[Federal Register: August 12, 2008 (Volume 73, Number 156)]
[Notices]
[Page 46885-46886]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12au08-44]
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CONSUMER PRODUCT SAFETY COMMISSION
(CPSC Docket No. 08-C0017)
Siegfried & Parzifal, 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 Sec.
1118.20(e). Published below is a provisionally accepted Settlement
Agreement with Siegfried & Parzifal, 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 (insert date that is 15
calendar days from publication date).
ADDRESSES: Persons wishing to comment on this Settlement Agreement
should send written comments to the Comment 08-C0017, 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
208 14-4408; telephone (301) 504-7587.
SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears
below.
August 5, 2008
Todd A. Stevenson
Secretary.
United States of America
Consumer Product Safety Commission
In the Matter of Siegfried & Parzifal, Inc.
CPSC Docket No. 08-C0017.
Settlement Agreement
1. In accordance with 16 CFR Sec. 1118.20, Siegfried &
Parzifal, Inc. (``Siegfried'') 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. Siegfried is a corporation organized and existing under the
laws of California, with its principal offices located in City of
Industry, CA. At all times relevant hereto, Siegfried imported and
sold apparel.
Staff Allegations
4. From June 19, 2007, to July 20, 2007, Siegfried imported and/
or sold to retailers at least 5,120 sweatshirts with drawstrings
(``Drawstring Sweatshirts'')
5. Retailers sold the Drawstring Sweatshirts to consumers.
6. The Drawstring Sweatshirts are ``consumer product[s],'' and,
at all times relevant hereto, Siegfried 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. Sec. 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 website 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.
Sec. 1274(c). The letter also notes the CPSA's section 15(b)
reporting requirements.
10. Siegfried informed the Commission that there had been no
incidents or injuries from the Drawstring Sweatshirts.
11. Siegfried's distribution in commerce of the Drawstring
Sweatshirts did not meet the Guidelines or ASTM F1816-97, failed to
comport with the Staffs May 2006 defect notice, and posed a
strangulation hazard to children.
12. On February 12, 2008, the Commission and Siegfried announced
a recall of the Drawstring Sweatshirts, informing consumers that
they should immediately remove the drawstrings to eliminate the
hazard.
13. Siegfried 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. Sec. 1274(c)(1). Siegfried 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. Sec. 2064(b)(2) and (3), required Siegfried to immediately
inform the Commission of the defect and risk.
14. Siegfried 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. Sec. 2064(b)(2) and (3), and
as the term ``knowingly'' is defined in CPSA section 20(d), 15
U.S.C. Sec. 2069(d). This failure violated CPSA section 19(a)(4),
15 U.S.C. Sec. 2068(a)(4). Pursuant to CPSA section 20, 15 U.S.C.
Sec. 2069, this failure subjected Siegfried to civil penalties.
Siegfried Response
15. Siegfried denies the Staffs allegations above that Siegfried
knowingly violated the CPSA.
Agreement of the Parties
16. Under the CPSA, the Commission has jurisdiction over this
matter and over Siegfried.
17. The parties enter into the Agreement for settlement purposes
only. The Agreement does not constitute an admission by Siegfried,
or a determination by the Commission, that Siegfried has knowingly
violated the CPSA.
18. In settlement of the Staff's allegations, Siegfried shall
pay a civil penalty in the amount of thirty-five thousand dollars
($35,000.00) within twenty (20) calendar
[[Page 46886]]
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 Sec.
1118.20(e). In accordance with 16 CFR Sec. 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
Sec. 1118.20 with respect to Staff allegations that any person or
firm violated 15 U.S.C. Sec. 2068, where the total amount of the
settlement involves no more than $100,000.
Siegfried & Parzifal, Inc.
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. Sec. 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