Signed into law on Aug. 14, 2008, the Consumer Product Safety Improvement Act of 2008 represents the most comprehensive overhaul of consumer-product safety legislation in the United States since the 1970s. The legislation will have a significant impact on product development, reporting obligations, risk evaluations and tracking requirements for any company that manufactures, imports, distributes or sells consumer products in the United States. The legislation represents a fundamental shift in the federal government’s approach to protecting consumers from hazardous products, from a reactive approach to a more proactive one. To accomplish this task, the legislation increases the Consumer Product Safety Commission’s (CPSC) budget over the next several years from $80 million this year to $136 million.

Acting CPSC Chairman Nancy Nord spoke at a product safety conference held by the American Apparel and Footwear Association on July 31, 2008, and provided her comments on the new legislation, confirming that the CPSC will aggressively enforce the legislation and will utilize its enhanced authority to the fullest extent of its ability.  Chairman Nord said that “there will be more product recalls” and the civil penalties that the CPSC will seek would increase. She also noted that the CPSC would expand its cooperative efforts with U.S. Customs and Border Protection (CBP) and that the CBP would act as a “force multiplier” for the CPSC staff. Chairman Nord recognized the inherent difficulty for many industries (particularly the apparel industry) to determine whether their products are “intended for children age 12 and under,” noting that CPSC will consider product marketing in its analysis. 

The legislation will have a significant impact on any company that manufactures, imports or sells consumer products in the U.S.  Most affected will be those manufacturers, importers, distributors or retailers of children’s products. Companies would be well advised to review their design and sourcing policies, indemnification agreements and quality control programs for compliance with the new law.

[Editor’s note:  Frank and two other speakers are presenting on this subject during a Sept. 23 teleconference.  This post is an excerpt.  For a complete version of Frank’s article and more info on the teleconference, click here.]