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ICPHSO – February 24, 2011ICPHSO – February 24, 2011Orlando, FloridaOrlando, Florida

Views expressed in this presentation are those of the staff Views expressed in this presentation are those of the staff and do not necessarily represent the views of the and do not necessarily represent the views of the

CommissionCommission

Views expressed in this presentation are those of the staff and do not Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commissionnecessarily represent the views of the Commission

Inside Compliance and Inside Compliance and Field OperationsField Operations

Office of Compliance Office of Compliance and Field Operationsand Field Operations

Marc Schoem, Deputy DirectorMarc Schoem, Deputy Director

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Views expressed in this presentation are those of the staff and do not Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commissionnecessarily represent the views of the Commission

Inside Compliance and Inside Compliance and Field OperationsField Operations

Defect Investigations Defect Investigations DivisionDivision

Dean Woodard, DirectorDean Woodard, Director

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Division Director – Special InvestigationsDivision Director – Special Investigations 3 Team Leaders – Full Case Load3 Team Leaders – Full Case Load 18 Compliance Officers (2 on the Safe 18 Compliance Officers (2 on the Safe Sleep Team)Sleep Team) 1 Technician1 Technician

Safe Sleep TeamSafe Sleep Team Team Leader (General Attorney)Team Leader (General Attorney) 2 Compliance Officers2 Compliance Officers 2 Compliance Attorneys2 Compliance Attorneys

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Fast-Track Program – Voluntary RecallsFast-Track Program – Voluntary Recalls

Section 15 InvestigationsSection 15 Investigations

Children's Hazards TeamChildren's Hazards Team

Fire / Electrical Hazards Team Fire / Electrical Hazards Team

Mechanical Hazards TeamMechanical Hazards Team

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Fast-Track Recall ProgramFast-Track Recall Program

Initiated August 1997Initiated August 1997 Eliminates staff “preliminary Eliminates staff “preliminary determination” of hazarddetermination” of hazard Acceptable consumer level recall withinAcceptable consumer level recall within20 working days of report20 working days of report Reduces technical analysis (focus on Reduces technical analysis (focus on notification and remedy)notification and remedy) Does not preclude review for reporting Does not preclude review for reporting obligationsobligations Over 200 million products in more than Over 200 million products in more than 1800 recalls1800 recalls

No preliminary determination of No preliminary determination of substantial hazardsubstantial hazard

Removes hazardous products from Removes hazardous products from commercecommerce

Less liabilityLess liability Less bureaucracy/red tapeLess bureaucracy/red tape Removes hazardous products quickerRemoves hazardous products quicker Captures more products in the Captures more products in the

distribution chaindistribution chain Saves livesSaves lives Reduces injuriesReduces injuries

Nearly all recalls “voluntary”Nearly all recalls “voluntary” CPSC has authority to issue CPSC has authority to issue

administrative complaint to compel administrative complaint to compel recallrecall

CPSC must prove product defectiveCPSC must prove product defective Presents substantial product hazardPresents substantial product hazard CPSC can compel repair, replacement, CPSC can compel repair, replacement,

refund and public notice refund and public notice

1.1. Stop ProductionStop Production Redesign/Repair/Redesign/Repair/

DisposalDisposal

2.2. Stop DistributionStop Distribution Replace/Repair/DisposalReplace/Repair/Disposal

3.3. Stop Retail SalesStop Retail Sales Replace/Repair/DisposalReplace/Repair/Disposal

4.4. Consumer NotificationConsumer Notification Replace/Repair/RefundReplace/Repair/Refund Incentives/DisposalIncentives/Disposal

Views expressed in this presentation are those of the staff and do not Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commissionnecessarily represent the views of the Commission

Inside Compliance and Inside Compliance and Field OperationsField Operations

Regulatory Enforcement Regulatory Enforcement DivisionDivision

Mary Toro, DirectorMary Toro, Director

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Chemical TeamChemical Team

Children’s Products (Toy) TeamChildren’s Products (Toy) Team Flammability TeamFlammability Team

Mechanical TeamMechanical Team

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Division DirectorDivision Director 4 Team Leaders – Full Case Load4 Team Leaders – Full Case Load

16 Compliance Officers16 Compliance Officers

1 Administrative Assistant1 Administrative Assistant

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Consumer Product Safety ActConsumer Product Safety ActFederal Hazardous Substances ActFederal Hazardous Substances ActPoison Prevention Packaging ActPoison Prevention Packaging ActFlammable Fabrics ActFlammable Fabrics ActRefrigerator Safety ActRefrigerator Safety ActVirginia Graeme Baker Pool & Spa Virginia Graeme Baker Pool & Spa Safety ActSafety Act

Children’s Gasoline Burn Children’s Gasoline Burn Prevention ActPrevention Act

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CPSA Section 15 CPSA Section 15 Reporting requirement for regulated productsReporting requirement for regulated products

CPSA Section 14CPSA Section 14 Non-children’s products rules: meet requirements Non-children’s products rules: meet requirements

and issue a General Certificate of Conformityand issue a General Certificate of Conformity Children’s products: must meet all applicable Children’s products: must meet all applicable

standardsstandards Issuance of a certificate based on test by approved Issuance of a certificate based on test by approved

and accredited third party test facilityand accredited third party test facility Requires tracking label on product and its Requires tracking label on product and its

packaging packaging

CPSC can compel repair, replacement, CPSC can compel repair, replacement, refund, and public notice refund, and public notice

1.1. Stop Stop Production/ImportationProduction/Importation Recondition/Correct Future Recondition/Correct Future

Production/DestroyProduction/Destroy

2.2. Stop DistributionStop Distribution Recall to the Mfr./ImporterRecall to the Mfr./Importer Recondition InventoryRecondition Inventory DestroyDestroy

3.3. Stop Retail SalesStop Retail Sales Recall from the ConsumerRecall from the Consumer

4.4. Issue Consumer Issue Consumer NotificationNotification Replace/Repair/RefundReplace/Repair/Refund Incentives for ReturnsIncentives for Returns

Views expressed in this presentation are those of the staff and do not Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commissionnecessarily represent the views of the Commission

Inside Compliance and Inside Compliance and Field OperationsField Operations

Field Investigations Field Investigations DivisionDivision

Dennis Blasius, Eastern Region Dennis Blasius, Eastern Region DirectorDirector

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Field Investigators in over 48 Field Investigators in over 48 locations around the U.S., including locations around the U.S., including Hawaii and Puerto RicoHawaii and Puerto Rico

Responsible for investigating Responsible for investigating product incidentsproduct incidents

Inspections of manufacturers, Inspections of manufacturers, importers, distributors and retailersimporters, distributors and retailers

Market Surveillance (retail, import Market Surveillance (retail, import and internet)and internet)

State and Local Activities State and Local Activities CoordinationCoordination

OutreachOutreach

Field investigation Field investigation conductedconducted

Compliance initiates contact Compliance initiates contact with the firmwith the firm

Epidemiology conducts data Epidemiology conducts data searchsearch

Engineering performs Engineering performs testing (both failure mode testing (both failure mode testing and performance testing and performance testing)testing)

Preliminary Determination Preliminary Determination Made (not Fast Track cases)Made (not Fast Track cases)

Negotiate RecallNegotiate Recall Notification to Consumers Notification to Consumers

No longer a new challenge – many No longer a new challenge – many firms sell their products exclusively firms sell their products exclusively from internet websitesfrom internet websites

CPSC dedicates investigative staff to CPSC dedicates investigative staff to internet surveillance, some full-timeinternet surveillance, some full-time

Visit importer and wholesaler chat Visit importer and wholesaler chat rooms, group list-serves, and internet rooms, group list-serves, and internet auction sites to develop leads auction sites to develop leads regarding retailers and wholesalers regarding retailers and wholesalers who might be offering obvious who might be offering obvious violative, recalled or dangerous violative, recalled or dangerous productsproducts

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* Totals now include Import Surveillance * Totals now include Import Surveillance DivisionDivision

Returns from distribution chainReturns from distribution chain Parts OrdersParts Orders Consumer complaints, claims, Consumer complaints, claims,

lawsuits/FEEDBACKlawsuits/FEEDBACK Life testingLife testing Quality Assurance / Product Quality Assurance / Product

ImprovementImprovement Material ChangesMaterial Changes Retailer Reports/Retailer Retailer Reports/Retailer

FeedbackFeedback Incidents from CPSC Injury Incidents from CPSC Injury

ClearinghouseClearinghouse

Quarantine recalled productsQuarantine recalled products Advise disposal methodAdvise disposal method Notify CPSC at : Notify CPSC at :

recalledproductdisposal@cpsc.gov CPSC verification of CPSC verification of

destruction/disposal of returned destruction/disposal of returned productsproducts

Assure third-party contractors Assure third-party contractors are following programare following program

Independent verification of third Independent verification of third partyparty

Monthly progress reports – focus Monthly progress reports – focus on post-recall injurieson post-recall injuries

Conduct Recall Verification Conduct Recall Verification Inspection at recalling companyInspection at recalling company

Execute Recall Checks at points Execute Recall Checks at points of saleof sale

Conducted by CPSC and/or State Conducted by CPSC and/or State InvestigatorsInvestigators

Internet Surveillance Unit will Internet Surveillance Unit will continue to identify any sale of continue to identify any sale of recalled productsrecalled products

Report internet sales of recalled Report internet sales of recalled products to: products to: websafety@cpsc.gov

Views expressed in this presentation are those of the staff and do not Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commissionnecessarily represent the views of the Commission

Inside Compliance and Inside Compliance and Field OperationsField Operations

Import Surveillance Import Surveillance DivisionDivision

Kathy Lisius, Compliance Kathy Lisius, Compliance Investigator, Savannah, GAInvestigator, Savannah, GA

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Created in February 2008Created in February 2008Division Director Division Director

3 Team Leaders3 Team Leaders 19 Field Compliance Investigators Co-19 Field Compliance Investigators Co-located with Customs and Border located with Customs and Border Protection (CBP) at major ports of entryProtection (CBP) at major ports of entry 2 Analysts located at Import Safety 2 Analysts located at Import Safety Commercial Targeting Analysis Center Commercial Targeting Analysis Center (“CTAC”) (“CTAC”) 1 Analyst located at HQ1 Analyst located at HQ

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864 861

709

514

885

685609

723

1,130

1,559

1,733

422463

325

224

342 368317 297

509

704

1,019

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10

Samples Violations

Product refused admission shall be Product refused admission shall be destroyed unless …destroyed unless …

Upon application by importer, Upon application by importer, Secretary of the Treasury permits Secretary of the Treasury permits the export in lieu of destructionthe export in lieu of destruction

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ITDS/ACE ITDS/ACE IntegrationIntegration

Risk Assessment Risk Assessment MethodologyMethodology

Update MOU’s for Update MOU’s for Information Information SharingSharing

HTS ModificationsHTS Modifications Detention PolicyDetention Policy Regulatory UpdatesRegulatory Updates Importer Self Importer Self Assessment-Product Assessment-Product Safety Pilot Safety Pilot (ISA-PS)(ISA-PS)

Certificates not readily availableCertificates not readily available Goods not classified appropriatelyGoods not classified appropriately Product detail not included on invoiceProduct detail not included on invoice 3rd party testing body not accredited 3rd party testing body not accredited by CPSCby CPSC

Not signing up for ISA-PSNot signing up for ISA-PS Not including the correct citation for Not including the correct citation for each CPSC Regulatory Requirement on each CPSC Regulatory Requirement on certificatecertificate

Importing children’s upper and Importing children’s upper and outerwear with drawstrings – DON’T outerwear with drawstrings – DON’T DO IT!DO IT!

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CPSC Sampling and DetentionsCPSC Sampling and Detentions Specific statutory authority for sampling Specific statutory authority for sampling (15 USC 2066, 15 USC 1273)(15 USC 2066, 15 USC 1273)

Detained merchandise remains under CBP Detained merchandise remains under CBP custodycustody

CPSC Will Issue Notices of CPSC Will Issue Notices of

DetentionDetention Notice will describe the suspected Notice will describe the suspected violation and the statute governing that violation and the statute governing that suspected violation; CPSC officer contact suspected violation; CPSC officer contact information includedinformation included

Notice issued to importer (cc: Broker and Notice issued to importer (cc: Broker and CBP)CBP)

Deal directly with CPSCDeal directly with CPSC41

Detentions – Time FramesDetentions – Time Frames Detention notices to be issued as soon as possibleDetention notices to be issued as soon as possible Recipient has 5 business days to provide Recipient has 5 business days to provide information to help resolve the detention; information to help resolve the detention; extensions can be grantedextensions can be granted

Policy is to try to resolve within 30 daysPolicy is to try to resolve within 30 days Detentions of shipments - both CBP & Detentions of shipments - both CBP & CPSC CPSC Detention notices will be issued by both agenciesDetention notices will be issued by both agencies If CBP seizes that will resolve the CPSC detentionIf CBP seizes that will resolve the CPSC detention If CBP resolves its detention in favor of the If CBP resolves its detention in favor of the importer, they will not release without resolution of importer, they will not release without resolution of the CPSC detention the CPSC detention

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