SETTLEMENT REACHED IN FEDERATED DISPUTE

NEW YORK — Federated Department Stores Inc. said Thursday it agreed to pay $850,000 to settle allegations by the Consumer Product Safety Commission that the retailer had violated the Flammable Fabrics Act in connection with children’s sleepwear.
In signing the consent agreement, Federated denied the commission’s allegations that it had violated the flammability standard for children’s sleepwear. The commission admitted that it did not prove certain violations. One issue was whether the apparel in question was sleepwear, or playwear, which has a less-stringent standard for tightness of fit.
Federated said the apparel that allegedly failed to meet flammability standards was either recalled or withdrawn from the selling floors last year.