Cadet Manufacturing Company; Complaint

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 99-1]

Cadet Manufacturing Company; Complaint

AGENCY: Consumer Product Safety Commission.

ACTION: Publication of a complaint under the Consumer Product Safety

Act.

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SUMMARY: Under provisions of its Rules of Practice for Adjudicative

Proceeding (16 CFR Part 1025), the Consumer Product Safety Commission

must publish in the Federal Register Complaints which it issues.

Published below is a Complaint in the matter of Cadet Manufacturing

Company.

SUPPLEMENTARY INFORMATION: The text of the Complaint appears below.

Dated: January 21, 1999.

Sadye E. Dunn,

Secretary.

In the Matter of Cadet Manufacturing Company, 2500 W. Fourth

Plain Boulevard, Vancouver, Washington 98660, a Domestic

Corporation.

COMPLAINT

Nature of Proceedings

1. This is an administrative enforcement proceeding pursuant to

section 15 of the Consumer Product Safety Act (``CPSA''), as amended,

15 U.S.C. 2064, for public notification and remedial action to protect

the public from substantial risks of injury presented by certain

electric in-wall heaters manufactured by Cadet Manufacturing Company of

Vancouver, Washington. This proceeding is governed by the Rules of

Practice for Adjudicative Proceedings before the Consumer Product

Safety Commission, 16 CFR Part 1025.

Jurisdiction

2. This proceeding is instituted pursuant to the authority

contained in sections 15(c), (d), and (f) of the CPSA, 15 U.S.C.

2064(c), (d), and (f).

Parties

3. Complaint Counsel is the staff of the Legal Division, Office of

Compliance, Consumer Product Safety Commission, an independent federal

regulatory commission established pursuant to section 4 of the CPSA, 15

U.S.C. 2053.

4. Respondent Cadet Manufacturing Company (``Cadet'') is a domestic

corporation last organized and existing under the laws of the State of

Washington, since 1993, with its principal place of business located at

2500 W. Fourth Plain Boulevard, Vancouver, Washington 98660.

5. Cadet manufactures electric heaters for use in or around a

permanent or temporary household or residence; and is, therefore, a

``manufacturer'' of ``consumer product[s],'' as those terms are defined

in sections 3(a) (1) and (4) of the CPSA, 15 U.S.C. 2052(a) (1) and

(4).

Consumer Products

6. Since 1978, Cadet has manufactured and distributed in commerce

electric in-wall heaters for use in homes and residences under the

brand names ``Cadet'' and ``Encore,'' all models and variants within

each model of the series FW (models FW-051, FW-101, FW-122, FW-202, FW-

202, and FW-751), manufactured between 1978 and 1989; series FX (Models

FX-051, FX-052, FX-071, FX-072, FX-101, FX-102, FX-151, FX-122, FX-152,

FX-202, and FX-242), manufactured between 1984 and 1995; series LX

(models LX-242, LX-242, LX-302, LX-302, LX-402, LX-402, and LX-482),

manufactured between 1984 and 1995; series TK (models TK-051, TK-071,

TK-072, TK-101, TK-102, TK-151, and TK-152), manufactured between 1986

and 1998; series ZA (models ZA-051, ZA-052, ZA-071, ZA-072, ZA-101, ZA-

102, ZA-122, ZA-151, ZA-152, ZA-202, ZA-242, manufactured between 1984

and 1995); first generation series Z (models Z-072, Z-101, Z-102, Z-

152, Z-202, and Z-208), manufactured between 1993 and 1997; and/or all

series and models of the same or functionally identical heaters

[[Page 3933]]

manufactured and distributed by Cadet under the Encore brand

(hereinafter collectively, the ``heaters''). Each of the heaters is,

therefore, a ``consumer product'' ``distributed in commerce'' within

the meaning of sections 3(a)(1) and (11) of the CPSA, 15 U.S.C.

2052(a)(1), and (11), respectively.

7. Each of the heaters consists of a motor-driven fan, a heating

element, and an over-temperature limit control switch (``OTC'') housed

in a metal box that is intended to be installed in a wall or under

cabinets. The heater is connected to the main electric power supply in

the home or residence. When energized with electric current, the fan of

the heater pulls room air over the heating element, and pushes the

heated air back into the room.

Product Defect

8. The heaters within series FW, FX, LX, TK, ZA, and/or the same or

functionally identical Encore brand heaters, are defective because

their design causes the heaters to overheat, fail, and catch fire; and/

or allow lint, dirt, or debris within the heaters to catch fire. The

heater design can also cause the heaters to spew flames and/or burning

or molten particles, or eject sparks into the living space of a home or

residence, or energize the heaters creating a risk of electric shock.

9. The heaters within the series FW, FX, LX, TK, ZA heaters, and/or

same or functionally identical Encore brand heaters, are defective

because they were manufactured or assembled with inadequate or faulty

components, electrical connections, and/or contacts, which cause the

components, electrical connections, and/or contacts to fail, overheat,

and catch fire; and/or allow lint, dirt, or debris within the heaters

to catch fire. These defects can also cause the heaters to spew flames

and/or burning or molten particles, or eject sparks into the living

space of a home or residence.

10. The heaters within the first generation Z series, and/or the

same or functionally identical Encore heaters are defective in design

or manufacture because the heater element can overheat, explode, and

spew molten metal particles into the living space of a home or

residence.

Substantial Product Hazards and Risks of Injury

11. The design defects in the series FW, FX, LX, TK, ZA heaters,

and/or the same or functionally identical Encore brand heaters,

identified in paragraph 8 above are prevalent within those heaters.

12. The manufacturing or assembly defects in the series FW, FX, LX,

TK, ZA heaters, and/or the same or functionally identical Encore brand

heaters, identified in paragraph 9 above are prevalent within those

heaters.

13. The design or manufacturing defects in the first generation

series Z heaters, and/or the same or functionally identical Encore

brand heaters, identified in paragraph 10 above are prevalent within

those heaters.

14. The defects identified and described in paragraphs 8 through 10

above have caused or contributed to serious thermal burns and death,

and are likely to cause serious electric shock injury and death.

15. The staff knows of at least 183 instances of electrical fire or

malfunction involving the heaters: 85 units of series FX; 18 units of

series FW; 2 units of series LX; 49 units of series ZA; 2 units of

series TK; and 27 units of series Z (first generation); including 131

heaters that allegedly smoked, sparked, caught fire, emitted flame,

and/or ejected burning particles or molten metal particles as the

result of the defects identified and described in paragraphs 8 through

10 above. These incidents have resulted in three deaths and two burn

injuries.

16. Between 1978 and 1998, Cadet manufactured approximately

1,800,000 potentially defective heaters that present the hazards and

risks of injury described in paragraphs 14 and 15 above.

17. It is likely that the series FX, FW, LX, TK, first generation

Z, ZA heaters, and/or the same or functionally identical Encore brand

heaters, will continue to fail in the same way and to present the same

hazards and risks of injury as a result of the defects described in

paragraphs 8 through 10 above, if public notice and remedial actions

are not taken to eliminate or reduce the risk of injury presented by

the heaters. Each of the heaters, therefore, presents a ``substantial

product hazard'' within the meaning of sections 15(a)(2) of the CPSA,

15 U.S.C. 2064(a)(2), by reason of the substantial risk of injury or

death alleged in paragraphs 11 through 17 above.

Relief Sought

Complaint Counsel requests the Commission to issue the following

relief.

A. Determine that the heaters present a substantial product hazard

within the meaning of section 15(a)(2), 15 U.S.C. 2064(a)(2).

B. Determine that public notification under section 15(c) of the

CPSA, 15 U.S.C. 2064(c), is required to protect the public adequately

from the risks of injury presented by the heaters.

C. Order Cadet, under section 15(c) of the CPSA, 15 U.S.C. 2064(c),

to give such notice as is reasonably necessary to protect the public.

D. Order Cadet, under section 15(d) of the CPSA, 15 U.S.C. 2064(d),

to cease manufacturing for sale, offering for sale, and distributing in

commerce the defective heaters.

E. Order Cadet under section 15(d) of the CPSA, 15 U.S.C. 2064(d),

to elect one of the following remedial actions:

1. Repair each heater in such a manner that it is free of defect

and works in a proper and safe manner.

2. Replace each heater with a new heater, free of any defect, that

works in a proper and safe manner.

3. Refund the purchase price of each heater, including the costs of

materials, labor, and profit.

F. Order Cadet to submit a corrective action plan satisfactory to

the Commission that requires Cadet to undertake public notice and

remedial actions in accordance with paragraphs C, D, and E above,

pursuant to section 15(d) of the CPSA, 15 U.S.C. 2064(d).

G. Order Cadet for a period of five (5) years after issuance of the

Final Order in this matter, to notify the Commission at least sixty

(60) days prior to any change in its business (such as incorporation,

dissolution, assignment, sale, or petition for bankruptcy) that results

in, or is intended to result in, the emergence of a successor

corporation, going out of business, or any other change that might

affect compliance obligations under a Final Order issued by the

Commission in this matter.

H. Grant such other and further relief as the Commission may deem

necessary.

Issued by Order of the Commission.

Dated: January 14, 1999.

Alan H. Schoem,

Assistant Executive Director, Office of Compliance, Consumer Product

Safety Commission, Washington, DC 20207, Tel: (301) 504-0621, ext.

1349.

Eric L. Stone,

Director, Legal Division, Office of Compliance, Consumer Product Safety

Commission, Washington, DC 20207, Tel: (301) 504-06261, ext. 1350.

Earl A. Gershenow,

Howard N. Tarnoff,

Trial Attorneys, Complaint Counsel, Legal Division, Office of

Compliance, Consumer Product Safety Commission, Washington, DC 20207,

Tel: (301) 504-9626, ext. 1343.

Hand Delivery Address: 4330 East West Highway, Room 613, Bethesda,

Maryland 20814.

[FR Doc. 99-1779 Filed 1-25-99; 8:45 am]

BILLING CODE 6350-01-P