[Federal Register Volume 60, Number 25 (Tuesday, February 7, 1995)]
[Notices]
[Pages 7170-7172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2879]



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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 95-C0007]


General Nitewear Corp., a corporation; Provisional Acceptance of 
a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Provisional acceptance of a settlement agreement under the 
Consumer Product Safety Act.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR 1605.13. 
Published below is a provisionally-accepted Settlement Agreement with 
General Nitewear Corp., 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 February 22, 1995.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 95-C0007, 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: The text of the Agreement and Order appears 
below.

    Dated: January 31, 1995.
Sadye E. Dunn,
Secretary.

Consent Order Agreement

    General Nitewear Corp. (``General Nitewear'' 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 section 
1605.13 of [[Page 7171]] 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. et seq. (FTCA).
    2. Respondent General Nitewear is a corporation organized and 
existing under the laws of the State of New York with principle 
corporate offices at 1 West 34th Street, New York, New York 10001.
    3. Respondent is now, and has been engaged in one or 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. Respondent denies it intentionally 
violated the sleepwear standard and does not admit that it knowingly 
violated the law. Moreover, this Agreement does not 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 the 
attached Order 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 and to any rights under the Equal Access to 
Justice Act, Pub. L. 96-481, 94 Stat. 2325, 5 U.S.C. 504.
    7. Respondent denies the allegations of paragraphs 1 through 6 
of the Complaint that it has knowingly violated the sleepwear 
standard provisions related to trim of the Flammable Fabrics Act, 15 
U.S.C. 1194; and further denies that it intentionally shipped non-
conforming children's sleepwear after notification from the 
Commission.
    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, understandings, 
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.

    Dated: December 23, 1994.
Eric L. Stone,
Trial Attorney, Division of Administrative Litigation.
David Schmeltzer,
Assistant Executive Director, Office of Compliance and Enforcement, 
Consumer Product Safety Commission.
    For the Commission staff.
Harold Jetter,
President & CEO, General Nitewear Corp.

Complaint

    The staff of the Consumer Product Safety Commission (``staff'') 
contends that General Nitewear Corp., a corporation 
(``Respondent''), is subject to the provisions of the Consumer 
Product Safety Act, 15 U.S.C. Secs. 2051 et seq. (CPSA); the 
Flammable Fabrics Act, 15 U.S.C. Secs. 1191 et seq. (FFA); the 
Federal Trade Commission Act (15 U.S.C. Secs. 41 et seq. (FTCA); the 
Standard for the Flammability of Children's Sleepwear: Sizes 0 
through 6X and the Standard for the Flammability of Children's 
Sleepwear: Sizes 7 through 14, 16 C.F.R. Parts 1615 and 1616 (``the 
sleepwear standards''). The staff further contends Respondent 
violated the sleepwear standards' provisions related to trim.
    Based upon the information provided to the Commission by the 
staff, the Commission determined it is in the public interest to 
issue this Complaint. Therefore, by virtue of the authority vested 
in the Commission by section 30(b) of the CPSA, 15 U.S.C. 
Sec. 2079(b); sections 3 and 5 of the FFA, 15 U.S.C. Secs. 1192 and 
1194; and section 5 of the FTCA, 15 U.S.C. Sec. 45; and in 
accordance with the Commission's Rules of Practice for Adjudicative 
Proceedings, 16 CFR Part 1025, the Commission hereby issues this 
Complaint and states the staff's charges as follows:
    1. Respondent General Nitewear Corp. is a corporation organized 
and existing under the laws of the State of New York with principal 
corporate offices at 1 West 34th Street, New York, New York 10001.
    2. Respondent is and has been engaged in one or 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.
    3. For a period of several years, Respondent manufactured and 
sold items of children's sleepwear that use a kind of trim known as 
``piping.'' Respondent used trim manufactured out of materials that 
do not comply with the flammability requirements of the sleepwear 
standards.
    4. Respondent failed to properly test the piping and other trim 
and consequently failed to maintain appropriate records of such 
testing as required by the sleepwear standards.
    5. As the result of these failures to comply with the sleepwear 
standards, Respondent manufactured for sale, sold, or offered for 
sale, in commerce, or imported, delivered for introduction, 
transported in commerce, or sold or delivered after sale or shipment 
in commerce, a significant number of garments of several different 
styles and sizes of children's sleepwear garments that failed to 
comply with the sleepwear standards.
    6. After being informed of the violations by the Commission 
staff, Respondent continued to ship sleepwear with trim that did not 
comply with the sleepwear requirements.

Relief Sought

    Wherefore, the staff requests the Commission to issue an order 
requiring Respondent to
    (a) cease and desist from the manufacture for sale, and 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 that fails to comply with the sleepwear 
standards, and further,
    (b) order Respondent to comply with the recordkeeping and 
testing requirements of the sleepwear standards.
    Wherefore, the premises considered, the Commission hereby issues 
this Complaint on the 1st day of February 1995.

    By direction of the Commission.
David Schmeltzer,
Assistant Executive Director, Office of Compliance and Enforcement.

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 Part 
1615.4(d)(2)(ii); or the Standard for the Flammability of Children's 
Sleepwear: Sizes 7 through 14, 16 CFR Part 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 
[[Page 7172]] Children's Sleepwear: Sizes 0 through 6X, 16 CFR Part 
1615.31(e)(iii); and the Standard for the Flammability of Children's 
Sleepwear: Sizes 7 through 14, 16 CFR Part 1616.31(d)(iii).

III

    It is further ordered that Respondent pay to the United States 
Treasury a civil penalty of $110,000 within 36 months of service 
upon Respondent of the Final Order. Such payment may be made in one 
lump sum payment within twenty days of service of the Final Order or 
in three installment payments of thirty-six thousand, six hundred 
and sixty-six dollars and sixty-seven cents ($36,666.67) each. If 
Respondent elects to make three payments, the first payment is due 
within twenty (20) days after service upon Respondent of the Final 
Order in this matter. Respondent shall pay the second installment 
within 24 months after service of the Final Order, and the third 
payment within 36 months after service of the Final Order. Upon the 
failure of Respondent to make any payment in a timely manner, the 
entire amount of the civil penalty shall be due and payable, and 
interest on the outstanding balance shall accrue and be paid at the 
federal legal rate of interest under the provisions of 28 U.S.C. 
1961 (a) and (b).

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.
    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 31st day of January 1995.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 95-2879 Filed 2-6-95; 8:45 am]
BILLING CODE 6355-01-M