[Federal Register Volume 62, Number 135 (Tuesday, July 15, 1997)]
[Notices]
[Pages 37888-37890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18574]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 97-C0008]


Dots, 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 
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(d). 
Published below is a provisionally-accepted Settlement Agreement with 
Dots, 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 July 30, 1997.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 97-C0008, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, 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: July 8, 1997.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. Dots. Inc. (hereinafter, ``Respondent''), a corporation enters 
into this Settlement Agreement (hereinafter, ``Agreement'') with the 
staff of the Consumer Product Safety Commission, and agrees to the 
entry of the Order incorporated herein. The purpose of this Agreement 
and Order is to settle the staff's allegations that Respondent sold and 
offered for sale, in commerce, certain 100% rayon sheer skirts and 100% 
reverse fleece cotton sweatshirts that failed to comply with the 
Clothing Standard for the Flammability of Clothing Textiles 
(hereinafter, ``Clothing Standard''), 16 CFR part 1610, in violation of 
section 3 of the Flammable Fabrics Act (FFA), 15

[[Page 37889]]

U.S.C. 1192. The Respondent enters into this Agreement and Order for 
settlement purposes only and denies each and every allegation asserted 
by the staff of the Consumer Product Safety Commission.

I. The Parties

    2. The ``staff'' is the staff of the Consumer Product Safety 
Commission (Thereinafter, ``Commission''), an independent regulatory 
commission of the United States Government established pursuant to 
section 4 of the Consumer Product Safety Act (CPSA), 15 U.S.C. 2053.
    3. Respondent Dots, Inc. is a corporation organized and existing 
under the laws of the State of Ohio with principal corporate offices at 
30801 Carter Street, Solon, OH 44139.

II. Allegations of the Staff

A. Rayon Sheer Skirts
    4. Between April 1994 and August 1994, Respondent sold, or offered 
for sale, in commerce, 4,788 100% sheer rayon skirts.
    5. The skirts identified in paragraph 4 above are subject to the 
Clothing Standard, 16 CFR Part 1610, issued under section 4 of the FFA, 
15 U.S.C. 1193.
    6. The staff tested one of the skirts identified in paragraph 4 
above for compliance with the requirements of the Clothing Standard. 
See 16 CFR 1610.3 and .4. The tested skirt violated the requirements of 
the Clothing Standard.
    7. Respondent knowingly sold or offered for sale in commerce, the 
skirts identified in paragraph 4 above, as the term is defined in 
section 5(e)(4) of the FFA, 15 U.S.C. 1194(e)(4), in violation of 
section 3 of the FFA, 15 U.S.C. 1192, for which a civil penalty may be 
imposed pursuant to section 5(e)(1) of the FFA, 15 U.S.C. 1194(e)(1).
    8. On August 5, 1994, the staff informed Respondent that the skirts 
identified in paragraph 4 above failed to comply with the Clothing 
Standard and requested it to review its entire product line for other 
potential violations.
B. Reverse Fleece Cotton Sweatshirts
    9. Between July 1995 and February 1996, Respondent sold, or offered 
for sale, in commerce, 29,107 reverse fleece 100% cotton sweatshirts.
    10. The sweatshirts identified in paragraph 9 above are subject to 
the Clothing Standard, 16 CFR Part 1610, issued under section 4 of the 
FFA, 15 U.S.C. 1193.
    11. The staff tested one of the sweatshirts identified in paragraph 
9 above for compliance with the requirements of the Clothing Standard. 
See 16 CFR 1610.3 and .4. The tested sweatshirt violated the 
requirements of the Clothing Standard.
    12. Respondent knowingly sold, or offered for sale, in commerce, 
the sweatshirts identified in paragraph 9 above, as the term is defined 
in section 5(e)(4) of the FFA, 15 U.S.C. 1194(e)(4), in violation of 
section 3 of the FFA, 15 U.S.C. 1192, for which a civil penalty may be 
imposed pursuant to section 5(e)(1) of the FFA, 15 U.S.C. 1194(e)(1).
    13. On January 29, 1996, the staff informed Respondent that the 
sweatshirts identified in paragraph 9 above failed to comply with the 
Clothing Standard and requested it to review its entire product line 
for other potential violations.

III. Response of Respondent

    14. Respondent specifically denies the allegations of the staff set 
forth in paragraphs 4 through 13 above that it knowingly sold, or 
offered for sale, in commerce, 100% rayon skirts and reverse fleece 
100% cotton sweatshirts that did not meet the requirements of the FFA 
and the Clothing Standard.
    15. Respondent states that it ordered the 100% rayon skirts and 
reverse fleece 100% cotton sweatshirts identified in paragraphs 4 and 9 
above from reliable vendors who purported to sell to Respondent rayon 
skirts and reverse fleece cotton sweatshirts that complied with all 
laws, including the Flammable Fabrics Act and the Clothing Standard.
    16. Further, Respondent makes no admission of any fault, liability, 
or statutory violation, nor does this Agreement constitute an admission 
that a civil penalty is appropriate or that the money referenced in the 
accompanying Order constitutes a civil penalty. Any payment referenced 
in the attached Order is solely to settle the staff's contention that a 
civil penalty is appropriate.

IV. Agreement of the Parties

    17. The Commission has jurisdiction over Respondent and the subject 
matter of this Settlement Agreement and Order under the Consumer 
Product Safety Act, 15 U.S.C. 2051 et seq.; the Flammable Fabrics Act 
(FFA), 15 U.S. C. 1191 et seq.; and the Federal Trade Commission Act 
(FTCA), 15 U.S.C. 41 et seq.
    18. This Agreement is entered into for settlement purposes only and 
does not constitute an admission by Respondent or a determination by 
the Commission that Respondent knowingly violated the FFA and the 
Clothing Standard. This Agreement becomes effective only upon its final 
acceptance by the Commission and service of the incorporated Order upon 
Respondent.
    19. Upon provisional acceptance of this Settlement Agreement and 
Order by the Commission, this Settlement Agreement and Order shall be 
placed on the public record and shall be published in the Federal 
Register in accordance with the procedures set forth in 16 CFR 
1605.13(d). If the Commission does not receive any written request not 
to accept the Settlement Agreement and Order within 15 days, the 
Settlement Agreement and Order will be deemed to be finally accepted on 
the 16th day after the date it is published in the Federal Register.
    20. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, Respondent knowingly, 
voluntarily, and completely waives any rights it may have in this 
matter (1) to an administrative or judicial hearing, (2) to judicial 
review or other challenge or contest of the validity of the 
Commission's actions, (3) to a determination by the Commission as to 
whether Respondent failed to comply with the FFA and the Clothing 
Standard as aforesaid, (4) to a statement of findings of facts and 
conclusions of law, and (5) to any claims under the Equal Access to 
Justice Act.
    21. The parties agree that this Settlement Agreement and Order 
resolve the allegations herein and upon final acceptance of this 
Settlement Agreement by the Commission and issuance of the Final Order, 
the Commission specifically waives its right to initiate any civil, 
administrative, or criminal action against the Respondent, its 
shareholders, officers, directors, employees, agents, successors, and 
assigns with respect to those alleged violations.
    22. Upon final acceptance by the Commission of this Settlement 
Agreement and Order, the Commission shall issue the attached Order 
incorporated herein by reference.
    23. A violation of the attached Order shall subject Respondent to 
appropriate legal action.
    24. The Commission may disclose the terms of this Consent Agreement 
to the public consistent with section 6(b) of the CPSA, 15 U.S.C. 
2055(b).
    25. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or contradict its terms.
    26. The provisions of the Settlement Agreement and Order shall 
apply to Respondent and each of its successors, assigns, agents, 
representatives, and employees, directly or through any

[[Page 37890]]

corporation, subsidiary, division, or other business entity, or through 
any agency, device, or instrumentality.

    Dated: May 16, 1997.

Respondent DOTS, Inc.

Robert Glick,
President, Dots, Inc., 30801 Carter Street, Solon, OH 44139.

Commission Staff

Eric L. Stone,
Director, Division of Administrative Litigation, Office of Compliance.
David Schmeltzer,
Assistant Executive Director, Office of Compliance, Consumer Product 
Safety Commission, Washington, DC 20207-0001.

    Dated: May 19, 1997.
Dennis C. Kacoyanis,
Trial Attorney,
Donald G. Yelenik,
Trial Attorney, Division of Administrative Litigation, Office of 
Compliance.

Order

    Upon consideration of the Settlement Agreement entered into between 
Respondent Dots, Inc. (hereinafter, ``Respondent''), a corporation, and 
the staff of the Consumer Product Safety Commission (``Commission''); 
and the Commission having jurisdiction over the subject matter and 
Respondent; and it appearing that the Settlement Agreement and Order is 
in the public interest, it is
    Ordered, that the Settlement Agreement and Order be and hereby is 
accepted, as indicated below; and it is
    Further Ordered, that Respondent pay to the United States Treasury 
a civil penalty of Fifty Thousand Dollars ($50,000.00) within twenty 
(20) days after service upon Respondent of the Final Order.

    Provisionally accepted and Provisional Order issued on the 8th 
day of July, 1997.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 97-18574 Filed 7-14-97; 8:45 am]
BILLING CODE 6355-01-M