[Federal Register Volume 64, Number 51 (Wednesday, March 17, 1999)]
[Notices]
[Pages 13174-13176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6398]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 99-C0005]


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

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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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 
Nordstrom, Inc., a corporation, containing a civil penalty of $150,000.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by April 1, 1999.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 99-C0005, 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, 1346.

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

    Dated: March 11, 1999.
Sadye E. Dunn,
Secretary.

Settlement Agreement and Order

    1. This Settlement Agreement and Order, entered into between 
Nordstrom, Inc., (hereinafter, ``Nordstrom'' or ``Respondent''), a 
corporation, and the staff of the Consumer Product Safety Commission 
(hereinafter, ``staff ''), pursuant to the procedures set forth in 16 
CFR 1118.20, is a compromise resolution of the matter described herein, 
without a hearing or a determination of issues of law and fact.

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. 2053.
    3. Respondent Nordstrom is a corporation organized and existing 
under the laws of the State Washington with principal corporate offices 
located in Seattle, WA. Respondent is a fashion specialty retailer 
selling a wide selection of apparel, shores, and accessories of women, 
men, and children.

II Allegations of the Staff

A. Children's Robes
    4. In 1996, Respondent sold, or offered for sale, in commerce, 
approximately 900 style no. G26 100% cotton girls' terry cloth robes.
    5s. On or about April 12, 1996, the Commission staff collected from 
a Nordstrom store in King of Prussia, PA, samples of 100% girls' terry 
cloth robes, style no. G26. The staff found the robes displayed for 
sale in the children's sleepwear section of the store.
    6. Children's sleepwear means any product of wearing apparel sizes 
7 through 14, such as robes intended to be worn primary for sleeping or 
activities relating to sleeping. Given the design and length of the 
robes identified above, they are suitable for use for activities 
related to sleeping. Accordingly, the robes identified above are items 
of children's sleepwear and, therefore, subject to the Standard for the 
Flammability of Children's sleepwear, (hereinafter, ``Sleepwear 
Standard''), 16 CFR part 1616, issued under Section 4 of the FFA, 15 
U.S.C. 1193.
    7. The staff tested samples of the robes identified in paragraphs 4 
and 5 above for compliance with the requirements of the Sleepwear 
Standard. See 16 CFR 1616.3 and .4. The test results showed that the 
robes violated the requirements of the Sleepwear Standard.
    8. On or about June 11, 1996, the staff informed Respondent that 
the robes identified in paragraphs 4 and 5 above failed to comply with 
the Sleepwear Standard and requested that it cease sale of the robes 
and correct future production.
    9. Respondent knowingly sold, or offered for sale, in commerce, the 
robes identified in paragraphs 4 and 5 above, as the term ``knowingly'' 
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).
B. Chenille Sweaters
    10. In 1996, Respondent sold, or offered for sale, in commerce, 
approximately 8,900 style no. 3L89235P women's 90% rayon/10% nylon 
chenille sweaters.

[[Page 13175]]

    11. On or about October 21, 1996, the staff collected from a 
Nordstrom store, in Bethesda, MD, samples of women's 90% rayon/10% 
chenille sweaters, style no. 3L89235P.
    12. The sweaters identified in paragraphs 10 and 11 above are 
subject to the Clothing Standard for the Flammability of Clothing 
Textiles (hereinafter, ``Wearing Apparel Standard''), 16 CFR Part 1610, 
issued under section 4 of the FFA, 15 U.S.C. 1193.
    13. The staff tested samples of the sweaters identified in 
paragraphs 10 and 11 above for compliance with the requirements of the 
Wearing Apparel Standard. See 16 CFR 1610.3 and .4. The test results 
showed that the sweaters violated the requirements of the Wearing 
Apparel Standard and, therefore, were dangerously flammable and 
unsuitable for clothing because of their rapid and intense burning.
    14. On or about November 1, 1996, the staff informed Respondent 
that the sweaters identified in paragraphs 10 and 11 above failed to 
comply with the Wearing Apparel Standard and requested that it cease 
sale of the sweaters and conduct a consumer level recall.
    15. Respondent knowingly sold, or offered for sale, in commerce, 
the sweaters identified in paragraphs 10 and 11 above, as the term 
``knowingly'' 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).

III. Response of Nordstrom

    16. Respondent denies the allegations of the staff set forth in 
paragraphs 4 through 15 above. Respondent Nordstrom specifically denies 
that the children's robes were subject to the Sleepwear Standard. 
Respondent Nordstrom also specifically denies that it knowingly sold or 
offered for sale the chenille sweaters described in paragraphs 10 and 
11 above in violation of the requirements of the Wearing Apparel 
Standard.
    17. Nordstrom purchased the robes identified in paragraphs 4 and 5 
and the chenille sweaters identified in paragraphs 10 and 11 subject to 
a provision contained in Nordstrom's Purchase Order by which the vendor 
warranted and represented that such robes and chenille sweaters comply 
with all applicable governmental regulations, including expressly, the 
Flammable Fabrics Act and the Consumer Product Safety Act.
    18. Respondent Nordstrom intended that the robes described in 
paragraphs 4 and 5 above be sold as beach cover-ups. The labels 
specifically noted that the cover-ups were not to be used as sleepwear. 
The robes did not constitute sleepwear as the term ``sleepwear'' is 
defined in 16 CFR 1616.2(a) and, therefore, were not subject to the 
Sleepwear Standard at 16 CFR Part 1616. Nevertheless, Nordstrom 
complied with the staff's request that the robes be further modified.
    19. Upon notification by the Commission that the chenille sweaters 
described in paragraphs 10 and 11 above did not meet the requirements 
of the Wearing Apparel Standard, Respondent Nordstrom immediately 
ceased all sales of the garment, as well as those garments not 
identified by the Commission but which were composed of the same fiber 
content.
    20. When notified by the Commission, Respondent Nordstrom promptly 
and diligently assisted the Commission staff in its efforts to 
implement recall of the sweaters described in paragraphs 10 and 11 
above.
    21. Respondent Nordstrom has received no reports of consumer injury 
resulting from the use of the robes described in paragraphs 4 and 5 
above or from use of the sweaters described in paragraphs 10 and 11 
above.

IV. Agreement of the Parties

    22. The Commission has jurisdiction over Respondent and the subject 
mater of this Settlement Agreement and Order 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.
    23. 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 
Sleepwear and Wearing Apparel Standards.
    24. 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.
    25. Upon final acceptance of this Settlement Agreement by the 
Commission and issuance of the Final Order, Nordstrom 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 Nordstrom failed to comply with the FFA and the Sleepwear and 
Wearing Apparel Standards 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.
    26. In settlement of the staff's allegations, Nordstrom agrees to 
pay a civil penalty of $150,000.00 as set forth in the incorporated 
Order.
    27. For purposes of section 6(b) of the CPSA, 15 U.S.C 2055(b), 
this matter shall be treated as if a complaint had issued, and the 
Commission may publicize the terms of the Settlement Agreement and 
Order.
    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.
    30. Agreements, understandings, representations, or interpretations 
made outside this Settlement Agreement and Order may not be used to 
vary or contradict its terms.
    31. The provisions of this Settlement Agreement and Order shall 
apply to Nordstrom and each of its successors and assigns.

    Dated: January 20, 1999.
Erik B. Nordstrom,
Co-President Nordstrom, Inc., 1617 Sixth Avenue, Seattle, Washington 
98101.

Respondent Nordstrom, Inc.

    Dated: January 20, 1999.
D. Wayne Gittinger, Esq.,
Lane Powell Spears Lubersky LLP, 1420 Fifth Avenue, Suite 4100, 
Seattle, Washington 98101-2338.

Commission Staff

Alan H. Schoem,
Assistant Executive Director, Office of Compliance, Consumer Products 
Safety Commission, Washington, DC 20207-0001.


[[Page 13176]]


Eric L. Stone,
Director, Legal Division, Office of Compliance.

    Dated: January 21, 1999.
Dennis C. Kacoyanis,
Trial Attorney.
Ronald G. Yelenik,
Trial Attorney, Legal Division, Office of Compliance.

Order

    Upon consideration of the Settlement Agreement entered into between 
Respondent Nordstrom, 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 one hundred fifty thousand dollars ($150,000.00) 
within twenty (20) days after service upon Respondent of the Final 
Order.

    Provisionally accepted and Provisional Order issued on the 11th 
day of March, 1999.

    By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 99-6398 Filed 3-16-99; 8:45 am]
BILLING 6355-01-M