In the Matter of One Price Clothing Stores, Inc., a Corporation; Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 97-C0007]

In the Matter of One Price Clothing Stores, 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 C.F.R.

Sec. 1605.13(d). Published below is a provisionally-accepted Settlement

Agreement with One Price Clothing Stores, 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 23, 1997.

ADDRESSES: Persons wishing to comment on this Settlement Agreement

should send written comments to the Comment 97-C0007, Office of the

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

FOR FURTHER INFORMATION CONTACT:

Howard N. Tarnoff, Trial Attorney, Office of Compliance and

Enforcement, Consumer Product Safety Commission, Washington, D.C.

20207; telephone (301) 504-0626.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears

below.

Dated: June 4, 1997.

Sadye E. Dunn,

Secretary.

Consumer Product Safety Commission

[CPSC Docket No. 97-C0007]

In the Matter of One Price Clothing Stores, Inc. a Corporation

Settlement Agreement

1. One Price Clothing Stores, Inc. (hereinafter, ``One Price'' or

``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. This Agreement and Order are for the sole purpose of settling

allegations of the staff that Respondent knowingly sold and offered for

sale, in commerce, certain rayon and rayon/cotton blend skirts

featuring a sheer chiffon layer and sheer rayon scarves that failed to

comply with the Standard for the Flammability of Clothing Textiles

(hereinafter, ``Clothing Standard'', 16 CFR Sec. 1610.

I. The Parties

2. The ``staff'' is the staff of the Consumer Product Safety

Commission (hereinafter, ``Commission''), an independent regulatory

agency of the United States Government established pursuant to section

4 of the Consumer Product Safety Act (CPSA), 15 U.S.C. Sec. 2053.

3. Respondent One Price is a corporation organized and existing

under the laws of the State of Delaware with principal corporate

offices at Highway 290-- Commerce Park, 1875 East Main Street, Duncan,

South Carolina 29334.

II. Allegations of the Staff

A. Rayon and Rayon/Cotton Blend Skirts

4. Between June 1994 and August 1994, Respondent sold or offered

for sale, in commerce, 9,800 style 0609 rayon skirts and 8,400 style

1101 rayon/cotton blend skirts featuring a sheer chiffon layer.

5. The skirts identified in paragraph 4 above are subject to the

Clothing Standards, 16 CFR Sec. 1610, issued under section 4 of the

Flammable Fabrics Act (FFA), 15 U.S.C. Sec. 1193.

6. The staff tested the skirts identified in paragraph 4 above for

compliance with the requirements of the Clothing Standard. See 16 CFR

Secs. 1610.3 and .4. The test results showed that the skirts violated

the requirements of the Clothing Standard and, therefore, were

dangerously flammable and unsuitable for clothing because of rapid and

intense burning.

7. 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 that One Price review its entire product line

for other potential violations.

8. Respondent knowingly sold and offered for sale, in commerce, the

skirts identified in paragraph 4 above, in violation of section 3 of

the FFA, 15 U.S.C. Sec. 1192, for which a civil penalty may be imposed

pursuant to section 5(e)(1) of the FFA, 15 U.S.C. Sec. 1194(e)(1).

B. Rayon Scarves

9. Between February 1995 and August 1995, Respondent sold or

offered for

[[Page 31417]]

sale, in commerce, 6,000 style 3525 sheer rayon scarves.

10. The scarves identified in paragraph 9 above are subject to the

Clothing Standard, 16 C.F.R. Sec. 1610, issued under section 4 of the

FFA, 15 U.S.C. Sec. 1193.

11. The staff tested the scarves identified in paragraph 9 above

for compliance with the requirements of the Clothing Standard. The test

results showed that the scarves violated the requirements of the

Clothing Standard, and, therefore, were dangerously flammable and

unsuitable for clothing because of rapid and intense burning.

12. Respondent knowingly sold and offered for sale, in commerce,

the scarves identified in paragraph 9 above, in violation of section 3

of the FFA, 15 U.S.C. Sec. 1192, for which a civil penalty may be

imposed pursuant to section 5(e)(1) of the FFA, 15 U.S.C.

Sec. 1194(e)(1).

III. Response of One Price

13. One Price denies the allegations of the staff set forth in

paragraphs 4 through 12 above that it knowingly sold or offered for

sale, in commerce, the skirts and scarves identified in paragraphs 4

and 9 above, in violation of section 3 of the FFA, 15 U.S.C. Sec. 1192.

One Price notes that it knows of no claims or reports of any injuries

associated with the skirts and scarves identified in paragraphs 4 and 9

above. Further, One Price points out that it took immediate action, as

soon as the allegations of problems with these items were brought to

its attention.

IV. Agreement of the Parties

14. The Commission has jurisdiction over this matter under the

Consumer Product Safety Act (CPSA), 15 U.S.C. Secs. 2051 et seq., the

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

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

15. 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 or the

Clothing Standard. This Agreement becomes effective only upon its final

acceptance by the Commission and service of the incorporated Order upon

Respondent.

16. The parties agree that this Agreement resolves the allegations

of the staff enumerated in Section II above, and the Commission will

not initiate any other criminal, civil, or administrative action

against Respondent for those alleged violations, based upon information

currently known to the staff.

17. Upon final acceptance of this Agreement by the Commission and

issuance of the 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 as alleged, (4) to a statement of findings of fact

and conclusions of law, and (5) to any claims under the Equal Access to

Justice Act.

18. The Commission may disclose the terms of this Agreement and

Order to the public consistent with Section 6(b) of the CPSA, 15 U.S.C.

Sec. 2055(b).

19. Upon provisional acceptance of this Agreement and Order by the

Commission, this 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 this Agreement and

Order within 15 days, this Agreement and Order shall be deemed finally

accepted on the 20th day after the date it is published in the Federal

Register, in accordance with 16 CFR 1605.13(e).

20. Upon final acceptance by the Commission of this Agreement and

Order, the Commission shall issue the attached Order, incorporated

herein by reference. This Agreement becomes effective after service of

the incorporated Order upon Respondent.

21. A violation of the attached Order shall subject Respondent to

appropriate legal action.

22. This Agreement may be used in interpreting the incorporated

Order. Agreements, understandings, representations, or interpretations

made outside of this Agreement may not be used to vary or contradict

its terms.

23. The provisions of this Agreement and Order shall apply to

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.

Dated: May 6, 1997.

By:

Grant H. Gibson,

Vice President and General Counsel, One Price Clothing Stores, Inc.,

Highway 290, Commerce Park, 1875 East Main Street, Duncan, SC 29334.

Dated: May 6, 1997.

By:

Howard N. Tarnoff,

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, Washington, DC 20207.

Order

Upon consideration of the Settlement Agreement entered into between

Respondent One Price Clothing Stores, Inc. and the staff of the

Consumer Product Safety 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,

I

It is Ordered That the Settlement Agreement and Order be and hereby

is accepted.

II

It is further Ordered That Respondent pay to the United States

Treasury a civil penalty of FIFTY THOUSAND DOLLARS ($50,000) 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 Order Agreement.

Provisionally accepted and Provisional Order issued on the 4th

day of June, 1997.

By order of the Commission.

Sadye E. Dunn,

Secretary, Consumer Product Safety Commission.

[FR Doc. 97-15006 Filed 6-6-97; 8:45 am]

BILLING CODE 6355-01-M