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Why retailers should consider adding a hazard alerting system to their compliance program

Since the passing of the Consumer Product Safety Improvement Act of 2008, many steps have been taken to strengthen the CPSC’s ability to protect consumers from dangerous products. Most recently the CPSC has proposed new guidelines for voluntary recalls. With the newly proposed measures, the CPSC is hoping to achieve:

• greater efficiency during recall negotiations,

• greater predictability for the regulated community in working with the agency to develop voluntary recall notice content,
• timelier issuance of recall announcements to the public, and
• inclusion of compliance program requirements as an element of voluntary corrective action plans would echo compliance program requirements incorporated as part of recent civil penalty settlement agreements.

 
These changes are heavily supported by consumer protection organizations focused on product safety. On February 4, Kids in Danger, the Consumer Federation of America, the Consumers Union, the Union of Concerned Scientists, the National Research Center for Women & Families and Public Citizen, in a joint statement announced their support of the U.S. Consumer Product Safety Commission’s proposed regulation changes. In their review of the proposed changes, they specifically highlight Section 1115.20(a)(1)(xv) and 1115.20(b) regarding compliance programs saying it is “one of the most important measures in the proposed rule. Too often, a lack of internal controls or systems leads to a potentially unsafe product that must be recalled.”

The CPSC has already begun focusing on retailer compliance and reporting programs. This past summer the CPSC unanimously approved a $3.9 million penalty and an imposed compliance program for Ross Stores Inc., for failing to report they were selling children’s clothing with drawstrings in the upper outerwear. With the new voluntary recall measures, the CPSC is putting even more emphasis on compliance and reporting programs.

 
What does this mean for retailers? With the new guidelines there is increased urgency for retailers to be more proactive in reporting hazardous products. Retailers need to have effective compliance and reporting policies in place to ensure they are meeting CPSC guidelines, practicing good governance and keeping potentially dangerous products away from consumers. By adding a hazard alerting system, like PolyVista Alerts+ to their compliance and reporting programs, retailers can take advantage of data they’re already collecting to better protect consumers and avoid penalties. At the end of the day, protecting consumers from dangerous and hazardous products is everyone’s goal. Retailers have valuable resources at their disposal to make compliance and reporting easier than ever.