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1、UNITEDSTATESOFAMERICACONSUMERPRODUCTSAFETYCOMMISSION)IntheMatterof))BABYMATTERSLLC,))CPSCDOCKETNo.13-1))Respondent.))_______________________________)MEMORANDUMOFPOINTSANDAUTHORITIESINSUPPORTOFMOTIONTOCOMPELCORRECTIONANDRETRACTIONANDFORSANCTIONSCOMESNOWBabyMattersLLC("Respo
2、ndent"or"BabyMatters"),bycounsel,andsubmitsthisMemorandumofPointsandAuthoritiesinSupportofitsMotiontoCompelCorrectionandRetractionandforSanctions.I.IntroductionTheConsumerProductSafetyCommission(the"Commission"),throughitsOfficeofCommunications,isnostrangertotheartofcontro
3、llingthenewscycle,includingthetimingofnewsreleasestomaximizetheirreachandimpact.TheCommissionalsounderstandsthatwhenitissuesarecallpressreleaseannouncingthatsellingorresellingarecalledconsumerproductisaviolationoffederallaw,itsmessagewillhaveapowerfuland,indeed,chillingeff
4、ectonfurtherdistributionoftherecalledproduct.Thereisnothingimproperaboutthesepracticeswhencarriedoutonthebasisoftruthfulinformation.Here,however,theCommissionhasnotbeentruthful,hasattemptedtomanipulatethenewscycletomaximizetheimpactofitsfalsehoods,andhas,throughitsconduct,
5、demonstratedthatthisadministrativeenforcementproceedingisashamandthattheComplaintshouldbedismissed.1II.ArgumentComplaintCounselinitiatedthisproceedingonDecember4,2012,followingmonthsofprotractednegotiationswithRespondent,inwhichtheCommissionattemptedtosecureRespondent'sagr
6、eementtoenterintovariousCorrectiveActionPlans("CAPs").EveryCAPprofferedbytheCommissionputthefutureexistenceofthecompanyintojeopardy.Overtime,eachproposedCAPbecameincreasinglyonerousintheirthreatstowarnthepublicofthenon•existentrisksofharminvolvingtheNapNanny®Chill™("theChi
7、ll"),until,finally,theCommissiondemandedthattheRespondentstopsellingtheentireNapNanny®lineofproducts,includingtheChill,theonlyproductcurrentlysoldbyRespondent.TheCommissioninsistedontheseCAPsusingthesamespeciousreasoningandquestionableevidencecitedintheComplaint.Respondent
8、refusedtheCommission'sdemands,offeringseverallessrestrictiveremedies.Theseincludedavolunt
