On Wednesday afternoon, CPSC Chairman Alexander Hoehn-Saric addressed the annual conference of the International Consumer Product Health and Safety Organization (ICPHSO) for the second time as chairman. In his remarks, Hoehn-Saric looked back on his first year as chairman, including the recent controversy over gas stoves, and shared some of the agency’s priorities moving forward. But the central theme of Hoehn-Saric’s remarks could not have been clearer— consumers are first in everything the agency does.  

Continue Reading CPSC Chairman Addresses Gas Stoves and Other Issues at ICPHSO Conference

Key Takeaways

  1. In 2023, the Department of Energy is likely to increase enforcement of its energy and water conservation standards.
  2. The penalties associated with violating energy and water conservation standards can exceed $500 per violation and result in multi-million-dollar penalties.
  3. Manufacturers and importers of appliances and other consumer and industrial products can mitigate enforcement risk by refamiliarizing themselves with the energy and water efficiency regime and conducting internal compliance audits.

As the Biden Administration enters its third year, now with a party split in Congress, it seems likely that the Administration will redouble its focus on executive branch regulatory tools that can be used to achieve energy-related policy objectives, including with respect to energy efficiency and reducing carbon emissions. For manufacturers and importers of appliances and certain other consumer, lighting, plumbing and commercial and industrial products, that means the potential for additional scrutiny of their products’ compliance with the Department of Energy’s (DOE) conservation standards for energy and water efficiency. It also likely means a commensurate increase in DOE enforcement activity for non-compliance with the applicable efficiency standards or the associated test procedures required to demonstrate compliance, as well as registration and labeling requirements. Given the magnitude of the penalties associated with violating efficiency standards, currently $503 per violation, which can quickly run into multiple millions of dollars across noncompliant units, manufacturers and importers should consider refamiliarizing themselves with DOE’s conservation standards regime.

Continue Reading Appliance Manufacturers and Importers Should Prepare for Increased DOE Enforcement Activity in 2023

The U.S. Supreme Court is poised to clarify the extraterritorial reach of the Lanham Act for the first time in seventy years.  The decision will impact corporations’ ability to seek damages for international trademark infringement, and may resolve a circuit split on the applicability of the Lanham Act on foreign defendants’ foreign conduct.  The Court will review the Tenth Circuit’s decision in Abitron Austria GmbH et al. v. Hetronic International Inc. (“Hetronic”) and the extraterritoriality of the Lanham Act, seemingly the Court’s desired outcome after requesting the United States weigh in on Abitron Austria GmbH’s (“Abitron”) certiorari petition filed in January 2022. 

Continue Reading U.S. Supreme Court to Decide the Extraterritorial Application of the Lanham Act

Companies take note: over the past month or so, the U.S. Consumer Product Safety Commission (CPSC) has issued four unilateral press releases instructing consumers to stop using a product. Since May of this year, that number rises to seven. If that number does not seem high, consider this: between 2011 and 2019—a nine-year period—the agency issued two. So, what exactly is a “unilateral press release” and what does the agency’s issuance of four over recent weeks mean for you?

Continue Reading CPSC Enforcement Trend: Unilateral Press Releases

Despite imposing onerous new compliance terms, the recently announced Vornado civil penalty was criticized by three commissioners as too low amid their urgent calls for larger penalties in the future. On July 7, the U.S. Consumer Product Safety Commission (CPSC) announced a $7.5 million civil penalty settlement with manufacturer of air circulation products, Vornado Air (Vornado). Vornado agreed to pay the civil penalty to resolve charges that the Company knowingly failed to immediately report allegedly defective electric space heaters to the CPSC under Section 15(b) of the Consumer Product Safety Act (CPSA). The Commission voted 4-0-1 to provisionally accept the settlement. Notably, three of the agency’s five commissioners published individual statements alongside the agency’s announcement of the penalty, which is atypical. The statements provide product safety stakeholders with insights on how the “new” Commission views civil penalties and its enforcement authority. 

Continue Reading “Wiping the Slate Clean”— CPSC Commissioners Signal Higher Penalties to Come in Wake of Vornado Penalty Resolution

In the first half of 2022, manufacturers have been as busy as ever navigating recalled products and fielding the class action lawsuit that often (but do not always) follow.

CPAP Litigation Finds New Defendant 

For the last year, Philips Respironics (“Philips”) has been inundated with lawsuits  brought by consumers and medical device suppliers, over its CPAP and BiPAP breathing machines. And in more recent months, SoClean, a manufacturer of sanitation machines specifically designed to work with CPAP and BiPAP sleep apnea equipment, has been defending itself against a lawsuit of its own.

Continue Reading Recall Litigation Report: 2022 Mid-Year Recap

Earlier this week, President Biden signed the Safe Sleep for Babies Act into law. The new statute does two things. First, it bans infant inclined sleepers with an inclined sleep surface greater than ten degrees that are intended for infants up to age one. Second, it bans crib bumpers. When the Act takes effect in November, both products will be considered “banned hazardous products” under Section 8 of the Consumer Product Safety Act.

These infant products have also been the subject of recent rulemaking activity by the U.S. Consumer Product Safety Commission (CPSC). This sets up at least one potential conflict of law. Where the Safe Sleep for Babies Act bans infant inclined sleepers intended for infants up to age one, the CPSC rule affected only sleepers intended for infants up to 5 months old.
Continue Reading President Biden Signs Safe Sleep Act, Banning Infant Inclined Sleepers and Crib Bumpers

Happy New Year! We hope that our readers had a very enjoyable and safe holiday season. Here’s a brief review of key developments concerning the U.S. Consumer Product Safety Commission (“CPSC”) from last month to help you stay aware of important product safety legislative and regulatory happenings.

CPSC Responds to Finnbinn’s Challenge on Infant Sleeper Rule. On December 17, the CPSC responded to Finnbinn’s challenge of its final rule applying the voluntary safety standard for inclined infant sleep products (ASTM F3118-17a) to all infant sleep products, including those that are “flat,” such as baby boxes and in-bed sleepers. In its responding brief, the CPSC asserts that Section 104 of the Consumer Product Safety Improvement Act, which requires the agency to study and develop safety standards for infant and toddler products, gives CPSC the authority to set such a standard, even where no existing voluntary safety standard exists. According to the CPSC, to decide otherwise would “allow inaction by a voluntary standard-setting organization to preclude action by the Commission.” The agency further argued that its rule was supported by sufficient evidence, citing 11 deaths and 16 injuries associated with flat sleep products over a two-year span, which it maintained was an undercount. The primary dangers of these products, according to the agency, are that they can fall when placed on other pieces of furniture, and that products without strength and stability requirements can lead to babies falling out of the sleepers. Of note, a trio of consumer advocacy groups filed an amicus brief urging the court to uphold the safety standard’s application to flat sleep products. We will continue to follow and report on this litigation.
Continue Reading CPSC Insights – December 2021

Here’s a brief review of three key developments concerning the U.S. Consumer Product Safety Commission (“CPSC”) from the past month or so to help you stay aware of important product safety legislative and regulatory happenings.

The CPSC Has a New Commissioner. On November 16, the United States Senate confirmed Richard Trumka Jr. to a seven-year term on the Commission by voice vote. Mr. Trumka Jr. will replace long-time Commissioner Robert Adler whose term expired last month. Importantly, with Mr. Trumka Jr.’s confirmation, the Commission will remain comprised of two Democratic (Hoehn-Saric and Trumka Jr.) and two Republican (Baiocco and Feldman) Commissioners. The Democrats will not have a majority on the Commission until current Biden nominee (and CPSC Executive Director) Mary Boyle is confirmed by the Senate—and the status of that nomination remains unclear. Ms. Boyle’s nomination is not on the Senate Commerce Committee’s “Nominations Hearing” agenda for December 1. You can read more about Mr. Trumka Jr.’s confirmation in our prior post about his confirmation.
Continue Reading CPSC Insights – November 2021