With Only A Mountain of Paperwork Dictated by Multiple Agencies on a Small Business, How Could They Miss Reporting This 'Hanging Offence"?
Company penalized for drawstrings in sweatshirts
A California company must pay $40,000 of a $200,000 penalty for failing to report that children's hooded sweatshirts it manufactured and sold had drawstrings at the neck, which are considered dangerous to children, the Consumer Product Safety Commission said Friday.
The settlement resolves CPSC staff allegations that Winter Bee Inc. of Los Angeles knowingly failed to report to CPSC immediately the manufacture and sale of the sweatshirts with the drawstrings.
The commission agreed to suspend $160,000 of the penalty because the firm demonstrated an inability to pay the full amount. The full amount could become due immediately if CPSC finds that Winter Bee misrepresented its financial condition.
In June 2009, CPSC and Winter Bee announced a recall of 80,000 children's hooded sweatshirts with drawstrings at the neck. Winter Bee manufactured and sold two styles of these sweatshirts under the brand name "Speedy" at various retailers in the Los Angeles area.
CPSC issued drawstring guidelines in 1996 and in 1997. The industry adopted a voluntary standard for drawstrings that incorporated the CPSC guidelines.
In agreeing to the settlement, Winter Bee denies CPSC staff allegations that it knowingly violated the law.
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Online:
CPSC release: http://tinyurl.com/3a8l3u8
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