[Federal Register Volume 60, Number 147 (Tuesday, August 1, 1995)]
[Notices]
[Pages 39154-39156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18750]
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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 95-C0014]
Provisional Acceptance of a Settlement Agreement and Order
In the matter of Terri Treat, Individually and as the sole
proprietor of Clouds d/b/a, Cotton Cloud Futon corporation.
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.
Published below is a provisionally-accepted Settlement Agreement with
Cotton Cloud Futon 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 August 16, 1995.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should sent written comments to the Comment 95-C0014, 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 26, 1995.
Sadye E. Dunn,
Secretary.
In the matter of Terri Treat, individually and as the sole
proprietor of Clouds, DBA, Cotton Cloud Futon Corporation.
[CPSC Docket No. 95-C0014]
Complaint; Nature of Proceedings
Pursuant to the provisions of the Flammable Fabrics Act, as
amended, (15 U.S.C. 1191 et seq.; hereinafter the ``FFA''); the
Federal Trade Commission Act, as amended, (15 U.S.C. 41 et seq.;
hereinafter, the ``FTCA''); and the Standard for the Flammability of
Mattresses and Mattress Pads (FF 4-72, as amended), 16 CFR part 1632
(hereinafter, the ``Mattress Standard''), the Consumer Product
Safety Commission having reason to believe that Terri Treat,
individually and as the sole proprietor of Clouds DBA, Cotton Cloud
Futon Corporation hereinafter, ``Respondent''), 1916 N.E. Broadway,
Portland, OR 97232, has violated the provisions of said Acts; and
further, it appearing to the Commission that a proceeding by it in
respect those violations would be in the public interest, therefore,
it hereby issues its Complaint stating its charges as follows:
1. Respondent Terri Treat is the sole proprietor of Clouds DBA,
Cotton Cloud Futon Corporation, 1916 N.E. Broadway, Portland, OR
97005; and in that capacity, is responsible for the acts, practices,
and policies of Clouds DBA, Cotton Cloud Futon Corporation.
2. Respondent is now and has been engaged in the manufacturing
for sale, sale, and offering for sale, in commerce, and has
introduced, delivered for introduction, transported and caused to be
transported in commerce, and has sold or delivered after sale or
shipment in commerce, as the term ``commerce'' is defined in section
2(b) of the FFA, 15 U.S.C. 1191(b), futon mattresses described as
follows: (a) All cotton, (b) cotton-foam core, (c) poly-cotton, (d)
poly-cotton foam core, (e) wool-cotton, (f) wool-cotton foam core,
(g) wool-poly/cotton, (h) wool-poly/cotton foam core, (i) infant,
(j) artland feather bed, and (k) 100% recycled dacron.
3. Each futon mattress identified in paragraph 3 of the
complaint is intended or promoted for sleeping upon.
4. Each futon mattress identified in paragraph 3 of the
complaint is, therefore:
(a) A ``mattress'' within the meaning of Sec. 1632.1(a) of the
Mattress Standard (FF 4-72, as amended), 1632.1(a); and
(b) An ``interior furnishing'' and a ``product'' as these terms
are defined in sections 2 (e) and (h) of the FFA, as amended, 15
U.S.C. 1191 (e) and (h).
[[Page 39155]]
5. Respondent is subject to, and has failed to comply with, the
Mattress Standard in that:
(a) Respondent failed to do prototype testing of the ticking
substitution procedure required by Sec. 1632.3 or 1632.6 of the
Mattress Standard, 16 CFR 1632.3 or 1632.6.
(b) Respondent failed to maintain the manufacturing or test
specifications or test records, ticking substitution specifications
or test records, or other records required by Sec. 1632.31 (c)(1) or
(c)(5) and (c)(6), 16 CFR 1632.31 (c)(1) or (c)(5) and (c)(6).
6. The acts by Respondent set forth in paragraph 5 of the
complaint are unlawful and constitute an unfair method of
competition and an unfair and deceptive practice in commerce under
the FTCA, in violation of section 3(a) of the FFA, 15 U.S.C.
1192(a), for which a cease and desist order may be issued against
Respondent pursuant to section 5(b) of the FFA, 15 U.S.C. 1194(b),
and section 5 of the FTCA, 15 U.S.C. 45.
Relief Sought
7. The staff seeks issuance of a cease and desist order against
Respondent pursuant to section 5(b) of the FFA, 15 U.S.C. 1194(b),
and section 5 of the FTCA, 15 U.S.C. 45.
Wherefore, the premises considered, the Commission hereby issues
this Complaint on the ________ day of ____________, 1995.
By direction of the Commission:
Dated:____________
David Schmeltzer,
Assistant Executive Director, Office of Compliance and Enforcement.
In the matter of Terri Treat, individually and as sole
proprietor of Clouds, DBA, Cotton Cloud Futon Corporation.
[CPSC Docket No. 95-C0014]
Consent Order Agreement
Terri Treat, individually, and as the sole proprietor of Clouds,
DBA, Cotton Cloud Futon Corporation (hereinafter, ``Respondent''),
enters into this Consent Order Agreement (hereinafter,
``Agreement'') with the staff of the Consumer Product Safety
Commission (hereinafter, ``Commission'') pursuant to the procedures
for Consent Order Agreements contained in Sec. 1605.13 of the
Commission's Procedures for Investigations, Inspections, and
Inquiries under the Flammable Fabrics Act (FFA), 16 CFR 1605.13.
This Agreement and Order are for the sole purpose of settling
allegations of the staff (1) that Respondent violated section 3(a)
of the Flammable Fabrics Act (FFA), as amended, 15 U.S.C. 1192(a)
and the Standard for the Flammability of Mattresses and Mattress
Pads, as amended, 16 CFR part 1632 (FF 4-72) (hereinafter, the
``Mattress Standard''), as more fully set forth in the Complaint
accompanying this Agreement; and (2) that Respondent knowingly
violated section 3(a) of the FFA, as amended, 15 U.S.C. 1192(a) and
the Mattress Standard.
Respondent and the Staff Agree
1. The Consumer Product Safety Commission has jurisdiction in
this matter under the following Acts: Consumer Product Safety Act
(15 U.S.C. 2051 et seq.), Flammable Fabrics Act (15 U.S.C. 1191 et
seq.), and the Federal Trade Commission Act (15 U.S.C. 41 et seq.).
2. Respondent Terri Treat is the sole proprietor of Clouds DBA,
Cotton Cloud Futon Corporation, 1916 N.E. Broadway, Portland, OR
97005; and in that capacity is responsible for the acts, practices,
and policies of Clouds DBA, Cotton Cloud Futon Corporation.
3. Respondent is now and has been engaged in one or more of the
following: 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 a product, fabric, or related material
which is subject to the requirements of the Flammable Fabrics Act,
as amended, 15 U.S.C. 1191 et seq., and the Standard for the
Flammability of Mattresses and Mattress Pads (FF 4-72), as amended,
16 CFR part 1632.
4. Respondent denies the allegations of paragraphs 1 through 6
of the Complaint that Respondent violated section 3(a) of the FFA,
as amended, 15 U.S.C. 1192(a); and the Mattress Standard.
5. Respondent denies that she knowingly violated section 3(a) of
the FFA, as amended, 15 U.S.C. 1192(a); and the Mattress Standard.
6. This Agreement is entered into for the purposes of settlement
only and does not constitute a determination by the Commission that
Respondent (a) violated or (b) knowingly violated the FFA and the
Mattress Standard.
7. Respondent agrees to pay in settlement of the staff's
allegations a civil penalty as set forth in the incorporated Order.
8. This Agreement does not constitute an admission by Respondent
that a civil penalty is appropriate.
9. This Agreement becomes effective only upon its final
acceptance by the Commission and service of the incorporated Order
upon Respondent.
10. Upon final acceptance of this Consent Order Agreement by the
Commission and issuance of the Final Order, Respondent knowingly,
voluntarily, and completely waives any rights she 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 Flammable Fabrics Act
as aforesaid, (4) to a statement of findings of fact and conclusions
of law, and (5) to any claims under the Equal Access to Justice Act.
11. Violation of the provisions of the Order may subject
Respondent to a civil and/or criminal penalty for each such
violation, as prescribed by law.
12. For purposes of section 6(b) of the CPSA, 15 U.S.C. 2055(b),
this matter shall be treated as if a complaint had issued; and the
Commission may publicize the terms of the Consent Order Agreement.
13. Agreements, understandings, representations, or
interpretations made outside the Consent Order Agreement may not be
used to vary or to contradict its terms.
14. Upon acceptance of this Agreement, the Commission shall
issue the following Order incorporated herein by reference.
Dated: June 26, 1995.
Respondent Terri Treat
Terri Treat, individually and as sole proprietor of Clouds, DBA,
Cotton Cloud Futon Corporation
Commission Staff
David Schmeltzer,
Assistant Executive Director, Office of Compliance.
Eric L. Stone,
Acting Director, Division of Administrative Litigation, Office of
Compliance.
Dated: July 5, 1995.
Dennis C. Kacoyanis,
Trial Attorney, Division of Administrative Litigation, Office of
Compliance.
[CPSC Docket No. 95-C0014]
In the matter of Terri Treat, individually and as sole
proprietor of Clouds, DBA, Cotton Cloud Futon Corporation.
Order
Upon consideration of the Consent Order Agreement entered into
between Respondent Terri Treat, individually and as sole proprietor
of Clouds, DBA, Cotton Cloud Futon Corporation and the staff of the
Consumer Product Safety Commission; and the Commission having
jurisdiction over the subject matter and Respondent Terri Treat,
individually and as sole proprietor of Clouds, DBA, Cotton Cloud
Futon Corporation; and it appearing that the Consent Order Agreement
is in the public interest,
I
It is ordered that the Consent Order Agreement be and hereby is
accepted.
II
It is further ordered that Respondent, and her successors and
assigns, agents, representatives, and employees of the Respondent,
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 product,
fabric or related material which is subject to and fails to conform
to the Standard for the Flammability of Mattresses and Mattress Pads
(FF 4-72), as amended, 16 CFR part 1632.
III
It is further ordered that Respondent conduct prototype testing
for each mattress design, prior to production, in accordance with
applicable provisions of the Standard for the Flammability of
Mattresses and Mattress Pads (FF 4-72), as amended, 16 CFR part
1632.
IV
It is further ordered that Respondent prepare and maintain
written records of the prototype testing specified in paragraph III
of
[[Page 39156]]
this Order for each mattress design, including photographs of the
tested mattresses, in accordance with applicable provisions of the
Standard for the Flammability of Mattresses and Mattress Pads (FF 4-
72), as amended, 16 CFR part 1632.
V
It is further ordered that Respondent prepare and maintain a
written record of the manufacturing specifications of each mattress
prototype in accordance with applicable provisions of the Standard
for the Flammability of Mattresses and Mattress Pads (FF 4-72), as
amended, 16 CFR part 1632.
VI
It is further ordered that Respondent conduct prototype testing
or, if appropriate, obtain supplier certification to support any
substitution of materials after prototype testing, in accordance
with all applicable provisions of the Standard for the Flammability
of Mattresses and Mattress Pads (FF 4-72), as amended, 16 CFR part
1632.
VII
It is further ordered that Respondents prepare and maintain a
written record of the manufacturing specifications of any new
ticking or tape edge material substituted for those used in the
original prototype testing, in accordance with applicable provisions
of the Standard for the Flammability of Mattresses and Mattress Pads
(FF 4-72), as amended, 16 CFR part 1632.
VIII
It is further ordered that Respondent prepare and maintain a
written record of the manufacturing specifications of any new foam
core material substituted for those used in the original prototype
testing, in accordance with applicable provisions of the Standard
for the Flammability of Mattresses and Mattress Pads (FF 4-72), as
amended, 16 CFR part 1632.
IX
It is further ordered that Respondent prepare and maintain all
other records required by the Standard for the Flammability of
Mattresses and Mattress Pads (FF 4-72), as amended, 16 CFR part
1632, including:
(a) Records to support any determination that a particular
material other than ticking or tape edge did not influence ignition
resistance;
(b) Ticking certification test results or a certification from
the ticking supplier; and
(c) Records describing the disposition of all failing and
rejected prototype mattresses.
X
It is further ordered that upon final acceptance of the Consent
Order Agreement by the Commission, Respondent Terri Treat pay to the
Commission a civil penalty in the amount of Ten Thousand And 00/100
Dollars ($10,000.00) in two payments of Five Thousand And 00/100
Dollars ($5,000.00) each. The first payment of Five Thousand And 00/
100 Dollars ($5,000.00) shall be due on July 1, 1995 or within
twenty (20) days after service of the Final Order of the Commission
accepting this Consent Order Agreement (hereinafter, the
``anniversary date''), whichever is later. The second payment of
Five Thousand And 00/100 Dollars ($5,000.00) shall be paid on July
1, 1996 or within one year of the anniversary date. Upon failure by
Respondent to make payment or upon the making of a late payment by
Respondent, the entire amount of the civil penalty shall be due and
payable, and interest on the outstanding balance shall accrue and be
paid at the federal legal rate of interest under the provisions of
28 U.S.C. 1961 (a) and (b).
XI
It is further ordered that Respondent shall within ninety (90)
days after service upon her of this Order, file with the Commission
a report, in writing, setting forth in detail the manner and form in
which she has complied with this Order.
XII
It is further ordered that for a period of three (3) years from
the date this Order becomes final pursuant to 16 CFR 1605.13(e),
Respondent notify the Commission at least thirty (30) days prior to
any proposed change in the way Respondent does business which may
affect her compliance obligations arising out of this Order.
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 Commission shall announce 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 26th day of July, 1995.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 95-18750 Filed 7-31-95; 8:45 am]
BILLING CODE 6335-01-M
