[Federal Register: May 17, 1994] ======================================================================= ----------------------------------------------------------------------- CONSUMER PRODUCT SAFETY COMMISSION [CPSC Docket No. 94-C0011] PCA Apparel Industries, 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. ----------------------------------------------------------------------- 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 part 1605. Published below is a provisionally accepted Settlement Agreement with, PCA Apparel Industries, Inc., a corporation. 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 June 1, 1994. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 94-C0011, Office of the Secretary, Consumer Product Safety Commission, Washington, DC 20207. FOR FURTHER INFORMATION CONTACT: Eric L. Stone, Trial Attorney, Office of Compliance and Enforcement, Consumer Product Safety Commission, Washington, DC 20207; telephone (301) 504-0626. SUPPLEMENTARY INFORMATION: See below. Dated: May 11, 1994. Sheldon D. Butts, Deputy Secretary. Consent Order Agreement PCA Apparel Industries, Inc. (``PCA'' or ``Respondent'') enters into this Consent Order Agreement with the staff (``the staff'') of the Consumer Product Safety Commission (``the Commission'') pursuant to the procedures set forth in Sec. 1605.13 of the Commission's Procedures for Investigations, Inspections, and Inquiries under the Flammable Fabrics Act (FFA), 16 CFR 1605. This Agreement and Order are for the sole purpose of settling allegations of the staff that Respondent sold children's sleepwear that failed to comply with the Standard for the Flammability of Children's Sleepwear: Sizes 0 through 6X and Standard for the Flammability of Children's Sleepwear: Sizes 7 through 14, 16 CFR parts 1615 and 1616 (``the sleepwear standards''). Respondent and the Staff Agree 1. The Consumer Product Safety Commission is an independent regulatory agency of the United States government. The Commission has jurisdiction over this matter under the Consumer Product Safety Act, 15 U.S.C. 2051 et seq. (CPSA), the Flammable Fabrics Act, 15 U.S.C. 1191 et seq. (FFA) and the Federal Trade Commission Act (15 U.S.C. 41 et seq. (FTCA). 2. Respondent PCA is a corporation organized and existing under the laws of the State of New York with principle corporate offices at 16 East 34th Street, New York, New York 10016. 3. Respondent is now, and has been engaged in one of more of the following activities: the manufacture for sale, the sale, or the offering for sale, in commerce, or the importation, delivery for introduction, transportation in commerce, or the sale or delivery after sale or shipment in commerce, of children's sleepwear subject to the sleepwear standards. 4. This Agreement is for the purpose of settling the allegations in the accompanying Complaint. This Agreement does not constitute an admission by Respondent that it knowingly violated the law. Nor does this Agreement constitute an admission by Respondent that it is paying a civil penalty as it is Respondent's position that it is paying the amount referenced in paragraph 7, hereof, to settle the Commission's contention that a civil penalty is appropriate. The Agreement becomes effective only upon its final acceptance by the Commission and service of the incorporated Order upon Respondent. 5. The parties agree this Consent Order Agreement resolves the allegations of the Complaint and the Commission shall not initiate any other criminal, civil or administrative action against the firm for those alleged violations based on the information currently known to the staff. 6. Respondent waives any rights to a formal hearing, and any findings of fact and conclusions of law regarding the allegations set forth in the Complaint. Respondent waives any right to seek judicial review or otherwise challenge or contest the validity of the Commission's Order. 7. Respondent will pay a civil penalty in the amount of seventy- five thousand dollars ($75,000) to the United States Treasury in three (3) installment payments of twenty-five thousand dollars ($25,000.00) each, over a 12 month period commencing within twenty (20) days after service of the Final Order of the Commission accepting this Consent Order Agreement. Respondent shall pay the second installment of $25,000.00 within 120 days after service of the Final Order; and the third and final installment of $25,000.00 within 365 days after service of the Final Order. 8. The Commission may disclose the terms of this Consent Order Agreement to the public consistent with section 6(b) of the CPSA. 9. This Agreement and the Complaint accompanying the Agreement may be used in interpreting the Order. Agreements, understanding, representations or interpretations made outside of this Consent Order Agreement may not be used to vary or contradict its terms. Upon acceptance of this Agreement, the Commission shall issue the following Order: Order I. It is hereby ordered that Respondent, its successors and assigns, agents, representatives, and employees, directly or through any corporation, subsidiary, division, or other business entity, or through any agency, device or instrumentality, do forthwith cease and desist from selling or offering for sale, in commerce, or manufacturing for sale, in commerce, or importing into the United States or introducing, delivering for introduction, transporting or causing to be transported, in commerce, or selling or delivering after sale or shipment in commerce, any item of children's sleepwear with trim that fails to comply with the flammability requirements with respect to trim of the Standard for the Flammability of Children's Sleepwear: Sizes 0 through 6X, 16 CFR 1615.4(d)(2)(ii); or the Standard for the Flammability of Children's Sleepwear: Sizes 7 through 14, 16 CFR 1616.4(c)(2)(ii) II. It is further ordered that Respondent shall conduct all prototype testing, and maintain all records for sleepwear with trim required by the Standard for the Flammability of Children's Sleepwear: Sizes 0 through 6X, 16 CFR 1615.31(e)(iii); and the Standard for the Flammability of Children's Sleepwear: Sizes 7 through 14, 16 CFR 1616.31(d)(iii). III. It is further ordered that Respondent pay to the United States Treasury a civil penalty of $75,000 in three (3) installment payment of twenty-five thousand dollars ($25,000.00) each, over a 12 month period commencing within twenty (20) days after service upon Respondent of the Final Order in this matter. Respondent shall pay the second installment of $25,000.00 within 120 days after service of the Final Order; and the third and final installment of $25,000.00 within 365 days after service of the Final Order. IV. It is further ordered that for a period of three years following the service upon Respondent of the Final Order in this matter, Respondent notify the Commission within 30 days following the consummation of the sale of a majority of its stock or following a change in any of its corporate officers responsible for compliance with the terms of this Consent Agreement and Order. Dated: March 16, 1994. Marvin J. Sandberg, Vice President, Finance, on behalf of PCA Apparel Industries, Inc., 16 East 34th Street, New York, NY 10016. Dated: March 30, 1994. Eric L. Stone, Trial Attorney, Division of Administrative Litigation. Alan H. Schoem, Director, Division of Administrative Litigation. David Schmeltzer, Assistant Executive Director, Office of Compliance and Enforcement, Consumer Product Safety Commission, Washington, DC 20207. By direction of the Commission, this Consent Order Agreement is provisionally accepted pursuant to 16 CFR 1605.13, and shall be placed on the public record, and the Secretary is directed to publish the provisional acceptance of the Consent Order Agreement in the Commission's Public Calendar and in the Federal Register. So ordered by the Commission, this 11th day of May, 1994. Sadye E. Dunn, Secretary, Consumer Product Safety Commission. [FR Doc. 94-11973 Filed 5-16-94; 8:45 am] BILLING CODE 6355-01-M