Toy Industry Update: Key Provisions of the CPSIA · PDF fileToy Industry Update: Key...
Transcript of Toy Industry Update: Key Provisions of the CPSIA · PDF fileToy Industry Update: Key...
Toy Industry Update: Key Provisions of the CPSIA Amendment
August 25, 2011
August 25, 2011Slide 2
Objective
During this one-hour webinar – part of an ongoing series of TIA-sponsored Legislative and Safety updates – toy industry stakeholders will be provided with an update on the Consumer Product Safety Improvement Act (CPSIA) following the President’s recent action to sign Amendment H.R. 2715 into law.
August 25, 2011Slide 3
During this session, TIA member and industry stakeholders will receive information on the Amendment’s key provisions relating to:
– Lead Limits
– Phthalates
– Third Party Testing
– Tracking Labels
– Public Database (SaferProducts.gov)
See additional resource … TIA webpageKey Provisions of H.R. 2715 - An Amendment to the CPSIA
Overview of Today’s Presentation
August 25, 2011Slide 4
Today’s Presenters
PRESENTER
Rick Locker
General Counsel
MODERATOR
Ed Desmond
Executive Vice President, External Affairs
PRESENTER
Al Kaufman
Senior Vice PresidentTechnical Affairs
PRESENTER
Rebecca Mond
Director, FederalGovernment Affairs
Background
August 25, 2011Slide 6
Background
CPSIA signed into law in 2008
“Unintended Consequences”– General Counsel issued letter
on retroactive application of lead standard
– Problems interpreting “any” in lead exclusion provision
– Library books banned
– Overall narrow interpretation of legislation
August 25, 2011Slide 7
Attempts at Reform Slide 1 of 4
Consumer Product Safety Commission
– Exclusions of materials from the lead standard
– Stays of Enforcement for testing and certification requirements
– Testing flexibility
– Technological feasibility of meeting 100ppm
August 25, 2011Slide 8
Attempts at Reform Slide 2 of 4
I am frustrated that the Consumer
Product Safety Commission has
taken too long to promulgate rules
required by the Consumer Product
Safety Improvement Act, including
the rules on third-party testing
obligations and the component
part testing rule.
Senator Richard (Dick) Durbin (D-IL)
August 25, 2011Slide 9
Attempts at Reform Slide 3 of 4
Congress
– “Amend the CPSIA” Rally
– Consumer Product Safety Enhancement Act (CPSEA) proposed by Representative Henry Waxman (D-CA)
– Enhancing CPSC Authority and Discretion Act (ECADA)Drafted by Republican staff of the House Energy and Commerce (E&C) Committee (Gib Mullan, Chief Counsel for House E&C Committee Republicans, formerly CPSC Director of Compliance)
– H.R. 2715
August 25, 2011Slide 10
Attempts at Reform Slide 4 of 4
Representative Waxman called ECADA the “Unsafe Toy Act” and Senate Democrats were not interested in passing
H.R. 2715 is a compromise to address the biggest problems with CPSIA– Co-sponsored by House Democrats Bono Mack, Butterfield,
Upton, Waxman, Barton, Dingell, Rehberg and Towns
H.R. 2715An Amendment to the CPSIA
August 25, 2011Slide 12
Rapid Review and Approval
Weekend of July 30-31– TIA staff engaged by legislative staff of several ranking members
of the House of Representatives
August 1– AM: Bill submitted to House for consideration
Approved by vote of 421-2
– PM: Bill submitted to Senate for considerationApproval by unanimous consent
August 12 – PM: Signed into law by President Obama
August 25, 2011Slide 13
Key Provisions of H.R. 2715
Lead Limits
Phthalate Limits
Third-Party Testing
Tracking Labels
Public Database (SaferProducts.gov)
August 25, 2011Slide 14
Lead Limits Slide 1 of 6
CPSIARetroactive application of the lead content limits
August 25, 2011Slide 15
Lead Limits Slide 2 of 6
CPSIARetroactive application of the lead content limits
AMENDMENT
Prospectively applies the 100ppm lead content standard (effective for product manufactured on/after August 14, 2011;product on the shelf that met prior limit can continue to be sold)
Prospectively applies any future lead content standard should the CPSC revise the standard downward
August 25, 2011Slide 16
Lead Limits Slide 3 of 6
Select industries had specific compliance issues H.R. 2715:
– exempts ATVs and Off Highway Vehiclesfrom the lead limits entirely
– applies current lead limits and eliminates third-party test requirement for metal components in bicycles and related products(300ppm limit has been in place since August 14, 2009; stay of enforcement expires December 31, 2011)
– Exempts used children’s products from the lead standard (except children’s metal jewelry)
August 25, 2011Slide 17
Lead Limits Slide 4 of 6
CPSIACPSC hesitant to exempt products and materials under lead content limits
August 25, 2011Slide 18
Lead Limits Slide 5 of 6
CPSIACPSC hesitant to exempt products and materials under lead content limits
AMENDMENT
Includes Functional Purpose Exemption
August 25, 2011Slide 19
Lead Limits Slide 6 of 6
Functional Purpose Exemption(three considerations)
– Not practicable or technologically feasible to manufacture without lead
– Not likely to be mouthed
– Does not have “measurable” adverse effect on health and safety (means no measurable increase in blood lead level)
Burden of proof is on the person/entity seeking the exemption
August 25, 2011Slide 20
Phthalate Limits Slide 1 of 3
CPSIARelied upon CPSC to determine and issue guidanceregarding which materials “may” or “may not” require phthalate testing
Made no exclusion for inaccessible components*
* The absence of an inaccessibility provision was particularly problematic for electronic toys
August 25, 2011Slide 21
Phthalate Limits Slide 2 of 3
CPSIARelied upon CPSC to determine and issue guidance regarding which materials “may” or “may not” require phthalate testing
Made no exclusion for inaccessible components
AMENDMENT
Contains exemption for inaccessible components
Codifies guidance and limits testing to plasticized components
Gives CPSC the authority to revoke any exclusion, if necessary
August 25, 2011Slide 22
Phthalate Limits Slide 3 of 3
Under H.R. 2715, Congress defines inaccessibility as “not physically exposed by reason of a sealed covering or casing and does not become physically exposed through reasonably foreseeable use and abuse of the product”
By August 2012, CPSC is required to either:
– adopt current guidance issued for lead; or
– issue new phthalate inaccessibility guidance
At present, CPSIA Section 108 still governs for three “interim ban” phthalates … current restrictions are based upon the likelihood of object being mouthed, sucked or chewed
Additionally . . .
– Existing (conflicting) state phthalate restrictions are likely preempted(e.g., California does not have inaccessibility criteria in AB 1108)
– The EU inaccessibility provision for phthalates differs slightly from the new U.S. requirements
August 25, 2011Slide 23
Third Party Testing Slide 1 of 2
SamplingCPSIA “Random” SamplingAMENDMENT “Representative” Sampling
New Consideration for Books– Exempt: Ordinary books and printed materials
– Not Exempt: Books for ages under three years and with play value or non-paper-based-materials not used in the binding process
August 25, 2011Slide 24
Third Party Testing Slide 2 of 2
Testing costs and requirements
– CPSC required to • seek comments on ways to
cut costs of third- party testing
• find alternative test methods for small batch manufacturers* or, if no alternatives exist, exempt small manufacturers from testing requirements (provided they are not subject to requirements for small parts, children’s metal jewelry, lead paint or certain defined durable nursery products)
*Small batch manufacturer defined as < $1 million in total gross revenue or <7,500 units of a single item; company must “register” with CPSC.
August 25, 2011Slide 25
Tracking Label Requirements Slide 1 of 3
CPSIA Tracking Label Requirement designed to aid retailers, enforcement authorities and consumers in identifying products.
August 25, 2011Slide 26
Tracking Label Requirements Slide 2 of 3
CPSIAOverly broad definition of products that required tracking labels
August 25, 2011Slide 27
Tracking Label Requirements Slide 3 of 3
CPSIAOverly broad definition of products that required tracking labels
AMENDMENT
Gives CPSC the authority to exempt certain products from the tracking label requirements
August 25, 2011Slide 28
Public Database (SaferProducts.gov) Slide 1 of 2
CPSIAStrict 10-day timeline for CPSC to post reports of harm regardless of manufacturer claims of material inaccuracy
August 25, 2011Slide 29
Public Database (SaferProducts.gov) Slide 2 of 2
CPSIAStrict 10-day timeline for CPSC to post reports of harm regardless of manufacturer claims of material inaccuracy
AMENDMENT
Requires CPSC to: – delay posting a report of harm for five (5) additional days
if the agency receives a claim of material inaccuracy
Requires Submitter to: – include product model or serial number on reports of harm.
If that information is not available, a picture of the product is required.
What’s Next?
August 25, 2011Slide 31
What’s Next? Slide 1 of 3
Consumer Product Safety Commission to …
– incorporate “representative” sampling
in lieu of “random” sampling
– initiate comment period within next three months
on reducing testing costs
– (following comment period) initiate year-long rulemaking to
reduce testing costs (likely to incorporate within “15-month” rule)
– (Autumn 2011) collect and review public comments on
phthalates and ASTM F963 testing
– launch ASTM F963 education campaign
August 25, 2011Slide 32
What’s Next? Slide 2 of 3
Stays of Enforcement expire December 31, 2011 for third-party testing and certification requirements for:
phthalates;
lead; and
ASTM F963 standard
Will the CPSC exempt products, materials, and/or components from the lead standard?
August 25, 2011Slide 33
What’s Next? Slide 3 of 3
Commissioner Moore’s term of office at the CPSC ends October 2011
– He sits alongside Chairman Tenenbaum and Commissioner Adler as one of the three Democratic appointees on the Commission
Question and Answer Session
Moderator: Ed Desmond
August 25, 2011Slide 35
Q/A Instructions … Tips … Helpful Hints
To communicate with the webinar moderator at any time during this session, please select either of the following options:
– Send a question using the “Q&A” drop down menu near the middle of the LiveMeeting navigation bar
– Start a private chat by double-clicking on the names “Ed Desmond” or “Stacy Leistner”in the list of participants under the “Attendees” drop-down menu
To submit a question for review during the open dialogue, use the “Q&A” drop down menu near the middle of the LiveMeeting navigation bar
Download a copy of the presentation slides from the “Handouts” drop down menu (the graphic looks like three sheets of stacked papers) on the right-hand side of the LiveMeeting navigation bar
August 25, 2011Slide 36
Additional Information
This webinar has been recorded for future playback
Watch for additional information in TIA member communications or on the TIA website
August 25, 2011Slide 37
TIA Resources
http://cpsia.toyassociation.org– CPSIA Resource Page
www.toyassociation.org– Press Room (news items on standards, legislation and more)
– Members Only Bulletins (Legislative, Safety, etc.)
– Education and Training Services
– The Toy Biz (research, reports and statistics)
Thank you for participating!
For more information on TIA’s education programs, please visit: http://education.toyassociation.org