Seena International, Inc., Provisional Acceptance of a Settlement Agreement and Order, 23202-23204 [E8-9291]

Agencies

• Consumer Product Safety Commission

[Federal Register Volume 73, Number 83 (Tuesday, April 29, 2008)]
[Notices]
[Pages 23202-23204]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-9291]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 08-C0009]


Seena International, Inc., Provisional Acceptance of a Settlement 
Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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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 1118.20(e). 
Published below is a provisionally-accepted Settlement Agreement with 
Seena International Inc., containing a civil penalty of $35,000.00.

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 May 14, 2008.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 08-C0009, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 502, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Seth B. Popkin, Trial Attorney, Legal 
Division, Office of Compliance and Field Operations, Consumer Product 
Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-7612.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: April 23, 2008.
Todd A. Stevenson,
Secretary.

In the Matter of Seena International, Inc.; CPSC Docket No. 08-C0009

Settlement Agreement

    1. In accordance with 16 CFR 1118.20, Seena International, Inc. 
(``Seena'') and the staff (``Staff'') of the United States Consumer 
Product Safety Commission (``Commission'') enter into this Settlement 
Agreement (``Agreement''). The Agreement and the incorporated attached 
Order (``Order'') settle the Staff's allegations set forth below.

Parties

    2. The Commission is an independent federal regulatory agency 
established pursuant to, and responsible for the enforcement of, the 
Consumer Product Safety Act, 15 U.S.C. 2051-2084 (``CPSA'').
    3. Seena is a corporation organized and existing under the laws of 
New York, with its principal offices located in Yaphank, New York. At 
all times relevant hereto, Seena sold apparel.

Staff Allegations

    4. From June to December 2006, Seena imported and sold children's 
hooded sweatshirts with drawstrings through the hoods (``Drawstring 
Sweatshirts''). Seena imported 61,714 Drawstring Sweatshirts and sold 
to retailers and distributors 45,810 of these Drawstring Sweatshirts.
    5. Retailers sold Drawstring Sweatshirts to consumers.
    6. The Drawstring Sweatshirts are ``consumer product[s],'' and, at 
all times relevant hereto, Seena was a ``manufacturer'' of those 
consumer products, which were ``distributed in commerce,'' as those 
terms are defined in CPSA sections 3(a)(1), (4), (11), and (12), 15 
U.S.C. 2052(a)(1), (4), (11), and (12).
    7. In February 1996, the Staff issued the Guidelines for 
Drawstrings on Children's Upper Outerwear (``Guidelines'') to help 
prevent children from strangling or entangling on neck and waist 
drawstrings. The Guidelines state that drawstrings can cause, and have 
caused, injuries and deaths when they catch on items such as playground 
equipment, bus doors, or cribs. In the Guidelines, the Staff recommends 
that there be no hood and neck drawstrings in children's upper 
outerwear sized 2T to 12.
    8. In June 1997, ASTM adopted a voluntary standard, ASTM F1816-97, 
that incorporated the Guidelines. The Guidelines state that firms 
should be

[[Page 23203]]

aware of the hazards and should be sure garments they sell conform to 
the voluntary standard.
    9. On May 19, 2006, the Commission posted on its Web site a letter 
from the Commission's Director of the Office of Compliance to 
manufacturers, importers, and retailers of children's upper outerwear. 
The letter urges them to make certain that all children's upper 
outerwear sold in the United States complies with ASTM F1816-97. The 
letter states that the Staff considers children's upper outerwear with 
drawstrings at the hood or neck area to be defective and to present a 
substantial risk of injury to young children under Federal Hazardous 
Substances Act (``FHSA'') section 15(c), 15 U.S.C. 1274(c). The letter 
also notes the CPSA's section 15(b) reporting requirements.
    10. Seena reported to the Commission that there had been no 
incidents or injuries from the Drawstring Sweatshirts.
    11. Seena's distribution in commerce of the Drawstring Sweatshirts 
did not meet the Guidelines or ASTM F1816-97, failed to comport with 
the Staff's May 2006 defect notice, and posed a strangulation hazard to 
children.
    12. On January 10, 2007, the Commission, in cooperation with Seena, 
announced a recall of the Drawstring Sweatshirts, informing consumers 
that they should immediately remove the drawstrings to eliminate the 
hazard.
    13. Seena had presumed and actual knowledge that the Drawstring 
Sweatshirts distributed in commerce posed a strangulation hazard and 
presented a substantial risk of injury to children under FHSA section 
15(c)(1), 15 U.S.C. 1274(c)(1). Seena had obtained information that 
reasonably supported the conclusion that the Drawstring Sweatshirts 
contained a defect that could create a substantial product hazard or 
that they created an unreasonable risk of serious injury or death. CPSA 
sections 15(b)(2) and (3), 15 U.S.C. 2064(b)(2) and (3), required Seena 
to immediately inform the Commission of the defect and risk.
    14. Seena knowingly failed to immediately inform the Commission 
about the Drawstring Sweatshirts as required by CPSA sections 15(b)(2) 
and (3), 15 U.S.C. 2064(b)(2) and (3), and as the term ``knowingly'' is 
defined in CPSA section 20(d), 15 U.S.C. 2069(d). This failure violated 
CPSA section 19(a)(4), 15 U.S.C. 2068(a)(4). Pursuant to CPSA section 
20, 15 U.S.C. 2069, this failure subjected Seena to civil penalties.

Seena Response

    15. Seena denies the Staff's allegations above that Seena knowingly 
violated the CPSA.

Agreement of the Parties

    16. Under the CPSA, the Commission has jurisdiction over this 
matter and over Seena.
    17. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Seena, or a 
determination by the Commission, that Seena has knowingly violated the 
CPSA.
    18. In settlement of the Staff's allegations, Seena shall pay a 
civil penalty in the amount of thirty-five thousand dollars 
($35,000.00) within twenty (20) calendar days of service of the 
Commission's final Order accepting the Agreement. This payment shall be 
made by check payable to the order of the United States Treasury.
    19. Upon provisional acceptance of the Agreement, the Agreement 
shall be placed on the public record and published in the Federal 
Register in accordance with the procedures set forth in 16 CFR 
1118.20(e). In accordance with 16 CFR 1118.20(f), if the Commission 
does not receive any written request not to accept the Agreement within 
fifteen (15) calendar days, the Agreement shall be deemed finally 
accepted on the sixteenth (16th) calendar day after the date it is 
published in the Federal Register.
    20. Upon the Commission's final acceptance of the Agreement and 
issuance of the final Order, Seena knowingly, voluntarily, and 
completely waives any rights it may have in this matter to the 
following: (1) An administrative or judicial hearing; (2) judicial 
review or other challenge or contest of the validity of the Order or of 
the Commission's actions; (3) a determination by the Commission of 
whether Seena failed to comply with the CPSA and its underlying 
regulations; (4) a statement of findings of fact and conclusions of 
law; and (5) any claims under the Equal Access to Justice Act.
    21. The Commission may publicize the terms of the Agreement and the 
Order.
    22. The Agreement and the Order shall apply to, and be binding 
upon, Seena and each of its successors and assigns.
    23. The Commission issues the Order under the provisions of the 
CPSA, and violation of the Order may subject Seena to appropriate legal 
action.
    24. The Agreement may be used in interpreting the Order. 
Understandings, agreements, representations, or interpretations apart 
from those contained in the Agreement and the Order may not be used to 
vary or contradict their terms. The Agreement shall not be waived, 
amended, modified, or otherwise altered without written agreement 
thereto executed by the party against whom such waiver, amendment, 
modification, or alteration is sought to be enforced.
    25. If any provision of the Agreement and the Order is held to be 
illegal, invalid, or unenforceable under present or future laws 
effective during the terms of the Agreement and the Order, such 
provision shall be fully severable. The balance of the Agreement and 
the Order shall remain in full force and effect, unless the Commission 
and Seena agree that severing the provision materially affects the 
purpose of the Agreement and the Order.
    26. Pursuant to section 6(d) of the Interim Delegation of Authority 
ordered by the Commission on February 1, 2008, the Commission delegated 
to the Assistant Executive Director for Compliance and Field Operations 
the authority to act, with the concurrence of the General Counsel, for 
the Commission under 16 CFR 1118.20 with respect to Staff allegations 
that any person or firm violated 15 U.S.C. 2068, where the total amount 
of the settlement involves no more than $100,000.

Seena International, Inc.
    Dated: March 26, 2008.
By: Pankaj Kalia,
Vice President of Operations, Seena International, Inc., 99 
Horseblock Road, P.O. Box 60, Yaphank, NY 11980.

Dated: March 28, 2008.
    By: Todd A. Gabor, Esq. 132 Spruce Street, Cedarhurst, NY 11516,
Counsel to Seena International, Inc.

U.S. Consumer Product Safety Commission Staff
J. Gibson Mullan, Assistant Executive Director, Office of Compliance 
and Field Operations.

Ronald G. Yelenik, Acting Director, Legal Division Office of 
Compliance and Field Operations.

    Dated: April 16, 2008.
By: Seth B. Popkin, Trial Attorney, Legal Division, Office of 
Compliance and Field Operations.

In the Matter of Seena International, Inc.; CPSC Docket No. 08-C0009

Order

    Upon consideration of the Settlement Agreement entered into between 
Seena International, Inc. (``Seena'') and the U.S. Consumer Product 
Safety Commission (``Commission'') staff, and the Commission having 
jurisdiction over the subject matter and over Seena, and pursuant to 
the authority delegated

[[Page 23204]]

in section 6(d) of the Interim Delegation of Authority ordered by the 
Commission on February 1, 2008, and it appearing that the Settlement 
Agreement and the Order are in the public interest, it isOrdered, that 
the Settlement Agreement be, and hereby is, accepted; and it isFurther 
ordered, that Seena shall pay a civil penalty in the amount of thirty-
five thousand dollars ($35,000.00) within twenty (20) calendar days of 
service of the Commission's final Order accepting the Agreement. The 
payment shall be made by check payable to the order of the United 
States Treasury. Upon the failure of Seena to make the foregoing 
payment when due, interest on the unpaid amount shall accrue and be 
paid by Seena at the federal legal rate of interest set forth at 28 
U.S.C. 1961(a) and (b).
    Provisionally accepted and provisional Order issued on the 22nd day 
of April, 2008.

    By Order of the Commission.

Todd A. Stevenson,
Secretary.
U.S. Consumer Product Safety Commission
 [FR Doc. E8-9291 Filed 4-28-08; 8:45 am]
BILLING CODE 6355-01-M