2013 PMANC Showcase/Professional Development May 10, 2013, Monterrey, CA Best Practices to Protect...

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


Where it All Began…….

The Summer of Recalls - 2007


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


Responsible Sourcing

Product Safety

Regulatory Compliance

Social Accountability

Environmental Stewardship

Supply Chain Security


Managing Risk - Protecting

End Buyer

End User(Recipient)

Sales RepThe Industry

Supplier

Distributor


RIS

KS

Injuries from Product Defects


RIS

KS

Defective Product Recalls


Canada Recalls John Deere T-Shirts for Excessive Lead in Decorating Inks

Compliance ViolationsR

ISK

S


Social AccountabilityR

ISK

S


RIS

KS

Civil Penalties


RIS

KS

The Unthinkable:Product Related Death


RIS

KS

Class-Action Litigation


RIS

KS

Brand Damage by Perception only


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


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


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


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


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



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


Challenges for Distributors Who Contract for Decoration of Children’s Products“An Appropriate Level of Due Care”



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


Choose Your Suppliers Carefully

Compliance Requires Daily Vigilance


Supplier or Distributor

10 Things We All Must Do

26

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


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: [email protected]

Rick BrennerCEOSenior Compliance OfficerPrime Resources, Inc.203 [email protected]

Thank You!

mailto:[email protected]

mailto:[email protected]

2013 PMANC Showcase/Professional Development May 10, 2013, Monterrey, CA Best Practices to Protect...

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