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