HANDBAG AND LUGGAGE QUALITY STANDARDS MANUAL

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

TABLE OF CONTENTS Introduction

3

QA Sample Lead Time

4

Submission Requirements

5

Evaluation Disposition

6

General Labeling Requirements

7

Performance Claims and Substantiation

9

Minimum Quality and Performance Standards

12

Measurements Guidelines

15

Packaging

16

Production Inspection p

17

Pre-shipment Inspection Post-shipment Inspection Handbag Inspection Sampling Plan Luggage Inspection Sampling Plan

17 18 19 20

California Proposition 65 Compliance Requirements

21

CPSIA of 2008

22

Appendix A: Handbag and Luggage QA Standards Checklist

23

Last updated: 10/20/2015

-2-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

INTRODUCTION Quality y Assurance Means No Surprises p HSN’s Quality Assurance (QA) program exists to ensure the proper execution of every product we buy and sell. This manual contains specific information concerning the minimum quality standards HSN expects in the product it purchases. In addition, we expect our partners to comply with all applicable legal requirements concerning the manufacture, sale and advertising of products. In certain instances, HSN standards may be higher than the stated legal minimums. It is the partner’s responsibility to read and understand the published guidelines that pertain to the industry. These include but are not limited to: • • • • • • •

e Textile e t e Fiber be Products oducts Identification de t cat o Act: ct http://www.ftc.gov/os/statutes/textile/textlact.shtm ttp // tc go /os/statutes/te t e/te t act s t The The Wool Products Labeling Act: http://www.ftc.gov/os/statutes/textile/woolact.shtm The Fur Products Labeling Act: http://www.ftc.gov/os/statutes/textile/furact.shtm The Amended Care Labeling Rule: http://www.ftc.gov/os/statutes/textile/carelbl.shtm The Consumer Product Safety Improvement Act of 2008. : http://www.cpsc.gov/about/cpsia/cpsia.html. California Proposition 65 at: http://www.oehha.ca.gov/prop65/prop65 The information in this manual, in HSN’s Supply Chain Requirements Manual https://view hsn net/Documents/documents aspx and in the Master Terms and Conditions https://view.hsn.net/Documents/documents.aspx,

Because quality cannot be inspected into products, it is the goal of the HSN Quality Assurance program to collaborate with our vendor partners as early as practical in order to prevent defects. This partnership extends to design and materials selection before the product is made, and includes all points in the manufacturing, packaging, shipping and post-delivery processes. Therefore, it is within the purview of the HSN Quality Assurance program to maintain a close, direct partnership with our vendors and their manufacturing facilities in order to support continuous improvement efforts and uphold the most efficient and effective manufacturing practices. It may be necessary at any time to visit a partner’s partner s facility to ensure we mitigate risks to delivering 100% acceptable product. Our partners are expected to support our efforts throughout the supply chain to provide our customers with an unsurpassed purchase experience. Our partners are also expected to maintain world-class quality and delivery. Such expectations cannot be met unless our partners work with us and maintain a comprehensive quality program of their own. All shipments must be inspected for compliance before HSN ever sees the product. HSN QA prepared this document to help you through the process of submitting products to HSN. This document contains general information. It should not be considered a definitive source of regulatory guidance.

Key Contacts Please contact the following individuals with any questions you have:

Rita Fontan | QA Manager: Apparel & Accessories | 727.872.5625 | [email protected] Debbie Edmonds | QA Manager: Home and Improvements| 727.872.5099 | [email protected] Frank Ruotolo | Sr. Manager QA Operations: Packaging | 727.872.7393 | [email protected]

Last updated: 10/20/2015

-3-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

QA SAMPLE LEAD TIME QA Sample p Lead Time The QA process is a critical part of making sure we maintain a reputation of trust and reliability with our customers– we must ensure that our customers get the best quality, greatest value, and safest products. The first step in that process is to submit the QA sample(s) and supporting documentation by the required number of days prior to your ship date. The below table outlines the QA sample and product specification sheet lead time requirements.

Sample Type

QA Sample and Product Specification Sheet Lead Time

Top of Production (TOP) Samples

21 days Before Ship Date

Additional key milestones are outlined in Appendix B of the HSN Partner Supply Chain Requirements Manual. https://view.hsn.net/WebDocuments/documents/9-Appendix.pdf Maintaining proper timing of the QA process is important to ensure proper review of QA samples, specifications and proposed product claims. Failure to comply with the required lead time standards can result in fees for late QA samples. The Compliance section of the HSN Supply Chain Requirements Manual outlines the fees associated with late QA samples. https://view.hsn.net/WebDocuments/documents/8-Compliance.pdf

Last updated: 10/20/2015

-4-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

SUBMISSION REQUIREMENTS How to Submit Your Samples to QA complete sample submission for handbag and luggage will consist of the following: Complete product specification sheet submitted on the HSN Partner Portal • Include all component and product details • Include all proposed care instructions, features and benefits, objective and performance claims, and all talking points for the on-air presentation, all product measurements & material content/specifications • Include all claim substantiation, performance testing, label copy, inserts and instructions • Include I l d allll required i dP Prop 65 and d CPSC compliance li ttesting ti and dd documentation t ti Prior to sending a sample to HSN QA print and affix the sample label: • Print the sample label found in the product specification sheet • Affix label to the sample so that the item can be identified upon receipt For guidance on how to create a specification sheet on the partner portal, please view the Product specification sheet tutorials. https://view.hsn.net/Documents/Documents.aspx?dt=SpecSheetTutorials A printed guide is also available https://view.hsn.net/W ebDocuments/documents/13_HowtoCreateaSpecSheet.pdf

NOTE: The product specification sheets MUST be completed and submitted prior to sending samples to QA; samples without specification sheets will not be reviewed HSN Exclusive Sample Requirements: • Leather and suede labeled swatches must be submitted with the production sample • Top of Production (TOP) in each color on order • Samples must be representative of the final product from the production lot • Include all internal and external packaging, all products and components with intended labeling • Include all inserts, instructions and any other material that is to go to the customer Market Brand Sample Requirements: • Production sample in each color on order must be submitted to QA • Samples must be representation of the final product from the production lot • Include all internal and external packaging, all products and components with intended labeling • Include all inserts, instructions and any other material that is to go to the customer

Shipment of QA Samples • Ship all QA samples to HSN QA as outlined in the Product Samples section of the HSN Supply Chain Requirements Manual. https://view.hsn.net/W ebDocuments/documents/3-Product%20Samples.pdf After thoroughly reviewing the QA samples and specification sheet documentation, the HSN QA Product Evaluator will issue a written evaluation report to the partner. The partner then reviews and responds to the issues noted in the report and provides the information/materials requested. The appearance of the final product that will be shipped to the customer is also a concern of the HSN Merchandising team. A production sample identical to the one received by HSN QA should be sent to the HSN Buyer. NOTE: Merchandise must not be changed in any way after it is approved by HSN QA. QA Changes include labeling labeling, packaging, contents and components. Merchandise that has been modified will be returned. Contact HSN QA before any changes are made.

Last updated: 10/20/2015

-5-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

EVALUATION DISPOSITION Products submitted to HSN QA will be reviewed byy the QA evaluator and assigned g one of the following g evaluation statuses: •

Received: A physical product sample has been received, but the product specification sheet has not been submitted by the Partner and/or approved by the HSN Merchandising team. An evaluation in Received status requires submission and approval of the product specification sheet prior to initiation of the formal QA evaluation process.

•

Pending: QA has received a sample and a Merchandising-approved spec sheet. The evaluation is in process and/or there are open issues that require the Partner to provide information information, samples or corrective action action.

•

Approved: QA has evaluated the sample and found that it meets HSN standards. • Approval given for samples is indication that you may move forward with the production process (subject to any modifications detailed with the evaluation report). • Approval given for Production samples indicate that the product is approved to ship.

•

Approved Pending: QA has evaluated the sample and found that there are only minor open issues preventing product approval (for example, on-site inspection). Products placed into Approved Pending status require closure of the remaining issues before final approval is issued. Once the open issues are resolved, the evaluator updates the status to Approved.

•

Rejected: QA has evaluated the sample and found that it does NOT meet HSN standards.

Last updated: 10/20/2015

-6-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

GENERAL LABELING REQUIREMENTS General • All labels must be written in English and permanently affixed in a conspicuous area • Changes that are made in ink or white-out are not acceptable.

Country of Origin The country of origin must be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article will permit, in such a manner as to indicate to an ultimate purchaser in the United States the English name of the country of origin of the article. article • A textile label sewn on an inner seam or an indelible ink stamp are the accepted forms of marking. • Paper sticker labels are not acceptable. • Refer to 19 CFR 131.41 for methods and manner of marking and 19 CFR 134.44 for location and other acceptable methods of marking.

Brand Name The brand name must be permanently identified on the physical product

Material Content The declaration of material content is not required for handbag and luggage products unless the product contains leather or imitation leather and is subject to the labeling requirements of 16 CFR Part 24: Guides for Select Leather and Imitation Leather Products

Color Transfer/Crocking • All dark denim items with a crock test result below Dry-3.0 / Wet-2.0, must include a hang tag or sticker stating the following: • “This dark denim could transfer its color to other items. If your item gets wet, simply blot it dry with a clean towel of similar color.” • All dark suede items with a crock test result below Dry-3.0/Wet-2.0, must include a hang tag or sticker stating the following: • “If your suede garment gets wet, simply blot it dry with a clean towel of similar color. Any bright or deep-colored suede item could transfer its color to other items.”

Limited Edition “Limited edition” merchandise must clearly state on the item or within each item’s packaging the nature, extent or duration of the limited production (e.g., “limited to 5000 units”). If the merchandise is both numbered and limited (e.g.,” number 617 out of 5000”), each item must have a certificate of authenticity included within the packaging and each certificate must correspond with the number on the item itself. This certificate must be submitted with the initial QA product sample.

Last updated: 10/20/2015

-7-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

GENERAL LABELING REQUIREMENTS CONTINUED Cashmere and Other Luxury Fibers These fibers must be exactly as stated on the sewn label. • All colors must be tested by a CCMI-approved lab. • The lowest level of cashmere found within a line of goods, after rounding down, will become the fiber content for the entire line. For example, if four colors of HSN #123456 are tested as 100% cashmere and their actual results are 99.2%, 97.5%, 91.3% and 90.9%, each item within that group will need to be labeled 90% cashmere, with the rest of the fiber content percentage stated in the test report. There are no exceptions. • Also, please note that any fiber content stated as 100% must be 100% to be labeled as such. • The +/+/ 3% tolerance applies only to non-cashmere non cashmere blends. blends

Faux Fur Faux fur handbags sold at HSN must clearly state “faux fur” in one of the following forms: • Permanent label attached to garment: may be added to the permanent fur label, which is attached to the garment. • Temporary tag: may be added to a temporary tag • Sticker: a sticker affixed in a conspicuous place.

Genuine Fur Genuine fur sold at HSN must clearly state “Real Fur” (per the labeling formats listed in “Faux Fur Labeling” below) as well as meet the labeling requirements of the Federal Fur Products Labeling Act (15 U.S.C. 69) and the Rules and Regulations under the Fur Products Identification Act (16 CFR 301).

Leather, Imitation Leather & Suede All P Partners t are required i d tto ffollow ll th the US L Leather th Labeling L b li L Laws ffor any ititem consisting i ti off lleather th iin partt or iin whole. h l In I layman’s terms: It is deceptive to use the term “leather” or other terms suggestive of leather to describe products unless the product is composed of leather in all substantial parts. imitation leather: If all or part of a product is made of non-leather material that appears to be leather, it should be disclosed. Example: manmade material, vinyl, polypropylene, polyuerthane etc. embossed or processed leather: The kind and type of leather must be disclosed when it has been embossed to simulate a different type of leather. leather Example: croc-embossed croc embossed cowhide trim trim. backing material: The composition of the different backing material should be disclosed if it is visible and consists of nonleather with the appearance of leather. Example: Top-grain cowhide backed with vinyl. bonded leather: Parts made from reconstituting shredded, pulverized or ground leather cannot be labeled as “leather”. If labeled as “bonded leather”, the percentage of leather and non-leather components must be identified. Example: bonded leather strap, 60% leather fibers, 40% non-leather substances. . Suede items sold at HSN must clearly state “suede” in one of the following forms: • Permanent label attached to product: may be added to the permanent fur label, which is attached to the product • Temporary tag: may be added to a temporary tag • Sticker: a sticker affixed in a conspicuous place. Please note that it is your responsibility to know and apply the complete guidelines for every item that qualifies. The above information is by no means comprehensive. Please use the link above to read and understand all the details contained in the legislation legislation. Click the below link to see the complete FTC regulation on this topic 16 CFR Part 24: Guides for Select Leather and Imitation Leather Products Last updated: 10/20/2015

-8-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

PERFORMANCE CLAIMS & SUBSTANTIATION Background Every objective product claim, whether express or implied, must be supported by evidence providing a reasonable basis for the claim. Objective evidence that supports claims about a product’s performance, features, safety, effectiveness, or price is required to be included with the product specification sheet at the time your product is submitted to the Quality Assurance Dept. for evaluation. The level of supporting evidence will increase with the specificity of claims being made.

Objective Claims All objective bj ti performance f claims l i ffor fifinished i h d products d t require i competent t t and d reliable li bl scientific i tifi substantiation. b t ti ti P Product d t performance claims must be adequately substantiated with standardized laboratory test data, studies, or other scientific evidence. Tabloid articles, magazines, newspaper articles, testimonials, and most Internet sources generally do not constitute reliable sources for substantiation. Any claims proposed from the substantiation must be consistent with the professional assessment of typical results based on the testing performed. Results from the test data must be statistically significant and mirror the proposed claims in order to be considered acceptable as supporting evidence. Quantitative performance claims must be validated through analytical testing by a qualified testing laboratory

Environmental Claims "Green claims" (such as Biodegradable, Non-Toxic, Ozone friendly) are common in many advertisements based on the response to consumers' increasing interest in protecting the environment. Substantiation must be provided for specific claims so that consumers have a reasonable basis for making purchasing decisions based on environmental benefit. Broad or vague environmental claims (such as "environmentally safe" or "environmentally friendly“) should be avoided since they can convey a wide range of meanings to consumers that may be difficult to substantiate. Similarly, the claim "environmentally preferable" should be carefully qualified (to indicate the ways in which the product is environmentally preferable), or avoided, because it is likely to broadly convey to consumers that a product is environmentally superior to other products in all respects. Claims of degradability, biodegradability or photo-degradability should be qualified to the extent necessary to avoid consumer deception d ti about: b t ((a)) th the product d t or package's k ' ability bilit tto d degrade d iin th the environment i t where h it is i customarily t il disposed; di d and d (b) the rate and extent of degradation. It is deceptive to misrepresent, directly or by implication, that a product or package is degradable, biodegradable or photodegradable. An unqualified claim that a product or package is degradable, biodegradable or photodegradable should be substantiated by competent and reliable scientific evidence that the entire product or package will completely break down and return to nature, i.e., decompose into elements found in nature within a reasonably short period of time after customary disposal.

Comparative Claims Comparative claims are permissible but must be comparing like products on objectively measurable attributes or price, and with sufficient clarity to avoid deceiving the consumer. Hard data is required to substantiate market-based claims, and headto-head studies are required to substantiate performance claims.

Absolute Claims Absolute claims are unqualified claims that often include words such as: best best, pure pure, vital vital, essential essential, every and all all. These types of claims must always be accurate. If the claim is not accurate, the claim will be false and misleading.

Last updated: 10/20/2015

-9-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

PERFORMANCE CLAIMS & SUBSTANTIATION CONTINUED Implied Claims An implied claim is made indirectly or by inference. HSN views implied claims as objective and therefore must be fully substantiated. Inappropriate implied claims are not permitted as they are misleading to consumers. For example, “Brand X Water Filter removes chemicals that cause cancer” is an implied claim that the product will prevent cancer.

Subjective Claims Subjective claims are considered “puffery” and do not require substantiation. Some examples of subjective claims are: • Convenient • Useful • Beautiful • Good value

Licensing Agreements HSN vendor partners submitting licensed items (e.g. MLB, NFL, Disney) to HSN QA must certify that they are valid licensed sellers of the item(s). Acceptable certification from the HSN vendor partner includes: • An attestation from the licensor that certifies that the HSN vendor of record holds a valid licensing agreement. • Specifically state the licensee and the type(s) of products they are licensed to produce and/or sell. • State the valid start and end date of the current licensing agreement. • The licensor’s name, title, and contact information must be included. • A copy of the official licensing agreement issued to the vendor partner by the licensor (example: MLB, NFL, Disney). • A redacted licensing agreement may be submitted.

Swarovski Elements ® Items to be advertised as containing Swarovski crystals must be verified and approved by Swarovski. • Partner must upload the Swarovski issued letter of authorization into the Product Specification Sheet • For details on the authorization process, please contact Swarovski at http://professional.swarovski.com. • To be advertised as adorned with or embellished with “Crystals from Swarovski ®” the following conditions apply. % of the crystals y are Swarovski crystals. y • 100% • When there is a mix of crystals and precious/semi-precious gemstones, ALL crystals MUST be Swarovski.

Use of Third Party Trademarks Partners who wish to use trademarks owned by a third party within the item advertising (product descriptions, features & benefits or on-air presentations) must certify that they have the appropriate authorization to use those trademarks. Acceptable certification from the HSN vendor partner includes: • An attestation from the trademark owner that certifies that the HSN vendor of record has authorization to use the mark in product labeling and advertising. The document must detail the usage specifics • Partner must upload the documentation into the Product Specification Sheet

Last updated: 10/20/2015

-10-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

PERFORMANCE CLAIMS & SUBSTANTIATION CONTINUED Electromagnetic Shielding (RFID) Effectiveness All products claiming to block RFID signals as a means to protect personal information on passports, credit cards, etc. must meet minimum performance standards to ensure effectiveness. Credit Card & Passport Protection (13.56 MHz ± 7KHz) Bulk Fabric Testing Shielding performance based upon section 3.3.1.1 of US GSA FIPS 201 Evaluation Program Electromagnetically Opaque Sleeve Approval Procedure v12.1.0 with reference to IEEE STD 299 as the test methodology. • Product must achieve at least 40 dB of signal attenuation at the required frequency (when compared to the open aperture) Finished Product Testing A RFID reader/scanner capable of detecting RFID tags at the selected frequency is used to detect the RFID label/tag. A label/tag containing a RFID chip that operates at 13.56 MHz (ISO 15693) is used as the target for detection • The scanner must show no response/inability to detect the RFID label/tag in order for the product to be deemed successful at blocking RFID. • If the scanner is able to detect the RFID label/tag, the test location/product has FAILED the test (some products may have multiple locations that can be tested; some locations may block RFID and others may not)

Passport Card Protection (900MHz) Bulk Fabric Testing Test according to ASTM D4935 (Standard Test Method for Measuring the Electromagnetic Shielding Effectiveness of Planar Materials). • Product must achieve at least 99.99% shielding effectiveness at the required frequency of signal attenuation at the required frequency (when compared to the open aperture) Finished Product Testing A UHF RFID reader/scanner d / (ISO 18000 18000-6C 6C protocol) t l) capable bl off detecting d t ti RFID ttags att th the selected l t d ffrequency iis used d tto detect the RFID label/tag. A label/tag containing a RFID chip that operates at 902-928 MHz range is used as the target for detection. • The scanner must show no response/inability to detect the RFID label/tag in order for the product to be deemed successful at blocking RFID. • If the scanner is able to detect the RFID label/tag, the test location/product has FAILED the test (some products may have multiple locations that can be tested; some locations may block RFID and others may not)

HSN QA and Legal Departments will review the claims and supporting evidence during the product evaluation process. Additional information/documentation may be requested in order to verify some of the claims. Inappropriate claims (false or misleading) or claims without sufficient evidence will not be allowed for use in the advertisement of the product on HSN.

Last updated: 10/20/2015

-11-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

MINIMUM QUALITY AND PERFORMANCE STANDARDS All finished products should exhibit high quality workmanship and be free from any flaw or defect that could detract from the aesthetics, aesthetics safety safety, or performance of the product product. Production products must conform to final approved spec sheet and be free from but not limited to the following defects: • • • • • • • • • • • • •

Color shading, streaks, coating defects Corrosion on metal/metallic components Cuts, scratches, holes, wrinkles Di t oil, Dirt, il marks k Irregularities in coloration/pigmentation or surface irregularities that are not inherent to the product Loose or broken hardware / buttons Mold , mildew or other contamination (use silica and/or anti-mold protection where necessary) Poor sewing (open seams, run-offs, puckering, drop needle, broken/skipped stitches) Poorly positioned or unsightly trim / embellishments Print defects, dye spots Sewn-in labels missing; loose or incorrectly positioned labels Strong odors (chemical, musty, etc.) The lot must be cut from only one shade of fabric; related separates must all be the same shade with the same color name. • Minimum shade rating of 4.0 as per AATCC Gray Scale

Last updated: 10/20/2015

-12-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

MINIMUM QUALITY AND PERFORMANCE STANDARDS CONTINUED Performance Testing Standards Unless noted otherwise, the below performance standards apply to BOTH Handbag AND Luggage products Property

Test Method

Fiber Identification

AATCC 20A

Requirements Material must meet claimed composition

ASTM D3776

Handbags ± 3% / Luggage ± 5%

Construction Fabric Weight Thread Count

ASTM D3775

Defects

Visual Inspection

S Shading ( (panel to panel))

AATCC CC G Gray S Scale

Handbags ± 3% / Luggage ± 5% None Permitted 4.0 minimum

Performance Fabric Strength

ASTM 5034/5035

Seam Strength

ASTM D1683

22 inches and under – 35 lb /in minimum

Bottom/Side

ASTM D1683

Over 22 inches - 40 lb/in minimum. Handbags: 25.0 lb/in minimum

Li i Lining

ASTM D1683

H db Handbags: 1 0 lb/in 15.0 lb/i minimum i i

Zipper Seam

ASTM D1683

Handbags: 20.0 lb/in minimum

Pockets

ASTM D1683

Handbags: 10.0 lb/in minimum

Handle Strength

In House Test

2x loading capacity minimum

Hook Strength

In House Test

Ornament Attachment Ornament/Buckle Corrosion Durability

ASTM F963-11 ASTM B117

Shell: 40 lb/in minimum Lining: 20 lb/in minimum Luggage:

2x loading capacity minimum 15 lbs/10 sec No corrosion or tarnishing after 24 hrs exposure to 1% salt solution

Zipper, Handle and Snap Functionality

In House Test

100 cycles minimum

Abrasion Resistance

ASTM D3886

100 cycles minimum

Zipper Strength

ASTM 2061

Luggage-Withstand a 30 lbs pull test load without breaking or damaging.

Zipper Operability

ASTM D2062

2 lb maximum

Crosswise Strength

ASTM D2062

Handbag 15 lb maximum / Luggage 50 lb maximum

Top Stop/Bottom Stop

ASTM D2062

Handbag 10 lb maximum / Luggage 20 lb maximum Color Change: Class 4.0 minimum

Colorfastness to Water

AATCC 107

Staining: Class 3.0 minimum Self Staining: Class 4.5 minimum

Colorfastness to Light

AATCC 16A

3.0 minimum at 10 hours

Water Repellency p y

AATCC 22

80 rating g minimum

Water Resistance

AATCC 42

5g penetration, maximum

Rain Test

AATCC35

Crocking Oil Repellency, if claimed

AATCC 8 AATCC 118

1g penetration, maximum Printed Textiles: 4.0 Dry / 3.0 Wet Leather, Suede, Dark Denim : 3.0 Dry / 2.0 Wet Grade 6.0

Handle Dynamic Load Test

In House Test

Luggage: No damage or failure when bag is loaded to claimed weight capac ty and capacity a dd dropped opped 10x 0 from o a height eg t o of 4 inches c es

Roller Durability

In House Test

Wheeled Luggage: No Damage after 1,000 ft distance, 50 lb load

Curb Test

In House Test

Wheeled Luggage: No failure to bag or wheels when loaded 1.5 x the maximum weight capacity then being rolled over a 6 inch curb 20 x.

Last updated: 10/20/2015

-13-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

MINIMUM QUALITY AND PERFORMANCE STANDARDS CONTINUED Testing Requirements & Process HSN has established relationships and testing protocols with the following 3rd Party Testing Laboratories. Laboratories The key contact person for each is listed. When submitting an item to one of the 3rd Party Labs, a Lab Test Request Form must accompany the samples being submitted. The test request forms for HSN Recommended Laboratories can be found on the HSN Partner Portal. https://view.hsn.net/Documents/documents.aspx. The Partner must upload the results of the testing to the documents section of the Portal and email their QA Evaluator when the report is uploaded (if testing reports are uploaded AFTER initial submission of specification sheet.

Testing Laboratories And Primary Contacts Underwriters Laboratories (UL) Robin Elia 860-835-2136 [email protected]

Bureau Veritas (BV) Mari Miller 716-505-3791 [email protected]

Intertek Ideliza Perez 732-394-5389 [email protected]

TÜV SÜD Allison Lucci 978-573-2695 [email protected]

Last updated: 10/20/2015

-14-

SGS Nevine Noss 973-461-7945 [email protected]

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

MEASUREMENT GUIDELINES

Handbags and Totes HSN requires the following measurements • Measure Length /Width from across the front bottom of the bag • Measure Depth from the front widest part of the bottom to the back widest part of the bag • Measure Height from center front bottom to top of the bag not including handle • Measure Strap Length where the strap is attached to the top of the body of the bag, minimum and maximum in length adjustability required • Measure Strap Drop from the underside of the handle to the top of the body of the bag ( if applicable)

Clutches and Wallets HSN requires the following measurements • Measure Length /Width from across the front bottom of the bag • Measure Depth from the front widest part of the bottom to the back widest p part of the bag g • Measure Height from center front bottom to top of the bag • Measure Strap Length where the strap is attached to the top of the body of the bag, minimum and maximum in length adjustability required ( if applicable) • Measure Strap Drop from the underside of the handle to the top of the body of the bag ( if applicable)

Luggage HSN requires the following measurements • Measure Length from the front to back at the widest part of the bottom of the bag. • Measure Width from side to side at the widest part of the bottom of bag. • Measure the height from the distance from bottom of the wheels to the highest point on the top of the bag – this is typically the carry handle or the top of the closed telescoping handle. • Adjustable Shoulder strap fully extended from end to end of the strap.

Last updated: 10/20/2015

-15-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

PACKAGING The integrity g y of the container and p packaging g g of the p product are the Partner’s responsibility. p y The p partner must ensure that the product packaging can withstand the shipping environment. HSN QA evaluators may suggest certain packaging, based on their experience. However, it is the responsibility of the partner to ensure that apparel products are packaged so that they do not become damaged or soiled during transport. The partner should always perform their own drop, freeze, vibration or other testing to ensure that the packaging is resistant to soiling or other damage. The appearance pp of the final p product that will be shipped pp to the customer is also a concern of the HSN Merchandising g team. A production sample identical to the one received by HSN QA should be sent to the HSN merchant. HSN has established Brand Packaging Standards for Accessories products that must be followed by our partners. The detailed brand packaging requirements can be found in the HSN Partner Supply Chain Requirements Manual – Brand Packaging https://view.hsn.net/WebDocuments/documents/6a-Brand%20Packaging_edited_2b.pdf NOTE: Partners are not, under any circumstances, permitted to substitute boxes or packaging for any item(s) unless approved by the HSN Buyer and QA QA. Additional information on packaging integrity can be found in the HSN Partner Supply Chain Requirements Manual – Quality Assurance https://view.hsn.net/WebDocuments/documents/4-Quality%20Assurance.pdf

Other Packaging Considerations • Sharp Sh points i t and d edges d offering ff i a h hazard d upon opening i th the package k mustt b be covered d and d secured. d • Decorative gift boxes (1 or 2-piece) should be shrink-wrapped, cello-wrapped or covered by a cardboard sleeve in a sealed poly bag to protect the finish and presentation of the product. • Components of kit/set products should be secured in the inner carton to prevent scuffing and rattling. It is recommended that components be individually wrapped to prevent excessive movement and breakage. • Avoid glass-to-glass or ceramic-to-ceramic contact. • Packaging for delicate protruding features may require custom designed foam, foam or die cuts that contact only those areas of the item strong enough to support the item’s weight. • When using a poly bags as external packaging, the poly bag should be of sufficient size and thickness to support the weight of the items contained. • Be wary of using a non-bubble “foam blanket” other than as a separator, because it has little impact resistance.

Last updated: 10/20/2015

-16-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

PRODUCTION INSPECTION Pre-Shipment Inspection Production inspections can occur on-site (at the partner’s facility) or at the HSN Fulfillment Center. A Field Inspector will selectively travel to manufacturers’ facilities to conduct on-site quality assurance inspections. Our QA On-Site Inspection Program has had a tremendous impact on improving the quality of the products we sell. Designed to facilitate early detection of quality issues upstream in the factories, the program has enabled the proactive management of product failures before the order is shipped to HSN, or worse, our customers. On-Site inspections are initiated by one or more of the following criteria: • Products scheduled to be an HSN “Today’s Special” (TS) - the primary featured item of the day • Key Items as defined by merchandising; this typically entails purchase orders valued $75,000 or more • Products purchased under Import and/or Letter of Credit (LOC) terms • Products from Partners who have been identified by QA as requiring close quality management • Products from new Partners preparing for their premiere show • Key brand or product launches • Additionally, QA initiates on-site inspections when customers voice recurring concerns with a product’s quality. On-Site field Inspection requirements for Handbag/Luggage Products • Final Inspections for Handbags/Luggage product must be 100% produced with at least 80% packaged, labeled and ready for inspection. All applicable barcode tags and inserts must be available for review. • In addition to the final inspection, all Today’s Special (TS) items are required to have in-process inspection conducted when the goods are 20% produced On-site O it fifield ld iinspection ti iis b based d on • HANDBAGS: ANSI/ASQ Z1.4, -General Level 2 Inspection Level –Single Sampling Plan (2.5 AQL- Major, 2.5 AQLMinor) HSN QA may choose tightened inspection levels or deviate from this plan at its own discretion. • LUGGAGE: ANSI/ASQ Z1.4, -General Level 2 Inspection Level –Double Sampling Plan (1.5 AQL- Major, 4.0 AQLMinor) HSN QA may choose tightened inspection levels or deviate from this plan at its own discretion. On-site field inspections - the onsite inspector will conduct the following: • Visual comparison against the product specifications to ensure consistency • Visual evaluation of quality (material, construction, etc.) • Measurement against the approved specifications • ISTA drop test of items in re-shippers • Comments, concerns, and contingencies noted during the sample evaluation will be given special attention during the final inspection Defective merchandise identified during an inspection visit may be reworked reworked, sorted or rejected rejected. The PO quantity can be adjusted to reflect the amounts minus the items not repaired in time for re-inspection. NOTE: If the product will not be ready at the scheduled time of inspection, the partner must contact the Inspection Service Provider, Onsite Inspection Coordinator and/or the Onsite Inspection Manager at least two days prior to the scheduled inspection. Partners may incur fees for missed, postponed, cancelled, or failed inspections. Additional information regarding the onsite inspection program can be found in the HSN Partner Supply Chain Requirements Manual https://view.hsn.net/WebDocuments/documents/4-Quality%20Assurance.pdf Onsite Inspection Welcome Letter Last updated: 10/20/2015

-17-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

PRODUCTION INSPECTION CONTINUED Post-Shipment Inspection Just like the On-Site inspection, the HSN Fulfillment QA (FQA) inspection is part of the Finished Product Inspection process and acts as a follow-up to the Corporate QA (CQA) Evaluator’s Initial Product Inspection. This means that our FQA Inspectors, like the On-Site Inspector, must: • • •

Assess the product’s conformance to Initial Product Evaluation Evaluate the presentation and functionality of the product labeling and packaging Identify y anyy potential p issues before the item ships p to the customer

FQA Inspectors conduct their inspections solely from their respective Fulfillment Centers, pulling random product samples from the same stock of items from which the customer receives her items. This affords HSN a prime opportunity to view the finished product, packaging and all, in the same state as the customer receives it. FQA inspectors will conduct a visual comparison against the product specifications to ensure consistency. Comments, concerns, and contingencies noted during the sample evaluation will be given special attention during the final i inspection. ti Incoming merchandise will be inspected according to ANSI ASQ Z1.4, Inspection Level 2, (Double Sampling) plan. HSN QA may choose tightened inspection levels or deviate from this plan at its own discretion. Partners may be billed a chargeback fee whenever the inspected merchandise does not conform to the PO, HSN QA evaluation samples, or Product Specification Sheet, or is not compliant with the requirements listed in this manual or the “HSN Supply Chain Requirements Manual”. The chargeback fees are set forth in the current Product Fee Schedule found in your HSN Partner Supply Chain Manual - Compliance. Compliance https://view.hsn.net/WebDocuments/documents/8-Compliance.pdf

Last updated: 10/20/2015

-18-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

PRODUCTION INSPECTION CONTINUED Handbag Inspection Sampling Plan The chart below is based on ANSI/ASQ Z1.4, Normal Inspection, General Level II, Single Sampling Plan.

lot size

normal (inspection level II)

AQL

Sample size

2.5 AQL (major defects)

2.5 AQL (minor defects)

2 to 8

2

0/1

0/1

9 to 15

3

0/1

0/1

16 to 25

5

0/1

0/1

26 to 50

8

0/1

0/1

51 to 90

13

1/2

1/2

91 to 150

20

1/2

1/2

151 to 280

32

2/3

2/3

281 to 500

50

3/4

3/4

501 to 1,200

80

5/6

5/6

1,201 to 3,200

125

7/8

7/8

3,201 to 10,000

200

10/11

10/11

10,001 to 35,000

315

14/15

14/15

35,001 to 150,000

500

21/22

21/22

Last updated: 10/20/2015

-19-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

PRODUCTION INSPECTION CONTINUED Luggage Inspection Sampling Plan The chart below is based on ANSI/ASQ Z1.4, Normal Inspection, General Level II, Double Sampling Plan.

normal (inspection level II)

lot size

2 to 8 9 to 15 16 tto 25 26 to 50 51 to 90 91 to 150 151 to 280 281 to 500 501 to 1,200 1 201 to 3,200 1,201 3 200 3,201 to 10,000 10,001 to 35,000 35,0001 to 150,000

Last updated: 10/20/2015

1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd

AQL

sample size

1.5 AQL (major defects)

4.0 AQL (minor defects)

2 2 2 2 3 3 5 5 8 8 13 13 20 20 32 32 50 50 80 80 125 125 200 200 315 315

0/2 1/2 0/2 1/2 0/2 1/2 0/2 1/2 0/2 1/2 0/2 1/2 0/2 1/2 0/3 3/4 1/4 4/5 2/5 6/7 3/7 8/9 5/9 12/13 7/11 18/19

0/2 1/2 0/2 1/2 0/2 1/2 0/2 1/2 0/2 1/2 0/3 3/4 1/4 4/5 2/5 6/7 3/7 8/9 5/9 12/13 7/11 18/19 11/16 26/27 11/16 26/27

-20-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

COMPLIANCE: CALIFORNIA PROPOSITION 65 What is California Proposition 65? Proposition 65 (Prop 65) is a law approved by California voters in a referendum in 1986. It requires the state to keep a list of chemicals that cause cancer or reproductive toxicity. If a product contains a chemical on the list, a Prop 65 testing report must be provided. You can access the list of 800-plus chemicals on the California Office of Environmental Health Hazard Assessment website at http://www.oehha.ca.gov/prop65/prop65_list/Newlist.html. Lead, phthalates and other common chemicals are on the Proposition 65 list. All products manufactured, distributed or sold in California must comply with the exposure and/or labeling requirements specified in Proposition 65. 65 If a product contains a listed substance that will release from the product over time and in excess of the Proposition 65 limits, specified warning statements must appear on or near the product at the time of purchase. In addition, as an HSN partner supplying any of the products listed below under Proposition 65, it is imperative that each of your items complies with the limits set forth. It is your responsibility to provide to HSN QA approved third-party laboratory reports with each item submission.

Apparel ,Belts, Fashion Accessories, Footwear, Gloves, Hats, Scarves, Handbags, Purses, Clutches, Totes, Wallets, Cosmetics & Toiletry Bags, Key Chains, Eyeglass Cases, Mobile Electronics Cases (includes value-added and GWP items) Jewelry (includes removable ornamentation, pins, brooches, value-added and GWP items) See California Prop 65 Requirements document on the Partner Portal https://view.hsn.net/WebDocuments/documents/01_Prop65Guide.pdf

Last updated: 10/20/2015

-21-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

COMPLIANCE: CPSIA OF 2008 The Consumer Product Safety Improvement Act of 2008. The Law now requires manufacturers and importers to certify that all products manufactured on or after November 12, 2008, are compliant with all applicable standards, rules and bans enforced by the Consumer Products Safety Commission (CPSC). Compliance shall be evident by a declaration or certificate of conformity. The Certificate of Compliance is required for applicable items. You can complete one and upload it to the Documents section of the product specification sheet. A blank Certificate of Conformity form will also be posted in the HSN Partner Portal under for your information and within the QA / PI Standards Manuals section https://view.hsn.net/WebDocuments/documents/03_CPSIA%20Certificate%20of%20Conformity.pdf

Partners must possess test documentation from a CPSC accredited testing laboratory showing compliance. When in possession of this documentation, the partner will upload a completed CPSIA Certificate of Conformity into the HSN Partner Portal Product Specification Sheet for the item.

Last updated: 10/20/2015

-22-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

APPENDIX A – HANDBAG/LUGGAGE QA STANDARDS CHECKLIST

Sample Submission

• Product specification sheet completed in the Partner Portal and submitted to the HSN Buyer • Print and affix sample label from the spec sheet to all samples prior to submittal • Mark the sample with “QA Sample – Do Not Open” TOP SAMPLES • TOP sample sent to HSN QA must be complete and packaged as intended for sale to the customer • Samples are from first 20% of production • Samples are fully packaged and labeled • Including all internal/external packaging, components, labeling, inserts and instructions • Samples are submitted in one size fits most ( if applicable) • Samples represent each colorway

Packaging

• Ensure the product packaging can withstand the shipping environment. Shipping hazards include but are not limited to shock, vibration, compression, heat and humidity • Protective packaging must be able to withstand ISTA (International Safe Transit Association) 2A and 3A test procedures p • All individual product shipping cartons and/or master cartons must meet or exceed the HSN carton strength requirements published in the Supply Chain Manual. Cartons should be marked with the BMC (box maker’s certificate) containing a declaration of carton strength. • Submit the proposed product packaging to QA for evaluation (exactly as it will be sent to the customer) • QA provides a failure analysis and corrective action suggestion to improve the packaging for items that fail package testing; a new sample with improved packaging must be submitted to QA for re-testing • Re-shipper must contain sufficient fill to prevent the item from shifting during transportation • Polybags used to bundle sets must be a minimum of 1.0 mil thick; closure should be secured byy bag g tape, p , twist tie or heat-sealed • Polybags larger than 5” x 7” require a printed child suffocation warning that should read: “Warning – To avoid danger of suffocation; keep away from babies and children. Do not use in cribs, beds or play pens. This bag is not a toy.” • Packaging presentation meets all HSN Brand Packaging requirements as published within the HSN Partner Supply Chain Requirements Manual – Brand Packaging https://view.hsn.net/WebDocuments/documents/6a-Brand%20Packaging.pdf

Last updated: 10/20/2015

-23-

QUALITY ASSURANCE: HANDBAG AND LUGGAGE STANDARDS MANUAL

APPENDIX A – HANDBAG/LUGGAGE QA STANDARDS CHECKLIST CONTINUED

Product Labeling

The following information must be legibly added: • Brand • Fiber content (when applicable) • Care Instructions (when applicable) • Warranty (when applicable) • Country of origin

Documentation &

All items and documentation must conform to current legal requirements and regulations, including but not limited to applicable federal and state laws, Federal Trade Commission (FTC) requirements and/or U.S. Custom requirements; it is the partner’s responsibility to understand and comply with these requirements

Compliance

• Upload 3rd Party performance testing for all colorways to specification sheet (where applicable) li bl ) • Upload California Proposition 65 test reports to specification sheet • All objective and performance claims must be substantiated • Technical documentation and/or laboratory test data to substantiate objective and performance claims (for both labeling and features and benefits) • ASTM or other recognized standards must be followed when conducting efficacy/performance tests • All test data must be presented as a formal report by a competent and reliable scientific source • Test data must indicate the methodology and results • “Bonus” and/or “Gift with Purchase” claims require prior approval from the Legal Department t ensure compliance to li with ith FTC guidelines id li QA Sample

Measurement

Last updated: 10/20/2015

Production handbags/luggage must conform to final approved spec sheet and be free from but not limited to the following defects: • Dirt, oil, marks • Cuts, scratches, holes, wrinkles • Poor sewing (open seams, run-offs, puckering, drop needle, broken/skipped stitches) • Quarter Q t symmetry t • Exposed roughing • Color shading, streaks, coating defects • Print defects, dye spots • Loose or broken hardware / buttons • Poorly positioned or unsightly trim / embellishments • Sewn-in labels missing; loose or incorrectly positioned labels • Samples must measure within tolerance to the approved specs

-24-