[Code of Federal Regulations]
[Title 16, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR1605.13]

[Page 595-596]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
             CHAPTER II--CONSUMER PRODUCT SAFETY COMMISSION
 
PART 1605--INVESTIGATIONS, INSPECTIONS AND INQUIRIES PURSUANT TO THE 
FLAMMABLE FABRICS ACT--Table of Contents
 
                   Subpart B--Consent Order Agreements
 
Sec.  1605.13  Procedures for Consent Order Agreements.


    (a) The Consent Order Agreement is a document executed by a person, 
sole proprietorship, partnership, or corporation (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 and does not constitute an admission by the Consenting Party 
that the law has been violated;
    (4) A statement that the Commission's order is issued under the 
provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.), 
the Flammable Fabrics Act (15 U.S.C. 1191 et seq.), and the Consumer 
Product Safety Act (15 U.S.C. 2051 et seq.) and that a violation of such 
an order subjects the Consenting Party to civil penalties under the 
provisions of the Federal Trade Commission Act;
    (5) An acknowledgement that the consent order agreement only becomes 
effective upon its final acceptance by the Commission and its service 
upon the Consenting Party;
    (6) An acknowledgement that the Commission may disclose terms of the 
consent order agreement to the public;
    (7) A statement that the Consulting Party shall cease and desist 
from certain acts and practices;
    (8) A statement that the Consenting Party shall perform certain acts 
and practices pursuant to the consent order agreement;
    (9) An acknowledgement that the requirements of the order are in 
addition to, and not to the exclusion of, other remedies such as 
criminal penalties which may be pursued under section 7 of the Flammable 
Fabrics Act.
    (b) At any time in the course of an investigation, the staff, with 
the approval of the Commission may propose to the person, sole 
proprietorship, partnership, or corporation 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, sole proprietorship, partnership, or corporation.
    (c) Upon receiving an executed agreement, the Commission may: (1) 
Provisionally accept it; (2) reject it and issue its 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 later revised)); or (3) take such other 
action as it may deem appropriate.
    (d) 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 
request in the office of the Secretary. Such request must be received in 
the Office of the Secretary no later than the close of business of the 
fifteenth calendar day following the date the announcement is published 
in the Federal Register.
    (e) Unless the Commission orders otherwise, the agreement shall be

[[Page 596]]

deemed finally accepted by the Commission on the 20th calendar day after 
the date of announcement in the Federal Register. The Commission shall 
then issue its complaint and order in such form as the circumstances, 
may require. The order is a final order in disposition of the proceeding 
and is effective immediately upon its service upon the Consenting Party 
pursuant to these rules. The Consenting Party shall thereafter be bound 
by and take immediate action in accordance with such final order.
    (f) If the Commission does not accept the agreement on a final 
basis, it shall so notify the Consenting Party. Such notification 
constitutes withdrawal of the Commission's provisional acceptance unless 
the Commission orders otherwise. The Commission may then issue its 
complaint, may order further investigation, or may take such other 
action it considers appropriate.