Federal Register, Volume 59 Issue 94 (Tuesday, May 17, 1994)

[Federal Register Volume 59, Number 94 (Tuesday, May 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11973]


[[Page Unknown]]

[Federal Register: May 17, 1994]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 94-C0011]

 

PCA Apparel Industries, INC., a Corporation; Provisional 
Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Provisional Acceptance of a Settlement Agreement under the 
Flammable Fabrics Act.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Flammable Fabrics Act in the 
Federal Register in accordance with the terms of 16 CFR part 1605. 
Published below is a provisionally accepted Settlement Agreement with, 
PCA Apparel Industries, Inc., a corporation.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by June 1, 1994.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 94-C0011, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:
Eric L. Stone, Trial Attorney, Office of Compliance and Enforcement, 
Consumer Product Safety Commission, Washington, DC 20207; telephone 
(301) 504-0626.

SUPPLEMENTARY INFORMATION: See below.

    Dated: May 11, 1994.
Sheldon D. Butts,
Deputy Secretary.

Consent Order Agreement

    PCA Apparel Industries, Inc. (``PCA'' or ``Respondent'') enters 
into this Consent Order Agreement with the staff (``the staff'') of the 
Consumer Product Safety Commission (``the Commission'') pursuant to the 
procedures set forth in Sec. 1605.13 of the Commission's Procedures for 
Investigations, Inspections, and Inquiries under the Flammable Fabrics 
Act (FFA), 16 CFR 1605.
    This Agreement and Order are for the sole purpose of settling 
allegations of the staff that Respondent sold children's sleepwear that 
failed to comply with the Standard for the Flammability of Children's 
Sleepwear: Sizes 0 through 6X and Standard for the Flammability of 
Children's Sleepwear: Sizes 7 through 14, 16 CFR parts 1615 and 1616 
(``the sleepwear standards'').

Respondent and the Staff Agree

    1. The Consumer Product Safety Commission is an independent 
regulatory agency of the United States government. The Commission has 
jurisdiction over this matter under the Consumer Product Safety Act, 15 
U.S.C. 2051 et seq. (CPSA), the Flammable Fabrics Act, 15 U.S.C. 1191 
et seq. (FFA) and the Federal Trade Commission Act (15 U.S.C. 41 et 
seq. (FTCA).
    2. Respondent PCA is a corporation organized and existing under the 
laws of the State of New York with principle corporate offices at 16 
East 34th Street, New York, New York 10016.
    3. Respondent is now, and has been engaged in one of more of the 
following activities: the manufacture for sale, the sale, or the 
offering for sale, in commerce, or the importation, delivery for 
introduction, transportation in commerce, or the sale or delivery after 
sale or shipment in commerce, of children's sleepwear subject to the 
sleepwear standards.
    4. This Agreement is for the purpose of settling the allegations in 
the accompanying Complaint. This Agreement does not constitute an 
admission by Respondent that it knowingly violated the law. Nor does 
this Agreement constitute an admission by Respondent that it is paying 
a civil penalty as it is Respondent's position that it is paying the 
amount referenced in paragraph 7, hereof, to settle the Commission's 
contention that a civil penalty is appropriate. The Agreement becomes 
effective only upon its final acceptance by the Commission and service 
of the incorporated Order upon Respondent.
    5. The parties agree this Consent Order Agreement resolves the 
allegations of the Complaint and the Commission shall not initiate any 
other criminal, civil or administrative action against the firm for 
those alleged violations based on the information currently known to 
the staff.
    6. Respondent waives any rights to a formal hearing, and any 
findings of fact and conclusions of law regarding the allegations set 
forth in the Complaint. Respondent waives any right to seek judicial 
review or otherwise challenge or contest the validity of the 
Commission's Order.
    7. Respondent will pay a civil penalty in the amount of seventy-
five thousand dollars ($75,000) to the United States Treasury in three 
(3) installment payments of twenty-five thousand dollars ($25,000.00) 
each, over a 12 month period commencing within twenty (20) days after 
service of the Final Order of the Commission accepting this Consent 
Order Agreement. Respondent shall pay the second installment of 
$25,000.00 within 120 days after service of the Final Order; and the 
third and final installment of $25,000.00 within 365 days after service 
of the Final Order.
    8. The Commission may disclose the terms of this Consent Order 
Agreement to the public consistent with section 6(b) of the CPSA.
    9. This Agreement and the Complaint accompanying the Agreement may 
be used in interpreting the Order. Agreements, understanding, 
representations or interpretations made outside of this Consent Order 
Agreement may not be used to vary or contradict its terms.
    Upon acceptance of this Agreement, the Commission shall issue the 
following Order:

Order

I.

    It is hereby ordered that Respondent, its successors and assigns, 
agents, representatives, and employees, directly or through any 
corporation, subsidiary, division, or other business entity, or through 
any agency, device or instrumentality, do forthwith cease and desist 
from selling or offering for sale, in commerce, or manufacturing for 
sale, in commerce, or importing into the United States or introducing, 
delivering for introduction, transporting or causing to be transported, 
in commerce, or selling or delivering after sale or shipment in 
commerce, any item of children's sleepwear with trim that fails to 
comply with the flammability requirements with respect to trim of the 
Standard for the Flammability of Children's Sleepwear: Sizes 0 through 
6X, 16 CFR 1615.4(d)(2)(ii); or the Standard for the Flammability of 
Children's Sleepwear: Sizes 7 through 14, 16 CFR 1616.4(c)(2)(ii)

II.

    It is further ordered that Respondent shall conduct all prototype 
testing, and maintain all records for sleepwear with trim required by 
the Standard for the Flammability of Children's Sleepwear: Sizes 0 
through 6X, 16 CFR 1615.31(e)(iii); and the Standard for the 
Flammability of Children's Sleepwear: Sizes 7 through 14, 16 CFR 
1616.31(d)(iii).

III.

    It is further ordered that Respondent pay to the United States 
Treasury a civil penalty of $75,000 in three (3) installment payment of 
twenty-five thousand dollars ($25,000.00) each, over a 12 month period 
commencing within twenty (20) days after service upon Respondent of the 
Final Order in this matter. Respondent shall pay the second installment 
of $25,000.00 within 120 days after service of the Final Order; and the 
third and final installment of $25,000.00 within 365 days after service 
of the Final Order.

IV.

    It is further ordered that for a period of three years following 
the service upon Respondent of the Final Order in this matter, 
Respondent notify the Commission within 30 days following the 
consummation of the sale of a majority of its stock or following a 
change in any of its corporate officers responsible for compliance with 
the terms of this Consent Agreement and Order.

    Dated: March 16, 1994.
Marvin J. Sandberg,
Vice President, Finance, on behalf of PCA Apparel Industries, Inc., 16 
East 34th Street, New York, NY 10016.

    Dated: March 30, 1994.
Eric L. Stone,
Trial Attorney, Division of Administrative Litigation.
Alan H. Schoem,
Director, Division of Administrative Litigation.
David Schmeltzer,
Assistant Executive Director, Office of Compliance and Enforcement, 
Consumer Product Safety Commission, Washington, DC 20207.

    By direction of the Commission, this Consent Order Agreement is 
provisionally accepted pursuant to 16 CFR 1605.13, and shall be placed 
on the public record, and the Secretary is directed to publish the 
provisional acceptance of the Consent Order Agreement in the 
Commission's Public Calendar and in the Federal Register.
    So ordered by the Commission, this 11th day of May, 1994.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 94-11973 Filed 5-16-94; 8:45 am]
BILLING CODE 6355-01-M