Post on 11-Jan-2016
2013 PMANC Showcase/Professional DevelopmentMay 10, 2013, Monterrey, CA
Best Practices to Protect your Clients, your Business, and the Industry
Product Safety and Regulatory Compliance for the Promotional Products Industry
An Interactive Workshop on
BRANDProtection
BRANDProtection 2013 PMANC Showcase/Professional Development
Meet Your Seminar Hosts
Leeton Lee, Esq.
General Counsel
ETS Express
Rick Brenner, MASCEO
Prime Line
BRANDProtection 2013 PMANC Showcase/Professional Development
Where it All Began…….
The Summer of Recalls - 2007
BRANDProtection 2013 PMANC Showcase/Professional Development
The Result ….
Heightened awareness of risks of imported productsSignificant risk to the promotional products industryFar reaching new federal and state legislationA new paradigm for the industry
BRANDProtection 2013 PMANC Showcase/Professional Development
Responsible Sourcing
Product Safety
Regulatory Compliance
Social Accountability
Environmental Stewardship
Supply Chain Security
BRANDProtection 2013 PMANC Showcase/Professional Development
Managing Risk - Protecting
End Buyer
End User(Recipient)
Sales RepThe Industry
Supplier
Distributor
BRANDProtection 2013 PMANC Showcase/Professional Development
RIS
KS
Injuries from Product Defects
BRANDProtection 2013 PMANC Showcase/Professional Development
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Defective Product Recalls
BRANDProtection 2013 PMANC Showcase/Professional Development
Canada Recalls John Deere T-Shirts for Excessive Lead in Decorating Inks
Compliance ViolationsR
ISK
S
BRANDProtection 2013 PMANC Showcase/Professional Development
Social AccountabilityR
ISK
S
BRANDProtection 2013 PMANC Showcase/Professional Development
RIS
KS
Civil Penalties
BRANDProtection 2013 PMANC Showcase/Professional Development
RIS
KS
The Unthinkable:Product Related Death
BRANDProtection 2013 PMANC Showcase/Professional Development
RIS
KS
Class-Action Litigation
BRANDProtection 2013 PMANC Showcase/Professional Development
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Brand Damage by Perception only
BRANDProtection 2013 PMANC Showcase/Professional Development
RIS
KS
Brand Damage by Perception only
BRANDProtection 2013 PMANC Showcase/Professional Development
AC
TIO
NWhere to begin?
Develop a brand protection strategy
Evaluate your resources
Develop policies and programs to support the strategy
Educate your employees and reps
BRANDProtection 2013 PMANC Showcase/Professional Development
AC
TIO
NBrand Protection Strategy
There is no “one-size fits all” strategy
Even within largest companies, strategies differ
Consider what makes most sense for your market, customer base and resources
BRANDProtection 2013 PMANC Showcase/Professional Development
AC
TIO
NExamples of Strategies
Customer by customer strategy
Product Safety as a Differentiator – Trusted Advisor
Limited products or vendors
Certification (QCA, FLA, PPAI, etc.)
PPAI Education track
In-house counsel
Dedicated compliance support team
Outsource some of the risk
Aligning with larger organization
BRANDProtection 2013 PMANC Showcase/Professional Development
AC
TIO
NKey Elements of EVERY Strategy
Learn CPSIA, Prop 65 BasicsUnderstand the Risks
Client CommunicationsKnow the Intended Audience
Product ConsiderationsUnderstand the Product
Vendor SelectionKnow the Vendor’s Processes
Compliance VerificationObtain and Validate Test Reports
Vendor CommunicationAnnotate PO Carefully
BRANDProtection 2013 PMANC Showcase/Professional Development
Key Product Safety Topics
What is a “Children’s Product”?
What is a “Children’s Toy”?
What is a “General Use” product?
The blanks issue in the promotional products industry
BRANDProtection 2013 PMANC Showcase/Professional Development
Key Product Safety Topics
1. Children’s Products• Lead in substrate 100 ppm• Lead in surface coating 90 ppm
• Can be paint, decoration, applique 2. Children’s Toys and Child Care Articles
• Lead in substrate 100 ppm• Lead in surface coating 90 ppm• Six phthalates maximum .1%• Toy Safety Standard ASTM F963-11 Mandatory
3. Mandatory periodic testing at CPSC certified 3rd party lab4. Periodic testing (reasonable testing program)5. Children’s Product Certificate (CPC)6. General Certificate of Compliance (GCC)7. Permanent tracking labels
Key CPSIA Highlights
BRANDProtection 2013 PMANC Showcase/Professional Development
Challenges for Distributors Who Contract for Decoration of Children’s Products“An Appropriate Level of Due Care”
BRANDProtection 2013 PMANC Showcase/Professional Development
Key Product Safety Topics
1. Safe Drinking Water and Toxic Enforcement Act of 1986
2. Annual list of chemicals known to the State of California to cause cancer or reproductive toxicity
3. Labeling law4. Clear and reasonable warning5. Safe harbor level (no significant risk)6. Bounty hunters7. Settlement agreements
Issues:1. What are the various strategies to comply?2. How certain is any strategy?3. Are there “Prop 65” lab tests?
Key Proposition 65 Highlights
BRANDProtection 2013 PMANC Showcase/Professional Development
Choose Your Suppliers Carefully
Compliance Requires Daily Vigilance
BRANDProtection 2013 PMANC Showcase/Professional Development
Choose Your Suppliers Carefully
Compliance Requires Daily Vigilance
BRANDProtection 2013 PMANC Showcase/Professional Development
Supplier or Distributor
10 Things We All Must Do
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1. Know the laws/regulations (or have a good resource)2. Know your product (supplier, primarily)3. Know your supplier4. Know your client5. Know your intended audience6. Know the risks – regulatory, safety, PR7. Educate the team8. Stay current (Buckyballs, John Deere, 600-100/90, F963-11)9. Instill a product safety culture in your company10.Protect the industry
BRANDProtection 2013 PMANC Showcase/Professional Development
Thank you for the opportunity to speak to you.Feel free to contact Rick or Leeton anytime with questions. The better job we all do at product safety and compliance the more we preserve our industry and our living.
Leeton H. LeeVP, Regulatory Compliance and General CounselETS Express, Inc.P: 805-278-7771llee@etsexpress.com
Rick BrennerCEOSenior Compliance OfficerPrime Resources, Inc.203 455-2419rbrenner@primeline.com
Thank You!