Burlington Coat Factory Warehouse Corp., a Corporation; Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 96-C0006]

Burlington Coat Factory Warehouse Corp., 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 Section

1605.13. Published below is a provisionally-accepted Settlement

Agreement with Burlington Coat Factory Corp., 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 12, 1996.

ADDRESSES: Persons wishing to comment on this Settlement Agreement

should send written comments to the Comment 96-C0006, Office of the

Secretary, Consumer Product Safety Commission, Washington, D.C. 20207.

FOR FURTHER INFORMATION CONTACT:

William J. Moore, Jr., Trial Attorney, Office of Compliance and

Enforcement,

[[Page 26506]]

Consumer Product Safety Commission, Washington, D.C. 20207; telephone

(301) 504-0626.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears

below.

Dated: May 20, 1996.

Sadye E. Dunn,

Secretary.

Consent Order Agreement

Burlington Coat Factory Warehouse Corporation (``Burlington Coat

Factory'' 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

section 1605.13 of the Commission's Procedures for Investigations,

Inspections, and Inquiries under the Flammable Fabrics Act (FFA), 16

CFR part 1605.

This Agreement and Order are for the sole purpose of settling

allegations of the staff that Respondent sold certain ladies' rayon

sheer chiffon skirts and scarves that failed to comply with the

Standard for the Flammability of Clothing Textiles 16 CFR part 1610

(``the general wearing apparel standard'').

Respondents 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. (FAA) and the Federal Trade Commission Act, 15 U.S.C. 41 et

seq. (FTC).

2. Respondent Burlington Coat Factory is a corporation organized

and existing under the laws of the State of Delaware with principal

corporate offices at 1830 Route 130, Burlington, New Jersey 08016.

3. Respondent is now, and has been, engaged in one or more of the

following activities: the sale, or the offering for sale, in commerce,

or the delivery for introduction, transportation in commerce, or the

sale or delivery after sale or shipment in commerce, of womens' skirts

and scarves subject to the general wearing apparel standard.

4. This Agreement is for the sole purpose of settling the

allegations in the accompanying Complaint. The Agreement becomes

effective only upon its final acceptance by the Commission and service

of the incorporated Order upon Respondent. The parties agree to entry

of the attached Order, which is incorporated herein by reference.

5. Respondent specifically denies the allegations contained in

paragraphs 3-5 of the accompanying Complaint. In particular, Respondent

contends that it did not knowingly sell rayon sheer chiffon skirts and

scarves that violated the flammability requirements of the general

wearing apparel standard. Nothing in this Agreement constitutes an

admission by Respondent that it violated the law.

6. Respondent further contends that it has received no reports of

injuries from the use of any products enumerated in this agreement or

the accompanying Complaint. Respondent makes no admission of any fault,

liability, or statutory violation. Nor does this Agreement constitute

an admission by Respondent that it is paying a civil penalty; any

payment referenced in paragraph II of the accompanying Order is solely

to settle the Commission's contention that a civil penalty is

appropriate.

7. The parties agree that this Consent Order Agreement resolves the

allegations of the accompanying Complaint. The Commission specifically

waives its right to initiate any other criminal, civil or

administrative action against the Respondent, its shareholders,

officers, directors, employees, and agents with respect to those

alleged violations.

8. Respondent waives any rights to a formal hearing as to 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.

9. The Commission may disclose the terms of this Consent Order

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

10. This Agreement and the Complaint accompanying the Agreement may

be used in interpreting the incorporated 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.

By:

Paul C. Tang,

Vice President and General Counsel, Burlington Coat Factory, Warehouse

Corporation, 1830 Route 130, Burlington, New Jersey 08016.

Date: April 12, 1996.

By:

William J. Moore, Jr.,

Trial Attorney, Division of Administrative Litigation.

Date: April 12, 1996.

Eric L. Stone,

Acting Director, Division of Administrative Litigation.

David Schmeltzer,

Assistant Executive Director, Office of Compliance, Consumer Product

Safety Commission, Washington, DC 20207.

Order

Upon consideration of the Agreement of the parties

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 introducing,

delivering for introduction, transporting or causing to be transported,

in commerce, or selling or delivering after sale or shipment in

commerce, any 100% rayon sheer chiffon skirts or scarves that fail to

comply with the flammability requirements of the Standard for the

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 TWO HUNDRED FIFTY THOUSAND DOLLARS

($250,000) within twenty (20) days after service upon Respondent of the

Final Order.

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 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.

By direction of the Commission, this Consent Order Agreement is

provisionally accepted pursuant to 16 C.F.R. 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.

[[Page 26507]]

So ordered by the Commission, this 20th day of May, 1996.

Sadye E. Dunn,

Secretary, Consumer Product Safety Commission.

Complaint

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

contends that Burlington Coat Factory Warehouse Corporation, a

corporation (``Respondent''), is subject to the provisions of 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); the Federal Trade

Commission Act (15 U.S.C. 41 et seq. (FTC); and the Standard for the

Flammability of Clothing Textiles, 16 C.F.R. part 1601 (``the general

wearing apparel standard''). The staff further contends Respondent

violated the general wearing apparel standard's provisions related to

the flammability of certain women's rayon sheer chiffon skirts and

scarves.

Based upon the information provided to the Commission by the staff,

the Commission determined 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. 45; and in accordance with the Commission's

Rules of Practice for Adjudicative Proceedings, 16 CFR Part 1025, the

Commission hereby issues this Complaint and states the staff's charges

as follows:

1. Respondent Burlington Coat Factory is a corporation organized

and existing under the laws of the State of Delaware with principal

corporate offices at 1830 Route 130 N, Burlington, New Jersey, 08016.

2. Respondent is and has been engaged in one or more of the

following activities: the sale, or the offering for sale, in commerce,

of women's sheer chiffon rayon skirts and scarves subject to the

general wearing apparel standards.

3. In 1994 and 1995, Respondent sold and offered for sale women's

100% rayon sheer chiffon skirts and scarves that did not comply with

the flammability requirements for general wearing apparel.

4. As the result of these failures to comply with the general

wearing apparel standard, Respondent sold, or offered for sale, in

commerce, a significant number of women's garments purchased from

several different importers that failed to comply with the general

wearing apparel flammability standards.

5. After being informed of the violations involving sheer chiffon

skirts by the Commission staff in 1994, Respondent nevertheless sold

and offered for sale sheer chiffon scarves that did not comply with the

applicable flammability requirements.

Relief Sought

Wherefore, the staff requests the Commission to issue an order

requiring the Respondent to:

Cease and desist from the sale, or the offering for sale, in

commerce, delivery for introduction, transportation in commerce, or the

sale or delivery after sale or shipment in commerce, of rayon sheer

chiffon skirts and scarves subject to the general wearing apparel

standards that fail to comply with such standards.

Wherefore, the premises considered, the Commission hereby issues

this Complaint on the ____ day of ______, 1996.

Dated:

By direction of the Commission:

David Schmeltzer,

Assistant Executive Director, Office of Compliance.

[FR Doc. 96-13203 Filed 5-24-96; 8:45 am]

BILLING CODE 6355-01-M