[Federal Register Volume 62, Number 220 (Friday, November 14, 1997)]
[Notices]
[Pages 61095-61097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30038]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 98-C0002]


Ross Stores, Inc., a Corporation; Provisional Acceptance of a 
Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Provision 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 
Ross, Inc., a corporation, ``containing a civil penalty of $200,000.''

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 November 29, 1997.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 98-C0002, Office of the 
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.

FOR FURTHER INFORMATION CONTACT:
Dennis C. Kacoyanis, Trial Attorney, Office of Compliance and 
Enforcement, Consumer Product Safety Commission, Washington, D.C. 
20207; telephone (301) 504-0626.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: November 10, 1997.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. Ross Stores, Inc., (hereinafter, ``Ross Stores'' or 
``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 women's 100% rayon sheer chiffon skirts and scarves 
and certain cotton/polyester reverse fleece shirts 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 U.S.C. 
Sec. 1192.

I. The Parties

    2. The ``staff'' is the staff of the Consumer Product Safety 
Commission (hereinafter, ``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. 
Sec. 2053.
    3. Respondent Ross Stores is a corporation organized and existing 
under the laws of the State of Delaware with principal corporate 
offices at 8333 Central Avenue, Newark, California 94560. Respondent 
operates a chain of off-price retail stores offering apparel and 
apparel-related merchandise as well a merchandise for the home.

II. Allegations of the Staff

A. Rayon Sheer Chiffon Skirts

    4. Between April 1994 and August 1994, Respondent sold, or offered 
for sale, in commerce, approximately 1,500 style no. 15016 and 
approximately 1,200 style no. PS 480 women's 100% sheer chiffon rayon 
skirts.
    5. The skirts identified in paragraph 4 above are subject to the 
Clothing Standard, 16 CFR 1610, issued under section 4 of the FFA, 15 
U.S.C. Sec. 1193.
    6. The staff tested samples 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 test results showed that

[[Page 61096]]

the skirts violated the requirements of the Clothing Standard and, 
therefore, were dangerously flammable and unsuitable for clothing 
because of rapid and intense burning.
    7. On August 6, 1994, the staff informed Respondent that the skirts 
identified in paragraph 4 above failed to comply with the Clothing 
Standard and requested that it review its entire product line for other 
potential violations.
    8. Respondent knowingly sold, or offered for sale, in commerce, the 
skirts identified in paragraph 4 above, as the term ``knowingly'' is 
defined in section 5(e)(4) of the FFA, 15 U.S.C. Sec. 1194(e)(4), in 
violation of section 3 of the FFA, 15 U.S.C. Sec. 1192, for which a 
civil penalty may be imposed pursuant to section 5(e)(1) of the FFA, 15 
U.S.C. Sec. 1194(e)(1).

B. Rayon Scarves

    9. Between August 1994 and September 1995, Respondent sold, or 
offered for sale, in commerce, approximately 16,000 rayon scarves.
    10. The scarves identified in paragraph 9 above are subject to the 
Clothing Standard, 16 CFR 1610, issued under section 4 of the FFA, 15 
U.S.C. Sec. 1193.
    11. The staff tested samples of the scarves identified in paragraph 
9 above for compliance with the requirements of the Clothing Standard. 
See 16 CFR 1610.3 and .4. The test results showed that the scarves 
violated the requirements of the Clothing Standard, and, therefore, 
were dangerously flammable and unsuitable for clothing because of rapid 
and intense burning.
    12. Respondent knowingly sold, or offered for sale, in commerce, 
the scarves identified in paragraph 9 above, as the term ``knowingly'' 
is defined in section 5(e)(4) of the FFA, 15 U.S.C. Sec. 1194(e)(4), in 
violation of section 3 of the FFA, 15 U.S.C. Sec. 1192, for which a 
civil penalty may be imposed pursuant to section 5(e)(1) of the FFA, 15 
U.S.C. Sec. 1194(e)(1).

C. Reverse Fleece Shirts

    13. Between August 1996 and April 1997, Respondent sold, or offered 
for sale, in commerce, approximately 28,000 style no. 853020, 
approximately 400 style no. 11261217, and approximately 1,300 style no. 
1266/2216 cotton/polyester reverse fleece shirts.
    14. The reverse fleece shirts identified in paragraph 13 above are 
subject to the Clothing Standard, 16 CFR 1610, issued under section 4 
of the FFA, 15 U.S.C. Sec. 1193.
    15. The staff tested samples of the reverse fleece shirts 
identified in paragraph 13 above for compliance with the requirements 
of the Clothing Standard. See 16 CFR 1610.3 and .4. The test results 
showed that the fleece wear violated the requirements of the Clothing 
Standard and, therefore, were dangerously flammable and unsuitable for 
clothing because of rapid and intense burning.
    16. On January 8, 1997, April 8, 1997, and April 11, 1997, the 
staff informed Respondent that the reverse fleece shirts identified in 
paragraph 13 above failed to comply with the Clothing Standard.
    17. Respondent knowingly sold, or offered for sale, in commerce, 
the reverse fleece shirts identified in paragraph 13 above, as the term 
``knowingly'' is defined in section 5(e)(4) of the FFA, 15 U.S.C. 
Sec. 1194(e)(4), in violation of section 3 of the FFA 15 U.S.C. 
Sec. 1192, for which a civil penalty may be imposed pursuant to section 
5(e)(1) of the FFA, 15 U.S.C. Sec. 1194(e)(1).

III. Response of Ross Stores

    18. Ross Stores denies the allegations of the staff set forth in 
paragraphs 4 through 17 above, and in particular, that it knowingly 
sold, or offered for sale, in commerce, the violative skirts, scarves, 
and reverse fleece shirts identified in paragraphs 4, 9, and 13 above, 
in violation of section 3 of the FFA, 15 U.S.C Sec. 1192.
    19. Respondent states that it ordered the skirts, scarves, and 
reverse fleece shirts identified in paragraphs 4, 9, and 13 above from 
reliable vendors who purported to sell to Respondent skirts, scarves, 
and reverse fleece shirts that complied with all laws, including the 
Flammable Fabrics Act and the Clothing Standard.
    20. Any payment referenced in the attached Order is proffered 
solely in compromise of the staff's allegations and shall not be 
construed as an admission of any liability for a civil penalty or 
otherwise.
    21. Respondent participated with the Commission in voluntary 
recalls of the skirts on August 12, 1994, the scarves on September 6, 
1995, and the reverse fleece shirts on February 28, 1997 and April 8, 
1997.
    22. Further, Respondent has received no reports of incidents or 
injuries from the use of any products enumerated in paragraphs 4, 9, 
and 13.

IV. Agreement of the Parties

    23. The Commission has jurisdiction over Ross Stores and the 
subject matter of this Settlement Agreement and Order under the 
Consumer Product Safety Act, 15 U.S.C. Sec. 2051 et seq.; the Flammable 
Fabrics Act (FFA), 15 U.S.C. Sec. 1191 et seq.; and the Federal Trade 
Commission Act (FTCA), 15 U.S.C. Sec. 41 et seq.
    24. 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. By entering into this Agreement, Respondent makes no 
admission, and the Commission makes no finding, of any fault, liability 
or statutory violation. This Agreement becomes effective only upon its 
final acceptance by the Commission and service of the incorporated 
Order upon Respondent.
    25. 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 20th day after the date it is published in the Federal Register.
    26. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, Ross Stores knowingly, 
voluntarily, and completely waives any rights if 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 Ross Stores 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.
    27. 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 other civil, administrative or 
criminal action against the Respondent, its stockholders, officers, 
directors, employees, agents, successors, and assigns with respect to 
those alleged violations.
    28. Upon final acceptance by the Commission of this Settlement 
Agreement and Order, the Commission shall issue the attached Order 
incorporated herein by reference.
    29. A violation of the attached Order shall subject Respondent to 
appropriate legal action.

[[Page 61097]]

    30. The Commission may disclose the terms of this Settlement 
Agreement and Order to the public consistent with section 6(b) of the 
CPSA, 15 U.S.C. Sec. 2055(b).
    31. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or contradict its terms.
    32. The provisions of the Settlement Agreement and Order shall 
apply to Ross Stores and each of its successors, assigns, agents, 
representatives, and employees, directly or through any corporation, 
subsidiary, division, or other business entity, or through any agency, 
device, or instrumentality.

    Dated: September 30, 1997.

Respondent Ross Stores, Inc.
Michael Balmuth,
Vice Chairman and Chief Executive Officer, Ross Stores, Inc., 8333 
Central Avenue, Newark, CA 94560.

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, D.C. 20207-0001.

    Dated: October 02, 1997.
Dennis C. Kacoyanis, Trail Attorney, Ronald G. Yelenik, Trial Attorney, 
Division of Administrative Litigation, Office of Compliance.

Order

    Upon consideration of the Settlement Agreement entered into between 
Respondent Ross Stores, Inc., (hereinafter, ``Ross Stores'' or 
``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 Two Hundred Thousand Dollars ($200,000.00) within 
twenty (2) days after service upon Respondent of the Final Order.

    Provisionally accepted and Provisional Order issued on the 10th 
day of November 1997.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 97-30038 Filed 11-13-97; 8:45 am]
BILLING CODE 6355-01-M