New CPSC Law Expands Hazardous Product Reporting, Quickly Halts Product Distribution if Imminent Hazard
Effective October 13, 2008, the Consumer Product Safety Improvement Act of 2008 (CPSIA) expanded the substantial product hazard reporting requirement of 15 USC 2064 to apply to more product safety rules.
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In addition, the CPSIA increases the ability of the Consumer Product Safety Commission to quickly halt distribution of imminently hazardous products, effective August 14, 2008.
Expanded Scope of Hazardous Product Reporting Requirement for Companies
Effective October 13, 2008, manufacturers (includes importers), distributors and retailers (collectively, companies) must immediatelyreport2 to the CPSC if they learn that one of their consumer products or other products or substances over which the CPSC has jurisdiction that is distributed in commerce fails to comply with:
- an applicable consumer product safety rule or with a voluntary consumer product safety standard upon which the CPSC has relied under 15 USC 2058 (already existing requirement);
- any other rule, regulation, standard, or ban under the Consumer Product Safety Act (CPSA) or any other act enforced by the CPSC, (new requirement); and
- contains a defect which could create a substantial product hazard described in 15 USC 2064(a)(2) or creates an unreasonable risk of serious injury or death (already existing requirements).
(Motor vehicle equipment as defined in 49 USC 30102(a)(7) is exempt from this requirement.)
If CPSC Determines Product is Imminently Hazardous, Can Halt its Distribution
Effective August 14, 2008, if the CPSC determines a product distributed in commerce to be an imminently hazardous consumer product (or a substantial product hazard as was previous practice), the CPSC may order the company to cease distribution of the product, and notify those involved with the transport, storage, distribution, and handling of such product to immediately cease distribution of the product, etc.
According to CPSC officials at a September 4, 2008 public meeting on the CPSIA, this new provision provides CPSC with a stronger hand as CPSC is no longer required to have a "trial-like" hearing regarding imminently hazardous products, but can now immediately issue a "stop sale" mandate.
(Note that this CPSC authority is distinct from the voluntary recall process conducted by companies in cooperation with the CPSC.)
1Enacted as Public Law 110-314 on August 14, 2008.
2The CPSIA states that such a hazard report may not be used as the basis for criminal prosecution of the reporting person under section 5 of the Federal Hazardous Substances Act (FHSA, 15 USC 1264), except for offenses, which require a showing of intent to defraud or mislead.
(See ITT's Online Archives or 08/04/08 news, 08080410, for comprehensive BP summary of the CPSIA, including information on this reporting requirement.
See ITT's Online Archives or 09/18/08 and 10/08/08 news, 08091805 and 08100810, for BP summaries of CPSC public meetings on the CPSIA, with links to numerous BP summaries on specific provisions of the law.)
CPSC Web site on the CPSIA available at http://www.cpsc.gov/about/cpsia/cpsia.html
CPSIA available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_public_laws&docid=f:publ314.110.pdf.