Goodman Co. agrees to pay $5.55 million for delay and misrepresentations in reporting fire hazard involving air conditioner/heater
September 8, 2016, cpsc.gov
The Consumer Product Safety Commission announced the $5.55 million settlement and agreement to other terms of a consent decree for delay and misrepresentation in reporting a fire hazard associated with air conditioners and heaters. The complaint against Goodman was filed by the U.S. Department of Justice in the U.S. District Court for the Southern District of Texas and alleged that the firm knowingly failed to inform the CPSC immediately, as required by federal law, that its packaged terminal air conditioners/heaters (PTACs) contained a hazardous defect and posed an unreasonable risk of serious injury or death to consumers. The complaint also alleges that when Goodman ultimately reported the fire risk to the CPSC, it misrepresented the number of fires that had occurred.
SAMSUNG CRISIS: Government action, praise and criticism for Samsung
CPSC Urges Consumers to stop using Samsung Galaxy Note 7
September 9, 2016, cpsc.gov
The CPSC has issued a press statement urging all consumers who own a Samsung Galaxy Note7 to power them down and stop charging or using the devise. The warning is based on recent reports involving lithium-ion batteries in certain Note7 devices that have resulted in fires, while charging and during normal use. The CPSC and Samsung are working cooperatively to formally announce an official recall of the devices, the statement says. The CPSC action follows a statement by the Federal Aviation Administration strongly advising passengers not to turn on or charge the Samsung Galaxy Note7 on board aircraft and not to stow them in any checked baggage.
Opinion: Recall of Samsung phone a PR disaster
September 10, 2016, Otago Daily Times
Samsung’s release of its troubled Galaxy Note 7 has turned into a financial and PR disaster with the halting of sales and recall of millions of phone, according to one blog.The problem has been batteries on the phones catching fire, although Samsung only alludes to there being a “battery cell issue” and that only a limited number of cases have been reported so far.
Opinion: Samsung recall: An exercise in ‘bold and brilliant” crisis management
September 7,2016, PR Week
While the Samsun Galaxy Note 7 recall has sent shockwaves across the technology industry and growing consumer concerns and calls for regulatory intervention, PR experts have weighed in that the brand has handled the crisis “almost perfectly” so far. “They were bold and got ahead of the problem in almost real time,” in the opinion of one PR firm officer. Trying to confine its response to local markets, the firm instead went global with its action, understanding that “everyone sees, hears, knows and shares pretty much everything about all global brands.”
Prop 65: California Adopts new “clear and reasonable warning” requirements
September 6, 2016, The National Law Review (Keller Heckman)
The California Office of Environmental Health Hazard Assessment (OEHHA) announced September 2 a final rule concerning “clear and reasonable warnings” required under Prop 65. The new requirements attempt to provide consumers with more detailed information about potential chemical exposures, as well as clarify the responsibilities of manufacturers and others in the chain of distribution for providing warnings for products that are eventually sold at retail.
New York schools must test lead levels in drinking water under new law signed by Gov.Cuomo
September 6, 2016, New York Daily News
Schools must test their drinking water for lead contamination by no later than Oct. 31 under legislation signed by Gov. Cuomo. The legislation was passed by the Legislature in June, and also required school officials to shut down any drinking water sources found to have excessive levels of lead. Officials must also notify state Health Department and parents of the findings and develop plans to remedy the contamination.
CPSC Quarterly Report to Congress: Two Reports expected on Third Party Testing Cost Relief by end of 2016
June 10, 2016, CPSC Quarterly Report to Congress
CPSC staff engaged a contractor to study the production, use, and disposition of phthalates in consumer products according to its report to Congress in June. In addition, the contractor researched four specified plastics to assess whether those specified plastics contain more than the maximum allowed level of phthalates for children’s toys and child care articles. CPSC staff is developing a draft NPR report recommending that the Commission determine that the four specified plastics do not contain phthalates above the limit specified in section 108 of the CPSIA (0.1 percent, or 1,000 parts per million (ppm)), and thus, do not require third party testing for use in children’s toys and child care articles. The draft NPR report is due to the Commission in the third quarter of FY 2016. In addition, CPSC has engaged a contractor to study the presence of phthalates in additional specified plastics, and separately to study the presence of lead, phthalates, and various elements of the Toy Standard in specified manufactured fibers, and submit a report in the fourth quarter of FY 2016
The Modern Play Pen: A guide to current and proposed regulations of play yards
September 7, 2016, Lexology (Stinson Leonard Street)
The passage of the Consumer Product Safety Improvement Act (CPSIA) in 2008 marked Congress’ recognition that consumer confidence in children’s products would increase if safety standards were made mandatory, and that every child should be safe while sleeping. As a result Congress has created some of the strictest child sleeping device standards in the world. Among the different types of child sleeping devices, this article focused on current and proposed regulations related to play yards, which are at the heart of Section 104 of CPSIA.
China’s cross-border e-commerce trade facing uncertainties amid government regulations
September 8, 2016, South China Morning Post
One in five online Chinese shoppers made a purchase on cross-border e-commerce platforms last year, twice as many as in 2014, but tighter tax and customs regulations signal that the flourishing industry has reached an inflection point, according to a recent study by consultancy Oliver Wyman. Dubbed Haitoo in Chinese, the 120 billion yan in cross-border online trade propelled by demand for global brands and facilitated by an explosion of online marketplaces in China is now plagued by policy uncertainties over tax, product safety and logistic issues.
EU retains proposed migration limits for lead in toys
September 7, 2016, SGS
On August 18, 2016 the World Trade Organization (WTO) circulated a communication from the EU to confirm the migration limits for lead in toys are to remain identical to those in an earlier draft regulation. The new draft regulation is expected to be adopted in Q1 2017 and the provisions, summarized in this article, would take effect 18 months after publication in the Official Journal, Q3 2018.
