[Federal Register Volume 62, Number 135 (Tuesday, July 15, 1997)]
[Notices]
[Pages 37888-37890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18574]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 97-C0008]
Dots, 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
Consumer Product Safety Act.
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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 1605.13(d).
Published below is a provisionally-accepted Settlement Agreement with
Dots, 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 July 30, 1997.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 97-C0008, Office of the
Secretary, Consumer Product Safety Commission, Washington, DC 20207.
FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney,
Office of Compliance and Enforcement, Consumer Product Safety
Commission, Washington, DC 20207; telephone (301) 504-0626.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: July 8, 1997.
Sadye E. Dunn,
Secretary.
Settlement Agreement and Order
1. Dots. Inc. (hereinafter, ``Respondent''), a corporation enters
into this Settlement Agreement (hereinafter, ``Agreement'') with the
staff of the Consumer Product Safety Commission, and agrees to the
entry of the Order incorporated herein. The purpose of this Agreement
and Order is to settle the staff's allegations that Respondent sold and
offered for sale, in commerce, certain 100% rayon sheer skirts and 100%
reverse fleece cotton sweatshirts that failed to comply with the
Clothing Standard for the Flammability of Clothing Textiles
(hereinafter, ``Clothing Standard''), 16 CFR part 1610, in violation of
section 3 of the Flammable Fabrics Act (FFA), 15
[[Page 37889]]
U.S.C. 1192. The Respondent enters into this Agreement and Order for
settlement purposes only and denies each and every allegation asserted
by the staff of the Consumer Product Safety Commission.
I. The Parties
2. The ``staff'' is the staff of the Consumer Product Safety
Commission (Thereinafter, ``Commission''), an independent regulatory
commission of the United States Government established pursuant to
section 4 of the Consumer Product Safety Act (CPSA), 15 U.S.C. 2053.
3. Respondent Dots, Inc. is a corporation organized and existing
under the laws of the State of Ohio with principal corporate offices at
30801 Carter Street, Solon, OH 44139.
II. Allegations of the Staff
A. Rayon Sheer Skirts
4. Between April 1994 and August 1994, Respondent sold, or offered
for sale, in commerce, 4,788 100% sheer rayon skirts.
5. The skirts identified in paragraph 4 above are subject to the
Clothing Standard, 16 CFR Part 1610, issued under section 4 of the FFA,
15 U.S.C. 1193.
6. The staff tested one of the skirts identified in paragraph 4
above for compliance with the requirements of the Clothing Standard.
See 16 CFR 1610.3 and .4. The tested skirt violated the requirements of
the Clothing Standard.
7. Respondent knowingly sold or offered for sale in commerce, the
skirts identified in paragraph 4 above, as the term is defined in
section 5(e)(4) of the FFA, 15 U.S.C. 1194(e)(4), 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 the FFA, 15 U.S.C. 1194(e)(1).
8. On August 5, 1994, the staff informed Respondent that the skirts
identified in paragraph 4 above failed to comply with the Clothing
Standard and requested it to review its entire product line for other
potential violations.
B. Reverse Fleece Cotton Sweatshirts
9. Between July 1995 and February 1996, Respondent sold, or offered
for sale, in commerce, 29,107 reverse fleece 100% cotton sweatshirts.
10. The sweatshirts identified in paragraph 9 above are subject to
the Clothing Standard, 16 CFR Part 1610, issued under section 4 of the
FFA, 15 U.S.C. 1193.
11. The staff tested one of the sweatshirts identified in paragraph
9 above for compliance with the requirements of the Clothing Standard.
See 16 CFR 1610.3 and .4. The tested sweatshirt violated the
requirements of the Clothing Standard.
12. Respondent knowingly sold, or offered for sale, in commerce,
the sweatshirts identified in paragraph 9 above, as the term is defined
in section 5(e)(4) of the FFA, 15 U.S.C. 1194(e)(4), 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 the FFA, 15 U.S.C. 1194(e)(1).
13. On January 29, 1996, the staff informed Respondent that the
sweatshirts identified in paragraph 9 above failed to comply with the
Clothing Standard and requested it to review its entire product line
for other potential violations.
III. Response of Respondent
14. Respondent specifically denies the allegations of the staff set
forth in paragraphs 4 through 13 above that it knowingly sold, or
offered for sale, in commerce, 100% rayon skirts and reverse fleece
100% cotton sweatshirts that did not meet the requirements of the FFA
and the Clothing Standard.
15. Respondent states that it ordered the 100% rayon skirts and
reverse fleece 100% cotton sweatshirts identified in paragraphs 4 and 9
above from reliable vendors who purported to sell to Respondent rayon
skirts and reverse fleece cotton sweatshirts that complied with all
laws, including the Flammable Fabrics Act and the Clothing Standard.
16. Further, Respondent makes no admission of any fault, liability,
or statutory violation, nor does this Agreement constitute an admission
that a civil penalty is appropriate or that the money referenced in the
accompanying Order constitutes a civil penalty. Any payment referenced
in the attached Order is solely to settle the staff's contention that a
civil penalty is appropriate.
IV. Agreement of the Parties
17. The Commission has jurisdiction over Respondent and the subject
matter of this Settlement Agreement and Order under the Consumer
Product Safety Act, 15 U.S.C. 2051 et seq.; 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.
18. This Agreement is entered into for settlement purposes only and
does not constitute an admission by Respondent or a determination by
the Commission that Respondent knowingly violated the FFA and the
Clothing Standard. This Agreement becomes effective only upon its final
acceptance by the Commission and service of the incorporated Order upon
Respondent.
19. 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 the procedures set forth in 16 CFR
1605.13(d). If the Commission does not receive any written request not
to accept the Settlement Agreement and Order within 15 days, the
Settlement Agreement and Order will be deemed to be finally accepted on
the 16th day after the date it is published in the Federal Register.
20. Upon final acceptance of this Settlement Agreement by the
Commission and issuance of the Final Order, Respondent knowingly,
voluntarily, and completely waives any rights it may have in this
matter (1) to an administrative or judicial hearing, (2) to judicial
review or other challenge or contest of the validity of the
Commission's actions, (3) to a determination by the Commission as to
whether Respondent failed to comply with the FFA and the Clothing
Standard as aforesaid, (4) to a statement of findings of facts and
conclusions of law, and (5) to any claims under the Equal Access to
Justice Act.
21. The parties agree that this Settlement Agreement and Order
resolve the allegations herein and upon final acceptance of this
Settlement Agreement by the Commission and issuance of the Final Order,
the Commission specifically waives its right to initiate any civil,
administrative, or criminal action against the Respondent, its
shareholders, officers, directors, employees, agents, successors, and
assigns with respect to those alleged violations.
22. Upon final acceptance by the Commission of this Settlement
Agreement and Order, the Commission shall issue the attached Order
incorporated herein by reference.
23. A violation of the attached Order shall subject Respondent to
appropriate legal action.
24. The Commission may disclose the terms of this Consent Agreement
to the public consistent with section 6(b) of the CPSA, 15 U.S.C.
2055(b).
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 provisions of the Settlement Agreement and Order shall
apply to Respondent and each of its successors, assigns, agents,
representatives, and employees, directly or through any
[[Page 37890]]
corporation, subsidiary, division, or other business entity, or through
any agency, device, or instrumentality.
Dated: May 16, 1997.
Respondent DOTS, Inc.
Robert Glick,
President, Dots, Inc., 30801 Carter Street, Solon, OH 44139.
Commission Staff
Eric L. Stone,
Director, Division of Administrative Litigation, Office of Compliance.
David Schmeltzer,
Assistant Executive Director, Office of Compliance, Consumer Product
Safety Commission, Washington, DC 20207-0001.
Dated: May 19, 1997.
Dennis C. Kacoyanis,
Trial Attorney,
Donald G. Yelenik,
Trial Attorney, Division of Administrative Litigation, Office of
Compliance.
Order
Upon consideration of the Settlement Agreement entered into between
Respondent Dots, Inc. (hereinafter, ``Respondent''), a corporation, and
the staff of the Consumer Product Safety Commission (``Commission'');
and the Commission having jurisdiction over the subject matter and
Respondent; 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
accepted, as indicated below; and it is
Further Ordered, that Respondent pay to the United States Treasury
a civil penalty of Fifty Thousand Dollars ($50,000.00) within twenty
(20) days after service upon Respondent of the Final Order.
Provisionally accepted and Provisional Order issued on the 8th
day of July, 1997.
By Order of the Commission.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 97-18574 Filed 7-14-97; 8:45 am]
BILLING CODE 6355-01-M
