Nine Firms Agree To Pay More Than $350,000 in Civil Penalties

Nine Firms Agree To Pay More Than $350,000 in Civil Penalties For Failing To Timely Report Drawstrings In Children’s Outerwear

WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission (CPSC) announced today that nine firms have agreed to pay a total of $355,000 in civil penalties. The penalties settle allegations that the firms knowingly failed to report to the CPSC immediately, as required by federal law, that their children’s hooded sweatshirts, jackets, or sweaters were sold with drawstrings at the hood and neck. These products, which the firms eventually recalled, pose a strangulation hazard that can cause death to children. The settlements have been provisionally accepted.

The firms paying the penalties are:

AJ Blue LLC, of New York City, N.Y.: Recall Settlement Agreement (pdf)
A&R Knitwear Inc., of New York City, N.Y.: Recall Settlement Agreement (pdf)
Cobmex Inc., of Lakewood, Calif.: Recall Settlement Agreement (pdf)
Liberty Apparel Co. Inc., of New York City, N.Y.: Recall Settlement Agreement (pdf)
Rebelette International Trading Corp., of South El Monte, Calif.: Recall Settlement Agreement (pdf)
Scope Imports Inc., of Houston, Texas: Recall Settlement Agreement (pdf)
Sears Holdings Management Corp., of Hoffman Estates, Ill.: Recall Settlement Agreement (pdf) Siegfried & Parzival Inc., of City of Industry, Calif.: Recall Settlement Agreement (pdf)
Vacation Clothing Exchange Inc., d/b/a Basix USA, of Lauderdale Lakes, Fla.: Recall Settlement Agreement (pdf)

In February 1996, CPSC issued drawstring guidelines (pdf) to help prevent children from strangling or getting entangled on the neck and waist drawstrings in upper outerwear, such as jackets and sweatshirts. In May 2006, CPSC’s Office of Compliance announced (pdf) that children’s upper outerwear with drawstrings at the hood or neck would be regarded as defective and a substantial risk of injury to young children.

Federal law requires manufacturers, distributors, and retailers to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect which could create a substantial risk of injury to the public, presents an unreasonable risk of serious injury or death, or violates a federal safety standard.

In agreeing to settle the matters, the firms deny CPSC's allegations that they knowingly violated the law.