[Federal Register: April 29, 2008 (Volume 73, Number 83)]
[Notices]
[Page 23202-23204]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29ap08-45]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 08-C0009]
Seena International, 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 Consumer Product Safety 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
Seena International Inc., containing a civil penalty of $35,000.00.
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 May 14, 2008.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 08-C0009, Office of the
Secretary, Consumer Product Safety Commission, 4330 East West Highway,
Room 502, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Seth B. Popkin, Trial Attorney, Legal
Division, Office of Compliance and Field Operations, Consumer Product
Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-7612.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: April 23, 2008.
Todd A. Stevenson,
Secretary.
In the Matter of Seena International, Inc.; CPSC Docket No. 08-C0009
Settlement Agreement
1. In accordance with 16 CFR 1118.20, Seena International, Inc.
(``Seena'') 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. 2051-2084 (``CPSA'').
3. Seena is a corporation organized and existing under the laws of
New York, with its principal offices located in Yaphank, New York. At
all times relevant hereto, Seena sold apparel.
Staff Allegations
4. From June to December 2006, Seena imported and sold children's
hooded sweatshirts with drawstrings through the hoods (``Drawstring
Sweatshirts''). Seena imported 61,714 Drawstring Sweatshirts and sold
to retailers and distributors 45,810 of these Drawstring Sweatshirts.
5. Retailers sold Drawstring Sweatshirts to consumers.
6. The Drawstring Sweatshirts are ``consumer product[s],'' and, at
all times relevant hereto, Seena was a ``manufacturer'' of those
consumer products, which were ``distributed in commerce,'' as those
terms are defined in CPSA sections 3(a)(1), (4), (11), and (12), 15
U.S.C. 2052(a)(1), (4), (11), and (12).
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
[[Page 23203]]
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. Seena reported to the Commission that there had been no
incidents or injuries from the Drawstring Sweatshirts.
11. Seena's distribution in commerce of the Drawstring Sweatshirts
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. On January 10, 2007, the Commission, in cooperation with Seena,
announced a recall of the Drawstring Sweatshirts, informing consumers
that they should immediately remove the drawstrings to eliminate the
hazard.
13. Seena had presumed and actual knowledge that the Drawstring
Sweatshirts distributed in commerce posed a strangulation hazard and
presented a substantial risk of injury to children under FHSA section
15(c)(1), 15 U.S.C. 1274(c)(1). Seena had obtained information that
reasonably supported the conclusion that the Drawstring Sweatshirts
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)(2) and (3), 15 U.S.C. 2064(b)(2) and (3), required Seena
to immediately inform the Commission of the defect and risk.
14. Seena knowingly failed to immediately inform the Commission
about the Drawstring Sweatshirts as required by CPSA sections 15(b)(2)
and (3), 15 U.S.C. 2064(b)(2) and (3), 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 Seena to civil penalties.
Seena Response
15. Seena denies the Staff's allegations above that Seena knowingly
violated the CPSA.
Agreement of the Parties
16. Under the CPSA, the Commission has jurisdiction over this
matter and over Seena.
17. The parties enter into the Agreement for settlement purposes
only. The Agreement does not constitute an admission by Seena, or a
determination by the Commission, that Seena has knowingly violated the
CPSA.
18. In settlement of the Staff's allegations, Seena shall pay a
civil penalty in the amount of thirty-five thousand dollars
($35,000.00) within twenty (20) calendar days of service of the
Commission's final Order accepting the Agreement. This payment shall be
made by check payable to the order of the United States Treasury.
19. 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.
20. Upon the Commission's final acceptance of the Agreement and
issuance of the final Order, Seena knowingly, voluntarily, and
completely waives any rights it may have in this matter 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 Seena failed to comply with the CPSA and its underlying
regulations; (4) a statement of findings of fact and conclusions of
law; and (5) any claims under the Equal Access to Justice Act.
21. The Commission may publicize the terms of the Agreement and the
Order.
22. The Agreement and the Order shall apply to, and be binding
upon, Seena and each of its successors and assigns.
23. The Commission issues the Order under the provisions of the
CPSA, and violation of the Order may subject Seena to appropriate legal
action.
24. 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.
25. 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 Seena agree that severing the provision materially affects the
purpose of the Agreement and the Order.
26. Pursuant to section 6(d) of the Interim Delegation of Authority
ordered by the Commission on February 1, 2008, the Commission delegated
to the Assistant Executive Director for Compliance and Field Operations
the authority to act, with the concurrence of the General Counsel, for
the Commission under 16 CFR 1118.20 with respect to Staff allegations
that any person or firm violated 15 U.S.C. 2068, where the total amount
of the settlement involves no more than $100,000.
Seena International, Inc.
Dated: March 26, 2008.
By: Pankaj Kalia,
Vice President of Operations, Seena International, Inc., 99
Horseblock Road, P.O. Box 60, Yaphank, NY 11980.
Dated: March 28, 2008.
By: Todd A. Gabor, Esq. 132 Spruce Street, Cedarhurst, NY 11516,
Counsel to Seena International, Inc.
U.S. Consumer Product Safety Commission Staff
J. Gibson Mullan, Assistant Executive Director, Office of Compliance
and Field Operations.
Ronald G. Yelenik, Acting Director, Legal Division Office of
Compliance and Field Operations.
Dated: April 16, 2008.
By: Seth B. Popkin, Trial Attorney, Legal Division, Office of
Compliance and Field Operations.
In the Matter of Seena International, Inc.; CPSC Docket No. 08-C0009
Order
Upon consideration of the Settlement Agreement entered into between
Seena International, Inc. (``Seena'') and the U.S. Consumer Product
Safety Commission (``Commission'') staff, and the Commission having
jurisdiction over the subject matter and over Seena, and pursuant to
the authority delegated
[[Page 23204]]
in section 6(d) of the Interim Delegation of Authority ordered by the
Commission on February 1, 2008, and it appearing that the Settlement
Agreement and the Order are in the public interest, it isOrdered, that
the Settlement Agreement be, and hereby is, accepted; and it isFurther
ordered, that Seena shall pay a civil penalty in the amount of thirty-
five thousand dollars ($35,000.00) 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 Seena to make the foregoing
payment when due, interest on the unpaid amount shall accrue and be
paid by Seena at the federal legal rate of interest set forth at 28
U.S.C. 1961(a) and (b).
Provisionally accepted and provisional Order issued on the 22nd day
of April, 2008.
By Order of the Commission.
Todd A. Stevenson,
Secretary.
U.S. Consumer Product Safety Commission
[FR Doc. E8-9291 Filed 4-28-08; 8:45 am]
BILLING CODE 6355-01-M