Regulatory Issues for a Regulatory Issues for a Sustainable Candle IndustrySustainable Candle Industry

Rob Harrington, Ph.D.

Director, Regulatory and Safety

Blyth, Inc.

April 17, 2008

Regulations and Regulatory Regulations and Regulatory Issues Facing the IndustryIssues Facing the Industry

Regulations– Consumer Product Safety Commission (CPSC)– Federal Trade Commission (FTC)– ASTM, Proposition 65– International Equivalents

Regulatory issues– Consumer Product Safety Act – Phthalates in fragrances and air care products– California consumer product air regulations

CPSC RegulationsCPSC Regulations

No specific labeling requirements for candlesCompanies must notify CPSC if a product is

defective or presents an unreasonable hazardMost CPSC enforcement actions and fines are

a result of a company failing to notify CPSC of a product hazard/defect

CPSC has procedures in the event a product needs to be recalled

Consumer Product Safety ActConsumer Product Safety Act (Section 15(b))(Section 15(b))

Every manufacturer of a consumer product distributed in commerce, and every distributor and retailer of such product, who obtains information which reasonably supports the conclusion that such product—

(1) fails to comply with an applicable consumer product safety rule or with a voluntary consumer product safety standard

(2) contains a defect which could create a substantial product hazard or

(3) creates an unreasonable risk of serious injury or death,

Consumer Product Safety Act Consumer Product Safety Act (Section 15(b)) - con’t(Section 15(b)) - con’t

SHALL...

immediately inform the Commission of such failure to comply, of such defect, or of such risk, unless such manufacturer, distributor, or retailer has actual knowledge that the Commission has been adequately informed of such defect, failure to comply, or such risk.

Recall proceduresRecall proceduresFile an initial report with CPSC immediately

(provide the manufacturer, product, defect, assessment of the risk of injury)

File a full report when the information is available

CPSC makes a preliminary determination Companies may instead do a “fast-track”

voluntary recall For information, consult the CPSC recall

handbook at http://www.cpsc.gov/BUSINFO/8002.html

Recall procedures (con’t)Recall procedures (con’t)Develop/submit a corrective action plan

– Determine the defect and cause– Determine how many and the location of the

products– Method of notification to retailers and customers

(letters, notices at point of sale, TV/radio)– Refund/replace/repair?– Provide information and company contact (toll free

number, website, address)– Periodic reports to CPSC on progress

Federal Trade Commission Federal Trade Commission (FTC)(FTC)

Regulates label information through the Fair Packaging and Labeling Act (FPLA)– Product Identity– Net contents– Manufacturer’s name and address

Regulates advertising claims

Identity StatementIdentity Statement

Must be on the Principal Display Panel (PDP - that part of a label that is most likely to be displayed, presented, shown, or examined under normal and customary conditions of display for retail sale

Should be the principal feature of the labelMust be generally parallel to the baseMust not be false, misleading or deceptive

Net Content StatementNet Content Statement Must be on the principal display Panel (PDP) Must be expressed in terms of quantity, size, weight or

a combination thereof Must be expressed in both English and metric units

(ounces and grams or inches and centimeters)– Jar candles normally expressed in oz./g– Pillars expressed in in./cm height and diameter– Tapers and irregularly shaped expressed in in./cm height– Tealights normally sold by quantity

Must be in bottom third of the PDP label, parallel to the base and has minimum font size requirements

Manufacturer Name & Manufacturer Name & AddressAddress

Can appear conspicuously on any surface Should include the street address, city, state and

zip code (street address is not needed if the company appears in a phone book or city directory)

Can use “Distributed by ___” or “Manufactured for __” instead of the actual manufacturer’s name if the statement is accurate

Advertising ClaimsAdvertising Claims

Includes labels, catalogs, print/broadcast media

“You are what you claim” and are regulated by what you claim to be.

Advertising claims enforced by the FTC, State’s Attorneys General, the National Advertising Division of the BBB and private lawsuits

Claims (con’t)Claims (con’t)

Must be truthful, accurate and supported by reasonable information

May be required to generate test data to support some claims

Must be scientifically and statistically sound

Environmental ClaimsEnvironmental Claims

Claims should be clear and specific to the product, package or both.

Claims must not be overstatedAvoid vague and general environmental

claims; these would be assumed to apply to everything associated with the product

Must be able to clearly substantiate the claim with data

Environmental ClaimsEnvironmental ClaimsGeneral statements like “Environmentally

friendly” must be fully explained or qualified or the product have must have virtually no environmental issues

EXAMPLE: Cannot state “Environmentally friendly” if it is biodegradable but toxic to the environment

EXAMPLE: Cannot state “Environmentally safe” if it is non-toxic but generates VOC’s or hazardous products that harm atmosphere

See 16 CR 260 for additional guidelines

RecyclableRecyclable

The product must be able to be recovered from a waste stream

Facilities to recover the material must be readily available to most consumers

Should specify what part of the product is recyclable (package, product, specific part)

May require substantial qualification of claim

Recycled ContentRecycled Content

Unqualified statement of “recycled’ means that the product is 100% recycled

Should specify if the recycled claim is referring to the product package or both

The recycled content refers to materials that were recovered from a waste stream

http://www.ftc.gov/bcp/conline/pubs/buspubs/greenguides.pdf

Means the entire product is 100% recycled and is recyclable

Recycled

Means that the product is 100% recycled butnot necessarily recyclable

XX% Recycledfiber

Means that the product is only XX% recycled butIs not necessarily recyclable

Recyclable

Means the entire product is recyclable but not necessarily made of recycled material

ASTM Labeling RequirementsASTM Labeling Requirements

ASTM F2058- Standard Specification for Candle Fire Safety Labeling –updated 2007

The updated warning consists of:

/!\ WARNING

Burn within sight

Keep away from things that catch fire

Keep away from children

(or the equivalent)

ASTM Labeling RequirementsASTM Labeling Requirements ASTM warning must appear directly on free standing

candles (except tealights) and on external packaging (if sold in a box or other package) so as to be visible at point of sale

Font size requirements are based on the size of the panel on which the warning appears

For small candles and all tapers an abbreviated warning consisting of: /!\ Burn within sight (or the equivalent)may be used in place of the full warning

Optional use of pictograms along with the wording

PictogramsPictograms

Small Text LabelSmall Text Label

Text & Pictogram Multi-Language LabelText & Pictogram Multi-Language Label

Proposition 65Proposition 65

In 2000, the candle industry was involved with a Prop 65 lawsuit

It was alleged that candles exposed California residents to soot, benzene, lead and other listed chemicals

The settlement required on all scented candles 3.5 inches in diameter or larger to have:

“To reduce sooting, you must trim the wick to ¼ inch each time the candle is to be relit. Avoid using in drafty areas.”

FDA and CandlesFDA and Candles Candles labeled for any personal care application

are regulated as cosmetics by the FDA FDA and CPSC have dual jurisdiction over these

candles These candles must meet FDA cosmetic

regulations as well as candle safety and labeling requirements

Must comply with FDA ingredient restrictions, ingredient labeling, warnings, reporting obligations and other FDA cosmetic regulations

Canadian RegulationsCanadian RegulationsRequires all text to appear in both English and

French except trademarks and manufacturer name/address (so the ASTM warning should appear in French)

In 2003 Canada proposed mandatory labeling and safety requirements

Proposed regulation likely to reappear in 2008– Bilingual fire safety warnings (different than

ASTM) but will allow for equivalent wording– Ban lead wicks– Ban spontaneously re-lighting candles

Mexican RegulationsMexican Regulations

Requires certain information to appear prominently in Spanish (may also appear in other languages)– Identity of the product – Net contents in metric units– Name/address of manufacturer– Country of origin statement– Precautionary statements (like ASTM warning)– Name and address of importer– Directions and instructions (if necessary)

European Candle RegulationsEuropean Candle RegulationsFire SafetyFire Safety

EN 15493 “Candles – Specification of Fire Safety”– Stability (10º tilt test)– Secondary ignition– Flame height 3”/75mm (1.25”/30 mm for tealights)– Self extinguish at end of life– No re-ignition or afterglow/smoking more than 20

seconds– Maximum sooting standard

European Candle Regulations European Candle Regulations Labeling Labeling

EN 15494 - Candles -Product Safety Label– Never leave a burning candle unattended.– Burn candle out of the reach of children and pets.– Always leave at least X cm between burning candles.– Do not burn candles on or near anything that can

catch fire. Option to use text only, pictograms only or both Text must appear in the national language where sold 11 Additional optional warnings/pictograms provided

Regulatory Issues Facing the Regulatory Issues Facing the Candle IndustryCandle Industry

Consumer Product Safety Consumer Product Safety Modernization Act (House)Modernization Act (House)

vs.vs. CPSC Reform Act (Senate) CPSC Reform Act (Senate)

The U.S. House of Representatives and the Senate have very different versions of this bill

Both overhauls many responsibilities of the CPSC

Both increase staff and budget

CPSC ActCPSC Act HOUSE

– Up to $10MM fine– AG’s may act against a non

compliant product– Disclose product data under

some circumstances

– New lead restrictions– No whistleblower provision

included

SENATE– Up to $20MM fine– AG’s may act against any

product they deem unsafe– Establish a searchable

database on website with all injury reports

– New lead restrictions– Whistleblowers given

protection; can sue

PhthalatesPhthalates

Phthalates are a class of chemicals used for many things including softening plastic and dissolving fragrances

Some phthalates have been shown to cause cancer and reproductive effects

NRDC conducted a “study” on air fresheners and alleged dangerous levels of phthalates in products

NRDC Petitioned EPA and CPSC to require submission of data, extensive product safety testing, labeling and formula disclosure (9-19-07)

 

FOR IMMEDIATE RELEASE

 

New Study: Common Air Fresheners Contain Chemicals That May Affect Human Reproductive Development  

Environmental Group Calls for Additional Testing, Consumer Awareness to Prevent Risky Exposure  

NEW YORK (September 19, 2007) – An analysis of more than a dozen common household air fresheners found that most contain chemicals that may affect hormones and reproductive development, particularly in babies, the Natural Resources Defense Council (NRDC) said today. The federal government does not currently test air fresheners for safety or require manufacturers to meet any specific safety standards. The study offers both consumers and officials new information on the risks certain air fresheners pose.

Phthalates (con’t)Phthalates (con’t) EPA denied all aspects of the petition across the

board EPA requested voluntary disclosure of some

information on fragrances and air fresheners by the 7 companies cited in the petition

EPA, industry members and NRDC (and other environmental groups) are involved in dialogue

Candles were specifically mentioned in the EPA/CPSC petition, but have not been discussed as part of the phthalate or fragrance dialogue with EPA

California Air Resources California Air Resources Board Board

Regulates volatile organic compound (VOC) emissions from consumer products

Currently seeking to significantly reduce VOC emissions from air fresheners

Candles have escaped these regulations CARB has expressed concerns about normal candle

emissions and safety Fragrance formulations in air fresheners are under

close scrutiny and are the subject of enforcement actions

AB-32 Greenhouse gas emissions issues?

QUESTIONS?QUESTIONS?

Rob Harrington

Rharrington@blyth.com