November 3, 2008

NEW FEDERAL CONSUMER PRODUCTS LAW: TIGHTER LEAD, PHTHALATE STANDARDS, STRONGER CPSC AUTHORITY

Landmark legislation has greatly expanded the regulatory powers of the Consumer Product Safety Commission (CPSC). The Consumer Product Safety Improvement Act of 2008 (the Act) substantially strengthens consumer product safety standards, mandates testing of children’s products and dramatically increases penalties for violations.

Perhaps most notable are new, stringent restrictions on lead and phthalate content in consumer products, which will significantly affect companies that manufacture, import, distribute, wholesale or retail a wide range of consumer goods. Those engaged in such businesses should be fully advised of the new requirements and standards imposed by this legislation.

The Act (15 U.S.C. § 2051 et. seq.), signed into law on August 14, 2008, represents in part a response to recent high-profile recalls of children’s toys containing lead in amounts above federal standards. The Act effectively bans lead in children’s products by setting a standard for lead at no more than trace amounts – starting at 600 parts per million for any product part and decreasing over time to 100 parts per million within three years (unless “technologically infeasible”). These are now the toughest lead standards in the world.

The Act also permanently bans children’s products containing more than 0.1 percent of three types of phthalates—a class of plastic additives commonly used to make PVC plastic pliable and to disperse synthetic fragrances—and it temporarily prohibits three other types of phthalates pending review by a hazard advisory panel.

The Act introduces further key changes, including new testing, packaging and reporting requirements, increased penalties and broader individual liability for violations, and whistleblower protection for employees. It also strengthens other consumer product safety standards, provides increased funding for the CPSC and expands the powers of the CPSC in enforcing its consumer product safety laws.

For our readers, we have prepared a brief summary of the provisions of the Act, followed by more detailed summaries of key provisions. Please read it here. A complete copy of the Consumer Product Safety Improvement Act may be read here.