Contract analysis

1. Lookback Window The Division's draft AVC proposed a 180-day lookback window for purposes of determining whether "compare-at," "original," or "was" reference prices displayed in CRH's retail locations or on cascaderetail.com reflect an actual, bona fide offering price at which the subject merchandise was offered for sale in the regular course of business. CRH proposes that this lookback window be revised to 120 day

2. Consumer Restitution Fund The Division's draft AVC proposed the establishment of a consumer restitution fund in the amount of $4,500,000 for the benefit of consumers who may have been affected by the pricing-disclosure practices at issue. CRH proposes a consumer restitution fund in the amount of $2,850,000. CRH believes this amount appropriately reflects the scope of potentially affected transactions during the re

3. Civil Penalty The Division's draft AVC proposed a civil penalty of $1,500,000 payable to the Washington Consumer Protection Account. CRH proposes a civil penalty of $750,000. In proposing this reduction, CRH respectfully submits that the following factors weigh in favor of a lower penalty amount: (a) CRH has cooperated fully and promptly throughout the Division's investigation, including by responding to the Civil

4. AG Investigative Costs Reimbursement CRH accepts the Division's proposed reimbursement of $185,000 in investigative costs incurred by the Attorney General's Office in connection with this matter. Payment of this amount would be made within 30 days of execution of the AVC.

5. Total Financial Commitment Under CRH's counter-proposed terms, the total financial commitment would be $3,785,000, consisting of: CRH submits that this aggregate amount represents a substantial and meaningful financial commitment that reflects the seriousness with which CRH approaches this matter and its commitment to making affected consumers whole, while also appropriately accounting for the mitigating factors d

6. No Admission of Liability As noted above, CRH's counter-proposed AVC includes an express provision stating that CRH neither admits nor denies any violation of RCW 19.86 or any regulation promulgated thereunder. This provision further states that CRH's agreement to enter into the AVC and to undertake the obligations set forth therein shall not be construed as an admission of wrongdoing, fault, or liability for any

7. Independent Compliance Monitoring CRH accepts the Division's proposal for an independent compliance review and proposes Ridgepoint Compliance Solutions Inc. ("Ridgepoint") as the independent compliance reviewer. Ridgepoint's engagement would be led by Harold Sung, Engagement Partner. Ridgepoint is located at 700 Stewart Street, Suite 1500, Seattle, WA 98101. CRH proposes a 24-month monitoring period commencing on

8. Compliance Reporting Frequency The Division's draft AVC proposed quarterly compliance reports to the Consumer Protection Division. CRH proposes semi-annual compliance reporting, with the first report due six months following AVC execution and subsequent reports due at six-month intervals thereafter for the duration of the monitoring period. Each report would address CRH's compliance with the AVC's substantive term

9. Stipulated Penalties for Breach CRH accepts the stipulated penalty of $10,000 per day for any material breach of the AVC terms. CRH's counter-proposed AVC, however, inserts a 30-day cure period following written notice of an alleged breach before stipulated penalties begin to accrue. Under this provision, the Division would provide written notice to CRH specifying the nature of the alleged breach, and CRH would ha