Ross Stores, the US retailer, has been fined $3.9 million after admitting that it failed to report it was selling children’s garments containing drawstrings, which pose the risk of strangulation. The garments were sold between January 2009 and February 2012.
The firm received a $500,000 fine in 2009 after a similar incident in whcih it did not report four series of children’s upper outerwear garments containing drawstrings that were distributed between 2006 and 2008.
Ross Stores is also agreeing to implement a compliance plan intended to bring it in line with the reporting requirements of the Consumer Product Safety Act.
They are also creating written standards and policies, a confidential mechanism for employees to report compliance questions or concerns, and stronger emphasis on communicating compliance requirements to employees during training.
The firm has also implemented a series of internal controls and procedures to guarantee timely reporting to the Consumer Product Safety Commission, and to ensure disclosure is truthful, complete, accurate, and in keeping with the law.