CPSC Publishes Drawstring Settlement with Macy's for Comment
The Consumer Product Safety Commission has published the settlement it has provisionally accepted with Macy's Inc., containing a civil penalty of $750,000 to resolve allegations that it "knowingly" failed to immediately report that certain children’s upper outerwear had drawstring hazards, and that it sold some of the subject garments after recalls had been negotiated. Any interested person may ask the Commission not to accept this settlement agreement or otherwise comment on its contents by July 29, 2011.
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Macy’s Denies "Knowing" Violation and Agrees to $750K Penalty, Training, Inventory Review
Under the settlement agreement, Macy's denies that it "knowingly1" violated the law and agrees to pay a civil penalty of $750,000, conduct annual training of employees, conduct a comprehensive review of its existing children’s apparel inventory to identify any children's upper outerwear with drawstrings, etc.
The settlement agreement was provisionally accepted by the Commission, pending public comment.
(See ITT's Online Archives or 07/13/11 news, 11071316, for BP summary describing the settlement agreement and CPSC's allegations.)
Settlement Will Be Deemed Final on July 30 if no Adverse Comments Received
If CPSC does not receive any written request not to accept the settlement agreement within 15 calendar days, it shall be deemed finally accepted on the 16th calendar day after it is published in the Federal Register (i.e. on July 30).
1Under CPSC’s statute, the term "knowingly" means: (1) the having of actual knowledge, or (2) the presumed having of knowledge deemed to be possessed by a reasonable man who acts in the circumstances, including knowledge obtainable upon the exercise of due care to ascertain the truth of representations.