[Federal Register Volume 61, Number 101 (Thursday, May 23, 1996)]
[Notices]
[Pages 25848-25850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12880]



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CONSUMER PRODUCT SAFETY COMMISSION
[CPSC Docket No. 96-C0005]


In the Matter of Shrdlu, d/b/a/ The Sandy Starkman Co., a 
Corporation; Provisional Acceptance of a Settlement Agreement and Order

AGENCY: Consumer Product Safety Commission.


[[Page 25849]]


ACTION: Provisional acceptance of a settlement agreement under the 
Consumer Product Safety Act.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of 16 CFR section 
1605.13. Published below is a provisionally-accepted Settlement 
Agreement with Shrdlu Corporation, d/b/a/ The Starkman Co., a 
corporation.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by June 7, 1996.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 96-C0005, Office of the 
Secretary, Consumer Product Safety Commission, Washington, DC 20207.

FOR FURTHER INFORMATION CONTACT:
Melvin I. Kramer, Trial Attorney, Office of Compliance and Enforcement, 
Consumer Product Safety Commission, Washington, DC 20207; telephone 
(301) 504-0626.

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

    Dated: May 17, 1996.
Sadye E. Dunn,
Secretary.

Consent Order Agreement

    Shrdlu Corp., d/b/a The Sandy Starkman Co. (hereinafter 
``Respondent'' or ``Starkman''), a corporation, enters into this 
Consent Order Agreement (hereinafter, ``Agreement'') with the staff 
of the Consumer Product Safety Commission (``the staff'') pursuant 
to the procedures set forth in section 1605.13 of the Commission's 
Procedures for Investigations, Inspections, and Inquiries under the 
Flammable Fabrics Act (FFA), 16 CFR 1605.
    This Agreement and Order are for the purpose of settling 
allegations of the staff that Respondent imported and sold 100% 
rayon, double layer skirts, style #73451, in commerce, which skirts 
failed to comply with the Standard for the Flammability of Clothing 
Textiles, 16 CFR 1610 (the ``standard'').

Respondent and the Staff Agree

    1. The Consumer Product Safety Commission (``Commission'') is an 
independent regulatory agency of the United States Government. The 
Commission has jurisdiction over this matter under the Consumer 
Product Safety Act, 15 U.S.C. Secs. 2051 et seq. (CPSA), the 
Flammable Fabrics Act, 15 U.S.C. Secs. 1191 et seq. (FFA) and the 
Federal Trade Commission Act (15 U.S.C. Secs. 41 et seq. (FTCA).
    2. Respondent is a corporation organized and existing under the 
laws of the State of New York with principal corporate offices at 10 
Grand Blvd., Deer Park, New York 11729.
    3. Respondent is now, and has been engaged in one or more of the 
following activities: the manufacture for sale, the sale, or the 
offering for sale, in commerce, or the importation, delivery for 
introduction, transportation in commerce, or the sale or delivery 
after sale or shipment in commerce, of women's wearing apparel 
subject to the standard.
    4. This Agreement is for the purpose of settling the allegations 
in the accompanying Complaint. This Agreement does not constitute an 
admission by Respondent that it knowingly violated the law. The 
Agreement becomes effective only upon its final acceptance by the 
Commission and service of the incorporated Order upon Respondent.
    5. The parties agree that this Consent Order Agreement resolves 
the allegations of the Complaint and the Commission shall not 
initiate any other criminal, civil or administrative action against 
the firm for those alleged violations based on the information 
currently known to the staff.
    6. Respondent waives any rights to a formal hearing, and any 
findings of fact and conclusions of law regarding the allegations 
set forth in the Complaint. Respondent waives any right to seek 
judicial review or otherwise challenge or contest the validity of 
the Commission's Order.
    7. The Commission may disclose the terms of this Consent Order 
Agreement to the public consistent with section 6(b) of the CPSA.
    8. This Agreement, and the Complaint accompanying the Agreement, 
may be used in interpreting the Order. Agreements, understandings, 
representations or interpretations made outside of this Consent 
Order Agreement may not be used to vary or contradict its terms.
    Upon acceptance of this Agreement, the Commission shall issue 
the following order:
Peter Goodman,
Shrdlu Corporation d/b/a The Sandy Starkman Co.

Melvin I. Kramer,
Trial Attorney, Division of Administrative Litigation Office of 
Compliance.

Eric L. Stone,
Acting Director, Division of Administrative Litigation, Office of 
Compliance.

David Schmeltzer,
Assistant Executive Director, Office of Compliance, U.S. Consumer 
Product Safety Commission.

Complaint

    The staff of the Consumer Product Safety Commission (``staff'') 
contends that Shrdlu Corporation, d/b/a/ The Sandy Starkman Co., a 
corporation (``Respondent''), is subject to the Consumer Product 
Safety Act, 15 U.S.C. 2051, et seq. (CPSA); the Flammable Fabrics 
Act, 15 U.S.C. 1191 et seq. (FTCA); and, the Standard for the 
Flammability of clothing textiles, 16 C.F.R. Sec. 1610, (``the 
standard'').
    Based upon the information provided to the Commission by the 
staff, the Commission determined that it is in the public interest 
to issue this Complaint. Therefore, by virtue of the authority 
vested in the Commission by section 30(b) of the CPSA, 15 U.S.C. 
2079(b); sections 3 and 5 of the FFA, 15 U.S.C. 1192 and 1194; and 
section 5 of the FTCA, 15 U.S.C. 45; and in accordance with the 
Commission's Rules of Practice of Adjudicative Proceedings, 16 CFR 
Part 1025, the Commission hereby issues this Complaint and states 
the staff's charges as follows:
    1. Respondent is a corporation organized and existing under the 
laws of the State of New York with principal corporate offices at 
1410 Broadway, Suite 801, New York, New York 10018.
    2. Respondent is and has been engaged in one or more of the 
following activities: the manufacture for sale, the sale, or the 
offering for sale, in commerce, or the importation, delivery for 
introduction, transportation in commerce, or the sale or delivery 
after sale or shipment in commerce, of women's wearing apparel 
subject to the standard.
    3. Between October 26, 1993 and the end of January 1994, 
Respondent imported and/or sold in commerce items of women's wearing 
apparel, namely 900 100% rayon, double layers skirts, style #73451. 
It was subsequently discovered, through testing by the purchaser, 
that the skirts failed to comply with the flammability requirements 
of the standard.
    4. As a result of this failure to comply with the standard, 
Respondent manufactured for sale, sold, or offered for sale, in 
commerce, or imported, delivered for introduction, transported in 
commerce, or sold or delivered after sale or shipment in commerce, a 
significant number of garments that failed to comply with the FFA.

Relief Sought

    Wherefore, the staff requests the Commission to issue an Order 
requiring Respondent to cease and desist from the manufacture for 
sale, the sale, or the offering for sale, in commerce, or the 
importation, delivery for introduction, transportation in commerce, 
or the sale or delivery after sale or shipment in commerce, of any 
item of wearing apparel subject to the standard that fails to comply 
with the standard.
    Wherefore, the premises considered, the Commission hereby issues 
this Complaint on the ______ day of ________________ 199 .

    By Direction of the Commission:
David Schmeltzer,
Assistant Executive Director, Office of Compliance and Enforcement.

Order

I

    It is hereby ordered that Respondent, its successors and assigns 
agents, representatives and employees, directly or through any 
corporation, subsidiary, division, or other business entity, or through 
any agency, device or instrumentality, do forthwith cease and desist 
from selling or offering for sale, in commerce, or manufacturing for 
sale, in commerce, or importing into the United States or introducing, 
delivering

[[Page 25850]]

for introduction, transporting or causing to be transported, in 
commerce, any item of wearing apparel that fails to comply with the 
flammability requirements of the Standard for Flammability of clothing 
textiles, 16 C.F.R. part 1610.

II

    It is further ordered that Respondent pay to the United States 
Treasury a civil penalty of $5,000.00 no later than March 20, 1996 or 
within 20 days after service upon the Respondent of the Final Order, 
whichever comes later.

III

    It is further ordered that for a period of three years following 
the service upon Respondent of the Final Order in this matter, 
Respondent notify the Commission with in 30 days following the 
consummation of the sale of a majority of its stock or following a 
change in any of its corporate officers responsible for compliance with 
the terms of this Consent Agreement and Order.
    By direction of the Commission, this Consent Order Agreement is 
provisionally accepted pursuant to 16 CFR Section 1605.13, and shall be 
placed on the public record, and the Secretary is directed to publish 
the provisional acceptance of the Consent Order Agreement in the 
Commission's Public Calendar and in the Federal Register.

    So ordered by the Commission, this 17th day of May 1996.
Sadye E. Dunn,
Secretary, U.S. Consumer Product Safety Commission.

    By direction of the Commission, this Consent Order Agreement is 
hereby finally accepted and issued as an Order of the Consumer Product 
Safety Commission.
[FR Doc. 96-12880 Filed 5-22-96; 8:45 am]
BILLING CODE 6355-01-M