Vacation Clothing Exchange, Inc., d/b/a Basix USA, Provisional Acceptance of a Settlement Agreement and Order, 46886-46888 [E8-18400]
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46886
Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices
days of service of the Commission’s final
Order accepting the Agreement. The payment
shall be 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, Siegfried knowingly,
voluntarily, and completely waives any
rights it may have regarding the Staff’s
allegations 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 Siegfried 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, Siegfried 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 Siegfried
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 Siegfried
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.
Siegfried & Parzifal, Inc.
VerDate Aug<31>2005
17:28 Aug 11, 2008
Jkt 214001
Dated: 7/10/2008.
By: Joseph Hwa,
President, Siegfried & Parzifal, Inc., 18701
Arenth Avenue, City of Industry, CA 91748.
Dated: 7/10/2008.
By: Mark Fang, Esquire,
215 E. Daily Drive, Suite 9, Camarillo, CA
93010, Attorney for Siegfried & Parzifal,
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: 7/31/08.
By: Dennis C Kacoyaniss,
Trial Attorney, Legal Division, Office of
Compliance and Field Operations.
United States of America
Consumer Product Safety Commission
In the Matter of Siegfried & Parzifal, Inc.,
CPSC Docket No. 08–C0017
Order
Upon consideration of the Settlement
Agreement entered into between Siegfried &
Parzifal, Inc. (‘‘Siegfried’’) and the U.S.
Consumer Product Safety Commission
(‘‘Commission’’) staff, and the Commission
having jurisdiction over the subject matter
and over Siegfried, and pursuant to the
authority delegated 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 is
ordered, that the Settlement Agreement be,
and hereby is, accepted; and it is further
ordered, that Siegfried 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 Siegfried to make the foregoing
payment when due, interest on the unpaid
amount shall accrue and be paid by Siegfried
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 4th day of August, 2008.
By Order of the Commission
Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety
Commission.
[FR Doc. E8–18399 Filed 8–11–08; 8:45 am]
BILLING CODE 6355–01–M
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CONSUMER PRODUCT SAFETY
COMMISSION
[CPSC Docket No. 08–C0020]
Vacation Clothing Exchange, Inc., d/b/
a Basix USA, Provisional Acceptance
of a Settlement Agreement and Order
Consumer Product Safety
Commission.
ACTION: Notice.
AGENCY:
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 Vacation
Clothing Exchange, Inc., d/b/a Basix
USA, containing a civil penalty of
$25,000.00.
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 August 27,
2008.
ADDRESSES: Persons wishing to
comment on this Settlement Agreement
should send written comments to the
Comment 08–C0020, Office of the
Secretary, Consumer Product Safety
Commission, 4330 East-West Highway,
Room 502, Bethesda, Maryland 20814–
4408.
FOR FURTHER INFORMATION CONTACT:
Dennis C. Kacoyanis, Trial Attorney,
Legal Division, Office of Compliance
and Field Operations, Consumer
Product Safety Commission, 4330 EastWest Highway, Bethesda, Maryland
20814–4408; telephone (301) 504–7587.
SUPPLEMENTARY INFORMATION: The text of
the Agreement and Order appears
below.
DATES:
Dated: August 5, 2008.
Todd A. Stevenson,
Secretary.
United States of America
Consumer Product Safety Commission
In the Matter of
Vacation Clothing Exchange, Inc. d/b/a
Basix USA.
CPSC Docket No. 08–C0020.
Settlement Agreement
1. In accordance with 16 CFR 1118.20,
Vacation Clothing Exchange, Inc., d/b/a Basix
USA (‘‘Vacation Clothing’’) 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 Staffs allegations set forth below.
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Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices
sroberts on PROD1PC70 with NOTICES
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. Vacation Clothing is a corporation
organized and existing under the laws of
Florida, with its principal offices located in
Lauderdale Lakes, FL. At all times relevant
hereto, Vacation Clothing imported and sold
apparel.
Staff Allegations
4. Between May 2003 and December 2006,
Vacation Clothing imported and/or sold to
retailers at least 22,420 children’s sweatshirts
and windbreakers with drawstrings in the
hoods (‘‘Drawstring Sweatshirts and
Windbreakers’’).
5. Retailers sold the Drawstring Sweatshirts
and Windbreakers to consumers.
6. The Drawstring Sweatshirts and
Windbreakers are ‘‘consumer product[s],’’
and, at all times relevant hereto, Vacation
Clothing 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 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 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. The Commission was not informed of
any incidents or injuries from the Drawstring
Sweatshirts and Windbreakers.
11. Vacation Clothing’s distribution in
commerce of the Drawstring Sweatshirts and
Windbreakers 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 February 13, 2007, the Commission
and Vacation Clothing announced a recall of
the Drawstring Sweatshirts and
VerDate Aug<31>2005
16:24 Aug 11, 2008
Jkt 214001
Windbreakers, informing consumers that
they should immediately remove the
drawstrings to eliminate the hazard.
13. Vacation Clothing had presumed and
actual knowledge that the Drawstring
Sweatshirts and Windbreakers distributed in
commerce posed a strangulation hazard and
presented a substantial risk of injury to
children under FHSA section 15(c)(l), 15
U.S.C. 1274(c)(1). Vacation Clothing had
obtained information that reasonably
supported the conclusion that the Drawstring
Sweatshirts and Windbreakers 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 Vacation Clothing to immediately
inform the Commission of the defect and
risk.
14. Vacation Clothing knowingly failed to
immediately inform the Commission about
the Drawstring Sweatshirts and
Windbreakers 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 l9(a)(4), 15
U.S.C. 2068(a)(4). Pursuant to CPSA section
20, 15 U.S.C. 2069, this failure subjected
Vacation Clothing to civil penalties.
Vacation Clothing Response
15. Vacation Clothing denies the Staff’s
allegations above that Vacation Clothing
knowingly violated the CPSA.
Agreement of the Parties
16. Under the CPSA, the Commission has
jurisdiction over this matter and over
Vacation Clothing.
17. The parties enter into the Agreement
for settlement purposes only. The Agreement
does not constitute an admission by Vacation
Clothing, or a determination by the
Commission, that Vacation Clothing has
knowingly violated the CPSA.
18. In settlement of the Staff’s allegations,
Vacation Clothing shall pay a civil penalty in
the amount of twenty-five thousand dollars
($25,000.00) in five (5) installments as
follows: The first installment of fivethousand dollars ($5,000.00) shall be paid
within twenty (20) calendar days of service
of the Commission’s final Order accepting
the Agreement; the second payment of fivethousand dollars ($5,000.00) shall be paid
within six (6) months of service of the
Commission’s final Order accepting the
Agreement; the third payment of fivethousand dollars ($5,000.00) shall be paid
within twelve (12) months of service of the
Commission’s final Order accepting the
Agreement; the fourth payment of fivethousand dollars ($5,000.00) shall be paid
within eighteen (18) months of service of the
Commission’s final Order accepting the
Agreement; and the fifth payment of fivethousand dollars ($5,000.00) shall be paid
within twenty-four (24) months of service of
the Commission’s final Order accepting the
Agreement. Each payment shall be by check
payable to the order of the United States
Treasury.
19. Upon provisional acceptance of the
Agreement, the Agreement shall be placed on
PO 00000
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Sfmt 4703
46887
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, Vacation Clothing
knowingly, voluntarily, and completely
waives any rights it may have regarding the
Staffs allegations 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 Vacation Clothing
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, Vacation
Clothing 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 Vacation
Clothing 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 Vacation
Clothing 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.
Vacation Clothing Exchange, Inc. d/b/a Basix
USA
Dated: 7/21/08 By:
Benjamin Perelmutter,
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46888
Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices
Vice President, Vacation Clothing Exchange,
Inc., d/b/a Basix USA.
2778 NW 31st Avenue.
Lauderdale Lakes, FL 33311.
Dated: 7/21/08 By:
Brian Kopelowitz, Esquire,
The Kopelowitz Ostrow Law Firm, P.A.
200 SW 1st Avenue, 12th Floor
Fort Lauderdale, FL 33301
Attorney for Vacation Clothing Exchange,
Inc., d/b/a Basix USA.
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: 7/31/08
By:
United States of America
sroberts on PROD1PC70 with NOTICES
Consumer Product Safety Commission
In the Matter of Vacation Clothing Exchange,
Inc. d/b/a Basix USA. CPSC Docket No.
08–C0020
Order
Upon consideration of the Settlement
Agreement entered into between Vacation
Clothing Exchange, Inc., d/b/a Basix USA
(‘‘Vacation Clothing’’) and the U.S. Consumer
Product Safety Commission (‘‘Commission’’)
staff, and the Commission having jurisdiction
over the subject matter and over Vacation
Clothing, and pursuant to the authority
delegated 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 is
Ordered, that the Settlement Agreement be,
and hereby is, accepted; and it is
Further ordered, that Vacation Clothing
shall pay a civil penalty in the amount of
twenty-five thousand dollars ($25,000.00) in
five (5) installments as follows: The first
payment of five-thousand dollars ($5,000.00)
shall be paid within twenty (20) calendar
days of service of the Commission’s final
Order accepting the Agreement; the second
payment of five-thousand dollars ($5,000.00)
shall be paid within six (6) months of service
of the Commission’s final Order accepting
the Agreement; the third payment of fivethousand dollars ($5,000.00) shall be paid
within twelve (12) months of service of the
Commission’s final Order accepting the
Agreement; the fourth payment of fivethousand dollars ($5,000.00) shall be paid
within eighteen (18) months of service of the
Commission’s final Order accepting the
Agreement; and the fifth payment of fivethousand dollars ($5,000.00) shall be paid
within twenty-four (24) months of service of
the Commission’s final Order accepting the
Agreement. Each payment shall be made by
check payable to the order of the United
States Treasury. Upon the failure Vacation
17:28 Aug 11, 2008
Jkt 214001
Dated: August 5, 2008.
Patricia Toppings,
OSD Federal Register Liaison Officer,
Department of Defense.
S700.30
Provisionally accepted and provisional
Order issued on the 4th day of August 2008.
By order of the commission:
Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety
Commission.
[FR Doc. E8–18400 Filed 8–11–08; 8:45 am]
BILLING CODE 6355–01–M
SYSTEM NAME:
Operational Accounting Records for
Civilian Employee-Based Expenditures
(June 13, 2005, 70 FR 34105).
CHANGES:
*
*
*
*
*
SYSTEM NAME:
Delete entry and replace with
‘‘Enterprise Business System (EBS).’’
DEPARTMENT OF DEFENSE
SYSTEM LOCATION:
Office of the Secretary
Dennis C. Kacoyanis,
Trial Attorney,
Legal Division,
Office of Compliance and Field Operations.
VerDate Aug<31>2005
Clothing to make the foregoing payments
when due, interest on the unpaid amount
shall accrue and be paid by Vacation
Clothing at the federal legal rate of interest
set forth at U.S.C. 1961(a) and (b).
[Docket ID: DoD–2008–OS–0084]
Privacy Act of 1974; Systems of
Records
AGENCY:
Defense Logistics Agency, DoD.
Notice to Amend a System of
Records.
ACTION:
SUMMARY: The Defense Logistics Agency
is amending a system of records notice
to its existing inventory of record
systems subject to the Privacy Act of
1974 (5 U.S.C. 552a), as amended.
This action will be effective
without further notice on September 11,
2008 unless comments are received that
would result in a contrary
determination.
DATES:
Send comments to the
Privacy Act Officer, Headquarters,
Defense Logistics Agency, ATTN: DP,
8725 John J. Kingman Road, Stop 2533,
Fort Belvoir, VA 22060–6221.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Ms.
Jody Sinkler at (703) 767–5045.
The
Defense Logistics Agency notices for
systems of records subject to the Privacy
Act of 1974 (5 U.S.C. 552a), as amended,
have been published in the Federal
Register and are available from the
address above.
The specific changes to the record
system being amended are set forth
below followed by the notice, as
amended, published in its entirety. The
proposed amendment is not within the
purview of subsection (r) of the Privacy
Act of 1974, (5 U.S.C. 552a), as
amended, which requires the
submission of a new or altered system
report.
SUPPLEMENTARY INFORMATION:
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Delete entry and replace with
‘‘Financial Compliance and Process
Management (J–89), Headquarters,
Defense Logistics Agency, 8725 John J.
Kingman Road, Stop 6238, Fort Belvoir,
VA 22060–6221.
EBS Processing Center (EPC), DISA/
DECC-Ogden, Building 981, 7879
Wardleigh Road, Hill AFB, UT 84056–
5997’’.
CATEGORIES OF INDIVIDUALS COVERED BY THE
SYSTEM:
Delete entry and replace with
‘‘Defense Logistics Agency (DLA)
civilian employees and civilian
employees of other DOD Components
who receive accounting and financial
management support from DLA under
an administrative support agreement.’’
CATEGORIES OF RECORDS IN THE SYSTEM:
Delete entry and replace with
‘‘Individual’s name, Social Security
Number (SSN), activity code, home
address, Country Code, Electronic Fund
Transfer waiver, Financial Institution,
Bank Routing Number, Bank Account
Number, Account Type, gross pay data
(date paid, disbursing officer voucher
number, disbursing station symbol
number, pay period ending date, pay
system code, grade, pay/straight rate,
work schedule, temporary position
code, gross reconciliation code, job
order number, hours extended, hours
paid, and earnings/employer
contributions amount), and
reconciliation or error data (if
applicable).’’
*
*
*
*
*
PURPOSE(S):
Delete entry and replace with
‘‘Records are used to initiate
reimbursements to enable the Defense
Finance and Accounting Service (DFAS)
to distribute payments to DLA
employees for certain miscellaneous
out-of-pocket expenses (training,
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]]>Agencies
[Federal Register Volume 73, Number 156 (Tuesday, August 12, 2008)]
[Notices]
[Pages 46886-46888]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-18400]
-----------------------------------------------------------------------
CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 08-C0020]
Vacation Clothing Exchange, Inc., d/b/a Basix USA, Provisional
Acceptance of a Settlement Agreement and Order
AGENCY: Consumer Product Safety Commission.
ACTION: Notice.
-----------------------------------------------------------------------
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
Vacation Clothing Exchange, Inc., d/b/a Basix USA, containing a civil
penalty of $25,000.00.
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 August 27, 2008.
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 08-C0020, Office of the
Secretary, Consumer Product Safety Commission, 4330 East-West Highway,
Room 502, Bethesda, Maryland 20814-4408.
FOR FURTHER INFORMATION CONTACT: Dennis C. Kacoyanis, Trial Attorney,
Legal Division, Office of Compliance and Field Operations, Consumer
Product Safety Commission, 4330 East-West Highway, Bethesda, Maryland
20814-4408; telephone (301) 504-7587.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
Dated: August 5, 2008.
Todd A. Stevenson,
Secretary.
United States of America
Consumer Product Safety Commission
In the Matter of
Vacation Clothing Exchange, Inc. d/b/a Basix USA.
CPSC Docket No. 08-C0020.
Settlement Agreement
1. In accordance with 16 CFR 1118.20, Vacation Clothing
Exchange, Inc., d/b/a Basix USA (``Vacation Clothing'') 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 Staffs allegations set forth below.
[[Page 46887]]
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. Vacation Clothing is a corporation organized and existing
under the laws of Florida, with its principal offices located in
Lauderdale Lakes, FL. At all times relevant hereto, Vacation
Clothing imported and sold apparel.
Staff Allegations
4. Between May 2003 and December 2006, Vacation Clothing
imported and/or sold to retailers at least 22,420 children's
sweatshirts and windbreakers with drawstrings in the hoods
(``Drawstring Sweatshirts and Windbreakers'').
5. Retailers sold the Drawstring Sweatshirts and Windbreakers to
consumers.
6. The Drawstring Sweatshirts and Windbreakers are ``consumer
product[s],'' and, at all times relevant hereto, Vacation Clothing
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 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 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. The Commission was not informed of any incidents or injuries
from the Drawstring Sweatshirts and Windbreakers.
11. Vacation Clothing's distribution in commerce of the
Drawstring Sweatshirts and Windbreakers 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 February 13, 2007, the Commission and Vacation Clothing
announced a recall of the Drawstring Sweatshirts and Windbreakers,
informing consumers that they should immediately remove the
drawstrings to eliminate the hazard.
13. Vacation Clothing had presumed and actual knowledge that the
Drawstring Sweatshirts and Windbreakers distributed in commerce
posed a strangulation hazard and presented a substantial risk of
injury to children under FHSA section 15(c)(l), 15 U.S.C.
1274(c)(1). Vacation Clothing had obtained information that
reasonably supported the conclusion that the Drawstring Sweatshirts
and Windbreakers 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 Vacation Clothing to immediately inform
the Commission of the defect and risk.
14. Vacation Clothing knowingly failed to immediately inform the
Commission about the Drawstring Sweatshirts and Windbreakers 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 l9(a)(4), 15
U.S.C. 2068(a)(4). Pursuant to CPSA section 20, 15 U.S.C. 2069, this
failure subjected Vacation Clothing to civil penalties.
Vacation Clothing Response
15. Vacation Clothing denies the Staff's allegations above that
Vacation Clothing knowingly violated the CPSA.
Agreement of the Parties
16. Under the CPSA, the Commission has jurisdiction over this
matter and over Vacation Clothing.
17. The parties enter into the Agreement for settlement purposes
only. The Agreement does not constitute an admission by Vacation
Clothing, or a determination by the Commission, that Vacation
Clothing has knowingly violated the CPSA.
18. In settlement of the Staff's allegations, Vacation Clothing
shall pay a civil penalty in the amount of twenty-five thousand
dollars ($25,000.00) in five (5) installments as follows: The first
installment of five-thousand dollars ($5,000.00) shall be paid
within twenty (20) calendar days of service of the Commission's
final Order accepting the Agreement; the second payment of five-
thousand dollars ($5,000.00) shall be paid within six (6) months of
service of the Commission's final Order accepting the Agreement; the
third payment of five-thousand dollars ($5,000.00) shall be paid
within twelve (12) months of service of the Commission's final Order
accepting the Agreement; the fourth payment of five-thousand dollars
($5,000.00) shall be paid within eighteen (18) months of service of
the Commission's final Order accepting the Agreement; and the fifth
payment of five-thousand dollars ($5,000.00) shall be paid within
twenty-four (24) months of service of the Commission's final Order
accepting the Agreement. Each payment shall be 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, Vacation Clothing knowingly,
voluntarily, and completely waives any rights it may have regarding
the Staffs allegations 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 Vacation Clothing 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, Vacation Clothing 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 Vacation Clothing 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 Vacation Clothing 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.
Vacation Clothing Exchange, Inc. d/b/a Basix USA
Dated: 7/21/08 By:
Benjamin Perelmutter,
[[Page 46888]]
Vice President, Vacation Clothing Exchange, Inc., d/b/a Basix USA.
2778 NW 31st Avenue.
Lauderdale Lakes, FL 33311.
Dated: 7/21/08 By:
Brian Kopelowitz, Esquire,
The Kopelowitz Ostrow Law Firm, P.A.
200 SW 1st Avenue, 12th Floor
Fort Lauderdale, FL 33301
Attorney for Vacation Clothing Exchange, Inc., d/b/a Basix USA.
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: 7/31/08 By:
Dennis C. Kacoyanis,
Trial Attorney,
Legal Division,
Office of Compliance and Field Operations.
United States of America
Consumer Product Safety Commission
In the Matter of Vacation Clothing Exchange, Inc. d/b/a Basix USA.
CPSC Docket No. 08-C0020
Order
Upon consideration of the Settlement Agreement entered into
between Vacation Clothing Exchange, Inc., d/b/a Basix USA
(``Vacation Clothing'') and the U.S. Consumer Product Safety
Commission (``Commission'') staff, and the Commission having
jurisdiction over the subject matter and over Vacation Clothing, and
pursuant to the authority delegated 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 is
Ordered, that the Settlement Agreement be, and hereby is,
accepted; and it is
Further ordered, that Vacation Clothing shall pay a civil
penalty in the amount of twenty-five thousand dollars ($25,000.00)
in five (5) installments as follows: The first payment of five-
thousand dollars ($5,000.00) shall be paid within twenty (20)
calendar days of service of the Commission's final Order accepting
the Agreement; the second payment of five-thousand dollars
($5,000.00) shall be paid within six (6) months of service of the
Commission's final Order accepting the Agreement; the third payment
of five-thousand dollars ($5,000.00) shall be paid within twelve
(12) months of service of the Commission's final Order accepting the
Agreement; the fourth payment of five-thousand dollars ($5,000.00)
shall be paid within eighteen (18) months of service of the
Commission's final Order accepting the Agreement; and the fifth
payment of five-thousand dollars ($5,000.00) shall be paid within
twenty-four (24) months of service of the Commission's final Order
accepting the Agreement. Each payment shall be made by check payable
to the order of the United States Treasury. Upon the failure
Vacation Clothing to make the foregoing payments when due, interest
on the unpaid amount shall accrue and be paid by Vacation Clothing
at the federal legal rate of interest set forth at U.S.C. 1961(a)
and (b).
Provisionally accepted and provisional Order issued on the 4th
day of August 2008.
By order of the commission:
Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety Commission.
[FR Doc. E8-18400 Filed 8-11-08; 8:45 am]
BILLING CODE 6355-01-M
