The CPSC alleged that Gildan Activewear SRL failed to promptly report a hazard involving youth hooded sweatshirts with drawstrings; the garments were recalled in 2006. Gildan denied knowingly violating the law and said it reported the hazard when it had actual knowledge. In a settlement, the subsidiary agreed to a $35,000 civil penalty without admitting a violation; the Commission provisionally accepted the agreement in April 2008.
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14. Gildan knowingly failed to inform the Commission about the Drawstring Sweatshirts immediately 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 Gildan to civil penalties.
4. Between January 2006 and September 2006, Gildan manufactured 146,466 youth hooded sweatshirts with drawstrings through the hoods for sale in the United States (“Drawstring Sweatshirts”).