Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices 46883 

Agreement of the Parties 

17. Under the CPSA, the Commission has 

jurisdiction over this matter and over Scope. 

18. The parties enter into the Agreement 

for settlement purposes only. The Agreement 

does not constitute an admission by Scope, 

or a determination by the Commission, that 

Scope has knowingly violated the CPSA. 

19. In settlement of the Staff’s allegations, 

Scope shall pay a civil penalty in the amount 

of seventy thousand dollars ($70,000.00) 

within twenty (20) calendar 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. 

20. 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. 

21. Upon the Commission’s final 

acceptance of the Agreement and issuance of 

the final Order, Scope 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 Scope 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. 

22. The Commission may publicize the 

terms of the Agreement and the Order. 

23. The Agreement and the Order shall 

apply to, and be binding upon, Scope and 

each of its successors and assigns. 

24. The Commission issues the Order 

under the provisions of the CPSA, and 

violation of the Order may subject Scope to 

appropriate legal action. 

25. 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 altercation is 

sought to be enforced. 

26. 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 Scope 

agree that severing the provision materially 

affects the purpose of the Agreement and the 

Order. 

27. 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. 

Scope Imports, Inc. 

Dated: 6/10/08. 

By: Alan Finkelman, 

President, Scope Imports, Inc., 8020 

Blankenship Drive, Houston, TX 77055. 

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: 6/10/08. 

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 Scope Imports, Inc., CPSC 

Docket No. 08–C0019. 

Order 

Upon consideration of the Settlement 

Agreement entered into between Scope 

Imports, Inc. (‘‘Scope’’) and the U.S. 

Consumer Product Safety Commission 

(‘‘Commission’’) staff, and the Commission 

having jurisdiction over the subject matter 

and over Scope, 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 Scope shall pay a civil penalty 

in the amount of seventy thousand dollars 

($70,000.00) 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 Scope to make the foregoing 

payment when due, interest on the unpaid 

amount shall accrue and be paid by Scope 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. E8–18398 Filed 8–11–08; 8:45 am] 

BILLING CODE 6355–01–M 

CONSUMER PRODUCT SAFETY 

COMMISSION 

(CPSC Docket No. 08–C0021) 

Sears Holdings Management 

Corporation, 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 Sears 

Holdings Management Corporation, 

containing a civil penalty of $50,000.00. 

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–C0021, 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 Sears Holdings Management 

Corporation. 

CPSC Docket No. 08–C0021 

Settlement Agreement 

1. In accordance with 16 CFR § 1118.20, 

Sears Holdings Management Corporation 

(‘‘Sears’’) 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. 

Parties 

2. The Commission is an independent 

federal regulatory agency established 


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46884 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices 

pursuant to, and responsible for the 

enforcement of, the Consumer Product Safety 

Act, 15 U.S.C. § § 2051–2084 (‘‘CPSA’’). 

3. Sears is a corporation organized and 

existing under the laws of Delaware, with its 

principal offices located in Hoffman Estates, 

IL. At all times relevant hereto, Sears sold 

apparel. 

Staff Allegations 

4. From September 13, 2007, to September 

18, 2007, Sears held for sale and/or sold to 

consumers at least 5,214 Personal Identity vneck sweaters with hood and neck 

drawstrings (‘‘Drawstring Sweaters’’). 

5. The Drawstring Sweaters are ‘‘consumer 

product[s],’’ and, at all times relevant hereto, 

Sears was a ‘‘retailer’’ of those consumer 

products, which were ‘‘distributed in 

commerce,’’ as those terms are defined in 

CPSA sections 3(a)(1), (6), (11), and (12), 15 

U.S.C. 2052(a)(l), (6), (11), and (12). 

6. 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. 

7. 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. 

8. 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. 

9. Sears informed the Commission that 

there had been no incidents or injuries from 

the Drawstring Sweaters. 

10. Sears’s distribution in commerce of the 

Drawstring Sweaters 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. 

11. On December 6, 2007, the Commission 

and Sears announced a recall of the 

Drawstring Sweaters, informing consumers 

that they should immediately remove the 

drawstrings to eliminate the hazard. 

12. Sears had presumed and actual 

knowledge that the Drawstring Sweaters 

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). 

Sears had obtained information that 

reasonably supported the conclusion that the 

Drawstring Sweaters 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 Sears to immediately inform the 

Commission of the defect and risk. 

13. Sears knowingly failed to immediately 

inform the Commission about the Drawstring 

Sweaters as required by CPSA sections 

15(b)(2) and (3), 15 U.S.C. 2064(b)(2) and (3), 

and as the term ‘‘knowingly’’ is defined in 

CPSA section 20(d), 15 U.S.C. 2069(d). This 

failure violated CPSA section 19(a)(4), 15 

U.S.C. 2068(a)(4). Pursuant to CPSA section 

20, 15 U.S.C. 2069, this failure subjected 

Sears to civil penalties. 

Sears Response 

14. Sears denies the Staff’s allegations 

above that Sears knowingly violated the 

CPSA. 

Agreement of the Parties 

15. Under the CPSA, the Commission has 

jurisdiction over this matter and over Sears. 

16. The parties enter into the Agreement 

for settlement purposes only. The Agreement 

does not constitute an admission by Sears, or 

a determination by the Commission, that 

Sears has knowingly violated the CPSA. 

17. In settlement of the Staff’s allegations, 

Sears shall pay a civil penalty in the amount 

of fifty thousand dollars ($50,000.00) within 

twenty (20) calendar 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. 

18. 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. 

19. Upon the Commission’s final 

acceptance of the Agreement and issuance of 

the final Order, Sears 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 

Sears 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. 

20. The Commission may publicize the 

terms of the Agreement and the Order. 

21. The Agreement and the Order shall 

apply to, and be binding upon, Sears and 

each of its successors and assigns. 

22. The Commission issues the Order 

under the provisions of the CPSA, and 

violation of the Order may subject Sears to 

appropriate legal action. 

23. 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. 

24. 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 Sears 

agree that severing the provision materially 

affects the purpose of the Agreement and the 

Order. 

25. 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 C.F.R. § 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. 

SEARS HOLDINGS MANAGEMENT 

CORPORATION 

Dated: 7–22–08 By: 

Mary Tortorice 

Vice President and Deputy General Counsel 

Sears Holdings Management Corporation 

3333 Beverly Road 

Hoffman Estates, IL 60179 

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: 8–1–08 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 Sears Holdings Management 

Corporation ) 

CPSC Docket No. 08–C0021 

Order 

Upon consideration of the Settlement 

Agreement entered into between Sears 

Holdings Management Corporation (‘‘Sears’’) 

and the U.S. Consumer Product Safety 

Commission (‘‘Commission’’) staff, and the 

Commission having jurisdiction over the 

subject matter and over Sears, and pursuant 

to the authority delegated in 


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Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices 46885 

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 Sears shall pay a civil penalty 

in the amount of fifty thousand dollars 

($50,000.00) 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 Sears to make the foregoing 

payment when due, interest on the unpaid 

amount shall accrue and be paid by Sears 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. E8–18401 Filed 8–11–08; 8:45 am] 

BILLING CODE 6355–01–M 

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 

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 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 § 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. 

§ 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. § 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. § 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. § 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. 

§ 2064(b)(2) and (3), and as the term 

‘‘knowingly’’ is defined in CPSA section 

20(d), 15 U.S.C. § 2069(d). This failure 

violated CPSA section 19(a)(4), 15 U.S.C. 

§ 2068(a)(4). Pursuant to CPSA section 20, 15 

U.S.C. § 2069, this failure subjected 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 


sroberts on PROD1PC70 with NOTICES