In the Matter of Shrdlu, d/b/a/ The Sandy Starkman Co., a Corporation; Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 96-C0005]

In the Matter of Shrdlu, d/b/a/ The Sandy Starkman Co., a

Corporation; Provisional Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.

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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 section

1605.13. Published below is a provisionally-accepted Settlement

Agreement with Shrdlu Corporation, d/b/a/ The Starkman Co., 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 7, 1996.

ADDRESSES: Persons wishing to comment on this Settlement Agreement

should send written comments to the Comment 96-C0005, Office of the

Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:

Melvin I. Kramer, 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: May 17, 1996.

Sadye E. Dunn,

Secretary.

Consent Order Agreement

Shrdlu Corp., d/b/a The Sandy Starkman Co. (hereinafter

``Respondent'' or ``Starkman''), a corporation, enters into this

Consent Order Agreement (hereinafter, ``Agreement'') with the staff

of the Consumer Product Safety Commission (``the staff'') pursuant

to the procedures set forth in section 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 purpose of settling

allegations of the staff that Respondent imported and sold 100%

rayon, double layer skirts, style #73451, in commerce, which skirts

failed to comply with the Standard for the Flammability of Clothing

Textiles, 16 CFR 1610 (the ``standard'').

Respondent and the Staff Agree

1. The Consumer Product Safety Commission (``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. Secs. 2051 et seq. (CPSA), the

Flammable Fabrics Act, 15 U.S.C. Secs. 1191 et seq. (FFA) and the

Federal Trade Commission Act (15 U.S.C. Secs. 41 et seq. (FTCA).

2. Respondent is a corporation organized and existing under the

laws of the State of New York with principal corporate offices at 10

Grand Blvd., Deer Park, New York 11729.

3. Respondent is now, and has been engaged in one or 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 women's wearing apparel

subject to the standard.

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. The

Agreement becomes effective only upon its final acceptance by the

Commission and service of the incorporated Order upon Respondent.

5. The parties agree that 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. The Commission may disclose the terms of this Consent Order

Agreement to the public consistent with section 6(b) of the CPSA.

8. This Agreement, and the Complaint accompanying the Agreement,

may be used in interpreting the Order. Agreements, understandings,

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:

Peter Goodman,

Shrdlu Corporation d/b/a The Sandy Starkman Co.

Melvin I. Kramer,

Trial Attorney, Division of Administrative Litigation Office of

Compliance.

Eric L. Stone,

Acting Director, Division of Administrative Litigation, Office of

Compliance.

David Schmeltzer,

Assistant Executive Director, Office of Compliance, U.S. Consumer

Product Safety Commission.

Complaint

The staff of the Consumer Product Safety Commission (``staff'')

contends that Shrdlu Corporation, d/b/a/ The Sandy Starkman Co., a

corporation (``Respondent''), is subject to the Consumer Product

Safety Act, 15 U.S.C. 2051, et seq. (CPSA); the Flammable Fabrics

Act, 15 U.S.C. 1191 et seq. (FTCA); and, the Standard for the

Flammability of clothing textiles, 16 C.F.R. Sec. 1610, (``the

standard'').

Based upon the information provided to the Commission by the

staff, the Commission determined that it is in the public interest

to issue this Complaint. Therefore, by virtue of the authority

vested in the Commission by section 30(b) of the CPSA, 15 U.S.C.

2079(b); sections 3 and 5 of the FFA, 15 U.S.C. 1192 and 1194; and

section 5 of the FTCA, 15 U.S.C. 45; and in accordance with the

Commission's Rules of Practice of Adjudicative Proceedings, 16 CFR

Part 1025, the Commission hereby issues this Complaint and states

the staff's charges as follows:

1. Respondent is a corporation organized and existing under the

laws of the State of New York with principal corporate offices at

1410 Broadway, Suite 801, New York, New York 10018.

2. Respondent is and has been engaged in one or 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 women's wearing apparel

subject to the standard.

3. Between October 26, 1993 and the end of January 1994,

Respondent imported and/or sold in commerce items of women's wearing

apparel, namely 900 100% rayon, double layers skirts, style #73451.

It was subsequently discovered, through testing by the purchaser,

that the skirts failed to comply with the flammability requirements

of the standard.

4. As a result of this failure to comply with the standard,

Respondent manufactured for sale, sold, or offered for sale, in

commerce, or imported, delivered for introduction, transported in

commerce, or sold or delivered after sale or shipment in commerce, a

significant number of garments that failed to comply with the FFA.

Relief Sought

Wherefore, the staff requests the Commission to issue an Order

requiring Respondent to cease and desist from 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 any

item of wearing apparel subject to the standard that fails to comply

with the standard.

Wherefore, the premises considered, the Commission hereby issues

this Complaint on the ______ day of ________________ 199 .

By Direction of the Commission:

David Schmeltzer,

Assistant Executive Director, Office of Compliance and Enforcement.

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

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for introduction, transporting or causing to be transported, in

commerce, any item of wearing apparel that fails to comply with the

flammability requirements of the Standard for Flammability of clothing

textiles, 16 C.F.R. part 1610.

II

It is further ordered that Respondent pay to the United States

Treasury a civil penalty of $5,000.00 no later than March 20, 1996 or

within 20 days after service upon the Respondent of the Final Order,

whichever comes later.

III

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 with in 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.

By direction of the Commission, this Consent Order Agreement is

provisionally accepted pursuant to 16 CFR Section 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 17th day of May 1996.

Sadye E. Dunn,

Secretary, U.S. Consumer Product Safety Commission.

By direction of the Commission, this Consent Order Agreement is

hereby finally accepted and issued as an Order of the Consumer Product

Safety Commission.

[FR Doc. 96-12880 Filed 5-22-96; 8:45 am]

BILLING CODE 6355-01-M