’’) generally requires that agencies 

review proposed rules for their potential 

economic impact on small entities, 

including small businesses. Section 603 

of the RFA calls for agencies to prepare 

and make available for public comment 

an initial regulatory flexibility analysis 

describing the impact of the proposed 

rule on small entities and identifying 

impact-reducing alternatives. 5 U.S.C. 

603. However, section 605(b) of the RFA 

states that this requirement does not 

apply if the head of the agency certifies 

that the rule will not, if promulgated, 

have a significant economic impact on 

a substantial number of small entities, 

and the agency provides an explanation 

for that conclusion. 

This rulemaking will have little or no 

effect on small businesses. This 

rulemaking consists of guidelines 

(which do not require a regulatory 

flexibility analysis) and recall notice 

content requirements that are largely 

dictated by the CPSIA. The requirement 

to issue a recall notice for recalls under 

section 12 or 15(c) or (d) of the CPSA 

does not come from this rulemaking, but 

from the existing provisions of section 

15 and 12 of the CPSA. Moreover, the 

guidelines and requirements will only 

come into play in the context of an 

administratively adjudicated order to a 

specific party. Such mandatory recalls 

have occurred infrequently in the 

Commission’s history. Therefore, the 

Commission concludes that the 

proposed guidelines and requirements 

will not have a significant economic 

impact on a substantial number of small 

entities. 

11886 Federal Register / Vol. 74, No. 53 / Friday, March 20, 2009 / Proposed Rules 

G. Paperwork Reduction Act 

This proposed rule does not impose 

any information collection 

requirements. It sets out proposed 

guidelines and content requirements for 

recall notices that are required by 

statute to be imposed in individual 

enforcement actions under existing law 

pursuant to section 15(c) or (d) or 

section 12 of the CPSA. Accordingly, it 

is not subject to the Paperwork 

Reduction Act, 44 U.S.C. sections 3501 

through 3520. 

H. Environmental Considerations 

The Commission’s regulations 

provide a categorical exemption for the 

Commission’s rules from any 

requirement to prepare an 

environmental assessment or an 

environmental impact statement as they 

‘‘have little or no potential for affecting 

the human environment.’’ 16 CFR 

1021.5(c)(2). This proposed rule falls 

within the categorical exemption. 

List of Subjects in 16 CFR Part 1115 

Administrative practice and 

procedure, Business and industry, 

Consumer protection, Reporting and 

recordkeeping requirements. 

Therefore, the Commission proposes 

to amend Title 16 of the Code of Federal 

Regulations as follows: 

PART 1115—SUBSTANTIAL PRODUCT 

HAZARD REPORTS 

1. The authority for part 1115 

continues to read as follows: 

Authority: 15 U.S.C. 2061, 2064, 2065, 

2066(a), 2068, 2069, 2070, 2071, 2073, 2076, 

2079, and 2080. 

2. Add a new Subpart C to read as 

follows: 

* * * * * 

Subpart C—Guidelines and Requirements 

for Mandatory Recall Notices 

Sec. 

1115.23 Purpose. 

1115.24 Applicability. 

1115.25 Definitions. 

1115.26 Guidelines and policies. 

1115.27 Recall notice content requirements. 

1115.28 Multiple products or models. 

1115.29 Final determination regarding form 

and content. 

* * * * * 

Subpart C—Guidelines and 

Requirements for Mandatory Recall 

Notices 

§ 1115.23 Purpose. 

(a) The Commission establishes these 

guidelines and requirements for recall 

notices as required by section 15(i) of 

the Consumer Product Safety Act, as 

amended (CPSA) (15 U.S.C. 2064(i)). 

The guidelines and requirements set 

forth the information to be included in 

a notice required by an order under 

sections 12, 15(c), or 15(d) of the CPSA 

(15 U.S.C. 2061, 2064(c), or 2064(d)). 

Unless otherwise ordered by the 

Commission under section 15(c) or (d) 

of the CPSA (15 U.S.C. 2064(c) or (d)), 

or by a U.S. district court under section 

12 of the CPSA (15 U.S.C. 2061), the 

content information required in this 

subpart must be included in every such 

notice. 

(b) The Commission establishes these 

guidelines and requirements to ensure 

that every recall notice effectively helps 

consumers and other persons to: 

(1) Identify the specific product to 

which the recall notice pertains; 

(2) Understand the product’s actual or 

potential hazards to which the recall 

notice pertains, and information relating 

to such hazards; and 

(3) Understand all remedies available 

to consumers concerning the product to 

which the recall notice pertains. 

§ 1115.24 Applicability. 

This subpart applies to manufacturers 

(including importers), retailers, and 

distributors of consumer products as 

those terms are defined herein and in 

the CPSA. 

§ 1115.25 Definitions. 

In addition to the definitions given in 

section 3 of the CPSA (15 U.S.C. 2052), 

the following definitions apply: 

(a) Recall means any one or more of 

the actions required by an order under 

sections 12, 15(c), or 15(d) of the CPSA 

(15 U.S.C. 2061, 2064(c), or 2064(d)). 

(b) Recall notice means a notification 

required by an order under sections 12, 

15(c), or 15(d) of the CPSA (15 U.S.C. 

2061, 2064(c), or 2064(d)). 

(c) Direct recall notice means a 

notification required by an order under 

sections 12, 15(c), or 15(d) of the CPSA 

(15 U.S.C. 2061, 2064(c), or 2064(d)), 

that is sent directly to specificallyidentified consumers. 

(d) Firm means a manufacturer 

(including an importer), retailer, or 

distributor as those terms are defined in 

the CPSA. 

§ 1115.26 Guidelines and policies. 

(a) General. (1) A recall notice should 

provide sufficient information and 

motivation for consumers and other 

persons to identify the product and its 

actual or potential hazards, and to 

respond and take the stated action. A 

recall notice should clearly and 

concisely state the potential for injury or 

death. 

(2) A recall notice should be written 

in language designed for, and readily 

understood by, the targeted consumers 

or other persons. The language should 

be simple and should avoid or minimize 

the use of highly technical or legal 

terminology. 

(3) Firms should use recall notices 

targeted and tailored to the specific 

product and circumstances. In 

determining the form and content of a 

recall notice, firms should consider the 

manner in which the product was 

advertised and marketed. 

(4) A direct recall notice is the most 

effective form of a recall notice. 

(b) Form of recall notice—(1) Possible 

forms. A recall notice may be written, 

electronic, audio, visual, or in any other 

form ordered by the Commission in an 

order under section 15(c) or (d) of the 

CPSA (15 U.S.C. 2064(c) or (d)), or by 

a U.S. district court under section 12 of 

the CPSA (15 U.S.C. 2061). The forms 

of, and means for communicating, recall 

notices include, but are not limited to: 

(i) Letter, Web site posting, electronic 

mail, RSS feed, or text message; 

(ii) Computer, radio, television, or 

other electronic transmission or 

medium; 

(iii) Video news release, press release, 

recall alert, Web stream, or other form 

of news release; 

(iv) Newspaper, magazine, catalog, or 

other publication; and 

(v) Advertisement, newsletter, and 

service bulletin. 

(2) Direct recall notice. A direct recall 

notice should be used for each 

consumer for whom a firm has direct 

contact information. Direct contact 

information includes, but is not limited 

to, name and address, and electronic 

mail address. Forms of direct recall 

notice include, but are not limited to, 

United States mail, electronic mail, and 

telephone calls. A direct recall notice 

should prominently show its 

importance over other consumer notices 

or mail by including ‘‘Safety Recall’’ or 

other appropriate terms in an electronic 

mail subject line, and, in large bold red 

typeface, on the front of an envelope 

and in the body of a recall notice. 

(3) Web site recall notice. A Web site 

recall notice should be on a Web site’s 

first entry point such as a home page, 

should be clear and prominent, and 

should be interactive by permitting 

consumers and other persons to obtain 

recall information and request a remedy 

directly on the Web site. 

(c) Languages. Where the Commission 

for purposes of an order under section 

15(c) or (d) of the CPSA (15 U.S.C. 

2064(c) or (d)), or a U.S. district court 

for purposes of an order under section 

12 of the CPSA (15 U.S.C. 2061), 

determines that it is necessary or 

appropriate to adequately inform and 

Federal Register / Vol. 74, No. 53 / Friday, March 20, 2009 / Proposed Rules 11887 

protect the public, a recall notice may 

be required to be in languages in 

addition to English. 

§ 1115.27 Recall notice content 

requirements. 

Except as provided in § 1115.29, every 

recall notice must include the 

information set forth below: 

(a) Terms. A recall notice must 

include the word ‘‘recall’’ in the 

heading and text. 

(b) Date. A recall notice must include 

its date of release, issuance, posting, or 

publication. 

(c) Description of product. A recall 

notice must include a clear and concise 

statement of the information that will 

enable consumers and other persons to 

readily and accurately identify the 

specific product and distinguish it from 

similar products. The information must 

enable consumers to readily determine 

whether or not they have, or may be 

exposed to, the product. Description 

information includes but is not limited 

to: 

(1) The product’s names, including 

informal and abbreviated names, by 

which consumers and other persons 

should know or recognize the product; 

(2) The product’s intended or targeted 

use population (e.g., infants, children, 

or adults); 

(3) The product’s colors and sizes; 

(4) The product’s model numbers, 

serial numbers, date codes, stock 

keeping unit (SKU) numbers, and 

tracking labels, including their exact 

locations on the product; 

(5) Identification and exact locations 

of product tags, labels, and other 

identifying parts, and a statement of the 

specific identifying information found 

on each part; and 

(6) Product photographs. A firm must 

provide photographs. Each photograph 

must be electronic or digital, in color, of 

high resolution and quality, and in a 

format readily transferable with high 

quality to a Web site or other 

appropriate medium. As needed for 

effective notification, multiple 

photographs and photograph angles may 

be required. 

(d) Description of action being taken. 

A recall notice must contain a clear and 

concise statement of the actions that a 

firm is taking concerning the product. 

These actions may include, but are not 

limited to, one or more of the following: 

Stop sale and distribution in commerce; 

recall to the distributor, retailer, or 

consumer level; repair; request return 

and provide a replacement; and request 

return and provide a refund. 

(e) Statement of number of product 

units. A recall notice must state the 

approximate number of product units 

covered by the recall, including all 

product units manufactured, imported, 

and/or distributed in commerce. 

(f) Description of substantial product 

hazard. A recall notice must contain a 

clear and concise description of the 

product’s actual or potential hazards 

that result from the product condition or 

circumstances giving rise to the recall. 

The description must enable consumers 

and other persons to readily identify the 

reasons that a firm is conducting a 

recall. The description must also enable 

consumers and other persons to readily 

identify and understand the risks and 

potential injuries or deaths associated 

with the product conditions and 

circumstances giving rise to the recall. 

The description must include: 

(1) The product defect, fault, failure, 

flaw, and/or problem giving rise to the 

recall; and 

(2) The type of hazard or risk, 

including, by way of example only, 

burn, fall, choking, laceration, 

entrapment, and/or death. 

(g) Identification of recalling firm. A 

recall notice must identify the firm 

conducting the recall by stating the 

firm’s legal name and commonly known 

trade name, and the city and state of its 

headquarters. The notice must state 

whether the recalling firm is a 

manufacturer (including importer), 

retailer, or distributor. 

(h) Identification of manufacturers. A 

recall notice must identify each 

manufacturer (including importer) of 

the product and the country of 

manufacture. Under the definition in 

section 3(a)(11) of the CPSA (15 U.S.C. 

2052(a)(11)), a manufacturer means 

‘‘any person who manufactures or 

imports a consumer product.’’ If a 

product has been manufactured outside 

of the U.S., a recall notice must identify 

the foreign manufacturer and the U.S. 

importer. A recall notice must identify 

the manufacturer by stating the 

manufacturer’s legal name and the city 

and state of its headquarters, or, if a 

foreign manufacturer, the city and 

country of its headquarters. 

(i) Identification of significant 

retailers. A recall notice must identify 

each significant retailer of the product. 

A recall notice must identify such a 

retailer by stating the retailer’s 

commonly known trade name. Under 

the definition in section 3(a)(13) of the 

CPSA (15 U.S.C. 2052(a)(13)), a retailer 

means ‘‘a person to whom a consumer 

product is delivered or sold for 

purposes of sale or distribution by such 

person to a consumer.’’ A product’s 

retailer is ‘‘significant’’ if, upon the 

Commission’s information and belief, 

and in the sole discretion of the 

Commission for purposes of an order 

under section 15(c) or (d) of the CPSA 

(15 U.S.C. 2064(c) or (d)), or in the sole 

discretion of a U.S. district court for 

purposes of an order under section 12 

of the CPSA (15 U.S.C. 2061), any one 

or more of the circumstances set forth 

below is present (the Commission may 

require manufacturers (including 

importers), retailers, and distributors to 

provide information relating to these 

circumstances): 

(1) The retailer was the exclusive 

retailer of the product; 

(2) The retailer was an importer of the 

product; 

(3) The retailer has stores nationwide 

or regionally-located; 

(4) The retailer sold, or held for 

purposes of sale or distribution in 

commerce, a significant number of the 

total manufactured, imported, or 

distributed units of the product; or 

(5) Identification of the retailer is in 

the public interest. 

(j) Dates of manufacture and sale. A 

recall notice must state the month and 

year in which the manufacture of the 

product began and ended, and the 

month and year in which the retail sales 

of the product began and ended. These 

dates must be included for each make 

and model of the product. 

(k) Price. A recall notice must state 

the approximate retail price or price 

range of the product. 

(l) Description of incidents, injuries, 

and deaths. A recall notice must contain 

a clear and concise summary 

description of all incidents (including, 

but not limited to, property damage), 

injuries, and deaths associated with the 

product conditions or circumstances 

giving rise to the recall, as well as a 

statement of the number of such 

incidents, injuries, and deaths. The 

description must enable consumers and 

other persons to readily understand the 

nature and extent of the incidents and 

injuries. A recall notice must state the 

ages of all persons injured and killed. A 

recall notice must state the dates or 

range of dates on which the Commission 

received information about injuries and 

deaths. 

(m) Description of remedy. A recall 

notice must contain a clear and concise 

statement, readily understandable by 

consumers and other persons, of: 

(1) Each remedy available to a 

consumer for the product conditions or 

circumstances giving rise to the recall. 

Remedies include, but are not limited 

to, refunds, product repairs, product 

replacements, rebates, coupons, gifts, 

premiums, and other incentives. 

(2) All specific actions that a 

consumer must take to obtain each 

remedy, including, but not limited to, 

instructions on how to participate in the 

11888 Federal Register / Vol. 74, No. 53 / Friday, March 20, 2009 / Proposed Rules 

recall. These actions may include, but 

are not limited to, contacting a firm, 

removing the product from use, 

discarding the product, returning part or 

all of the product, or removing or 

disabling part of the product. 

(3) All specific information that a 

consumer needs in order to obtain each 

remedy and to obtain all information 

about each remedy. This information 

may include, but is not limited to, the 

following: Manufacturer, retailer, and 

distributor contact information (such as 

name, address, telephone and facsimile 

numbers, e-mail address, and Web site 

address); whether telephone calls will 

be toll-free or collect; and telephone 

number days and hours of operation 

including time zone. 

(n) Other information. A recall notice 

must contain such other information as 

the Commission for purposes of an 

order under section 15(c) or (d) of the 

CPSA (15 U.S.C. 2064(c) or (d)), or a 

U.S. district court for purposes of an 

order under section 12 of the CPSA (15 

U.S.C. 2061), deems appropriate and 

orders. 

§ 1115.28 Multiple products or models. 

For each product or model covered by 

a recall notice, the notice must meet the 

requirements of this subpart. 

§ 1115.29 Final determination regarding 

form and content. 

(a) Commission or court discretion. 

The recall notice content required by 

this subpart must be included in a recall 

notice whether or not the firm admits 

the existence of a defect or of an actual 

or potential hazard, and whether or not 

the firm concedes the accuracy or 

applicability of all of the information 

contained in the recall notice. The 

Commission will make the final 

determination as to the form and 

content of the recall notice for purposes 

of an order under section 15(c) or (d) of 

the CPSA (15 U.S.C. 2064(c) or (d)), and 

a U.S. district court will make the final 

determination as to the form and 

content of a recall notice for purposes of 

an order under section 12 of the CPSA 

(15 U.S.C. 2061). 

(b) Recall notice exceptions. The 

Commission for purposes of an order 

under section 15(c) or (d) of the CPSA 

(15 U.S.C. 2064(c) or (d)), or a U.S. 

district court for purposes of an order 

under section 12 of the CPSA (15 U.S.C. 

2061), may determine that one or more 

of the recall notice requirements set 

forth in this subpart is not required, and 

will not be included, in a recall notice. 

(c) Commission approval. Before a 

firm may publish, broadcast, or 

otherwise disseminate a recall notice to 

be issued pursuant to an order under 

section 15(c) or (d) of the CPSA (15 

U.S.C. 2064(c) or (d)), the Commission 

must review and agree in writing to all 

aspects of the notice. 

Dated: March 13, 2009. 

Todd Stevenson, 

Secretary, U.S. Consumer Product Safety 

Commission. 

[FR Doc. E9–6021 Filed 3–19–09; 8:45 am] 

BILLING CODE 6355–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–150066–08] 

RIN 1545–BI45 

Guidance Regarding Foreign Base 

Company Sales Income 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations and notice of public hearing; 

correction. 

SUMMARY: This document contains 

corrections to a notice of proposed 

rulemaking and notice of public hearing 

that was published in the Federal 

Register on Monday, December 29, 2008 

(73 FR 79421), relating to foreign base 

company sales income. 

FOR FURTHER INFORMATION CONTACT: 

Jeffery Mitchell, (202) 622–7034 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The notice of proposed rulemaking 

and notice of public hearing that is 

subject to these corrections are under 

section 954 of the Internal Revenue 

Code. 

Need for Correction 

As published the notice of proposed 

rulemaking and notice of public hearing 

contains errors that may prove to be 

misleading and are in need of 

correction. 

Correction of Publication 

Accordingly, the publication of the 

notice of proposed rulemaking and 

notice of public hearing (REG–150066– 

08), which was the subject of FR Doc. 

E8–30729, is corrected as follows: 

1. On page 79422, column 1, in the 

preamble under the heading 

Background and Explanation of 

Provision, the last sentence, the 

language ‘‘The preamble to the 

temporary regulations explains these 

proposed regulations.’’ is corrected to 

read ‘‘The preamble to the temporary 

regulations explains the amendments.’’ 

2. On page 79422, column 2, in the 

preamble under the heading Comments 

and Public Hearing, the first paragraph, 

line 3, the language ‘‘consideration will 

be give to any written’’ is corrected to 

read ‘‘consideration will be given to any 

written’’. 

3. On page 79422, column 3, in the 

preamble under the heading Part 1— 

Income Taxes, instructional paragraph 

2, lines 5 and 6, the language 

‘‘(b)(2)(ii)(e), (b)(4) Example (3), (c), and 

(d), and adding Examples 8 and 9 to’’ is 

corrected to read ‘‘(b)(2)(ii)(e) and (b)(4) 

Example (3), and adding Examples 8 

and 9 to’’. 

4. On page 79423, column 1, § 1.954– 

3, the third sentence of Example 8, the 

language ‘‘8 is the same as the text of 

§ 1.954–3T’’ is corrected to read ‘‘8 is 

the same as the text of § 1.954– 

3T(b)(4)’’. 

5. On page 79423, column 1, § 1.954– 

3, the third sentence of Example 9, the 

language ‘‘9 is the same as the text of 

§ 1.954–3T’’ is corrected to read ‘‘9 is 

the same as the text of § 1.954– 

3T(b)(4)’’. 

Guy R. Traynor, 

Federal Register Liaison, Procedure & 

Administration, Associate Chief Counsel, 

Publications & Regulations. 

[FR Doc. E9–5892 Filed 3–19–09; 8:45 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R06–OAR–2005–TX–0026; FRL–8780– 

4] 

Approval and Promulgation of 

Implementation Plans; Texas; 

Revisions to Permits by Rule and 

Regulations for Control of Air Pollution 

by Permits for New Construction or 

Modification 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing to approve 

portions of three revisions to the Texas 

State Implementation Plan (SIP) 

submitted by the State of Texas on July 

22, 1998, October 4, 2002, and 

September 25, 2003; these revisions 

amend existing sections and create new 

sections in Title 30 of the Texas 

Administrative Code (TAC), Chapter 

106—Permits by Rule and Chapter