Outdoor Industry Association joined the list of trade organizations opposing aspects of a proposed change to federal rules that would require companies to include more information when issueing voluntary product recalls.



In a Feb. 4 letter to the Consumer Product Safety Commission, OIA Director of Trade Alex Boian said proposed changes to Voluntary Remedial Actions and Guidelines for Voluntary Recall Notices would force companies to disclose trade secrets, undermine the existing spirit of collaboration between the government and companies and slow down the voluntary recall process by requiring more information. Background on why the CPSC proposed the rule changes and comments from other trade associations can be viewed by entering CPSC-2013-0040-0003 into the search box at on line at www.regulations.gov/#!home.

 


Excerpts of Boian’s letter follow: 


“The rule proposes to make voluntary corrective action plans legally binding and would restrict a company’s ability to recall a product without disclaimers against admission of a product defect or potential hazard. The rule also proposes to give CPSC the authority to consult on a company’s voluntary internal compliance program without expertise in the operations or products of that company. The proposed rule would potentially expose a company’s trade secrets, including a list of suppliers, manufacturers and U.S. importer, and asks for the identification of significant retailers despite the possibility that the retailer may not have sold the recalled product in significant volumes. The rule also proposes that a company that voluntarily recalled a product must give direct notice to the consumers who purchased the recalled product, regardless of cost to purchase the names and contact information for those consumers and regardless of the consumers' privacy concerns.

 

The proposed rule would make several problematic changes: The rule proposes to make voluntary corrective action plans legally binding and would restrict a company’s ability to recall a product without disclaimers against admission of a product defect or potential hazard. The rule also proposes to give CPSC the authority to consult on a company’s voluntary internal compliance program without expertise in the operations or products of that company. The proposed rule would potentially expose a company’s trade secrets, including a list of suppliers, manufacturers and U.S. importer, and asks for the identification of significant retailers despite the possibility that the retailer may not have sold the recalled product in significant volumes. The rule also proposes that a company that voluntarily recalled a product must give direct notice to the consumers who purchased the recalled product, regardless of cost to purchase the names and contact information for those consumers and regardless of the consumers' privacy concerns.



The stated goal of the proposed rule change is that a “separate, interpretive rule setting forth the content that should be included in a voluntary recall notice will result in…greater efficiencies…greater predictability…and timelier issuance of recall announcements to the public.” The proposed changes, however, are likely to have the opposite result and will unnecessarily create delays in fair, accurate and timely information getting to consumers.

 

 

In addition, the proposed rule also threatens the collaborative relationship between businesses and the CPSC and unnecessarily creates a contentious dynamic for responsible companies that want to do the right thing. The proposed rule is likely to result in additional delays in the issuance of a voluntary recall as companies will be forced to seek costly legal counsel before proceeding. Adding these significant legal and financial burdens will hurt the small entrepreneurial businesses that are the foundation of the outdoor industry.

 

 

Lastly, the proposed rule may suppress employment expansion and will potentially have a stifling effect on the very product innovations that drive the growth and success of the outdoor industry. U.S.-based outdoor industry businesses employ thousands of Americans in research, design and product development. Under the proposed rule, these companies are likely to be dissuaded from creating certain products because of potential liability and additional legal costs. Additionally, the CPSC has not provided any specific evidence that current principles and guidelines for the content and form of voluntary recall notices that companies provide as part of CAPs under Section 15 of the Consumer Product Safety Act have resulted in significant delays or miscommunication to consumers or that non-compliance with voluntary CAPs is a significant problem.