[Federal Register Volume 73, Number 237 (Tuesday, December 9, 2008)]
[Notices]
[Pages 74709-74711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-28892]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 09-C0002]


Nordstrom, Inc., 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 Federal Hazardous Substances 
Act in the Federal Register in accordance with the terms of 16 CFR 
1118.20(e). Published below is a provisionally-accepted Settlement 
Agreement with Nordstrom, Inc., containing a civil penalty of 
$60,000.00.

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 December 24, 2008.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to Comment 09-C0002, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 502, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney, 
Office of Compliance and Field

[[Page 74710]]

Operations, Consumer Product Safety Commission, 4330 East West Highway, 
Bethesda, Maryland 20814-4408; telephone (301) 504-7587.

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

    Dated: December 2, 2008.
Todd A. Stevenson,
Secretary.

United States of America

Consumer Product Safety Commission

In the Matter of Nordstrom, Inc.; CPSC Docket No. 09-C0002

Settlement Agreement

    1. In accordance with 16 CFR 1118.20, Nordstrom, Inc. 
(``Nordstrom'') and the staff (``Staff'') of the United States Consumer 
Product Safety Commission (``Commission'') enter into this Settlement 
Agreement (``Agreement''). The Agreement and the incorporated attached 
Order (``Order'') settle the Staff's allegations set forth below.

Parties

    2. The Commission is an independent federal regulatory agency 
established pursuant to, and responsible for the enforcement of, the 
Consumer Product Safety Act, 15 U.S.C. 2051-2089 (``CPSA'').
    3. Nordstrom is a corporation organized and existing under the laws 
of the State of Washington, with its principal offices located in 
Seattle, WA. Nordstrom is a fashion specialty retailer selling a wide 
selection of apparel, shoes, and accessories for women, men, and 
children.

Staff Allegations

    4. From November 2007 to December 2007, Nordstrom held for sale 
and/or sold 2,418 Micros boy's hooded jackets and Hearts & Stars and 
Robot reversible zip hooded sweaters with drawstrings (``Drawstring 
Jackets and Sweaters'').
    5. Nordstrom sold the Drawstring Jackets and Sweaters to consumers 
nationwide.
    6. The Drawstring Jackets and Sweaters are ``consumer product[s],'' 
and, at all times relevant hereto, Nordstrom was a ``retailer'' of 
those consumer products, which were ``distributed in commerce,'' as 
those terms are defined in CPSA sections 3(a), (5), (8), and (13), 15 
U.S.C. Sec.  2052(a), (5), (8), and (13).
    7. In February 1996, the Staff issued the Guidelines for 
Drawstrings on Children's Upper Outerwear (``Guidelines'') to help 
prevent children from strangling or entangling on neck and waist 
drawstrings. The Guidelines state that drawstrings can cause, and have 
caused, injuries and deaths when they catch on items such as playground 
equipment, bus doors, or cribs. In the Guidelines, the Staff recommends 
that there be no hood and neck drawstrings in children's upper 
outerwear sized 2T to 12.
    8. In June 1997, ASTM adopted a voluntary standard, ASTM F1816-97, 
that incorporated the Guidelines. The Guidelines state that firms 
should be aware of the hazards and should be sure garments they sell 
conform to the voluntary standard.
    9. On May 19, 2006, the Commission posted on its Web site a letter 
from the Commission's Director of the Office of Compliance to 
manufacturers, importers, and retailers of children's upper outerwear. 
The letter urges them to make certain that all children's upper 
outerwear sold in the United States complies with ASTM F1816-97. The 
letter states that the Staff considers children's upper outerwear with 
drawstrings at the hood or neck area to be defective and to present a 
substantial risk of injury to young children under Federal Hazardous 
Substances Act (``FHSA'') section 15(c), 15 U.S.C. 1274(c). The letter 
also notes the CPSA's section 15(b) reporting requirements.
    10. Nordstrom reported to the Commission there had been no 
incidents or injuries from the Drawstring Jackets and Sweaters.
    11. Nordstrom's distribution in commerce of the Drawstring Jackets 
and Sweaters did not meet the Guidelines or ASTM F1816-97, failed to 
comport with the Staff's May 2006 defect notice, and posed a 
strangulation hazard to children.
    12. By December 10, 2007, Nordstrom had removed the Drawstring 
Jackets and Sweaters from sale and had removed the drawstrings from 
those garments.
    13. On February 6, 2008 and March 11, 2008, the Drawstring Jackets 
and Sweaters were recalled. The recall informed consumers that they 
should immediately remove the drawstrings to eliminate the hazard.
    14. Nordstrom had presumed and actual knowledge that the Drawstring 
Jackets and Sweaters distributed in commerce posed a strangulation 
hazard and presented a substantial risk of injury to children under 
FHSA section 15(c)(l), 15 U.S.C. 1274(c)(l). Nordstrom had obtained 
information that reasonably supported the conclusion that the 
Drawstring Jackets and Sweaters contained a defect that could create a 
substantial product hazard or that they created an unreasonable risk of 
serious injury or death. CPSA sections 15(b)(3) and (4), 15 U.S.C. 
2064(b)(3) and (4), required Nordstrom to immediately inform the 
Commission of the defect and risk.
    15. Nordstrom knowingly failed to immediately inform the Commission 
about the Drawstring Jackets and Sweaters as required by CPSA sections 
15(b)(3) and (4), 15 U.S.C. 2064(b)(3) and (4), and as the term 
``knowingly'' is defined in CPSA section 20(d), 15 U.S.C. 2069(d). This 
failure violated CPSA section 19(a)(4), 15 U.S.C. 2068(a)(4). Pursuant 
to CPSA section 20, 15 U.S.C. 2069, this failure subjected Nordstrom to 
civil penalties.

Nordstrom Response

    16. Nordstrom denies the Staff's allegations that Nordstrom 
violated the CPSA.

Agreement of the Parties

    17. Under the CPSA, the Commission has jurisdiction over this 
matter and over Nordstrom.
    18. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Nordstrom, or a 
determination by the Commission, that Nordstrom has knowingly violated 
the CPSA.
    19. In settlement of the Staff's allegations, Nordstrom shall pay a 
civil penalty in the amount of sixty-thousand dollars ($60,000.00) 
within twenty (20) calendar days of service of the Commission's final 
Order accepting the Agreement. The payment shall be by check payable to 
the order of the United States Treasury.
    20. Upon provisional acceptance of the Agreement, the Agreement 
shall be placed on the public record and published in the Federal 
Register in accordance with the procedures set forth in 16 CFR 
1118.20(e). In accordance with 16 CFR 1118.20(f), if the Commission 
does not receive any written request not to accept the Agreement within 
fifteen (15) calendar days, the Agreement shall be deemed finally 
accepted on the sixteenth (16th) calendar day after the date it is 
published in the Federal Register.
    21. Upon the Commission's final acceptance of the Agreement and 
issuance of the final Order, Nordstrom knowingly, voluntarily, and 
completely waives any rights it may have regarding the Staff's 
allegations to the following: (1) An administrative or judicial 
hearing; (2) judicial review or other challenge or contest of the 
validity of the Order or of the Commission's actions; (3) a 
determination by the Commission of whether Nordstrom failed to comply 
with the CPSA and its underlying regulations; (4) a statement

[[Page 74711]]

of findings of fact and conclusions of law; and (5) any claims under 
the Equal Access to Justice Act.
    22. The Commission may publicize the terms of the Agreement and the 
Order.
    23. The Agreement and the Order shall apply to, and be binding 
upon, Nordstrom and each of its successors and assigns.
    24. The Commission issues the Order under the provisions of the 
CPSA, and violation of the Order may subject Nordstrom to appropriate 
legal action.
    25. The Agreement may be used in interpreting the Order. 
Understandings, agreements, representations, or interpretations apart 
from those contained in the Agreement and the Order may not be used to 
vary or contradict their terms. The Agreement shall not be waived, 
amended, modified, or otherwise altered without written agreement 
thereto executed by the party against whom such waiver, amendment, 
modification, or alteration is sought to be enforced.
    26. If any provision of the Agreement and the Order is held to be 
illegal, invalid, or unenforceable under present or future laws 
effective during the terms of the Agreement and the Order, such 
provision shall be fully severable. The balance of the Agreement and 
the Order shall remain in full force and effect, unless the Commission 
and Nordstrom agree that severing the provision materially affects the 
purpose of the Agreement and the Order.

NORDSTROM, INC.

Dated: Oct. 30, 2008.

By:

Cherie Williams,
General Liability and Business Claims Manager, Nordstrom, Inc., 1700 
7th Avenue, Seattle, WA 98101.

U.S. CONSUMER PRODUCT SAFETY COMMISSION

Cheryl A. Falvey,
General Counsel.

Ronald G. Yelenik,
Assistant General Counsel, Division of Compliance, Office of the 
General Counsel.

Dated: 10/31/08.

By:

Dennis C. Kacoyanis,
Trial Attorney, Division of Compliance, Office of the General 
Counsel.

United States of America

Consumer Product Safety Commission

In the Matter of Nordstrom, Inc., CPSC Docket No. 09-C0002

Order

    Upon consideration of the Settlement Agreement entered into between 
Nordstrom, Inc. (``Nordstrom'') and the U.S. Consumer Product Safety 
Commission (``Commission'') staff, and the Commission having 
jurisdiction over the subject matter and over Nordstrom, and it 
appearing that the Settlement Agreement and the Order are in the public 
interest, it is
    Ordered, that the Settlement Agreement be, and hereby is, accepted; 
and it is
    Further ordered, that Nordstrom shall pay a civil penalty in the 
amount of sixty thousand dollars ($60,000.00) within twenty (20) 
calendar days of service of the Commission's final Order accepting the 
Agreement. The payment shall be made by check payable to the order of 
the United States Treasury. Upon the failure of Nordstrom to make the 
foregoing payment when due, interest on the unpaid amount shall accrue 
and be paid by Nordstrom at the federal legal rate of interest set 
forth at 28 U.S.C. 196 1(a) and (b).

    Provisionally accepted and provisional Order issued on the 2nd 
day of December, 2008.

By Order of the Commission:

Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. E8-28892 Filed 12-8-08; 8:45 am]
BILLING CODE 6355-01-M