Product Responsibility: A Journey Not A Destination

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1 Product Responsibility: A Journey Not A Destination

2 This information is being furnished 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.

3 Speakers Carla Matlock Killion, Bentcil Lori Bolton-Herman, Evans Amanda Nannini, Hit Promo Doug Sill, Broder Bros. Chad Smith, MMI Dan Livengood, Newton Manufacturing Anne Lardner-Stone, PPAI 3

4 Agenda Product responsibility What you need to know Why you need to know it How to get started Case studies Resources 4

5 All substances are poisons the difference is in the dose. Paracelsus ( ), a Swiss alchemist 5

6 2007: Big problem with the dose 2007 the year of the recall 448 products recalled 231 (52%) were children s products Over 100 recalls due to excessive lead in paint 6

7 To protect the children and In 2008, Congress passed the Consumer Product Safety Improvement Act (CPSIA) control the dose 7

8 CPSIA Children s products, items intended primarily for use by children 12 and under, must undergo third-party testing for: Lead in substrate 100 ppm Lead in paint and surface coatings 90 ppm Six banned phthalates Include a tracking label 8

9 Compliance beyond CPSIA Federal regulations: FDA (particularly drinkware) California Proposition 65 State regulations Cadmium Packaging International standards And more 9

10 Why should you embrace product responsibility? Compliance with Federal and state regulations is not optional Hefty fines associated with non-compliance It can be a strategic advantage and increase your value to your customer 10

11 Increasing customer demand Product safety is a key market differentiator As consumers become more aware of product safety, demand for compliant products will increase Crucial that you can back up your compliance language with processes and systems 11

12 Product responsibility is everyone s job Distributors must protect their customer s brand as if it were their own. Suppliers must ensure compliance with all regulations and oversee all factories Everyone is responsible for providing safe products that will not cause harm to the end user. Education and awareness are critical 12

13 When distributors become suppliers A distributor who sources direct is a manufacturer A distributor uses a contract decorator would also be considered a manufacturer 13

14 Case Study 1: Writing Instruments Most, not all, writing instruments are considered general use items These pens are good examples of pens should be considered children s products What must be considered? 16 CFR 1500 mechanical hazards 16 CFR flammability (solids) 19 CFR country of origin marketing CPSIA total lead content in substrate (100ppm) CPSIA total lead content in surface coating What proof needed? Test Reports from accredited third party lab; Children s Product Certificate (CPC) 14

15 Case Study 1: Writing Instruments Tracking labels must be permanently applied to the products This tracking label is permanently screen printed on the pen rod This number cannot be removed by the consumer This label allows Bentcil traceability to all aspects of production If there was a recall, Bentcil would be able to track every thinner, ink cartridge pen cap, ink (imprint) batches that were created to make up the pen 15

16 Case Study 1: Writing Instruments Safety concerns Cap breathe holes: Originally a British standard, these breath holes are a safety precaution in the event the cap is swallowed. 16

17 Case Study 2: Piggy Banks

18 EVANS 2205 ACTION PIGGY BANK Extensive testing completed to ensure product safety and CPSIA compliance. Samples of finalized design were sent to a 3 rd party, accredited lab for conformance testing. Evans implemented date coding (inset below) to indicate when product was manufactured. Evans Safety Concerns Hotline #(714) (molded into product) offers a resource to an end user who may have safety concerns. Test results available upon request.

19 Case Study 2: Piggy Banks

20 Case study 3: Sunglasses General use versus children s products If the sunglasses are intended primarily for use by children 12 and younger, what must you consider? Lead in substrates Lead in paint Physical and mechanical- impact resistant lenses in sunglasses Tracking Label 20

21 Case study 3: Sunglasses 21

22 Case study 4: Apparel Broder Bros Co maintains rigid standards covering social compliance, product safety, environmental compliance, supply chain and quality control in all of their processes. Broder Bros hold its manufacturers accountable to the same standards. Ensure traceability and transparency Annual and unscheduled factory audits Item: M315 (4oz Polyester Technical Polo) 22

23 Case study 4: Apparel Establish and demand internal standards that protect the worker, the end user and the environment. Safety: Needle breakage Upon needle breakage, immediately turn the machines off Recover all need fragments Only upon proof that all needles pieces are collected can the machine be restarted Ensures that the end user will never put on a garment that has needle fragments imbedded in the material. Environmental: Dyes Broder Bros requires all factories to follow local laws AND the chemical laws set by the state of California because California s chemical laws are stricter than U.S. Federal laws This strict criteria protects the customer s brand and reputation 23

24 Case study 4: Apparel 24

25 Case study 5: General Use Item Flash Drive Third party testing is not required for most general use items But it is still important that you ensure proper manufacturing procedures are in place. Conduct periodic third party audits to ensure compliance over time. Requirements for general use electronics include: Consider RoHS regulations Lead in paint on drive and logo Lead in substrate for all accessible parts Set consistent standards for drive memory capacity 25

26 Promotional Products TurboTest 26

27 Promotional Products TurboTest 27

28 Test your CPSIA Aptitude What if you sold String back packs to a performing arts camp. The back pack is decorated with a large logo and image of Disney TV show Hannah Montana Is this string back pack governed by CPSIA regulations? 28

29 Test your CPSIA Aptitude What if you sold 29

30 Compliance Beyond The Obvious 30

31 Test your CPSIA Aptitude What if you sold a Plain water bottle for a Little League with teams from 4 th 6 th grade (all children 12 years or under). The bottle is to be imprinted in block letters with the name Meadowbrook Little League Is this water bottle governed by CPSIA regulations? 31

32 Test your CPSIA Aptitude What if you sold 32

33 Test your CPSIA Aptitude What if you sold 33

34 Distributors, ask your buyer: 34

35 Distributors, tell your supplier: The intended audience If the item will be given to children, tell the supplier The distribution method The product you want 35

36 Distributors, ask the supplier: 1. Is the item considered a Children s Product? 2. What regulations apply? 3. Does the product comply with all applicable regulatory requirements? 4. How has compliance been determined? 5. Request copy of all related test reports 36

37 Distributors, ask the supplier: 6. Request copy of GCC/CPC 7. Was all product made at the same factory? 8. Was all product made from the same lot of materials? 9. If a Children s Product, what does the tracking label information mean? 10. Will the modifications you plan to make to the product affect the product s compliance? 37

38 Adopt the PPAI Code of Conduct 38

39 Resources PPAI: Product Safety powered by PPAI: Consumer Product Safety Commission: American National Standards Institute or 39