[Federal Register Volume 66, Number 164 (Thursday, August 23, 2001)]
[Notices]
[Pages 44334-44336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21214]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 01-C0010]


Mast Industries, Inc., (A wholly Owned Subsidiary of The Limited, 
Inc.) and the Limited, 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 Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR 1118.20. 
Published below is a provisionally-accepted Settlement Agreement with 
Mast Industries, Inc., (A wholly owned subsidiary of The Limited, Inc.) 
and The Limited, Inc., a corporation containing a civil penalty of 
$500,000.

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 September 7, 2001.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 01-C0010, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT: Melissa V. Hampshire, Trial Attorney, 
Office of the General Counsel, Consumer Product Safety Commission, 
Washington, DC 20207; telephone (301) 504-0980, 2208.

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

    Dated: August 16, 2001.
Todd A. Stevenson,
Acting Secretary.

Settlement Agreement and Order

    1. This Settlement Agreement, made by and between the staff of the 
U.S. Consumer Product Safety Commission (``the staff'') and Mast 
Industries, Inc. (hereinafter ``Mast'') and The Limited, Inc. 
(hereinafter ``The Limited''), any of their subsidiary or affiliated 
companies in accordance with 16 CFR 1605.13 of the Commission's 
Procedures for Investigations, Inspections, and Inquiries under the 
Flammable Fabrics Act (``FFA''), is a settlement of the staff 
allegations set forth below.

I. The Parties

    2. The Consumer Product Safety Commission (``Commission'') is an 
independent federal regulatory agency responsible for the enforcement 
of the Flammable Fabrics Act, 15 U.S.C. 1191 et seq.
    3. Mast Industries, Inc. is a corporation organized and existing 
under the laws of the State of Delaware with its principal place of 
business 100 Old River Road, Andover Massachusetts, 01810. Mast is a 
wholly owned subsidiary of The Limited, Inc.
    4. The Limited, Inc. is a corporation organized and existing under 
the laws of the State of Delaware with its principal corporate offices 
at Three Limited Parkway, Columbus Ohio, 43216.

II. Staff Allegations

    5. The following children's sleepwear imported and distributed by 
Mast and

[[Page 44335]]

The Limited are the subject of this agreement;
    a. Girl's 100 percent polyester pajama sets with a satin finish in 
sizes 6 through 14. The pajamas were two-piece pullover or front-button 
styles with sleeveless, short or long sleeved tops and bottoms, 
available in a variety of colors or patterns. The pajamas were labeled 
``made in Hong Kong,'' ``Macau,'' or ``Ski Lanka.'' Limited Too stores 
sold the pajamas nationwide from December 1995 through July 1998 for 
$15-39.
    b. Girl's sizes 7-14, 100 percent polyester fleece robes in violet, 
teal and plaid colors. The robes had shawl collars and a tie belt and 
were labeled ``Limited Too'' * * * ``100% Polyester'' * * * ``Made in 
Sri Lanka.'' Limited Too stores nationwide sold the robes from 
September 1998 through December 1998 for between $60 and $64.
    6. Beginning in 1996, Mast imported, and The Limited distributed 
and/or sold through their then retail stores known as Limited Too, into 
United States commerce approximately 432,120 children's polyester 
pajama sets, described in paragraph 5a above.
    7. The children's pajama sets, described in paragraph 5a above, are 
subject to the Standards for the Flammability of Children's Sleepwear 
(``Sleepwear Standards''), 16 CFR Parts 1615 and 1616, issued under 
section 4 of the FFA, 15 U.S.C. 1193. The Commission tested, in July 
1998, a sample of the pajama sets, and determined that they failed to 
comply with the Sleepwear Standards. The pajama sets were not flame-
resistant and therefore unsuitable for use as children's sleepwear.
    8. The Commission's subsequent investigation into the parties 
importation and distribution of the pajama sets showed that they did 
not test the pajama sets, as required, to the Sleepwear Standards.
    9. Beginning in August 1998, Mast imported, and The Limited 
distributed and/or sold into United States commerce through their then 
Limited Too retail stores approximately 17,600 children's polyester 
fleece robes described in paragraph 5b above.
    10. The Commission tested, in November 1998, samples of the robes, 
described in paragraph 5b above, for compliance with the requirements 
of the Sleepwear Standards. Testing determined that the robes, 
described in paragraph 5b above, failed to comply with the Sleepwear 
Standards and were not flame-resistant and therefore unsuitable for use 
as children's sleepwear.
    11. Mast and The Limited knowingly imported, offered for sale and 
sold in commerce the children's sleepwear identified in paragraphs 5-10 
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 hte FFA, 15 
U.S.C. 1194(e)(1).

III. Response of The Limited Companies

    12. Mast and The Limited deny the allegations set forth in 
paragraphs 5 through 11 above that they knowingly imported and offered 
for sale or sold in commerce the sleepwear identified in paragraphs 5-
10 above in violation of section 3 of the FFA, 15 U.S.C. 1192. Mast 
tested the robes identified in paragraph 5b to the Sleepwear Standards. 
When the instances identified in paragraphs 5-11 became known to Mast 
and The Limited, they promptly and diligently cooperated with the 
Commission and voluntarily recalled the sleepwear that had sold and 
removed the remaining inventory from sale.
    13. Mast and The Limited enter this Settlement Agreement and Order 
for settlement and compromise purposes only, to avoid incurring 
additional legal costs and expenses.
    14. The parties have not received any reports of consumer injury 
related in any way to the specific sleepwear (pajama sets and robes) 
listed above.

IV. Agreement of the Parties

    15. The Commission has jurisdiction over this matter and over Mast 
and The Limited under 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., and the Consumer Product Safety Act (CPSA), 15 U.S.C. 2051 et. 
seq.
    16. Mast and The Limited knowingly, voluntarily and completely 
waive any rights they may have in the above captioned case (1) to the 
issuance of a Complaint in this matter; (2) to an administrative or 
judicial hearing with respect to the staff allegations cited herein; 
(3) to judicial review or other challenge or contest of the validity of 
the Commission's Order; (4) to a determination by the Commission as to 
whether Mast and The Limited failed to comply with the FFA as alledged; 
(5) to a statement of findings of fact and conclusions of law with 
regard to the staff allegations; and (6) to any claims under the Equal 
Access to Justice Act.
    17. 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 16 CFR 1118.20.
    18. The Settlement Agreement and Order becomes effective upon final 
acceptance by the Commission and its service upon Mast and The Limited. 
Mast and/or The Limited shall pay a civil penalty in the amount of five 
hundred thousand dollars ($500,000) to the United States Treasury, 
within 20 calendar days of receiving service of such final Settlement 
Agreement and Order.
    19. In the event of default of the payment as set forth in 
paragraph 18 above, which default continues for ten (10) calendar days 
beyond the due date of payment, Mast and The Limited agree that they 
shall pay the United States Treasury the entire amount of civil 
penalty, due and owing as well as interest on the amount owing at a 
rate computed pursuant to 28 U.S.C. 1961(a), as well as a penalty in 
the amount of five hundred dollars ($500.00) per day until full payment 
is made, calculated beginning on the first day after payment is due. In 
addition, in the event of default, Mast and The Limited agree that they 
shall raise no defense or objection to any collection action the 
Commission deems appropriate and shall pay all the costs incurred in 
such action.
    20. This Settlement Agreement and Order is entered into for the 
purposes of compromise and settlement only and does not constitute a 
determination by the Commission that Mast and The Limited knowingly 
violated the FFA. This Settlement Agreement and Order is not to be 
deemed or construed as an admission by Mast and The Limited of any 
liability or wrongdoing by them; or that they violated any law or 
regulation. Upon final acceptance of this Settlement Agreement by the 
Commission, the issuance of the Order, and the full and timely payment 
by Mast and/or The Limited to the United States Treasury a civil 
penalty in the amount of five hundred thousand dollars ($500,000), the 
Commission specifically waives its right to initiate, either by 
referral to the Department of Justice or bringing in its own name, any 
action for civil penalties against (a) Mast and/or The Limited; (b) any 
of Mast and/or The Limited shareholders, directors, officers, 
employees, agents or attorneys; and (c) any successor, heir, or assign 
of the persons described in (a), (b) or (c) for violations or alleged 
violations of the Flammable Fabrics Act with respect to the conduct 
outlined in paragraphs 5-11 of this Agreement.
    21. Upon provisional acceptance of the Commission, the parties 
agree that the Commission may publicize the

[[Page 44336]]

terms of the Settlement Agreement and Order.
    22. Mast and The Limited agree to the entry of the attached Order, 
which is incorporated herein by reference, and agree to be bound by its 
terms.
    23. The Commission's Order in this matter is issued under the 
provisions of the FFA, 15 U.S.C. 1191 et seq., and a violation of this 
Order may subject Mast and The Limited to appropriate legal action.
    24. This Settlement Agreement and Order is binding upon Mast and 
The Limited and their assigns or successors.
    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 existence of a dispute shall not excuse, toll, or suspend 
any obligation or deadline imposed upon Mast and The Limited under this 
Settlement Agreement and Order.
    27. This Settlement Agreement and Order shall not be waived, 
changed, amended, modified, or otherwise altered, except in writing 
executed by the party or parties against whom such waiver, change, 
amendment, modification, or alteration is sought to be enforced, and 
approved by the Commission.

Mast Industries, Inc.

Dated: August 9, 2001.

Cathlean Morrison,
Executive Vice President and Chief Administrative Officer.

The Limited, Inc.

Dated: August 8, 2001.

Douglas Williams,
Vice President and Senior Counsel.

Georgia C. Ravitze, Esq.
Scott A. Cohn, Esq.,
Arent, Fox, Kintner, Plotkin & Kahn, PLLC, 1050 Connecticut Ave., 
NW., Washington, DC 20036-5339.

U.S. Consumer Product Safety Commission Staff

Michael S. Solender, General Counsel
Alan Shakin, Assistant General Counsel

Dated: August 9, 2001.

Melissa V. Hampshire,
Attorney, Enforcement and Information Division, Office of The 
General Counsel.

Order

    Upon consideration of the Settlement Agreement entered into between 
the staff of the U.S. Consumer Product Safety Commission (``the 
staff'') and Mast Industries, Inc. (``Mast'') and The Limited, Inc. 
(``The Limited'') and any of their subsidiary or affiliated companies; 
and the Commission having jurisdiction over the subject matter and The 
Limited and Mast; 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 provisionally accepted and
    It is further ordered, that upon final acceptance of the Settlement 
Agreement and issuance of the Final Order, that Mast and/or The Limited 
shall pay to the United States Treasury a civil penalty of five hundred 
thousand dollars ($500,000) within twenty (202) calendar days after 
service upon Mast and The Limited of a copy of the Final Order.
    By direction of the Commission, this Settlement Agreement is 
provisionally accepted pursuant to 16 CFR 1605.13(d) and shall be 
placed in the public record, and the Commission shall announce the 
provisional acceptance of the Settlement Agreement in the Commission's 
Public Calendar and in the Federal Register.

    Provisionally accepted and Provisional Order issued on the 16th 
day of August 2001.

    By order of the Commission.
Todd A. Stevenson,
Acting Secretary, Consumer Product Safety Commission
[FR Doc. 01-21214 Filed 8-22-01; 8:45 am]
BILLING CODE 6355-01-M