All-Terrain Vehicles; Comment RequestProposed Resolution

CONSUMER PRODUCT SAFETY COMMISSION

All-Terrain Vehicles; Comment Request--Proposed Resolution

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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SUMMARY: The Consumer Product Safety Commission requests comments on a

proposed Commission Resolution (``Resolution'') that responds to action

plans that certain members of the all-terrain vehicle (``ATV'')

industry will undertake. The proposed Resolution is attached at the end

of this notice. (Unless otherwise noted, the action plans are referred

to collectively as the ``ATV Action Plan.'') (ATVs are three-and four-

wheeled motorized vehicles, generally characterized by large, low-

pressure tires, a seat designed to be straddled by the operator, and

handlebars for steering, which are intended for off-road use by an

individual rider on various types of non-paved terrain.) The Commission

staff has provided extensive input into the development of the ATV

Action Plan, which the Commission believes will enhance consumer safety

with respect to these products. The Resolution commends certain members

of the industry for the ATV Action Plan, and announces that the

Commission will actively monitor sales, promotion and training

activities of the ATV industry insofar as those activities pertain to

safety, assemble data on deaths and injuries associated with ATVs, and

take appropriate action, where necessary, based on the results of such

monitoring activity and data.\1\

Chairman Ann Brown and Commissioner Thomas H. Moore approved

this notice as here published; Commissioner Mary Sheila Gall

approved publication of the notice with specified changes that were

not adopted. The ballot vote sheets of the individual Commissioners

are available to the public through the Office of the Secretary.

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DATES: Persons wishing to comment on the Resolution should send written

comments to the Office of the Secretary not later than October 26,

1998.

ADDRESSES: Written comments should be captioned ``ATV Action Plan'' and

mailed to the Office of the Secretary, Consumer Product Safety

Commission, Washington, DC 20207, or delivered to that office, room

502, 4330 East-West Highway, Bethesda, Maryland. Written comments may

also be sent to the Office of the Secretary by facsimile at (301) 504-

0127 or by e-mail at [email protected].

FOR FURTHER INFORMATION CONTACT: For information about the Resolution,

call or write Leonard H. Goldstein, Office of the General Counsel,

Consumer Product Safety Commission, Washington, DC 20207; (301) 504-

0980, Ext. 2202.

SUPPLEMENTARY INFORMATION:

Background

The Commission's work on ATVs began in the mid-1980s after it

learned of a rapidly growing number of deaths and injuries--

particularly to children under 16 years old--involving these products.

ATV sales had increased dramatically during that time, including more

than a tripling of sales between 1980 and 1985. Most of the ATVs

produced during that period were three-wheeled vehicles.

The Commission issued an Advance Notice of Proposed Rulemaking

(``ANPR'') in May 1985 (50 FR 23139). In December 1987, the Department

of Justice, at the Commission's request, filed a lawsuit in federal

district court under section 12 of the Consumer Product Safety Act

against the five major manufacturers and/or distributors of ATVs.

United States v. American Honda Motor Co., et al., Civ. No. 87-3525

(D.D.C., filed Dec. 30, 1987). The companies named in the lawsuit were

American Honda Motor Co., Inc. (``Honda''), Yamaha Motor Corp., U.S.A.

(``Yamaha''), Kawasaki Motors Corp., U.S.A. (``Kawasaki''), U.S. Suzuki

Motor Corp. (nka American Suzuki Motor Corp.) (``Suzuki''), and Polaris

Industries L.P. (nka Polaris Industries Inc.) (``Polaris''). The

lawsuit sought a declaration by the court that then existing ATVs

constituted an ``imminent hazard'' and requested certain remedial

relief. The matter was settled with the court's approval of Final

Consent Decrees on April 28, 1988 (``Final Consent Decrees''), and the

ANPR was subsequently withdrawn (56 FR 47166). Among other things, the

Final Consent Decrees required the companies to:

Stop the sale of all new three-wheeled ATVs and repurchase

them from dealer inventory;

Promote and sell adult-size ATVs (i.e., ATVs with engine

sizes greater than 90 cc) only for the use of riders age 16 and over;

Promote and sell youth-size ATVs (i.e., ATVs with engine

sizes between 70 cc and 90 cc) only for the use of riders age 12 and

older;

Provide free training to all ATV purchasers and members of

their immediate families;

Conduct a nationwide ATV safety public awareness media

campaign;

Adhere to guidelines for advertising and promotional

materials;

Include specified warnings on ATV labeling and in ATV

owner's manuals; and

Accelerate negotiations on a voluntary standard for ATVs.

(The voluntary standard for ATVs (``Voluntary Standard''), as approved

by the Commission, was published in the Federal Register on January 13,

1989. (54 FR 1407) Among other things, the Voluntary Standard includes

configuration requirements for service and parking brakes, mechanical

suspension, foot environment, lighting equipment, tire labeling, and

various operational controls; there are pitch stability requirements

and performance requirements for service and parking brakes; and there

are requirements that relate specifically to youth size ATVs, including

requirements for limitations on maximum speed capabilities.)

The CPSC staff subsequently negotiated a series of monitoring

agreements with the companies to enforce compliance by their dealers

with the requirement that adult-size ATVs not be marketed or sold to or

for the use of children.

Arctic Cat Inc. (``Arctic Cat''), which started manufacturing ATVs

in 1996, voluntarily entered into an Agreement and Action Plan with the

Commission in September 1996 (``Arctic Cat Agreement''), whereby the

firm agreed to take many of the same actions that were required of the

companies under the Final Consent Decrees. Arctic Cat

[[Page 48200]]

also agreed to undertake a dealer monitoring program that was similar

to dealer monitoring programs of the other companies.

With the Final Consent Decrees and Arctic Cat Agreement nearing

their end, Chairman Ann Brown hosted a ``Forum on All-Terrain

Vehicles'' (``Forum'') in May 1997. The purpose of the Forum was to

discuss what measures, if any, could reasonably be taken after the

Consent Decrees and Arctic Cat Agreement expired to further reduce

deaths and injuries associated with these products. Invitations were

extended to, and views were obtained from, members of the public,

technical experts in the ATV field, members of the private bar, and

representatives of consumer groups, rider groups, and State agencies.

The staff engaged in a number of other information gathering

activities concerning ATVs during 1997, including the following:

The staff met with engineers for each company that was a

party to one of the Consent Decrees to discuss evolutionary changes

with regard to ATVs since 1988 as well as current technology;

The staff reviewed, subject to confidentiality agreements,

pertinent documents from each of the companies, including consumer

complaints, documents containing technical information, and information

relating to product liability cases;

The staff met individually with several engineers with

experience in testifying on behalf of plaintiffs in ATV cases to

solicit their views concerning these products; and

The staff communicated with certain foreign government

agencies concerning any technical and/or legal requirements in those

countries concerning ATVs.

The Final Consent Decrees and the Arctic Cat Agreement expired on

April 28, 1998. After extensive discussions with Commission staff, each

of the companies that was subject to a Final Consent Decree and Arctic

Cat (collectively, the ``companies'') have agreed to undertake

voluntary actions to continue to promote the safe and responsible use

of ATVs. The Commission believes that these actions will enhance ATV

rider safety.

Summary of Findings of Recent Exposure and Injury Surveys and Risk

Analysis; and Analysis of ATV Death Reports

As part of its review of the ATV matter and in anticipation of the

expiration of the Final Consent Decrees and Arctic Cat Agreement, the

Commission staff recently completed exposure and injury surveys and a

risk analysis with regard to these products. The surveys provide a

description of current hazard and usage patterns. The staff has

compared the results of these surveys to the results of the

Commission's 1985 and 1989 ATV exposure and injury surveys, to evaluate

trends in use and hazard patterns. Finally, as in the 1985 and 1989 ATV

studies, the characteristics and use patterns of drivers who are

involved in injury incidents (as inferred from the injury survey) have

been compared against those who are not (as inferred from the exposure

survey) to determine the factors associated with risk. The staff's

review also included a study of ATV deaths between January 1, 1985 and

December 31, 1996. The staff has described the characteristics of

drivers and ATVs that have been involved in fatal injuries, and

fatality trends since 1985. The staff's full report, titled ``All-

Terrain Vehicle Exposure, Injury, Death, and Risk Studies,'' was made

public on April 24, 1998, and may be obtained from the Office of the

Secretary, Consumer Product Safety Commission, Washington, DC 20207.

Below is a brief summary of the findings in that report:

A. Exposure Survey

14% of ATV drivers are children under the age of 16 years

(compared with about 23% in 1989);

Almost two-thirds of drivers are male;

The mean level of driver experience is 9.6 years (about

4.5% of drivers had less than one year of experience);

11% of drivers reported participating in an organized

training program; another 12% said they had received some training by

ATV dealers or sales people;

23% of drivers reported never carrying passengers;

35% of drivers reported always wearing a helmet; 32%

reported never wearing a helmet;

74% of drivers reported some nonrecreational use,

including farming or ranching, household chores, and occupational or

commercial tasks;

About 22% of the ATVs are the three-wheel models (this

compares with about 54% in 1989);

26% of the four-wheel models are four-wheel drive

vehicles, most with engines greater than 300 cc;

36% of the ATVs were reported to have engines with 300 cc

or more (compared with about 10% in 1989); and

51% of the ATVs had been purchased as used vehicles; of

this number, about 80% had been purchased from the previous owner,

rather than from an ATV dealer.

B. Injury Survey

47% of the injuries occurring during the study period

involved children under the age of 16; this was almost identical to the

percentage in 1985 (46%);

Despite the large proportion of children injured, the

number of injuries involving children under age 16 declined

approximately 50% from about 42,700 in 1985 to about 21,300 in 1997;

95% of injured children were driving ATVs larger than

recommended for their age;

An estimated 54,500 ATV-related injuries were treated in

hospital emergency departments during 1997 (this was a decline of

approximately 49% from the estimated 106,000 such injuries during

1986);

The rate of ATV-related injury declined from 5.4 per

hundred ATVs in use in 1985 to 2.5 in 1989 and to about 1.5 per hundred

ATVs in 1997, an overall rate reduction of about 72%;

25% of the injuries were to passengers;

75% of the injuries occurred to males;

22% of the injuries involved the head; most of the head

injuries were concussions or internal organ (i.e., brain) injuries; at

least 65% of the persons suffering head injuries were not wearing

helmets;

The largest injury diagnosis categories were contusions

and abrasions (27%), and fractures and dislocations (26%);

37% of the injuries involved the arm region; 28% involved

the leg region;

13% of the emergency department injuries were hospital

admitted (compared with 4% of all product-related injuries reported to

the Commission under the National Electronic Injury Surveillance System

(``NEISS''));

About 4% of drivers involved in injury incidents reported

formal ATV training or training by a dealer or sales person.

C. Report on ATV Deaths

The CPSC estimates that there have been over 3,200 ATV-related

deaths since 1985. Estimated ATV-related deaths declined from about 350

in 1986 to an estimated 269 in 1996. In evaluating the characteristics

of drivers and ATVs that have been involved in fatal injuries, the

staff has found that:

Over 35% of the deaths involved children under age 16;

87% of the deaths since 1985 were to males;

[[Page 48201]]

85% of those killed were drivers, 14% passengers (1% were

drivers or passengers of other types of vehicles);

The percentage of three-wheel ATVs involved in deaths

declined from 80% in 1985 to less than 20% in 1996; and

Incidents reported as collisions accounted for 56% of the

deaths; overturns were involved in about 28% of all deaths.

D. Risk Analysis

The risk analysis showed that although the overall risk of ATV-

related injury has declined since the 1980s (as indicated in the injury

analysis), the factors associated with risk are consistent with those

quantified in the earlier 1985 and 1989 risk analyses and include the

same types of warned against behavior previously observed. As in the

earlier analyses, risk patterns are related to the characteristics and

use patterns of the drivers, and the types of ATVs that they drive. The

results suggest that:

Risk of injury declines with age (the younger the driver

the higher the risk);

Risk for children is about 2.5 times the risk for drivers

aged 16 to 34, and about 4.5 times the risk for drivers aged 35 to 54;

Risk declines with driving experience;

Risk declines with the percentage of time that ATVs are

used in nonrecreational (as opposed to recreational) activities;

Risk is higher for males than for females (all else equal,

risk is about 3 times higher for males than for females); and

Holding all other factors constant, risk is 2.5 to 3 times

higher on three-wheel ATVs than on four-wheel ATVs.

The Undertakings of the Companies

A. General Description

The ATV Action Plan is described in letters of undertaking

submitted to the Commission staff by Yamaha, Kawasaki, Suzuki and

Polaris and in an ``Extended Action Plan'' submitted by Arctic Cat. In

addition, Honda has submitted a letter of undertaking that describes

the post-Consent Decree actions that it proposes to take. Copies of

these documents may be obtained from the Office of the Secretary,

Consumer Product Safety Commission, Washington, DC 20207.

In discussing issues regarding ATV safety, the Commission staff has

placed special emphasis on measures to address the deaths and injuries

to children who drive and ride adult-size ATVs. The staff also has

emphasized the need to train inexperienced drivers. The actions of the

companies will include measures that directly address these two areas

of concern. Unless otherwise noted, each of the companies voluntarily

has agreed that it will:

Implement an informational/educational (``I&E'') effort to

communicate safety-related information to consumers.

(There will be two I&E programs, one will be carried out by Honda, the

other will be a joint effort of Yamaha, Kawasaki, Suzuki, Polaris and

Arctic Cat. Honda's I&E effort will consist primarily of a nationwide

advertising campaign that will address specific areas of safety

(underage youth riding inappropriately sized ATVs, youths carrying

passengers, and use of protective gear) with a message to adults and

care givers that can be conveyed to young riders. Print advertisements

will appear in various enthusiast, hunting and outdoors, and farming

magazines, and magazines targeting parents of school-age children.

Honda estimates that the cost of its program over the next three years

will be approximately $3.5 million. Honda's I&E campaign is more fully

described in its letter of undertaking. The I&E campaign of Yamaha,

Kawasaki, Suzuki, Polaris and Arctic Cat will be a multi-faceted effort

designed to emphasize various safety warnings related to ATVs,

especially as they relate to ATV use by children. Among other things,

the companies will develop and distribute with each new ATV a CD-ROM

program. Materials will also be sent to selected schools and public

libraries throughout the nation. The companies will also communicate

ATV safety information through paid ads, direct mail, safety posters,

teaching aids for school teachers, and websites. The companies estimate

that the cost of the program over the next three years will be

approximately $6 million to $7 million. The I&E campaign of Yamaha,

Kawasaki, Suzuki, Polaris and Arctic Cat is more fully described in a

August 12, 1998 letter to the Commission from David P. Murray, Esq. A

copy of this letter may be obtained from the Office of the Secretary,

Consumer Product Safety Commission, Washington, DC 20207.)

Continue to offer a free hands-on training course (using

the same training programs and curricula that have been approved by the

Commission) to all purchasers and members of their immediate families;

(All of the companies except Polaris will continue to offer the

existing Specialty Vehicle Institute of America (``SVIA'') training

program, using curriculum and procedures that have been approved by the

Commission. Polaris' training program will continue to be conducted at

the time of sale by a certified instructor at each Polaris dealership,

also using Commission approved curriculum and procedures. Polaris'

curriculum has been modified to include a required minimum number of

repetitions of riding maneuvers for inexperienced riders. The company

has also agreed that it will continue to retain the services of an

independent firm to conduct monitoring of its dealers to assure that

its training program is conducted properly.)

All companies offering the SVIA training program (except

Honda) will offer an increased incentive of $100 cash or equivalent

value per ATV sold to every first time purchaser without prior

operating experience where such purchaser or a family member takes

training;

(Yamaha's incentive offer will give the purchaser the option of

choosing either $75 cash or $50 cash and a $50 cash rebate on the

purchase of a Yamaha ATV helmet. Suzuki will offer a $100 cash

incentive to all first time purchasers and will continue to offer a $50

cash incentive to purchasers who are not first time purchasers.)

(The actions of Honda with regard to the training incentive are

discussed below.)

In addition, each company, except where noted, will voluntarily

continue to:

Recommend, market, and sell adult size ATVs (i.e., ATVs

with engine sizes greater than 90 cc) only for the use of persons age

sixteen and older;

(Arctic Cat has established a minimum age of 16 for Arctic Cat ATVs

with engine sizes greater than 90 cc up to 350 cc, and a minimum age of

18 for Arctic Cat ATVs with an engine size greater than 350cc.)

Recommend, market, and sell youth size ATVs (i.e., ATVs

with engine sizes between 70 cc and 90 cc) only for the use of persons

age 12 and older;

Use best efforts to obtain dealer compliance with the age

recommendations, including through undercover monitoring of at least as

many randomly selected dealers as was done under previous monitoring

agreements with the Commission, and to terminate non-complying dealers

in appropriate circumstances;

(Arctic Cat has agreed to extend for five years its detailed

Commission-approved dealer monitoring agreement that expired on April

28, 1998. The other companies, except Honda, have stated that they will

continue with the same level of dealer monitoring as under previous

monitoring programs and will

[[Page 48202]]

use the same procedures. The actions of Honda with regard to dealer

monitoring are discussed below.)

Not market or sell three-wheel ATVs;

Use existing warning labels that were approved by the

Commission on all ATVs;

Use hang tags that convey the same substantive safety

messages as current hang tags;

Include in owner's manuals the same substantive

informational content set forth in the Consent Decrees and Arctic Cat

Agreement;

Assure that future advertising adheres to specified

provisions of the advertising guidelines set forth in the Consent

Decrees and Arctic Cat Agreement;

Continue to provide a toll-free hotline for consumers

interested in obtaining ATV safety information; and

Provide to dealers for dissemination to prospective

customers the same substantive safety messages contained in the ``ATV

Safety Alert'' set forth in the Consent Decrees and Arctic Cat

Agreement.

(The position of Honda with regard to dissemination of the ATV Safety

Alert by its dealers is discussed below.)

Each company, except where noted, will also:

Distribute to all future purchasers an updated ATV safety

video that will contain the same substantive safety messages as the

current video and will stress the importance of ATV training (the

companies will continue to make available to all purchasers the current

video until distribution of the updated video begins);

Participate in efforts to update and revise the Voluntary

Standard for ATVs; and

Give the Commission at least 60 days notice of any

material changes in the company's undertakings under the ATV Action

Plan (Arctic Cat has agreed to extend its recently expired Action Plan

for five more years).

(The position of Honda with regard to the giving of notice to the

Commission is discussed below.)

B. Honda's ATV Program

Honda's commitments under its ATV program depart from those of the

other companies in the following respects:

1. Safety Alert

Honda will not provide to dealers for dissemination to ATV

purchasers the ``ATV Safety Alert'' that was required under the Consent

Decrees. The Safety Alert has communicated important ATV safety

information to the consumer at the time of sale, including updated

information concerning ATV fatalities. Honda has taken the position

that because information in the Safety Alert is duplicative of other

warnings being provided to purchasers, continued dissemination of the

Safety Alert is not necessary. The Commission staff believes that

continued use of the Safety Alert is important because the Safety Alert

is the only communication to purchasers that includes data on ATV-

related deaths, thereby stressing the importance of following the

warnings that are provided. The same information was required under the

Consent Decrees in a safety poster in dealer showrooms, but the safety

poster has been discontinued.

2. Dealer Monitoring

Honda has stated that representations by sales personnel are not

the crucial point in determining underage riding habits, and that the

problem is not a lack of awareness, but a failure to follow the age

recommendations. Honda has indicated that, under these circumstances, a

different use of resources might be more efficient in preventing

underage riding.

Honda has indicated that, instead of selecting dealers for

undercover monitoring using a statistically valid sampling methodology,

its monitoring will be targeted at dealers that it suspects may be

violating the age recommendations. The Commission staff does not oppose

the targeting of suspect dealers for monitoring; however, the staff

contends that a monitoring program in which a sufficient number of

dealers are selected for monitoring based on a statistically valid

sampling methodology is also necessary in order to measure any increase

or decrease in the compliance rate of all Honda ATV dealers. Random

monitoring has served in the past to ferret out non-complying dealers

so that corrective measures could be taken to assure future compliance

with the age recommendations in the promotion and sale of ATVs. Without

random monitoring, the staff has no assurance that the monitoring

program could not be unfairly manipulated to provide an inaccurate

portrait of overall dealer compliance. Random selection of dealers

ensures that a company's selection of dealers for monitoring will not

come to be dominated by dealers known to comply with the age

recommendations.

3. The Training Incentive

Honda has not agreed to offer cash incentives to first time

purchasers as a means of encouraging participation in the training

course. The company has indicated that it is aware of no credible

evidence or studies suggesting that past cash incentives have been a

significant inducement to purchasers and/or their families to take the

training course. The company also indicated that it believes that there

are other techniques that can be as effective, if not more so, than the

current program of cash incentives. Honda's post-Consent Decree

training incentive will consist of giving every Honda ATV purchaser who

takes training the chance to enter a quarterly drawing for a cash

reimbursement of the price of the ATV purchased and an annual drawing

for a new car. The total annual value of the prizes to be awarded will

be approximately $40,000. Honda contends that its contest for prizes

will be more effective than a cash incentive of $100 or equivalent

value in promoting participation in the training program. The

Commission staff contends that the total annual value of prizes offered

by Honda is too small, and the chances of winning too remote, for the

contest to serve as a meaningful incentive. Honda's contest

expenditures will be far less than the amount that would be expended if

the company offered an incentive of $100 cash or equivalent value to

first time purchasers of Honda ATVs.

4. Reporting Changes in Honda's ATV Program

Unlike the other distributors, Honda has not agreed to notify the

Commission in advance of changes in its ATV program. The Commission

staff contends that such notice is essential in order for the

Commission to consider whether it should take action with regard to any

such changes. Moreover, the staff believes that advance notice,

together with the Commission's reservation of all of its enforcement

rights with respect to ATVs, will discourage industry from making

frequent material changes in the ATV Action Plan.

CPSC Monitoring of Companies' Actions

The CPSC staff will closely monitor the continuing actions of the

companies. Among other things, the staff will periodically seek

information from the companies concerning their current practices with

regard to ATV advertisements, actions taken with regard to their

informational/educational programs, the effectiveness of their

respective training incentives in promoting training by first time

purchasers without prior operating experience, and the results of their

undercover dealer monitoring programs

[[Page 48203]]

(including information concerning dealer termination actions).

Because many of the actions under the ATV Action Plan, as well as

the actions of Honda, will be implemented through each company's

dealers, including prohibitions on the promotion and sale of larger

ATVs for the use of underage riders at the dealer level, the CPSC staff

will greatly enhance its efforts to assure dealer compliance with these

actions. At least in the first year that the ATV Action Plan is in

place, the staff expects to approximately double the number of

undercover dealer inspections that it has conducted in recent years.

These inspections will identify dealers that do not comply with the age

requirements so that remedial action, including termination of the

dealership agreement, where appropriate, can be taken. The staff will

also add to its monitoring program a substantial number of general

inspections of ATV dealers to determine, among other things, whether

required warnings (labels, hang tags) are affixed to each ATV, whether

warning information is communicated to each purchaser in safety videos

and safety alerts, whether dealer advertisements comply with

advertising guidelines specified in the ATV Action Plan, and whether

dealers are promoting the taking of ATV training. Where deficiencies

are found as a result of any of the above monitoring activities, the

CPSC will take appropriate action to assure that the company in

question takes appropriate remedial action.

The CPSC staff will monitor, as well as participate in, the process

to update the Voluntary Standard. In this regard, the staff has

communicated to the companies various issues that should be discussed

in the context of a review and updating of the Voluntary Standard,

including changes in vehicle equipment and configuration provisions to

reflect current production, certain revisions of test requirements,

changes to definitional terms, and revisions to reflect current

labeling, hang tag, owner's manual and training practices. The updating

of the Voluntary Standard will be coordinated by the American National

Standards Institute. The procedures of that organization, including the

opportunity to participate in the process of updating the Standard,

will be followed.

Request for Comments

The Commission solicits public comments on the proposed Resolution

published below. The Resolution would commend Yamaha, Kawasaki, Suzuki,

Polaris and Arctic Cat for the ATV Action Plan. A Commission

commendation of these companies would be consistent with the

Commission's policy of encouraging companies to voluntarily take action

that will help to reduce the risk of injury associated with consumer

products. Although the ATV Action Plan does not create enforceable

rights that can be exercised by the Commission, the companies have

voluntarily made substantial commitments to continue certain actions

that were part of the Consent Decrees and Arctic Cat Agreement and to

implement additional actions to further promote safe and responsible

use of ATVs that will, in the opinion of the Commission, enhance ATV

rider safety. The Commission wishes whenever possible to acknowledge

companies that voluntarily enhance consumer safety. The Commission

believes that, in view of the risks associated with ATV use, the

actions described in the ATV Action Plan will continue to be necessary

for the foreseeable future. Furthermore, as any new companies enter

this market, the Commission will seek the agreement of such companies

to take actions that are comparable to the continuing actions of the

companies under the ATV Action Plan.

The Commission is pleased that Honda will implement a unique and

creative informational and educational campaign that will address

specific areas of ATV safety that are of major concern to the

Commission, including, most importantly, warnings against the use of

adult size ATVs by underage riders. The Commission is also pleased that

Honda has agreed to provide adequate funding for its campaign during

each of the next three years. Although the Commission welcomes certain

of the other actions that Honda will take, the Commission staff, as

noted above, is dissatisfied with those parts of the company's program

that relate to safety alerts, dealer monitoring, training incentives,

and the refusal to notify the Commission at least 60 days in advance of

any material changes in its program. For these reasons, the Commission

staff cannot recommend to the Commission that its Resolution include a

commendation of Honda's ATV program.

The Resolution also announces that the Commission will actively

monitor actions taken under the Action Plan and will take appropriate

action, where necessary, based on the results of this monitoring

activity.

The Commission will consider all comments received in response to

this notice before acting on the staff's recommendation that it adopt

the proposed Resolution. In commenting, the public should be aware that

the Commission does not have the authority to impose requirements on

the use of ATVs (as opposed to requirements relating to the production

and sale of ATVs). Many of the States have exercised their authority to

impose requirements that relate to the use of ATVs; however, such

requirements generally vary from State to State. The Commission

believes that, in particular, there needs to be greater attention to

the age issue at the State level. The Commission continues to be

willing to work with the States in addressing safety issues related to

the use of ATVs.

If the Commission adopts the Resolution, it will be available from

the Office of the Secretary, Consumer Product Safety Commission,

Washington, DC 20207 after October 26, 1998.

Dated: September 2, 1998.

Sadye E. Dunn,

Secretary, Consumer Product Safety Commission.

(Proposed) Resolution of the United States Consumer Product Safety

Commission

The United States Consumer Product Safety Commission (the

``Commission''), by vote on August 28, 1998, Resolves that:

Whereas, on April 28, 1988, the United States of America entered

into Consent Decrees, filed in U.S. District Court, with American Honda

Motor Co., Inc., Yamaha Motor Corp., U.S.A., Kawasaki Motors Corp.,

U.S.A., U.S. Suzuki Motor Corp. (nka American Suzuki Motor Corp.), and

Polaris Industries, L.P. (nka Polaris Industries Inc.), which expired

on April 28, 1998 (the ``Consent Decrees'');

Whereas, on September 27, 1996, the Commission entered into an

Agreement and Action Plan with Arctic Cat Inc., which expired on April

28, 1998 (the ``Arctic Cat Agreement''); and

Whereas, the Consent Decrees and Arctic Cat Agreement required the

signatory companies to implement various measures designed to enhance

consumer safety with respect to all-terrain vehicles (``ATVs''); and

Whereas, on April 24, 1998, the Commission released the results and

analysis of its 1997 ATV injury and exposure surveys, and those surveys

indicate that, among other things, (i) risk of injury is 2.5 times

higher when children younger than 16 drive ATVs than for drivers 16 to

34 years of age and 4.5 times higher for such children than for drivers

35 to 54 years of age; and (ii) risk declines with experience, for

which

[[Page 48204]]

the Commission believes formal training is a partial surrogate; and

Whereas, the Commission remains concerned about the current level

of deaths and injuries associated with ATVs, especially those involving

children younger than 16, and believes enhanced safety efforts may

achieve a further reduction in such deaths and injuries; and

Whereas, the staff of the Commission and Yamaha Motor Corp.,

U.S.A., Kawasaki Motors Corp., U.S.A., American Suzuki Motor Corp.,

Polaris Industries Inc., and Arctic Cat Inc. (collectively, the

``Participating Companies'') have actively consulted on actions that

the companies will voluntarily undertake (the ``ATV Action Plan''); and

Whereas, the ATV Action Plan is set forth in separate documents

that the Participating Companies have submitted to the Commission's

staff; and

Whereas, a description of the ATV Action Plan, together with a

draft copy of this Resolution and other materials, was published in the

Federal Register on ______________, 1998, and the public was invited to

comment on this Resolution and the Commission has considered such

comments in adopting this Resolution; and

Whereas, pursuant to the ATV Action Plan, the Participating

Companies will (i) promote training, including through enhanced cash

incentives to first-time ATV purchasers (or, in the case of Polaris,

through requiring that previously untrained purchasers take training in

order to receive a warranty on the vehicle), (ii) implement a multi-

million dollar, multi-year information and education safety campaign

emphasizing, among other things, the risks created when children

younger than 16 operate or ride on adult-sized ATVs, (iii) not market,

sell or offer to sell adult-size ATVs to or for use by children younger

than 16, (iv) not market or sell three-wheel ATVs, (v) provide safety

information on and with ATVs, including giving an ATV Safety Alert to

each purchaser, (vi) retain the services of an independent organization

to continue the undercover monitoring of the same number of randomly

selected dealers as was done under previous monitoring programs (vii)

continue or undertake various other safety measures, and (viii) notify

the Commission at least 60 days in advance of any material changes to

the ATV Action Plan (Arctic Cat Inc. has agreed to continue with its

actions under the ATV Action Plan for five years); and

Whereas, notwithstanding implementation of the ATV Action Plan, the

Commission reserves all its statutory enforcement, regulatory and

oversight powers with respect to ATVs.

Now, therefore:

1. The Commission commends the Participating Companies for the ATV

Action Plan, which the Commission believes will provide safety benefits

to consumers.

2. The Commission will actively monitor the ATV Action Plan by,

among other things, increasing the undercover inspections it conducts

of dealerships to ensure compliance with age recommendations;

increasing its inspections to ensure proper use of labels and hangtags;

and collecting and assessing information regarding the effectiveness of

the new training incentives.

Other activities are set forth in the Federal Register notice

announcing this Resolution. The Commission will take appropriate action

based on the results of this monitoring activity. The Commission also

will continue to track the death and injury rate associated with ATVs

and reserves its authority to take action based on this data.

[FR Doc. 98-24073 Filed 9-8-98; 8:45 am]

BILLING CODE 6355-01-P