[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: 16CFR1118.20]

[Page 189-191]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
             CHAPTER II--CONSUMER PRODUCT SAFETY COMMISSION
 
PART 1118_INVESTIGATIONS, INSPECTIONS AND INQUIRIES UNDER THE CONSUMER 
PRODUCT SAFETY ACT--Table of Contents
 
                   Subpart B_Consent Order Agreements
 
Sec.  1118.20  Procedures for consent order agreements.


    (a) For the procedure to be followed regarding consent order 
agreements involving section 15 of the Act (15 U.S.C. 2064), refer to 
the Commission's regulations relating to substantial product hazards (16 
CFR part 1115). For all other consent order agreements under the 
Consumer Product Safety Act, the provisions set forth below are 
applicable.
    (b) The consent order agreement is a document executed by a person, 
or firm (consenting party) and a Commission staff representative which 
incorporates both a proposed complaint setting forth the staff's charges 
and a proposed order by which such charges are resolved. A consent order 
agreement shall contain the following provisions, as appropriate:
    (1) An admission of all jurisdictional facts by the consenting 
parties;
    (2) A waiver of any rights to an administrative or judicial hearing 
and of any other procedural steps including any rights to seek judicial 
review or otherwise challenge or contest the validity of the 
Commission's order;
    (3) A statement that the agreement is in settlement of the staff's 
charges

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and does not constitute an admission by the consenting party that the 
law has been violated;
    (4) A statement describing the alleged hazard, non-compliance or 
violation.
    (5) A statement that the Commission's order is issued under the 
provisions of the Act (15 U.S.C. 2051, et seq.); and that a violation of 
such order may subject the consenting party to appropriate legal action.
    (6) An acknowledgment that the consent order agreement only becomes 
effective upon its final acceptance by the Commission and its service 
upon the consenting party;
    (7) An acknowledgment that the Commission may disclose terms of the 
consent order agreement to the public;
    (8) A statement that the consenting party shall comply with the 
provisions of the agreement and order;
    (9) A statement that the requirements of the order are in addition 
to and not to the exclusion of other remedies under the Act.
    (c) At any time in the course of an investigation, the staff, with 
the approval of the Commission, may propose to the person or firm being 
investigated that any alleged violation be resolved by an agreement 
containing a consent order. Additionally, such a proposal may be made to 
the Commission staff by such person or firm.
    (d) Upon receiving an executed agreement, the Commission may:
    (1) Provisionally accept it;
    (2) Reject it and issue the complaint (in which case the matter will 
be scheduled for hearing in accordance with the Commission's Rules of 
Practice for Adjudicative Proceedings, 16 CFR part 1025, June 21, 1977 
or as amended) and/or
    (3) Take such other action as it may deem appropriate.
    (e) If the agreement is provisionally accepted, the Commission shall 
place the agreement on the public record and shall announce provisional 
acceptance of the agreement in the Federal Register. Any interested 
person may ask the Commission not to accept the agreement by filing a 
written request in the Office of the Secretary. Any request must be 
received in the Office of the Secretary no later than the close of 
business of the 15th calendar day following the date of announcement in 
the Federal Register.
    (f) If no requests are received, the agreement shall be deemed 
finally accepted by the Commission on the 16th calendar day after the 
date of the announcement in the Federal Register. Notice of final 
acceptance will be given and the order issued within a reasonable time.
    (g) If the Commission receives one or more requests that it not 
finally accept an agreement, it shall, within a reasonable time, either 
finally accept or reject the agreement after considering the requests. 
The Commission shall promptly issue and serve an order indicating its 
decision.
    (1) If the agreement is accepted, the Commission shall issue the 
complaint and order. The order is a final order in disposition of the 
proceeding and is effective immediately upon its service on the 
consenting party under these rules. The consenting party shall 
thereafter be bound by and take immediate action in accordance with the 
final order.
    (2) If the agreement is rejected, the order so notifying the 
consenting party shall constitute withdrawal of the Commission's 
provisional acceptance. The Commission may then issue its complaint, may 
order further investigation, or may take any action it considers 
appropriate.
    (h) An agreement that has been finally accepted may be vacated or 
modified upon petition of any party or the Commission's own initiative. 
The petition shall state the proposed changes in the agreement and the 
reasons for granting the petition. The Commission may modify or vacate 
where (1) false statements were relied upon in accepting the agreement 
or (2) there are changed conditions of fact or law. In deciding whether 
to grant a petition, the Commission shall consider the public interest. 
A petitioner, or the Commission when acting on its own initiative, shall 
serve a copy of the petition or notice of reconsideration, respectively, 
on all parties. Parties affected by the petition or notice of 
reconsideration may file a response within 10 calendar days. No replies 
shall be accepted. The Commission shall decide

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the petition or notice of reconsideration within a reasonable time and, 
by order, shall indicate its decision and its reasons.