Expert Recall

By Howard Aughinbaugh

I had the pleasure of joining my colleague and ExpertRECALL’s in-house legal counsel Angela Manuel at the Association of Corporate Counsel (ACC) Annual Meeting held in Boston last week. ACC is the leading provider of education and training programs specifically designed and developed for in-house counsel.

One very informative session I attended was titled “Consumer Product Safety: Understanding and Avoiding the Pitfalls of the New Legislation and Regulations.” The session focused on the Consumer Product Safety Improvement Act (CPSIA) of 2008 and its impact on manufacturers, importers, private labelers, distributors and retailers of consumer products.

It is always refreshing to hear fruitful discussion that focuses on the preparation and solutions to CPSIA issues. We commend the panelists in this session and couldn’t agree more with their thoughts and insight.  As such, I wanted to share the key takeaways from this session:

• Section 15(b) of the law provides that the CEO of the reporting company should sign any reports to the CPSC unless the responsibility has been delegated in advance and the written delegation has been filed with the CPSC. A good recall plan should identify the appropriate delegate and ensure to ensure that all appropriate measures are taken so that this delegation is in place at the time of a recall.
• The increased civil penalties and new criminal penalties contained within the CPSIA are significant and warrant attention by manufacturers, wholesalers, and retailers alike.
• Recalls are no longer back page stories. They are headline news.
• There is reduced public tolerance for recalls.
• Companies need to act promptly to avoid negative publicity and to reduce the impact on the brand, consumer goodwill and sales.
• It is always best to go to the government with your recall program or solution first. This is significantly more difficult when you don’t have a plan in place.

Both internal and external corporate counsel are becoming better educated about this increased regulatory environment and are working with their senior leadership and corporate boards on risk mitigation.

Stericycle ExpertRECALL™ is the industry leader in recall logistics and regulatory compliance for consumer product, pharmaceutical, medical device, juvenile product, and food and beverage recalls. ExpertRECALL’s professionals are experts in recall management who can help you streamline the entire product recall process.

One Response to “More Insight Into the CPSIA”

1. National Association of Corporate Directors (NACD) Meeting to Address Risk Assessment and Mitigation Issues « ExpertRECALL says:

   January 7, 2010 at 12:04 am

   [...] weathers – financial fluctuations, the impact of globalization and competitive outlooks; but with today’s heightened regulatory oversight, a more frequent conversation involves product recall [...]