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CPSC Welcomes Sears Holdings to Retailer Reporting Program, System Provides Early Warning Hazard Information

Release Date: September 29, 2006

The U.S. Consumer Product Safety Commission (CPSC) announced today that after a trial period, Sears Holdings Corp. is now taking part in a specialized reporting program developed for retailers. Sears Holdings is the nation's third largest broadline retailer and operates Sears and Kmart stores.

"We are pleased that Sears Holdings has signed on to follow the reporting model," said Acting Chairman Nancy Nord. "Under this program, CPSC gets a wealth of detailed safety information on products sold at Sears, Roebuck and Kmart stores. This information helps both of us identify possible safety hazards more quickly."

Under this reporting model, retailers agree to provide CPSC with regular weekly reports of safety-related information. The retailer analyzes and identifies incidents that involve serious injuries or hazards. The retailer simultaneously provides the same safety information to the manufacturer or supplier of the product. Retailers will report within 24 hours to the agency if they learn of an incident that results in a death or if a product is withdrawn from the market for safety reasons.

"By adopting this reporting program we can more easily meet our responsibilities as a retailer and better serve our customers to help ensure the safety of the products they purchase for their homes and families," said Chris Brathwaite, divisional vice president, corporate public relations for Sears Holdings. "Our commitment to product safety is a longstanding and continuing priority."

Sears Holdings joins Wal-Mart as a participant in the voluntary reporting program. Wal-Mart has been participating in the program since October 2004.

The Consumer Product Safety Act (CPSA) requires manufacturers, importers, distributors and retailers to report to CPSC information about potentially hazardous products (15 U.S.C. § 2064(b). Generally, a firm must notify CPSC if it obtains information that suggests one of its products contains a defect that could create a substantial product hazard; presents an unreasonable risk of serious injury or death; or violates a mandatory standard issued under the CPSA. More information on reporting unsafe products is available from the CPSC's Office of Compliance and Field Operations at 301-504-7913 or at www.cpsc.gov

About Sears Holdings Corp.

Sears Holdings Corp. is the nation's third largest broadline retailer, with approximately $55 billion in annual revenues, and with approximately 3,800 full-line and specialty retail stores in the United States and Canada. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, home electronics and automotive repair and maintenance. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has Martha Stewart Everyday products, which are offered exclusively in the U.S. by Kmart and in Canada by Sears Canada. The company is the nation's largest provider of home services, with more than 13 million service calls made annually. For more information, visit Sears Holdings' Web site at www.searsholdings.com.

Release Number
06-272

About the U.S. CPSC
The U.S. Consumer Product Safety Commission (CPSC) is charged with protecting the public from unreasonable risk of injury or death associated with the use of thousands of types of consumer products. Deaths, injuries, and property damage from consumer product-related incidents cost the nation more than $1 trillion annually. CPSC's work to ensure the safety of consumer products has contributed to a decline in the rate of injuries associated with consumer products over the past 50 years. 

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