[Federal Register Volume 63, Number 33 (Thursday, February 19, 1998)]
[Notices]
[Pages 8438-8440]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4087]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 98-C0006]


In the Matter of The Limited, 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 1605.13(d). 
Published below is a provisionally-accepted Settlement Agreement with 
The Limited, 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 March 6, 1998.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 98-C0006, Office of the 
Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.

FOR FURTHER INFORMATION CONTACT: Howard Tarnoff, 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: February 11, 1998.
Sadye E. Dunn,
Secretary.

In the Matter of The Limited, Inc, a Corporation; Settlement Agreement

    1. The Limited, Inc. and its subsidiary and/or affiliated companies 
(hereinafter, ``The Limited'' or ``Respondent'') enters

[[Page 8439]]

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. This Agreement and Order are 
for the sole purpose of settling allegations of the staff that 
respondent knowingly sold or offered for sale, in commerce, certain 
sherpa fleece tops and pants, certain cropped-look sweaters, certain 
pullover chenille sweaters, and certain peloush sweaters that failed to 
comply with the Standard for the Flammability of Clothing Textiles 
(hereinafter, ``Clothing Standard''), 16 CFR 1610.

I. The Parties

    2. The ``staff '' is the staff of the Consumer Product Safety 
Commission (hereinafter, ``Commission''), an independent regulatory 
agency of the United States government established pursuant to section 
4 of the Consumer Product Safety Act (CPSA), 15 U.S.C. 2053.
    3. Respondent The Limited is a corporation organized and existing 
under the laws of the State of Delaware with principal corporate 
offices at Three Limited Parkway, P.O. Box 16000, Columbus, OH 43216.

II. Allegations of the Staff

A. Sherpa Fleece Tops and Pants

    4. Between June 1994 and December 1994, Respondent sold or offered 
for sale, in commerce, 409 style 1760 sherpa fleece tops, 394 style 
1762 sherpa fleece tops, and 370 style 1018 sherpa fleece pants.
    5. The garments identified in paragraph 4 above are subject to the 
Clothing Standard, 16 CFR 1610, issued under section 4 of the Flammable 
Fabrics Act (FFA), 15 U.S.C. 1193.
    6. On December 9, 1994 and December 19, 1994, Respondent tested the 
garments identified in paragraph 4 above for compliance with the 
requirements of the Clothing Standard. On January 4, 1995, the staff 
tested the garments identified in paragraph 4 above for compliance with 
the requirements of the Clothing Standard. See 16 CFR Secs. 1610.3 and 
1610.4. The test results showed that the garments violated the 
requirements of the Clothing Standard and, therefore, were dangerously 
flammable and unsuitable for clothing because of rapid and intense 
burning.
    7. Respondent knowingly sold or offered for sale, in commerce, the 
garments identified in paragraph 4 above, 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).

B. Cropped-look Sweaters

    8. Between December 1994 and March 1995, Respondent sold or offered 
for sale, in commerce, 3 rayon/nylon blend cropped-look sweaters.
    9. The sweaters identified in paragraph 8 above are subject to the 
Clothing Standard, 16 CFR Sec. 1610, issued under section 4 of the FFA, 
15 U.S.C. 1193.
    10. On December 11, 1995, the importer of the sweaters identified 
in paragraph 8 tested the sweaters for compliance with the requirements 
of the Clothing Standard. The test results showed that the sweaters 
violated the requirements of the Clothing Standard, and, therefore, 
were dangerously flammable and unsuitable for clothing because of rapid 
and intense burning.
    11. Respondent knowingly sold or offered for sale, in commerce, the 
sweaters identified in paragraph 8 above, 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).

C. Pullover Chenille Sweaters

    12. In May 1996, Respondent imported 19,024 style 0124 rayon/nylon 
blend pullover chenille sweaters.
    13. Between October 14, 1996 and October 24, 1996, Respondent sold 
or offered for sale, in commerce, the sweaters identified in paragraph 
12 above.
    14. The sweaters identified in paragraph 12 above are subject to 
the Clothing Standard, 16 CFR Sec. 1610, issued under section 4 of the 
FAA, 15 U.S.C. 1193.
    15. On October 23, 1996, the staff tested the sweaters identified 
in paragraph 12 above for compliance with the requirements of the 
Clothing Standard. The test results showed that the sweaters violated 
the requirements of the Clothing Standard, and, therefore, were 
dangerously flammable and unsuitable for clothing because of rapid and 
intense burning.
    16. On November 4, 1996, the staff informed Respondent that the 
sweaters identified in paragraph 12 above failed to comply with the 
Clothing Standard and requested that The Limited review the rest of its 
product line for other potential violations.
    17. Respondent knowingly imported, sold, or offered for sale, in 
commerce, the sweaters identified in paragraph 12 above, in violation 
of section 3 of the FAA, 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).

D. Peloush Sweaters

    18. In March 1996, Respondent imported 7,000 style 4431 rayon/nylon 
blend peloush sweaters.
    19. Between March 1996 and November 1996, Respondent sold or 
offered for sale, in commerce, the sweaters identified in paragraph 18 
above.
    20. The sweaters identified in paragraph 18 above are subject to 
the Clothing Standard, CFR Sec. 1610, issued under section 4 of the 
FAA, 15 U.S.C. 1193.
    21. On November 8, 1996 and November 11, 1996, Respondent tested 
the sweaters identified in paragraph 18 above for compliance with the 
requirements of the Clothing Standard. The test results showed that the 
sweaters violated the requirements of the Clothing Standard, and, 
therefore, were dangerously flammable and unsuitable for clothing 
because of rapid and intense burning.
    22. Respondent knowingly sold or offered for sale, in commerce, the 
sweaters identified in paragraph 18 above, 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).

III. Response of The Limited

    23. The Limited denies the allegations of the staff set forth in 
paragraphs 4 through 22 above that it knowingly sold or offered for 
sale, in commerce, the garments identified in paragraph 4, 8, 12, and 
18 above, in violation of section 3 of the FFA, 15 U.S.C. 1192. When 
these allegations became known to The Limited it promptly removed the 
garments from its inventory, even in instances where the flammability 
test results were acceptable or inconclusive.

IV. Agreement of the Parties

    24. The Commission has jurisdiction over this matter under the 
Consumer Product Safety Act (CPSA), 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.
    25. 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 or the 
Clothing Standard. This Agreement becomes effective only upon its final 
acceptance by the Commission and service of the incorporated Order upon 
Respondent.

[[Page 8440]]

    26. The parties agree that this Agreement resolves the allegations 
of the staff enumerated in Section II above, and the Commission will 
not initiate any other criminal, civil, or administrative action 
against Respondent or Respondent's officers or directors for those 
alleged violations, based upon information currently known to the 
staff.
    27. Upon final acceptance of this Agreement by the Commission and 
issuance of the 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 as alleged, (4) to a statement of findings of fact 
and conclusions of law, and (5) to any claims under the Equal Access to 
Justice Act.
    28. The Commission may disclose the terms of this Agreement and 
Order to the public consistent with Section 6(b) of the CPSA, 15 U.S.C. 
2055(b).
    29. Upon provisional acceptance of this Agreement and Order by the 
Commission, this 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 this Agreement and 
Order within 15 days, this Agreement and Order shall be deemed finally 
accepted on the 20th day after the date it is published in the Federal 
Register, in accordance with 16 CFR 1605.13(e).
    30. Upon final acceptance by the Commission of this Agreement and 
Order, the Commission shall issue the attached Order, incorporated 
herein by reference. This Agreement becomes effective after service of 
the incorporated Order upon Respondent.
    31. A violation of the attached Order shall subject Respondent to 
appropriate legal action.
    32. This Agreement may be used in interpreting the incorporated 
Order, Agreements, understanding, representations, or interpretations 
made outside of this Agreement may not be used to vary or contradict 
its terms.
    33. The provisions of this Agreement and Order shall apply to 
Respondent, it successors an assigns, agents, representatives, and 
employees, directly or through any corporation, subsidiary, division, 
or other business entity, or through any agency, device or 
instrumentality.

    Dated: January 15, 1998.
Philip S. Renaud, II,
Vice President of Insurance, The Limited, Inc. Three Limited Parkway, 
Columbus, OH 43230.
    Dated: January 20, 1998.
Howard N. Tarnoff,
Trial Attorney, Division of Administrative Litigation, Office of 
Compliance.
Eric L. Stone,
Director, Division of Administrative Litigation, Office of Compliance.
Alan H. Schoem,
Assistant Executive Director, Office of Compliance U.S. Consumer 
Product Safety Commission, Washington, DC 20207.

In the Matter of The Limited, Inc. a Corporation; Order

    Upon consideration of the Settlement Agreement entered into between 
Respondent The Limited, Inc., and its subsidiary and/or affiliated 
companies, and the staff of the Consumer Product Safety 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.

I

    It is ordered That the Settlement Agreement and Order be and hereby 
is accepted.

II

    It is further ordered That Respondent pay to the United States 
Treasury a civil penalty of two hundred thousand dollars ($200,000) 
within twenty (20) days after service upon Respondent of the Final 
Order.

    Provisionally accepted and Provisional Order issued on the 11th 
day of February, 1998.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 98-4087 Filed 2-18-98; 8:45 am]
BILLING CODE 6355-01-M