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CPSC Announces $40K Drawstring Penalty for Small Apparel Manufacturer

The Consumer Product Safety Commission announced on December 3, 2010 that Winter Bee Inc. of Los Angeles, Calif., has agreed to a civil penalty of $200,000 for failing to report drawstring violations in 80,000 children's hooded sweatshirts. However, under the…

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penalty settlement, which has been provisionally accepted by CPSC, Winter Bee must only pay $40,000 of the $200,000 penalty as it has demonstrated an inability to pay the full amount. Commissioner Nord's issued statement on the penalty being inappropriate given the small size of the firm.