[Code of Federal Regulations]
[Title 16, Volume 2]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR1025.18]

[Page 72-74]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
             CHAPTER II--CONSUMER PRODUCT SAFETY COMMISSION
 
PART 1025_RULES OF PRACTICE FOR ADJUDICATIVE PROCEEDINGS--Table of 
Contents
 
       Subpart B_Pleadings, Form, Execution, Service of Documents
 
Sec.  1025.18  Class actions.

    (a) Prerequisites to a class action. One or more members of a class 
of respondents may be proceeded against as representative parties on 
behalf of all respondents if:

[[Page 73]]

    (1) The class is so numerous or geographically dispersed that 
joinder of all members is impracticable;
    (2) There are questions of fact or issues of law common to the 
class;
    (3) The defenses of the representative parties are typical of the 
defenses of the class; and
    (4) The representative parties will fairly and adequately protect 
the interests of the class.
    (b) Composition of class. A class may be composed of:
    (1) Manufacturers, distributors, or retailers, or a combination of 
them, of products which allegedly have the same defect, or
    (2) Manufacturers, distributors, or retailers, or a combination of 
them, of products which allegedly fail to conform to an applicable 
standard, regulation, or consumer product safety rule, or
    (3) Manufacturers, distributors, or retailers, or a combination of 
them, who have themselves allegedly failed to conform to an applicable 
standard, regulation, or consumer product safety rule.

When appropriate, a class may be divided into subclasses and each 
subclass shall be treated as a class.
    (c) Notice of commencement. A complaint issued under this section 
shall identify the class, the named respondents considered to be 
representative of the class, and the alleged defect or nonconformity 
common to the products manufactured, imported, distributed or sold by 
the members of the class. The complaint shall be served upon the parties 
in accordance with Sec.  1025.16.
    (d) Proper class action determination. Upon motion of Complaint 
Counsel and as soon as practicable after the commencement of any 
proceedings brought as a class action, the Presiding Officer shall 
determine by order whether the action is a proper class action. It is a 
proper class action if the prerequisites of paragraph (a) of this 
section are met and if the Presiding Officer finds that:
    (1) The prosecution of separate actions against individual members 
of the respondent class might result in (i) inconsistent or varying 
determinations with respect to individual members of the class which 
might produce incompatible or conflicting results, or (ii) 
determinations with respect to individual members of the class which 
would, as a practical matter, be dispositive of the interests of the 
other members who are not parties to the proceedings or would 
substantially impair or impede the ability of the absent members to 
protect their interests; or
    (2) The Commission has acted on grounds generally applicable to the 
class, thereby making appropriate an order directed to the class as a 
whole.

In reaching a decision, the Presiding Officer shall consider the 
interests of members of the class in individually controlling the 
defense of separate actions, the extent and nature of any proceedings 
concerning the controversy already commenced against members of the 
class, the desirability or undesirability of concentrating the 
litigation in one adjudication, and the difficulties likely to be 
encountered in the management of a class action, as well as the benefits 
expected to result from the maintenance of a class action.
    (e) Revision of class membership. Upon motion of any party or any 
member of the class, or upon the Presiding Officer's own initiative, the 
Presiding Officer may revise the membership of the class.
    (f) Orders in conduct of class actions. In proceedings to which this 
section applies, the Presiding Officer may make appropriate orders:
    (1) Determining the course of the proceedings or prescribing 
measures to prevent undue repetition and promote the efficient 
presentation of evidence or argument;
    (2) Requiring (for the protection of the members of the class, or 
otherwise for the fair conduct of the action) that notice be given, in 
such manner as the Presiding Officer may direct, of any step in the 
action, of the extent of the proposed order, or of the opportunity for 
members to inform the Presiding Officer whether they consider the 
representation to be fair and adequate, or of the opportunity for class 
members to intervene and present defenses;
    (3) Requiring that the pleadings be amended to eliminate allegations 
concerning the representation of absent persons; or
    (4) Dealing with other procedural matters.

[[Page 74]]


The orders may be combined with a prehearing order under Sec.  1025.21 
of these rules and may be altered or amended as may be necessary.
    (g) Scope of final order. In any proceedings maintained as a class 
action, any Decision and Order of the Presiding Officer or the 
Commission under Sec.  1025.51 or Sec.  1025.55, as applicable, whether 
or not favorable to the class, shall include and describe those 
respondents whom the Presiding Officer or the Commission finds to be 
members of the class.
    (h) Notice of results. Upon the termination of any adjudication that 
has been maintained as a class action, the best notice practicable of 
the results of the adjudication shall be given to all members of the 
class in such manner as the Presiding Officer or the Commission directs.