Williams-Sonoma, Inc., Provisional Acceptance of a Settlement Agreement and Order, 65192-65194 [2014-26065]

Download as PDF 65192 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices physically accessible to people with disabilities. All guests are required to register in advance. The meeting room will be provided upon registration. Seating is limited and will be on a first come, first served basis. Requests for sign language interpretation, other auxiliary aids, or pre-registration, should be submitted no later than 5 p.m. EDT on November 10, 2014, to Jennifer Pilat, the U.S. Travel and Tourism Advisory Board, Room 4043, 1401 Constitution Avenue NW., Washington, DC 20230, telephone 202–482–4501, OACIE@trade.gov. Last minute requests will be accepted, but may be impossible to fill. There will be 15 minutes of time allotted for oral comments from members of the public attending the meeting. Any member of the public may submit pertinent written comments concerning the Board’s affairs at any time before or after the meeting. Comments may be submitted to Jennifer Pilat at the contact information indicated above. To be considered during the meeting, comments must be received no later than 5:00 p.m. EDT on November 10, 2014, to ensure transmission to the Board prior to the meeting. Comments received after that date will be distributed to the members but may not be considered at the meeting. Copies of Board meeting minutes will be available within 90 days of the meeting. Dated: October 29, 2014. Jennifer Pilat, Executive Secretary, United States Travel and Tourism Advisory Board. The meetings will be held at the Renaissance Hotel 515 Madison Street, Seattle, WA. Council address: North Pacific Fishery Management Council, 605 W. 4th Ave., Suite 306, Anchorage, AK 99501–2252. FOR FURTHER INFORMATION CONTACT: Diana Evans, Council staff; telephone: (907) 271–2809. SUPPLEMENTARY INFORMATION: The agenda is to discuss progress on the elements of the 2015 EM Cooperative Research Plan, develop a plan to finalize the research plan for SSC review in February, develop recommendations for the Council on alternatives and purpose and need for the Council analysis to integrate EM into the observer program, and discuss funding and timelines for the research plan and the analysis. The Agenda is subject to change, and the latest version will be posted at https://www.npfmc.org/ ADDRESSES: Special Accommodations These meetings are physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to Gail Bendixen at (907) 271–2809 at least 7 working days prior to the meeting date. Dated: October 29, 2014. Tracey L. Thompson, Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service. [FR Doc. 2014–26069 Filed 10–31–14; 8:45 am] BILLING CODE 3510–22–P [FR Doc. 2014–26104 Filed 10–31–14; 8:45 am] CONSUMER PRODUCT SAFETY COMMISSION BILLING CODE 3510–DR–P [CPSC Docket No. 15–C0002] DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration Williams-Sonoma, Inc., Provisional Acceptance of a Settlement Agreement and Order RIN 0648–XD578 AGENCY: Consumer Product Safety Commission. ACTION: Notice. North Pacific Fishery Management Council; Public Meetings National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce. AGENCY: mstockstill on DSK4VPTVN1PROD with NOTICES ACTION: Notice of public meetings. The North Pacific Fishery Management Council (Council) Fixed Gear Electronic Monitoring (EM) Workgroup will meet in Seattle, WA. SUMMARY: The meetings will be held November 19–20, 2014, 2014, from 8 a.m. to 5 p.m., each day. DATES: VerDate Sep<11>2014 17:37 Oct 31, 2014 Jkt 235001 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 WilliamsSonoma, Inc., containing a civil penalty of $700,000.00, within twenty (20) days of service of the Commission’s final Order accepting the Settlement Agreement. DATES: Any interested person may ask the Commission not to accept this SUMMARY: PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 agreement or otherwise comment on its contents by filing a written request with the Office of the Secretary by November 18, 2014. ADDRESSES: Persons wishing to comment on this Settlement Agreement should send written comments to the Comment 15–C0002 Office of the Secretary, Consumer Product Safety Commission, 4330 East-West Highway, Room 820, Bethesda, Maryland 20814– 4408. FOR FURTHER INFORMATION CONTACT: Gregory M. Reyes, Trial Attorney, Office of the General Counsel, Division of Compliance, Consumer Product Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814–4408; telephone (301) 504–7220. SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears below. Dated: October 29, 2014. Todd A. Stevenson, Secretary. Settlement Agreement 1. In accordance with the Consumer Product Safety Act (CPSA), 15 U.S.C. 2051–2089 and 16 CFR 1118.20, Williams-Sonoma, Inc. (WilliamsSonoma), and the U.S. Consumer Product Safety Commission (Commission), through its staff (staff), hereby enter into this Settlement Agreement (Agreement). The Agreement and the incorporated attached Order (Order) resolve staff’s charges set forth below. The Parties 2. The Commission is an independent federal regulatory agency, established pursuant to, and responsible for, the enforcement of the CPSA. By executing the Agreement, staff is acting on behalf of the Commission, pursuant to 16 CFR 1118.20(b). The Commission issues the Order under the provisions of the CPSA. 3. Williams-Sonoma is a corporation, organized and existing under the laws of the state of Delaware, with its principal corporate office located at 3250 Van Ness Avenue, San Francisco, CA 94109. 4. Pottery Barn Kids (PBK), Pottery Barn, PBteen, and West Elm are brands, referred to by Williams-Sonoma as ‘‘merchandising concepts,’’ whose trademarks are owned by WilliamsSonoma. Staff Charges 5. The subject matter of staff’s investigation concerned Roman shades sold by PBK (PBK Shades) that were voluntarily recalled by WilliamsSonoma on August 26, 2009 and Roman shades that were sold by PBK, Pottery E:\FR\FM\03NON1.SGM 03NON1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices Barn, PBteen, and West Elm (collectively, the Roman Shades) that were voluntarily recalled by WilliamsSonoma on December 15, 2009. 6. Between January 2003 and November 2007, Williams-Sonoma imported, distributed in commerce, and sold to consumers approximately 85,000 of the PBK Shades with exposed inner cords through its PBK merchandising concept. 7. The PBK Shades are ‘‘consumer products,’’ and at all relevant times, Williams-Sonoma was a ‘‘manufacturer’’ and ‘‘retailer’’ of these consumer products, which were ‘‘distributed in commerce,’’ as those terms are defined or used in sections 3(a)(5), (8), (11), and (13) of the CPSA, 15 U.S.C. 2052(a)(5), (8), (11), and (13). 8. Staff charged that the PBK Shades recalled on August 26, 2009 are defective because the exposed inner cords on the PBK Shades pose a strangulation hazard to young children. 9. Between 2005 and 2007, WilliamsSonoma implemented three design changes to eliminate the hazard posed by the PBK Shades. By August 2007, Williams-Sonoma had approved its third and final design change that included a protective backing to cover the exposed inner cords of the PBK Shades. 10. By August 2007, WilliamsSonoma received five reports of children becoming entangled on the inner cords of the PBK Shades. In each of those five incident reports, the consumer raised a concern about the safety or design of the PBK Shades. By July 2008, Williams-Sonoma received two additional reports of children becoming entangled on the inner cords of the PBK Shades. 11. Between 2006 and 2008, WilliamsSonoma also settled claims with consumers who reported that their children had become entangled on the inner cords of the PBK Shades. 12. Williams-Sonoma filed its Full Report with the Commission for the PBK Shades on September 18, 2008. 13. CPSC staff alleges that WilliamsSonoma: a. Had sufficient information by August 2007 that reasonably supported the conclusion that the PBK Shades contained a defect that could create a substantial product hazard or created an unreasonable risk of serious injury or death; b. was required, and failed, to inform the Commission immediately of the defect that could create a substantial product hazard, as required by section 15(b)(3) of the CPSA, 15 U.S.C. 2064(b)(3); VerDate Sep<11>2014 17:37 Oct 31, 2014 Jkt 235001 c. was required, and failed, to inform the Commission immediately of the unreasonable risk of serious injury, as required by section 15(b)(4) of the CPSA, 15 U.S.C. 2064(b)(4); d. knowingly violated section 19(a)(4) of the CPSA, 15 U.S.C. 2068(a)(4), as the term ‘‘knowingly’’ is defined in section 20(d) of the CPSA, 15 U.S.C. 2069(d); and sold a small quantity of recalled Roman Shades in violation of section 19(a)(2)(B) of the CPSA, 15 U.S.C. 2068(a)(2)(B). 14. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, WilliamsSonoma is subject to civil penalties for its knowing failure to report as required by section 15(b) of the CPSA, 15 U.S.C. 2064(b). Williams-Sonoma’s Response 15. Williams-Sonoma neither admits nor denies the charges set forth above, including but not limited to, the charge that the Roman Shades contain a defect that could create a substantial product hazard or created an unreasonable risk of serious injury or death, the contention that Williams-Sonoma failed to notify the Commission in a timely manner, in accordance with section 15(b) of the CPSA, 15 U.S.C. 2064(b), the contention that such failure was ‘‘knowing,’’ and the charge that Williams-Sonoma ‘‘knowingly’’ sold recalled products in violation of 19(a)(2)(B) of the CPSA. 16. Beginning in 2005, before Williams-Sonoma had received any reported incidents associated with the PBK Shades, Williams-Sonoma attempted to enhance the safety of the shades’ inner cords. The PBK and all Roman Shades that Williams-Sonoma sold at that time contained a generic inner cord design that was common in the industry. 17. None of the incidents that Williams-Sonoma has identified as associated with the PBK Shades reportedly resulted in a serious injury. 18. Williams-Sonoma stopped sourcing corded window coverings in 2009. 19. Williams-Sonoma took reasonable steps to prevent the inadvertent postrecall sale of recalled Roman Shades. Agreement of the Parties 20. Under the CPSA, the Commission has jurisdiction over the matter involving the PBK Shades and over Williams-Sonoma. 21. In settlement of staff’s charges and the subject matter of staff’s investigation, and to avoid the cost, distraction, delay, uncertainty, and inconvenience of protracted litigation or other proceedings, Williams-Sonoma PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 65193 shall pay a civil penalty in the amount of seven hundred thousand dollars ($700,000.00), which shall be due and payable within twenty (20) calendar days after receiving service of the Commission’s final Order accepting the Agreement. All payments to be made under the Agreement shall constitute debts owing to the United States and shall be made by electronic wire transfer to the United States via: https:// www.pay.gov. 22. The parties agree that this settlement figure is predicated, among other things, upon the accuracy of oral and written representations of, and statements by, Williams-Sonoma and Williams-Sonoma’s representatives made in connection with this matter. 23. The parties enter into the Agreement for settlement purposes only. The Agreement does not constitute an admission by Williams-Sonoma or a determination by the Commission that Williams-Sonoma violated the CPSA. 24. Following staff’s receipt of the Agreement executed on behalf of Williams-Sonoma, staff shall promptly submit the Agreement to the Commission for provisional acceptance. Promptly following provisional acceptance of the Agreement by the Commission, 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). If, within fifteen (15) calendar days, the Commission does not receive any written request not to accept the Agreement, the Agreement shall be deemed finally accepted on the sixteenth (16th) calendar day after the date the Agreement is published in the Federal Register, in accordance with 16 CFR 1118.20(f). 25. The Agreement is conditioned upon, and subject to, the Commission’s final acceptance, as set forth above, and is subject to the provisions of 16 CFR 1118.20(h). Upon the later of: (i) The Commission’s final acceptance of the Agreement and service of the accepted Agreement upon Williams-Sonoma, and (ii) the date of issuance of the final Order, the Agreement shall be in full force and effect and shall be binding upon the parties. 26. Effective upon the later of: (i) The Commission’s final acceptance of the Agreement and service of the accepted Agreement upon Williams-Sonoma, and (ii) the date of issuance of the final Order, for good and valuable consideration, Williams-Sonoma hereby expressly and irrevocably waives and agrees not to assert any past, present, or future rights to the following, in connection with the matter described in E:\FR\FM\03NON1.SGM 03NON1 mstockstill on DSK4VPTVN1PROD with NOTICES 65194 Federal Register / Vol. 79, No. 212 / Monday, November 3, 2014 / Notices the Agreement: (a) An administrative or judicial hearing; (b) judicial review or other challenge or contest of the validity of the Order or of the Commission’s actions; (c) a determination by the Commission of whether WilliamsSonoma failed to comply with the CPSA and the underlying regulations; (d) a statement of findings of fact and conclusions of law; and (e) any claims under the Equal Access to Justice Act. 27. Paragraphs 21, 22, and 23 of the Settlement Agreement between Williams-Sonoma, Inc. and the U.S. Consumer Product Safety Commission, CPSC Docket No.: 13–C0005, 78 Federal Register 27,190 (May 9, 2013), which Williams-Sonoma has represented have been implemented, hereby are incorporated by reference into this Agreement as if fully set forth herein. 28. The parties acknowledge and agree that the Commission may make public disclosure of the terms of the Agreement and the Order. 29. Williams-Sonoma represents that the Agreement: (i) Is entered into freely and voluntarily, without any degree of duress or compulsion whatsoever; (ii) has been duly authorized; and (iii) constitutes the valid and binding obligation of Williams-Sonoma, and each of its successors and/or assigns, enforceable against Williams-Sonoma in accordance with the Agreement’s terms. The individuals signing the Agreement on behalf of Williams-Sonoma represent and warrant that they are duly authorized by Williams-Sonoma to execute the Agreement. 30. The Commission signatories represent that they are signing the Agreement in their official capacities and that they are authorized to execute the Agreement. 31. The Agreement is governed by the laws of the United States. 32. The Agreement and the Order shall apply to, and be binding upon, Williams-Sonoma and each of its subsidiaries, successors, transferees, and assigns; and a violation of the Agreement or Order may subject Williams-Sonoma and each of its subsidiaries, successors, transferees, and assigns to appropriate legal action. 33. The Agreement and the Order constitute the complete agreement between the parties on the subject matter contained herein and therein. 34. 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. For purposes of construction, the Agreement shall be deemed to have been drafted by both of VerDate Sep<11>2014 17:37 Oct 31, 2014 Jkt 235001 the parties, and therefore, the Agreement shall not be construed against any party for that reason in any subsequent dispute. 35. The Agreement shall not be waived, amended, modified, or otherwise altered, except as in accordance with the provisions of 16 CFR 1118.20(h). The Agreement may be executed in counterparts. 36. If any provision of the Agreement or 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 WilliamsSonoma agree that severing the provision materially affects the purpose of the Agreement and Order. Williams-Sonoma, Inc. Dated: October 14, 2014 By: Julie P. Whalen Executive Vice President, Chief Financial Officer, Williams-Sonoma, Inc., 3250 Van Ness Avenue, San Francisco, CA 94109 Dated: October 15, 2014 By: lllllllllllllllllll Eric A. Rubel Arnold & Porter, LLP, 555 Twelfth Street, NW, Washington, DC 20004–1206, Counsel for Williams-Sonoma, Inc. U.S. Consumer Product Safety Commission Staff Stephanie Tsacoumis General Counsel Mary T. Boyle Deputy General Counsel Mary B. Murphy Assistant General Counsel Dated: October 16, 2014 By: lllllllllllllllllll Gregory M. Reyes Trial Attorney, Division of Compliance Order Upon consideration of the Settlement Agreement entered into between Williams-Sonoma, Inc. (WilliamsSonoma), and the U.S. Consumer Product Safety Commission (Commission), and the Commission having jurisdiction over the subject matter and over Williams-Sonoma, and it appearing that the Settlement Agreement and the Order are in the public interest, it is Ordered that the Settlement Agreement be, and is, hereby, accepted; and it is Further ordered, that WilliamsSonoma shall comply with the terms of the Settlement Agreement and shall pay a civil penalty of $700,000.00 within PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 twenty (20) calendar days after receiving service of the Commission’s final Order accepting the Settlement Agreement. Upon failure of Williams-Sonoma to make the foregoing payment when due, interest on the unpaid amount shall accrue and be paid by Williams-Sonoma at the federal legal rate of interest set forth at 28 U.S.C. 1961(a) and (b). If Williams-Sonoma fails to make such a payment or to comply in full with any other provision as set forth in the Settlement Agreement, such conduct will be considered a violation of the Settlement Agreement and Order. Provisionally accepted and provisional Order issued on the 29th day of October, 2014. By order of the commission: lllllllllllllllllllll Todd A. Stevenson, Secretary, U.S. Consumer Product Safety Commission. [FR Doc. 2014–26065 Filed 10–31–14; 8:45 am] BILLING CODE 6355–01–P COUNCIL ON ENVIRONMENTAL QUALITY Opportunity for Sponsorship of the GreenGov Symposium Council on Environmental Quality. ACTION: Notice. GreenGov Symposium Call for Co-Sponsors. AGENCY: This notice informs the public of the opportunity for eligible nongovernmental entities to submit an application for co-sponsorship of a potential White House Council on Environmental Quality 2015 GreenGov Symposium. Those interested in becoming co-sponsors should submit an application for co-sponsorship by November 28, 2014. DATES: To be considered, applications for co-sponsorship must be received via email no later than 5:00p.m. Eastern Time on November 28, 2014. ADDRESSES: Applications and any supporting materials may be submitted electronically to the White House Council on Environmental Quality, Office of the Federal Environmental Executive at ofee@ceq.eop.gov. FOR FUTHER INFORMATION CONTACT: Will Garvey, Office of the Federal Environmental Executive, White House Council on Environmental Quality, wgarvey@ceq.eop.gov. SUPPLEMENTALARY INFORMATION: SUMMARY: Application Information Only non-government entities that are not-for-profit corporations or entities are eligible for co-sponsorship of the 2015 E:\FR\FM\03NON1.SGM 03NON1

Agencies

[Federal Register Volume 79, Number 212 (Monday, November 3, 2014)]
[Notices]
[Pages 65192-65194]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26065]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 15-C0002]


Williams-Sonoma, 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 
Williams-Sonoma, Inc., containing a civil penalty of $700,000.00, 
within twenty (20) days of service of the Commission's final Order 
accepting the Settlement Agreement.

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 November 18, 2014.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 15-C0002 Office of the 
Secretary, Consumer Product Safety Commission, 4330 East-West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Gregory M. Reyes, Trial Attorney, 
Office of the General Counsel, Division of Compliance, Consumer Product 
Safety Commission, 4330 East-West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-7220.

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

    Dated: October 29, 2014.
Todd A. Stevenson,
Secretary.

Settlement Agreement

    1. In accordance with the Consumer Product Safety Act (CPSA), 15 
U.S.C. 2051-2089 and 16 CFR 1118.20, Williams-Sonoma, Inc. (Williams-
Sonoma), and the U.S. Consumer Product Safety Commission (Commission), 
through its staff (staff), hereby enter into this Settlement Agreement 
(Agreement). The Agreement and the incorporated attached Order (Order) 
resolve staff's charges set forth below.

The Parties

    2. The Commission is an independent federal regulatory agency, 
established pursuant to, and responsible for, the enforcement of the 
CPSA. By executing the Agreement, staff is acting on behalf of the 
Commission, pursuant to 16 CFR 1118.20(b). The Commission issues the 
Order under the provisions of the CPSA.
    3. Williams-Sonoma is a corporation, organized and existing under 
the laws of the state of Delaware, with its principal corporate office 
located at 3250 Van Ness Avenue, San Francisco, CA 94109.
    4. Pottery Barn Kids (PBK), Pottery Barn, PBteen, and West Elm are 
brands, referred to by Williams-Sonoma as ``merchandising concepts,'' 
whose trademarks are owned by Williams-Sonoma.

Staff Charges

    5. The subject matter of staff's investigation concerned Roman 
shades sold by PBK (PBK Shades) that were voluntarily recalled by 
Williams-Sonoma on August 26, 2009 and Roman shades that were sold by 
PBK, Pottery

[[Page 65193]]

Barn, PBteen, and West Elm (collectively, the Roman Shades) that were 
voluntarily recalled by Williams-Sonoma on December 15, 2009.
    6. Between January 2003 and November 2007, Williams-Sonoma 
imported, distributed in commerce, and sold to consumers approximately 
85,000 of the PBK Shades with exposed inner cords through its PBK 
merchandising concept.
    7. The PBK Shades are ``consumer products,'' and at all relevant 
times, Williams-Sonoma was a ``manufacturer'' and ``retailer'' of these 
consumer products, which were ``distributed in commerce,'' as those 
terms are defined or used in sections 3(a)(5), (8), (11), and (13) of 
the CPSA, 15 U.S.C. 2052(a)(5), (8), (11), and (13).
    8. Staff charged that the PBK Shades recalled on August 26, 2009 
are defective because the exposed inner cords on the PBK Shades pose a 
strangulation hazard to young children.
    9. Between 2005 and 2007, Williams-Sonoma implemented three design 
changes to eliminate the hazard posed by the PBK Shades. By August 
2007, Williams-Sonoma had approved its third and final design change 
that included a protective backing to cover the exposed inner cords of 
the PBK Shades.
    10. By August 2007, Williams-Sonoma received five reports of 
children becoming entangled on the inner cords of the PBK Shades. In 
each of those five incident reports, the consumer raised a concern 
about the safety or design of the PBK Shades. By July 2008, Williams-
Sonoma received two additional reports of children becoming entangled 
on the inner cords of the PBK Shades.
    11. Between 2006 and 2008, Williams-Sonoma also settled claims with 
consumers who reported that their children had become entangled on the 
inner cords of the PBK Shades.
    12. Williams-Sonoma filed its Full Report with the Commission for 
the PBK Shades on September 18, 2008.
    13. CPSC staff alleges that Williams-Sonoma:
    a. Had sufficient information by August 2007 that reasonably 
supported the conclusion that the PBK Shades contained a defect that 
could create a substantial product hazard or created an unreasonable 
risk of serious injury or death;
    b. was required, and failed, to inform the Commission immediately 
of the defect that could create a substantial product hazard, as 
required by section 15(b)(3) of the CPSA, 15 U.S.C. 2064(b)(3);
    c. was required, and failed, to inform the Commission immediately 
of the unreasonable risk of serious injury, as required by section 
15(b)(4) of the CPSA, 15 U.S.C. 2064(b)(4);
    d. knowingly violated section 19(a)(4) of the CPSA, 15 U.S.C. 
2068(a)(4), as the term ``knowingly'' is defined in section 20(d) of 
the CPSA, 15 U.S.C. 2069(d); and sold a small quantity of recalled 
Roman Shades in violation of section 19(a)(2)(B) of the CPSA, 15 U.S.C. 
2068(a)(2)(B).
    14. Pursuant to section 20 of the CPSA, 15 U.S.C. 2069, Williams-
Sonoma is subject to civil penalties for its knowing failure to report 
as required by section 15(b) of the CPSA, 15 U.S.C. 2064(b).

Williams-Sonoma's Response

    15. Williams-Sonoma neither admits nor denies the charges set forth 
above, including but not limited to, the charge that the Roman Shades 
contain a defect that could create a substantial product hazard or 
created an unreasonable risk of serious injury or death, the contention 
that Williams-Sonoma failed to notify the Commission in a timely 
manner, in accordance with section 15(b) of the CPSA, 15 U.S.C. 
2064(b), the contention that such failure was ``knowing,'' and the 
charge that Williams-Sonoma ``knowingly'' sold recalled products in 
violation of 19(a)(2)(B) of the CPSA.
    16. Beginning in 2005, before Williams-Sonoma had received any 
reported incidents associated with the PBK Shades, Williams-Sonoma 
attempted to enhance the safety of the shades' inner cords. The PBK and 
all Roman Shades that Williams-Sonoma sold at that time contained a 
generic inner cord design that was common in the industry.
    17. None of the incidents that Williams-Sonoma has identified as 
associated with the PBK Shades reportedly resulted in a serious injury.
    18. Williams-Sonoma stopped sourcing corded window coverings in 
2009.
    19. Williams-Sonoma took reasonable steps to prevent the 
inadvertent post-recall sale of recalled Roman Shades.

Agreement of the Parties

    20. Under the CPSA, the Commission has jurisdiction over the matter 
involving the PBK Shades and over Williams-Sonoma.
    21. In settlement of staff's charges and the subject matter of 
staff's investigation, and to avoid the cost, distraction, delay, 
uncertainty, and inconvenience of protracted litigation or other 
proceedings, Williams-Sonoma shall pay a civil penalty in the amount of 
seven hundred thousand dollars ($700,000.00), which shall be due and 
payable within twenty (20) calendar days after receiving service of the 
Commission's final Order accepting the Agreement. All payments to be 
made under the Agreement shall constitute debts owing to the United 
States and shall be made by electronic wire transfer to the United 
States via: https://www.pay.gov.
    22. The parties agree that this settlement figure is predicated, 
among other things, upon the accuracy of oral and written 
representations of, and statements by, Williams-Sonoma and Williams-
Sonoma's representatives made in connection with this matter.
    23. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Williams-Sonoma 
or a determination by the Commission that Williams-Sonoma violated the 
CPSA.
    24. Following staff's receipt of the Agreement executed on behalf 
of Williams-Sonoma, staff shall promptly submit the Agreement to the 
Commission for provisional acceptance. Promptly following provisional 
acceptance of the Agreement by the Commission, 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). If, 
within fifteen (15) calendar days, the Commission does not receive any 
written request not to accept the Agreement, the Agreement shall be 
deemed finally accepted on the sixteenth (16th) calendar day after the 
date the Agreement is published in the Federal Register, in accordance 
with 16 CFR 1118.20(f).
    25. The Agreement is conditioned upon, and subject to, the 
Commission's final acceptance, as set forth above, and is subject to 
the provisions of 16 CFR 1118.20(h). Upon the later of: (i) The 
Commission's final acceptance of the Agreement and service of the 
accepted Agreement upon Williams-Sonoma, and (ii) the date of issuance 
of the final Order, the Agreement shall be in full force and effect and 
shall be binding upon the parties.
    26. Effective upon the later of: (i) The Commission's final 
acceptance of the Agreement and service of the accepted Agreement upon 
Williams-Sonoma, and (ii) the date of issuance of the final Order, for 
good and valuable consideration, Williams-Sonoma hereby expressly and 
irrevocably waives and agrees not to assert any past, present, or 
future rights to the following, in connection with the matter described 
in

[[Page 65194]]

the Agreement: (a) An administrative or judicial hearing; (b) judicial 
review or other challenge or contest of the validity of the Order or of 
the Commission's actions; (c) a determination by the Commission of 
whether Williams-Sonoma failed to comply with the CPSA and the 
underlying regulations; (d) a statement of findings of fact and 
conclusions of law; and (e) any claims under the Equal Access to 
Justice Act.
    27. Paragraphs 21, 22, and 23 of the Settlement Agreement between 
Williams-Sonoma, Inc. and the U.S. Consumer Product Safety Commission, 
CPSC Docket No.: 13-C0005, 78 Federal Register 27,190 (May 9, 2013), 
which Williams-Sonoma has represented have been implemented, hereby are 
incorporated by reference into this Agreement as if fully set forth 
herein.
    28. The parties acknowledge and agree that the Commission may make 
public disclosure of the terms of the Agreement and the Order.
    29. Williams-Sonoma represents that the Agreement: (i) Is entered 
into freely and voluntarily, without any degree of duress or compulsion 
whatsoever; (ii) has been duly authorized; and (iii) constitutes the 
valid and binding obligation of Williams-Sonoma, and each of its 
successors and/or assigns, enforceable against Williams-Sonoma in 
accordance with the Agreement's terms. The individuals signing the 
Agreement on behalf of Williams-Sonoma represent and warrant that they 
are duly authorized by Williams-Sonoma to execute the Agreement.
    30. The Commission signatories represent that they are signing the 
Agreement in their official capacities and that they are authorized to 
execute the Agreement.
    31. The Agreement is governed by the laws of the United States.
    32. The Agreement and the Order shall apply to, and be binding 
upon, Williams-Sonoma and each of its subsidiaries, successors, 
transferees, and assigns; and a violation of the Agreement or Order may 
subject Williams-Sonoma and each of its subsidiaries, successors, 
transferees, and assigns to appropriate legal action.
    33. The Agreement and the Order constitute the complete agreement 
between the parties on the subject matter contained herein and therein.
    34. 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. For purposes of construction, the 
Agreement shall be deemed to have been drafted by both of the parties, 
and therefore, the Agreement shall not be construed against any party 
for that reason in any subsequent dispute.
    35. The Agreement shall not be waived, amended, modified, or 
otherwise altered, except as in accordance with the provisions of 16 
CFR 1118.20(h). The Agreement may be executed in counterparts.
    36. If any provision of the Agreement or 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 Williams-Sonoma agree that severing the provision materially 
affects the purpose of the Agreement and Order.


Williams-Sonoma, Inc.

Dated: October 14, 2014

By:

Julie P. Whalen

Executive Vice President, Chief Financial Officer, Williams-Sonoma, 
Inc., 3250 Van Ness Avenue, San Francisco, CA 94109

Dated: October 15, 2014

By:--------------------------------------------------------------------

Eric A. Rubel

Arnold & Porter, LLP, 555 Twelfth Street, NW, Washington, DC 20004-
1206, Counsel for Williams-Sonoma, Inc.

U.S. Consumer Product Safety
Commission Staff

Stephanie Tsacoumis
General Counsel

Mary T. Boyle
Deputy General Counsel

Mary B. Murphy
Assistant General Counsel

Dated: October 16, 2014

By:--------------------------------------------------------------------

Gregory M. Reyes

Trial Attorney, Division of Compliance

Order

    Upon consideration of the Settlement Agreement entered into between 
Williams-Sonoma, Inc. (Williams-Sonoma), and the U.S. Consumer Product 
Safety Commission (Commission), and the Commission having jurisdiction 
over the subject matter and over Williams-Sonoma, and it appearing that 
the Settlement Agreement and the Order are in the public interest, it 
is
    Ordered that the Settlement Agreement be, and is, hereby, accepted; 
and it is
    Further ordered, that Williams-Sonoma shall comply with the terms 
of the Settlement Agreement and shall pay a civil penalty of 
$700,000.00 within twenty (20) calendar days after receiving service of 
the Commission's final Order accepting the Settlement Agreement. Upon 
failure of Williams-Sonoma to make the foregoing payment when due, 
interest on the unpaid amount shall accrue and be paid by Williams-
Sonoma at the federal legal rate of interest set forth at 28 U.S.C. 
1961(a) and (b). If Williams-Sonoma fails to make such a payment or to 
comply in full with any other provision as set forth in the Settlement 
Agreement, such conduct will be considered a violation of the 
Settlement Agreement and Order.

    Provisionally accepted and provisional Order issued on the 29th 
day of October, 2014.

    By order of the commission:
-----------------------------------------------------------------------

Todd A. Stevenson, Secretary, U.S. Consumer Product Safety 
Commission.

[FR Doc. 2014-26065 Filed 10-31-14; 8:45 am]
BILLING CODE 6355-01-P
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