INSIDE COMPLIANCE AND FIELD OPERATIONS

1. INSIDE COMPLIANCE AND FIELD OPERATIONS • ICPHSO – February 24, 2011 • Orlando, Florida Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commission

2. Inside Compliance and Field Operations Office of Compliance and Field Operations Marc Schoem, Deputy Director Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commission

4. Inside Compliance and Field Operations Defect Investigations Division Dean Woodard, Director Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commission

5. Staffing • Division Director – Special Investigations • 3 Team Leaders – Full Case Load • 18 Compliance Officers (2 on the Safe Sleep Team) • 1 Technician • Safe Sleep Team • Team Leader (General Attorney) • 2 Compliance Officers • 2 Compliance Attorneys

6. Defect Investigations Division

7. Defect Investigations Division • Fast-Track Program – Voluntary Recalls • Section 15 Investigations • Children's Hazards Team • Fire / Electrical Hazards Team • Mechanical Hazards Team

8. Fast Track Recalls • Fast-Track Recall Program • Initiated August 1997 • Eliminates staff “preliminary determination” of hazard • Acceptable consumer level recall within20 working days of report • Reduces technical analysis (focus on notification and remedy) • Does not preclude review for reporting obligations • Over 200 million products in more than 1800 recalls

9. Industry and Consumer Benefits • No preliminary determination of substantial hazard • Removes hazardous products from commerce • Less liability • Less bureaucracy/red tape • Removes hazardous products quicker • Captures more products in the distribution chain • Saves lives • Reduces injuries

10. Compelling Recalls - Unregulated Products (Section 15) • Nearly all recalls “voluntary” • CPSC has authority to issue administrative complaint to compel recall • CPSC must prove product defective • Presents substantial product hazard • CPSC can compel repair, replacement, refund and public notice

11. Implementing a Product Safety Recall • Stop Production • Redesign/Repair/Disposal • Stop Distribution • Replace/Repair/Disposal • Stop Retail Sales • Replace/Repair/Disposal • Consumer Notification • Replace/Repair/Refund • Incentives/Disposal

12. Inside Compliance and Field Operations Regulatory Enforcement Division Mary Toro, Director Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commission

13. Regulatory Enforcement Division • Chemical Team • Children’s Products (Toy) Team • Flammability Team • Mechanical Team

14. Staffing • Division Director • 4 Team Leaders – Full Case Load • 16 Compliance Officers • 1 Administrative Assistant

16. Commission Authority • Consumer Product Safety Act • Federal Hazardous Substances Act • Poison Prevention Packaging Act • Flammable Fabrics Act • Refrigerator Safety Act • Virginia Graeme Baker Pool & Spa Safety Act • Children’s Gasoline Burn Prevention Act

17. Regulated Products and the CPSIA • CPSA Section 15 • Reporting requirement for regulated products • CPSA Section 14 • Non-children’s products rules: meet requirements and issue a General Certificate of Conformity • Children’s products: must meet all applicable standards • Issuance of a certificate based on test by approved and accredited third party test facility • Requires tracking label on product and its packaging • CPSC can compel repair, replacement, refund, and public notice

18. When a product violates a Standard, Ban or Regulation • Stop Production/Importation • Recondition/Correct Future Production/Destroy • Stop Distribution • Recall to the Mfr./Importer • Recondition Inventory • Destroy • Stop Retail Sales • Recall from the Consumer • Issue Consumer Notification • Replace/Repair/Refund • Incentives for Returns

19. Inside Compliance and Field Operations Field Investigations Division Dennis Blasius, Eastern Region Director Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commission

21. Staffing • Field Investigators in over 48 locations around the U.S., including Hawaii and Puerto Rico • Responsible for investigating product incidents • Inspections of manufacturers, importers, distributors and retailers • Market Surveillance (retail, import and internet) • State and Local Activities Coordination • Outreach

22. Field Investigative Staff Locations

23. How does the CPSC Compliance Investigation process work? • Field investigation conducted • Compliance initiates contact with the firm • Epidemiology conducts data search • Engineering performs testing (both failure mode testing and performance testing) • Preliminary Determination Made (not Fast Track cases) • Negotiate Recall • Notification to Consumers

25. Reported Incidents and Injuries

26. In-Depth Investigations

27. Internet Surveillance • No longer a new challenge – many firms sell their products exclusively from internet websites • CPSC dedicates investigative staff to internet surveillance, some full-time • Visit importer and wholesaler chat rooms, group list-serves, and internet auction sites to develop leads regarding retailers and wholesalers who might be offering obvious violative, recalled or dangerous products

28. InternetSurveillance

29. Product Samples * Totals now include Import Surveillance Division

30. What To Monitor • Returns from distribution chain • Parts Orders • Consumer complaints, claims, lawsuits/FEEDBACK • Life testing • Quality Assurance / Product Improvement • Material Changes • Retailer Reports/Retailer Feedback • Incidents from CPSC Injury Clearinghouse

31. Disposition of Recalled Products • Quarantine recalled products • Advise disposal method • Notify CPSC at : recalledproductdisposal@cpsc.gov • CPSC verification of destruction/disposal of returned products • Assure third-party contractors are following program • Independent verification of third party

32. CPSC Will Also Monitor • Monthly progress reports – focus on post-recall injuries • Conduct Recall Verification Inspection at recalling company • Execute Recall Checks at points of sale • Conducted by CPSC and/or State Investigators • Internet Surveillance Unit will continue to identify any sale of recalled products • Report internet sales of recalled products to: websafety@cpsc.gov

33. Inside Compliance and Field Operations Import Surveillance Division Kathy Lisius, Compliance Investigator, Savannah, GA Views expressed in this presentation are those of the staff and do not necessarily represent the views of the Commission

34. Staffing • Created in February 2008 • Division Director • 3 Team Leaders • 19 Field Compliance Investigators Co-located with Customs and Border Protection (CBP) at major ports of entry • 2 Analysts located at Import Safety Commercial Targeting Analysis Center (“CTAC”) • 1 Analyst located at HQ

35. Import Samples Collected

36. Consumer Product Safety Improvement Act (CPSIA)- Imported Products (15USC2066) - • Product refused admission shall be destroyed unless … • Upon application by importer, Secretary of the Treasury permits the export in lieu of destruction

37. CIS Actions as a Result of CPSIA • ITDS/ACE Integration • Risk Assessment Methodology • Update MOU’s for Information Sharing

38. CIS Actions Not Mandated by CPSIA • HTS Modifications • Detention Policy • Regulatory Updates • Importer Self Assessment-Product Safety Pilot (ISA-PS)

39. Pitfalls that could delay entry… • Certificates not readily available • Goods not classified appropriately • Product detail not included on invoice • 3rd party testing body not accredited by CPSC • Not signing up for ISA-PS • Not including the correct citation for each CPSC Regulatory Requirement on certificate • Importing children’s upper and outerwear with drawstrings – DON’T DO IT!

40. CPSC – Import Procedures • CPSC Sampling and Detentions • Specific statutory authority for sampling (15 USC 2066, 15 USC 1273) • Detained merchandise remains under CBP custody • CPSC Will Issue Notices of Detention • Notice will describe the suspected violation and the statute governing that suspected violation; CPSC officer contact information included • Notice issued to importer (cc: Broker and CBP) • Deal directly with CPSC

41. CPSC – Import Procedures • Detentions – Time Frames • Detention notices to be issued as soon as possible • Recipient has 5 business days to provide information to help resolve the detention; extensions can be granted • Policy is to try to resolve within 30 days • Detentions of shipments - both CBP & CPSC • Detention notices will be issued by both agencies • If CBP seizes that will resolve the CPSC detention • If CBP resolves its detention in favor of the importer, they will not release without resolution of the CPSC detention