June 19, 2009

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By Product Safety Letter staff

CPSC currently is reviewing comments on its March notice of proposed rulemaking (NPR) for a guideline and requirements for mandatory recalls. Although the guidelines would cover the rare recalls ordered by CPSC or a court, expect them to play a role in voluntary actions as well. Indeed, much of what is proposed stems from the agency’s long-standing Recall Handbook and Recall Checklist to which CPSC directs companies planning voluntary actions. Do not expect comments to change proposal much. Under the NPR, recalls will need to include:

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• The Word Recall: The notice must contain recall in the heading and the text. CPSC wrote that although the CPSIA does not require this, the agency has a long-standing policy that the word should be used because it best generates media interest.

• Date: The notice must show when the company issued it.

• Product Description: CPSC wants clear and concise language that helps consumers quickly identify if they have the product. Information conveyed could include the item’s name; intended users such as infants or children; colors and sizes; model numbers, serial numbers, date codes, SKUs and similar tracking information, including exact locations on the products; identification and exact locations of tags, labels and other identifying parts; and color photographs.

• Action: The notice should explain what actions the company is taking such as sales or distribution stops, recalls at various levels, repairs, replacements, and refunds.

• Number of Units: The notice should give an approximate number of units made, imported and/or distributed.

• Hazard: The firm should describe the actual or potential risks and must include the defect, fault, failure, etc. causing the recall and the type of hazard, such as burn, fall, choking, laceration, death, etc.

• Recaller’s Identity: The notice should indicate which company is conducting the recall, including its legal name, commonly known trade names, and the city and state of its headquarters. The notice should explain whether the company is a manufacturer, importer, retailer or distributor.

• Maker’s/Importer’s Identity: The notice should identify all makers and importers. For imports, it should identify both the importers and foreign makers. These should include legal names, trade names, and headquarters’ locations.

• Retailers Names: The recaller should identify significant retailers by their commonly known trade names. CPSC defines significant retailer as meeting any of these criteria: the exclusive retailer, the importer, those with regional or nationwide locations, those holding significant number of units, or one whose disclosure is in the public interest.

• Manufacture/Sales Dates: The firm should state these ranges using months and years, including separate ranges for each make or model.

• Price: The notice should give the approximate retail price or price range.

• Incidents: The company should describe and give the number of known events associated with the problem such as property damage, injuries and deaths. It should include the ages of victims and the dates that CPSC learned of injuries and deaths.

• Remedy: The notice should make clear the specific steps that consumers should take, including such actions as contacting the company, stopping use, throwing items out, returning items or disabling them. It should include all information needed to take part in the recall, including contact information, whether phone calls will be toll-free, and business hours with times zones. Remedies can include refunds, repairs, replacements, rebates, coupons, gifts, premiums, or similar incentives.

• Other Information: CPSC or a court might deem other information necessary.

Portions of this article appeared in the March 23, 2009 edition of our premium sister service, Product Safety Letter. It is just one of the hundreds of similar stories that subscribers read over the course of an annual subscription. Subscription information is here