PCA Apparel Industries, INC., a Corporation; Provisional Acceptance of a Settlement Agreement and Order

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.

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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