ICPHSO Annual Meeting amp Training Symposium
Andrew Farhat
Director Global Childrenrsquos Products
Underwriters Laboratories
This information is being furnished by PPAI for educational and informational purposes only The Association makes no
warranties or representations about specific dates coverage or application Consult with appropriate legal counsel about the specific application of the law to your business and products
Agenda Topics
Overview of ICPHSO
Biggest TakeawaysThemes
Chairman Kayersquos Keynote Speech
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
114th Congress Product Safety Process and Outcomes
Tutorial 7 How To Stand Up an Internal Compliance Program
CPSC Breakout 1 What to Expect When a Field Investigator Show Up
CPSC Panel Solving Issues and Working Toward Effective Recalls wManufacturers and Retailers
Breakout 8 The Dilemma of Small Business Complying with CPSCs Regulation
Overview
Founded in 1993 ICPHSO is the only organization which attracts a global membership of health and safety professionals which meets annually to exchange ideas share information and address health and safety concerns affecting all consumers ICPHSO members represent US and global government agencies manufacturers importers retailers trade associations certificationtesting laboratories law firms academia standards writing organizations media and consumer advocacy groups
Annual Programs
Annual Symposium (US) Attracting over 700 participants each year ICPHSOrsquos signature symposium typically features plenary sessions on international trends and developments in product health and safety on the US Consumer Product Safety Commission (CPSC) and its work and on basic training in legal and compliance-oriented aspects of product health and safety
International Annual Symposium Since 2005 ICPHSO has hosted symposiums outside of the United States in support of international dialogue on product health and safety matters 2016 Symposium will be in Brussels from November 14-15 2016
Annual Programs (cont)
Regional Training and Workshops ICPHSO also hosts periodic regional workshops that offer manufacturers and suppliers in-depth training on product health and safety requirements and compliance obligations Such workshops to date have focused primarily on understanding and complying with CPSC rules and regulations and provide a single day of smaller interactive training 2016 Regional Symposium will be in Atlanta on June 2 2016
ICPHSO Leadership
Executive Director Marc Schoem ndash recently retired from the CPSC after over 40 years of service His last role at the Agency was Deputy Director of the Office of Compliance and Field Operations ICPHSO President Nancy Cowles - Executive Director of Kids In Danger (KID) a nonprofit dedicated to protecting children by improving childrenrsquos product safety ICPHSO President-Elect Rick Brenner - past chair of the Promotional Products Association International (PPAI) a founding member of its Product Responsibility Action Group (PRAG) and co-chair PPAIrsquos Product Safety Summit for each of the past five years Notable New Board Members Ann Stone Renee Chiang and Matt Howsare
Biggest TakeawaysThemes ndash 2016 Annual Symposium
Higher Civil Penalties ndash double digit penalties
Criminal PenaltiesDepartment of Justice Referrals
Recall Effectiveness and the need to improve Dismal Statistics
Innovation and Technology Hover boards 3D Printing Technology Wireless technology what are the product safety
concerns What are the privacy concerns
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Greater Scrutiny
and Repercussions for Unsafe Products
Collaboration Inspire Greater
Innovation
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
This information is being furnished by PPAI for educational and informational purposes only The Association makes no
warranties or representations about specific dates coverage or application Consult with appropriate legal counsel about the specific application of the law to your business and products
Agenda Topics
Overview of ICPHSO
Biggest TakeawaysThemes
Chairman Kayersquos Keynote Speech
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
114th Congress Product Safety Process and Outcomes
Tutorial 7 How To Stand Up an Internal Compliance Program
CPSC Breakout 1 What to Expect When a Field Investigator Show Up
CPSC Panel Solving Issues and Working Toward Effective Recalls wManufacturers and Retailers
Breakout 8 The Dilemma of Small Business Complying with CPSCs Regulation
Overview
Founded in 1993 ICPHSO is the only organization which attracts a global membership of health and safety professionals which meets annually to exchange ideas share information and address health and safety concerns affecting all consumers ICPHSO members represent US and global government agencies manufacturers importers retailers trade associations certificationtesting laboratories law firms academia standards writing organizations media and consumer advocacy groups
Annual Programs
Annual Symposium (US) Attracting over 700 participants each year ICPHSOrsquos signature symposium typically features plenary sessions on international trends and developments in product health and safety on the US Consumer Product Safety Commission (CPSC) and its work and on basic training in legal and compliance-oriented aspects of product health and safety
International Annual Symposium Since 2005 ICPHSO has hosted symposiums outside of the United States in support of international dialogue on product health and safety matters 2016 Symposium will be in Brussels from November 14-15 2016
Annual Programs (cont)
Regional Training and Workshops ICPHSO also hosts periodic regional workshops that offer manufacturers and suppliers in-depth training on product health and safety requirements and compliance obligations Such workshops to date have focused primarily on understanding and complying with CPSC rules and regulations and provide a single day of smaller interactive training 2016 Regional Symposium will be in Atlanta on June 2 2016
ICPHSO Leadership
Executive Director Marc Schoem ndash recently retired from the CPSC after over 40 years of service His last role at the Agency was Deputy Director of the Office of Compliance and Field Operations ICPHSO President Nancy Cowles - Executive Director of Kids In Danger (KID) a nonprofit dedicated to protecting children by improving childrenrsquos product safety ICPHSO President-Elect Rick Brenner - past chair of the Promotional Products Association International (PPAI) a founding member of its Product Responsibility Action Group (PRAG) and co-chair PPAIrsquos Product Safety Summit for each of the past five years Notable New Board Members Ann Stone Renee Chiang and Matt Howsare
Biggest TakeawaysThemes ndash 2016 Annual Symposium
Higher Civil Penalties ndash double digit penalties
Criminal PenaltiesDepartment of Justice Referrals
Recall Effectiveness and the need to improve Dismal Statistics
Innovation and Technology Hover boards 3D Printing Technology Wireless technology what are the product safety
concerns What are the privacy concerns
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Greater Scrutiny
and Repercussions for Unsafe Products
Collaboration Inspire Greater
Innovation
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Agenda Topics
Overview of ICPHSO
Biggest TakeawaysThemes
Chairman Kayersquos Keynote Speech
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
114th Congress Product Safety Process and Outcomes
Tutorial 7 How To Stand Up an Internal Compliance Program
CPSC Breakout 1 What to Expect When a Field Investigator Show Up
CPSC Panel Solving Issues and Working Toward Effective Recalls wManufacturers and Retailers
Breakout 8 The Dilemma of Small Business Complying with CPSCs Regulation
Overview
Founded in 1993 ICPHSO is the only organization which attracts a global membership of health and safety professionals which meets annually to exchange ideas share information and address health and safety concerns affecting all consumers ICPHSO members represent US and global government agencies manufacturers importers retailers trade associations certificationtesting laboratories law firms academia standards writing organizations media and consumer advocacy groups
Annual Programs
Annual Symposium (US) Attracting over 700 participants each year ICPHSOrsquos signature symposium typically features plenary sessions on international trends and developments in product health and safety on the US Consumer Product Safety Commission (CPSC) and its work and on basic training in legal and compliance-oriented aspects of product health and safety
International Annual Symposium Since 2005 ICPHSO has hosted symposiums outside of the United States in support of international dialogue on product health and safety matters 2016 Symposium will be in Brussels from November 14-15 2016
Annual Programs (cont)
Regional Training and Workshops ICPHSO also hosts periodic regional workshops that offer manufacturers and suppliers in-depth training on product health and safety requirements and compliance obligations Such workshops to date have focused primarily on understanding and complying with CPSC rules and regulations and provide a single day of smaller interactive training 2016 Regional Symposium will be in Atlanta on June 2 2016
ICPHSO Leadership
Executive Director Marc Schoem ndash recently retired from the CPSC after over 40 years of service His last role at the Agency was Deputy Director of the Office of Compliance and Field Operations ICPHSO President Nancy Cowles - Executive Director of Kids In Danger (KID) a nonprofit dedicated to protecting children by improving childrenrsquos product safety ICPHSO President-Elect Rick Brenner - past chair of the Promotional Products Association International (PPAI) a founding member of its Product Responsibility Action Group (PRAG) and co-chair PPAIrsquos Product Safety Summit for each of the past five years Notable New Board Members Ann Stone Renee Chiang and Matt Howsare
Biggest TakeawaysThemes ndash 2016 Annual Symposium
Higher Civil Penalties ndash double digit penalties
Criminal PenaltiesDepartment of Justice Referrals
Recall Effectiveness and the need to improve Dismal Statistics
Innovation and Technology Hover boards 3D Printing Technology Wireless technology what are the product safety
concerns What are the privacy concerns
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Greater Scrutiny
and Repercussions for Unsafe Products
Collaboration Inspire Greater
Innovation
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Overview
Founded in 1993 ICPHSO is the only organization which attracts a global membership of health and safety professionals which meets annually to exchange ideas share information and address health and safety concerns affecting all consumers ICPHSO members represent US and global government agencies manufacturers importers retailers trade associations certificationtesting laboratories law firms academia standards writing organizations media and consumer advocacy groups
Annual Programs
Annual Symposium (US) Attracting over 700 participants each year ICPHSOrsquos signature symposium typically features plenary sessions on international trends and developments in product health and safety on the US Consumer Product Safety Commission (CPSC) and its work and on basic training in legal and compliance-oriented aspects of product health and safety
International Annual Symposium Since 2005 ICPHSO has hosted symposiums outside of the United States in support of international dialogue on product health and safety matters 2016 Symposium will be in Brussels from November 14-15 2016
Annual Programs (cont)
Regional Training and Workshops ICPHSO also hosts periodic regional workshops that offer manufacturers and suppliers in-depth training on product health and safety requirements and compliance obligations Such workshops to date have focused primarily on understanding and complying with CPSC rules and regulations and provide a single day of smaller interactive training 2016 Regional Symposium will be in Atlanta on June 2 2016
ICPHSO Leadership
Executive Director Marc Schoem ndash recently retired from the CPSC after over 40 years of service His last role at the Agency was Deputy Director of the Office of Compliance and Field Operations ICPHSO President Nancy Cowles - Executive Director of Kids In Danger (KID) a nonprofit dedicated to protecting children by improving childrenrsquos product safety ICPHSO President-Elect Rick Brenner - past chair of the Promotional Products Association International (PPAI) a founding member of its Product Responsibility Action Group (PRAG) and co-chair PPAIrsquos Product Safety Summit for each of the past five years Notable New Board Members Ann Stone Renee Chiang and Matt Howsare
Biggest TakeawaysThemes ndash 2016 Annual Symposium
Higher Civil Penalties ndash double digit penalties
Criminal PenaltiesDepartment of Justice Referrals
Recall Effectiveness and the need to improve Dismal Statistics
Innovation and Technology Hover boards 3D Printing Technology Wireless technology what are the product safety
concerns What are the privacy concerns
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Greater Scrutiny
and Repercussions for Unsafe Products
Collaboration Inspire Greater
Innovation
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Annual Programs
Annual Symposium (US) Attracting over 700 participants each year ICPHSOrsquos signature symposium typically features plenary sessions on international trends and developments in product health and safety on the US Consumer Product Safety Commission (CPSC) and its work and on basic training in legal and compliance-oriented aspects of product health and safety
International Annual Symposium Since 2005 ICPHSO has hosted symposiums outside of the United States in support of international dialogue on product health and safety matters 2016 Symposium will be in Brussels from November 14-15 2016
Annual Programs (cont)
Regional Training and Workshops ICPHSO also hosts periodic regional workshops that offer manufacturers and suppliers in-depth training on product health and safety requirements and compliance obligations Such workshops to date have focused primarily on understanding and complying with CPSC rules and regulations and provide a single day of smaller interactive training 2016 Regional Symposium will be in Atlanta on June 2 2016
ICPHSO Leadership
Executive Director Marc Schoem ndash recently retired from the CPSC after over 40 years of service His last role at the Agency was Deputy Director of the Office of Compliance and Field Operations ICPHSO President Nancy Cowles - Executive Director of Kids In Danger (KID) a nonprofit dedicated to protecting children by improving childrenrsquos product safety ICPHSO President-Elect Rick Brenner - past chair of the Promotional Products Association International (PPAI) a founding member of its Product Responsibility Action Group (PRAG) and co-chair PPAIrsquos Product Safety Summit for each of the past five years Notable New Board Members Ann Stone Renee Chiang and Matt Howsare
Biggest TakeawaysThemes ndash 2016 Annual Symposium
Higher Civil Penalties ndash double digit penalties
Criminal PenaltiesDepartment of Justice Referrals
Recall Effectiveness and the need to improve Dismal Statistics
Innovation and Technology Hover boards 3D Printing Technology Wireless technology what are the product safety
concerns What are the privacy concerns
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Greater Scrutiny
and Repercussions for Unsafe Products
Collaboration Inspire Greater
Innovation
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Annual Programs (cont)
Regional Training and Workshops ICPHSO also hosts periodic regional workshops that offer manufacturers and suppliers in-depth training on product health and safety requirements and compliance obligations Such workshops to date have focused primarily on understanding and complying with CPSC rules and regulations and provide a single day of smaller interactive training 2016 Regional Symposium will be in Atlanta on June 2 2016
ICPHSO Leadership
Executive Director Marc Schoem ndash recently retired from the CPSC after over 40 years of service His last role at the Agency was Deputy Director of the Office of Compliance and Field Operations ICPHSO President Nancy Cowles - Executive Director of Kids In Danger (KID) a nonprofit dedicated to protecting children by improving childrenrsquos product safety ICPHSO President-Elect Rick Brenner - past chair of the Promotional Products Association International (PPAI) a founding member of its Product Responsibility Action Group (PRAG) and co-chair PPAIrsquos Product Safety Summit for each of the past five years Notable New Board Members Ann Stone Renee Chiang and Matt Howsare
Biggest TakeawaysThemes ndash 2016 Annual Symposium
Higher Civil Penalties ndash double digit penalties
Criminal PenaltiesDepartment of Justice Referrals
Recall Effectiveness and the need to improve Dismal Statistics
Innovation and Technology Hover boards 3D Printing Technology Wireless technology what are the product safety
concerns What are the privacy concerns
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Greater Scrutiny
and Repercussions for Unsafe Products
Collaboration Inspire Greater
Innovation
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
ICPHSO Leadership
Executive Director Marc Schoem ndash recently retired from the CPSC after over 40 years of service His last role at the Agency was Deputy Director of the Office of Compliance and Field Operations ICPHSO President Nancy Cowles - Executive Director of Kids In Danger (KID) a nonprofit dedicated to protecting children by improving childrenrsquos product safety ICPHSO President-Elect Rick Brenner - past chair of the Promotional Products Association International (PPAI) a founding member of its Product Responsibility Action Group (PRAG) and co-chair PPAIrsquos Product Safety Summit for each of the past five years Notable New Board Members Ann Stone Renee Chiang and Matt Howsare
Biggest TakeawaysThemes ndash 2016 Annual Symposium
Higher Civil Penalties ndash double digit penalties
Criminal PenaltiesDepartment of Justice Referrals
Recall Effectiveness and the need to improve Dismal Statistics
Innovation and Technology Hover boards 3D Printing Technology Wireless technology what are the product safety
concerns What are the privacy concerns
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Greater Scrutiny
and Repercussions for Unsafe Products
Collaboration Inspire Greater
Innovation
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Biggest TakeawaysThemes ndash 2016 Annual Symposium
Higher Civil Penalties ndash double digit penalties
Criminal PenaltiesDepartment of Justice Referrals
Recall Effectiveness and the need to improve Dismal Statistics
Innovation and Technology Hover boards 3D Printing Technology Wireless technology what are the product safety
concerns What are the privacy concerns
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Greater Scrutiny
and Repercussions for Unsafe Products
Collaboration Inspire Greater
Innovation
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Greater Scrutiny
and Repercussions for Unsafe Products
Collaboration Inspire Greater
Innovation
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency Greater Scrutiny and Repercussions for Unsafe Products
ndash Corrective action plans enhanced policy (Commissioner Robinson) ndash when there is a death involved the Commission will have to approve the CAP by vote
ndash Reporting Expectations ndash if you sell amongst Mexico Canada and the US you will be required to report to all 3 when reporting to one
ndash Higher civil penalties ndash what Congress called for in the CPSIA when it is fact based higher penalties are warranted
ndash Double digit penalties ndash Criminal penalties for cases referred to DoJ ndash Publicize cases of DoJ referrals
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Collaboration ndash E-filingSingle window program
ndash Burden reduction
ndash International approach (joint trainingsworkshops)
ndash Regulatory robot
ndash Recall effectiveness and Sec 15 Filings ndash both need enhancements CPSC will organize two workshops
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Chairman Eliot Kayersquos Keynote
Three Components of a Modern Consumer Product Safety Agency
Inspire Greater Innovation ndash Foster an environment for emerging technologies to be fostered into
the market in a safe way
ndash 3D Printing
ndash Wearable Technology
ndash Smart phone-enabled home devices (IoT) bull Space Heater
bull Garage Doors
bull Security Systems
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Chairman Eliot Kayersquos Keynote
ldquoTheme of Choicesrdquo
Current political environment does not represent the best of America
The CPSC is working together despite political views Consumer safety is above the political fray
Hold the Chairman to this level of service
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Chairman Eliot Kayersquos Keynote
Conclusion
Look for higher civil penalties In fact CPSC levied a $1545M civil penalty on March 25 ndash the largest ever
Overall more scrutiny on unsafe productshelliptake product safety seriously
Look for increased collaboration from the CPSC and the regulated community
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
Moderator Eric Rubel Panelists Commissioner Buerkle and Commissioner Robinson
bull The intent is to limit enforcement - Would rather work with the
regulated community bull Recall rate of 60 of what is reported through 15(b) bull Civil Penalty Factors
ndash Nature of defect ndash Severity of risk of injury ndash Occurrence or absence of injury ndash Number of defective products distributed ndash Appropriateness of penalty to size of business
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Very spirited and engaged debate between the Commissioners regarding regulatory policy
bull Buerkle was critical of the ldquomixed messagesrdquo from the Agency
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Who are the ldquobad guysrdquo ndash As many companies have at one time paid a CPSC civil penalty ndash
does that make them a ldquobad guyrdquo
ndash Audience question regarding when a good guy makes an honest mistakehellipdoes this automatically make a company a bad guy
ndash Robinson supports higher civil penaltieshellipwhen the Agency gets the ldquobad guyrdquo
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Compliance Programs ndash Should the Commission issue a rule regarding compliance programs
instead of case by case basis
ndash Both Robinson and Buerkle agree that a ldquoone size fits allrdquo rule is not in the best interest of industry
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
ldquoCompliance amp Enforcementrdquo or ldquoCompliance vs Enforcementrdquo
bull Civil Penalties ndash Robinson believes that civil penalties drive
compliance
ndash Buerkle believes that civil penalties drive companies away from self-reporting (15b)
ndash Buerkle believes that setting a goal for civil penalties is not the answer
ndash Robinson believes that if you are transparent report early you can avoid civil penalties altogether
ndash Buerkle believes that companies should be rewarded for proper mitigationdue diligence not just punished
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
114th Congress Product Safety Process and Outcomes
Moderator Walt Sanders
Panelists Michelle Ash Peter Feldman Kathleen McGuigan Julia Richardson and Rachel Weintraub
Interactive discussion of how Congressional policy is prioritized made and implemented
How Congress sets product safety policy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
114th Congress Product Safety Process and Outcomes
bull Media Reports ndash Newspaper articles ndash Op Eds ndash Investigative journalism ndash TV reports
bull Product Safety Letter
bull Community input
ndash Constituent emails and letters
bull Grassroots organizing
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
114th Congress Product Safety Process and Outcomes
bull Non-Government OrganizationsConsumer Groups
bull CPSC will communicate with the Hill when necessary
bull Congressional input from anyone on authorizing committees or appropriations committees
bull NO input from White House
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Tutorial 7 How To Stand Up an Internal Compliance Program
Moderator Quin Dodd
Panelists Tony Alvarez Pratik Ichhaporia Brandan Mueller
bull What are Internal Compliance Programs (ICP)
bull Why are these more common
bull Best practices for ICPs
bull Internal investigations when something goes wrong
bull Case Study on Volcomrsquos testing program
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How
bull ICPs are now required as part of civil penalty settlements
bull Expect to see more of thesehellipperhaps even codified within the recall requirements
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Key elements of an ICP include ndash Written standardspolicies
ndash Management oversight
ndash Employee training
ndash Whistleblower protections
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Tutorial 7 How To Stand Up an Internal Compliance Program
The What the Why and the How (cont)
bull Best Practices ndash Develop a program safety documentmanual
ndash Classify your SKUs (ie childrenrsquos product vs toy vs general use product)
ndash Develop robust suppler requirements
ndash Look at the most regulated chemicals ndash lead cadmium phthalates and some flame retardants
ndash Verify supplier testing
ndash Monitor CPSC recalls Prop 65 Settlements etc
ndash Review regularly and update when necessary
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Tutorial 7 How To Stand Up an Internal Compliance Program
Internal Investigations
Assemble the right team o Engineering marketingsales and LEGAL
Obtain the necessary documentation o Internal processes around design approval
specs engineering changes etc
Discovery o Identify all necessary information to conduct the
investigation
Question the Witnesses o Eliminate bias
What is being investigated and what policies are implicated
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Tutorial 7 How To Stand Up an Internal Compliance Program
Volcom Case Study
Proving the case for compliance
bull Strategy equals executionhellipkeep it simple
bull Build a manual
bull Tiered approach to testing (ie screening testing more screening and random market surveillance testing)
bull Create KPI that demonstrates the value in building a compliance program Great idea for companies that donrsquot have deep pockets
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
What to Expect When a Field Investigator Show Up
Panelists Beverly Kohen and Justin McDonough
Office of Compliance and Field Operations Structure
Office of Compliance and Field Operations
Defect Investigations
Division by Hazard
Regulatory Enforcement
Division by Hazard
Field Investigations
Division
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
What to Expect When a Field Investigator Show Up
bull Defect Investigation ndash Could include going to consumer
bull Import Surveillance ndash Ports and Border surveillance ndash ie certificates screening etc
ndash Partners with CBP
ndash Letters of Advice (when a violation is found)
bull Market Surveillance ndash Go to stores
ndash Internet activity
ndash Saferproductsgov
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
What to Expect When a Field Investigator Show Up
What happens when the CPSC shows up
bull Visit will be unannounced
bull Agent will identify themselves and serve a notice of inspection (with details ndash such as the reason for the visit)
bull Unlawful to refuse an inspectionaccess to documents etc
bull Fines are steep
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
What to Expect When a Field Investigator Show Up
bull Train staff on how to handle this and what to expect
bull Tell the truth It is illegal to lie to an investigator
bull Give them specifically what they ask forhellipthe sooner they have what they need the sooner they leave
bull Investigator will want to see anywhere the product is made stored distributed etc
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Working Toward Effective Recalls with Manufacturers and Retailers
Moderator Tanya Topka
Panelists Jason Borhauer Ken Hinson Randolph Kiser Kathleen McGuigan and Michael Del Negro
bull Issues facing manufacturersretailers during a recall investigation and subsequent execution of the recall
bull Representation from both the retailer and manufacturer perspective
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Working Toward Effective Recalls with Manufacturers and Retailers
Overall Trends
bull Text messagesemail becoming more common means to contacting customers about a recall
bull Recall letters trending down
bull Store posters are trending downhellipand are most effective in big box retailer environment But still not that effective
bull Social Media communication is trending up
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Working Toward Effective Recalls with Manufacturers and Retailers
Best Practices
bull Post link to CPSC and Health Canada on website
bull Suppliersmanufacturers immediately notify distributors and retailers when working with the CPSC on a recall No surprises
bull Issue a stop sale during investigation (even when a recall may not result from the investigation)
bull Sequester inventory and defective returns
bull Every recall is differenthellipbe prepared for the unexpected
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Small Business Complying with CPSCs Regulations
Moderator David Schmeltzer
Panelists Neal Cohen Patricia Chambers and Misty Henry
bull Discussed the best ways for small businesses to comply with CPSC regulations including how to obtain information from industry associations regulators and others on how to comply
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Small Business Complying with CPSCs Regulations
Challenges
bull Challenges for small business are much more than just product safety
bull Even the Small Business Association does not include anything about the CPSCproduct safety in their new business literature
bull Typically intent and action are considered in criminal lawhellipwith compliance intent is considered but not as strongly
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Small Business Complying with CPSCs Regulations
Best PracticesResources bull Bad actors are the target and focus of the CPSC bull Error on the side of caution bull Leverage support from trade associations CPSC and labs bull Trade associations
ndash Guidance ndash Connectivity to CPSCregulators
bull CPSC will assist with questions ndash Small Business Ombudsman ndash Regulatory Robot
bull 3rd Party Labs ndash Guidance ndash Testing ndash Not Lawyers
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy
Resources
bull PPAI wwwppaiorg
bull PPAI Product Responsibility httpwwwppaiorginside-ppaicorporate-responsibilityproduct-responsibility
bull Consumer Product Safety Commission wwwcpscgov wwwrecallsgov
bull UL wwwulcom BrianColemanulcom AndrewFarhatulcom
bull Questions AnneLppaiorg or TimBppaiorg
bull Twitter PromoSafetyGuy