Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices 46879 

United States of America 

Consumer Product Safety Commission 

In the Matter of Cobmex, Inc., CPSC Docket 

No. 08–C0018. 

Order 

Upon consideration of the Settlement 

Agreement entered into between Cobmex, 

Inc. (‘‘Cobmex’’) and the U.S. Consumer 

Product Safety Commission (‘‘Commission’’) 

staff, and the Commission having jurisdiction 

over the subject matter and over Cobmex, 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 Cobmex shall pay 

a civil penalty in the amount of twenty five 

thousand dollars ($25,000.00) in two (2) 

installments as follows: The first installment 

payment of $10,000 shall be paid within 

twenty (20) calendar days of service of the 

Commission’s final Order accepting the 

Agreement; the second installment payment 

of $15,000 shall be paid within one (1) year 

of service of the Commission’s final Order 

accepting the Agreement. Each installment 

payment shall be made by check payable to 

the order of the United States Treasury. Upon 

the failure of Cobmex to make the foregoing 

payments when due, interest on the unpaid 

amount shall accrue and be paid by Cobmex 

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. E8–18395 Filed 08–11–08; 8:45 am] 

BILLING CODE 6355–01–M 

CONSUMER PRODUCT SAFETY 

COMMISSION 

[CPSC Docket No. 08–COO 15] 

Liberty Apparel Co., 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 Liberty 

Apparel Co., 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 August 27, 

2008. 

ADDRESSES: Persons wishing to 

comment on this Settlement Agreement 

should send written comments to 

Comment 08–COO 15, Office of the 

Secretary, Consumer Product Safety 

Commission, 4330 East West Highway, 

Room 502, Bethesda, Maryland 20814–

4408. 

FOR FURTHER INFORMATION CONTACT: Seth 

B. Popkin, Trial Attorney, Legal 

Division, Office of Compliance and 

Field Operations, Consumer Product 

Safety Commission, 4330 East West 

Highway, Bethesda, Maryland 20814–

4408; telephone (301) 504–7612. 

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 Liberty Apparel Co., Inc., 

CPSC Docket No. 08–C15. 

Settlement Agreement 

1. In accordance with 16 CFR 1118.20, 

Liberty Apparel Co., Inc. (‘‘Liberty’’) 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. Liberty is a corporation organized and 

existing under the laws of New York, with its 

principal offices located in New York, New 

York. At all times relevant hereto, Liberty 

sold apparel. 

Staff Allegations 

4. In August 2007, Liberty imported 12,228 

Jewel girls’ hooded sweatshirts with 

drawstrings at the hood (‘‘Sweatshirts’’). 

From August to October 2007, Liberty sold 

and/or distributed in commerce the 

Sweatshirts. 

5. Retailers sold the Sweatshirts to 

consumers. 

6. The Sweatshirts are ‘‘consumer 

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

Liberty 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 neck and waist 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. Liberty informed the Commission that, 

to the best of Liberty’s knowledge, there had 

been no incidents or injuries from the 

Sweatshirts. 

11. Liberty’s distribution in commerce of 

the Sweatshirts 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 December 21, 2007, the 

Commission and Liberty announced a recall 

of the Sweatshirts. 

13. Liberty had presumed and actual 

knowledge that the 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). Liberty had obtained 

information that reasonably supported the 

conclusion that the 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 Liberty to immediately inform the 

Commission of the defect and risk. 

14. Liberty knowingly failed to 

immediately inform the Commission about 

the 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 

Liberty to civil penalties. 

Liberty’s Response 

15. Liberty denies the Staff’s allegations 

above that Liberty knowingly violated the 

CPSA. 

Agreement of the Parties 

16. Under the CPSA, the Commission has 

jurisdiction over this matter and over Liberty. 


sroberts on PROD1PC70 with NOTICES
46880 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Notices 

17. The parties enter into the Agreement 

for settlement purposes only. The Agreement 

does not constitute an admission by Liberty, 

or a determination by the Commission, that 

Liberty has knowingly violated the CPSA. 

18. In settlement of the Staff’s allegations, 

Liberty 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 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(e)(1), 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, Liberty knowingly, 

voluntarily, and completely waives any 

rights it may have in this matter 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 

Liberty 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. Upon issuance of, and Liberty’s 

compliance with, the final Order, the 

Commission regards this matter as resolved 

and agrees not to bring a civil penalty action 

against Liberty based upon the Staff’s 

allegations contained herein regarding the 

Sweatshirts. 

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, Liberty 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 Liberty 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 alteration 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 Liberty 

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. 

Liberty Apparel Co., Inc. 

Dated: 7/3/08. 

By: Hagai Laniado, 

President, Liberty Apparel Co., Inc., 1407 

Broadway, Suite 1500, New York, NY 

10018. 

Dated: 7/3/08. 

By: David Laniado, Esq., 

55 Atlantic Avenue, Lynbrook, NY 11563, 

Counsel for Liberty Apparel Co., 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: Seth B. Popkin, 

Trial Attorney, Legal Division, Office of 

Compliance and Field Operations. 

United States of America 

Consumer Product Safety Commission 

In the Matter of Liberty Apparel Co., Inc. 

CPSC Docket No. 08–COO15 

Order 

Upon consideration of the Settlement 

Agreement entered into between Liberty 

Apparel Co., Inc. (‘‘Liberty’’) and the U.S. 

Consumer Product Safety Commission 

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

having jurisdiction over the subject matter 

and over Liberty, 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 Liberty 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 Liberty to make the foregoing 

payment when due, interest on the unpaid 

amount shall accrue and be paid by Liberty 

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. E8–18402 Filed 8–11–08; 8:45 am] 

BILLING CODE 6355–01–M 

CONSUMER PRODUCT SAFETY 

COMMISSION 

[CPSC Docket No. 08–C0014] 

Rebelette International Trading 

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 Rebelette 

International Trading Corporation, 

containing a civil penalty of $40,000.00. 

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-C0014, Office of the 

Secretary, Consumer Product Safety 

Commission, 4330 East West Highway, 

Room 502, Bethesda, Maryland 20814–

4408. 

FOR FURTHER INFORMATION CONTACT: Seth 

B. Popkin, Trial Attorney, Legal 

Division, Office of Compliance and 

Field Operations, Consumer Product 

Safety Commission, 4330 East West 

Highway, Bethesda, Maryland 20814–

4408; telephone (301) 504–7612. 

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 Rebelette International 

Trading Corporation, CPSC Docket No. 08–

C0014. 

Settlement Agreement 

1. In accordance with 16 CFR 1118.20, 

Rebelette International Trading Corporation 

(‘‘Rebelette’’) and the staff (‘‘Staff’’) of the 

United States Consumer Product Safety 

Commission (‘‘Commission’’) enter into this 


sroberts on PROD1PC70 with NOTICES