Significant Changes to Consumer Product Safety Commission Expected Under New Administration

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The U.S. Consumer Product Safety Commission (“CPSC”) is an independent federal agency that administers the Consumer Product Safety Act (“CPSA”), 15 U.S.C. §§ 2051-2089, and has authority to seek civil penalties for alleged violations of the CPSA. Under the terms of the CPSA, five Commissioners make up the CPSC. The current group of Commissioners includes three Democrats and two Republicans; however, the term of one of the Democrats, Commissioner Marietta Robinson, expires in October 2017. A new Commissioner will thereafter be appointed by the President of the United States, with the advice and consent of the Senate, for a seven (7) year term. In the foreseeable future, there should be a new Commissioner appointed, which may have a significant impact on the direction of the CPSC.

  • The amount of civil penalties has increased in recent years as a result of the Consumer Product Safety Improvement Act of 2008, which increased the maximum penalties from $8,000 to $100,000 per occurrence for failure to report a product safety hazard, and increased the maximum penalty amounts for a related series of violations from $1.8 million to $15 million.
  • In 2015, the United States Department of Justice, on behalf of the CPSC, filed two lawsuits against companies for allegedly failing to comply with the terms of the CPSA.
  • Ann Marie Buerkle (a Republican) was named Acting Chairman of the CPSC on February 9, 2017, replacing former Chairman Elliott Kaye (a Democrat).
  • Commissioner Buerkle has been outspoken about the trend of seeking increased civil penalties and appears to favor a more collaborative approach.

The true impact of the recent changes to CPSC leadership, along with the anticipated upcoming change to the political balance of Commissioners, will not be fully understood until a new Commissioner is appointed and any new policies and practices are implemented. For a more complete analysis of the expected changes and potential impact on the CPSC’s regulatory regime read, Expect Change At The Consumer Product Safety Commission”.

Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. Accessing this blog and reading its content does not create an attorney-client relationship with the author or with Miles & Stockbridge. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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