What
You Need to Know About the Product Recall Process: U.S. Requirements and International
Business and Government Relations Implications
November 28, 2007
Kerrie Campbell, Chair of the Consumer Product Safety Group at Manatt Phelps & Phillips, and Mary Toro, Associate Director of Office of Compliance and Field Operations of the Consumer Product Safety Commission,* provided a concise yet thorough overview of the U.S. product recall procedure. This discussion covered both "phases" of agency analysis: corrective action (including recalls) and penalty investigations for reporting violations. The corrective action discussion included recognizing potential recall situations, reporting requirement triggers, report contents and disclosures, recognizing recall and corrective action situations and the range of potential company responses -- from reporting only to voluntarily conducting "Fast-Track" recall programs. The penalty analysis discussion included the basis for penalty determinations, civil penalty assessments, Department of Justice prosecutions, penalty trends and anticipated enforcement action activities. Ms. Campbell discussed pending legislation and its implications for businesses, urging companies to examine the potential impact of some of those proposals on their businesses. She also discussed the responsibilities of importers, noting that companies cannot discharge their responsibilities by merely including boiler plate affirmations that everyone in the chain from manufacture to distributor and retailer complied with applicable standards.
Recognizing the international perspective of WIIT members, the panelists explored the impacts of increasing globalization on the recall process, which touched upon a host of topics such as different country standards and requirements, voluntary versus mandatory standards, information sharing among countries, lack of coordination among testing entities, and education and outreach efforts. Participants not only were able to ask questions, but also were given a packet of materials on the legal requirements and helpful internet resources. Ms. Campbell recommended that all members subject to the requirements of the Consumer Product Safety Act register on CPSC's website to receive agency product safety notices and information.
The genesis for this WIIT event was suggestions from WIIT members about new types of programs that would be relevant to their work. Last year, WIIT offered a similar "primer" or "basics of" event on export controls.
Ms.
Toro's remarks were off-the-record.