CPSC Revises its Interpretive Rule on Reporting Potential Product Hazards, Etc.
The Consumer Product Safety Commission (CPSC) has issued a final rule, effective July 25, 2006, in order to revise an interpretive rule which advises manufacturers (including importers), distributors and retailers of consumer products on how to comply with the requirements of section 15(b) of the Consumer Product Safety Act (Act), which requires such parties to report potential product hazards to the CPSC, among other changes.
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(According to CPSC, this final rule reflects certain changes from the proposed rule. See ITT's Online Archives or 06/14/06 news, 06061415, for BP summary of the proposed revisions.)
These final revisions identify certain factors the CPSC and its staff consider when assessing whether a product is defective or not. The final revisions also clarify that compliance with voluntary or mandatory product safety standards may be considered by the CPSC in making certain determinations under section 15.
(Section 15(b) of the Act requires that every manufacturer (including an importer), distributor or retailer of a consumer product who obtains information which reasonably supports the conclusion that its product fails to comply with an applicable consumer product safety rule or with a voluntary consumer product safety standard upon which the CPSC has relied under section 9 of the Act, or contains a defect which could create a substantial product hazard as defined in section 15(a)(2) of the Act, or creates an unreasonable risk of serious injury or death, shall immediately inform the CPSC of such failure to comply, of such defect, or of such risk, unless the manufacturer, distributor or retailer has actual knowledge that the CPSC has been adequately informed.)
Highlights of Revisions to Interpretive Rule on Substantial Product Hazard Reports
The following are highlights of the final revisions to the CPSC's interpretive rule at 16 CFR Part 1115 (Substantial Product Hazard Reports):
Four additional criteria added to definition of "defect." 16 CFR 1115.4 is amended to clarify the CPSC's definition of "defect'' by adding the following four additional criteria for CPSC staff to use to evaluate whether a risk of injury is the type of risk that will render a product defective, thus possibly triggering a reporting obligation under section 15(b): the obviousness of such risk; the adequacy of warnings and instructions to mitigate such risk; the role of consumer misuse of the product, and the foreseeability of such misuse. See CPSC notice for details of other current factors.
Number of defective products remaining in consumer's hands to be considered. The CPSC is also amending 16 CFR 1115.12(g)(1)(ii) by adding the following sentence: "The Commission also recognizes that the number of products remaining with consumers is a relevant consideration." CPSC states that it is merely recognizing that the number of products remaining in consumers' hands at any given time is relevant to a substantial product hazard determination and that determination can be influenced by a decline overtime in the number of products remaining in use.
Guidance added to emphasize that compliance with voluntary and mandatory standards is considered in evaluating section 15 obligations, etc. The final revisions also add a new 16 CFR 1115.8, "Compliance with Product Safety Standards.'' This section further explains how the CPSC views compliance with applicable voluntary or mandatory standards, particularly in the context of decisions under section 15 of the Act.
The provision on voluntary standards, 16 CFR 1115.8(a) is added to emphasize that when the CPSC staff preliminarily determines whether a product presents a substantial product hazard under section 15 of the Act, the CPSC staff will consider compliance with any relevant voluntary standard as part of that determination. Therefore, by this provision the CPSC urges firms to consider compliance with voluntary standards in evaluating whether or not a substantial product hazard should be reported to the CPSC.
In the context of mandatory standards, 16 CFR 1115.8(b) is added to emphasize that the CPSC will consider such compliance when making relevant determinations and exercising relevant authorities under the CPSA and other federal statutes. In particular, a product's compliance with a mandatory standard will be considered in determining whether and to what extent corrective action is necessary.
CPSC Contact - John Gibson Mullan (301) 504-7626
CPSC Final Interpretative rule (FR Pub 07/25/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-11758.pdf