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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

A perfect storm of unprecedented stress on the global supply chain from the continuing COVID-19 pandemic coupled with the promise of increased FCPA enforcement by U.S. regulators makes this an opportune time for retailers to take stock of changes to their corruption risk profile and ensure that they adjust their compliance programs accordingly.
Continue Reading Supply Chain Pressures Trigger Escalating FCPA Risks — Impact on Retailers

In a major move by California that may be but a harbinger of a dramatic sea change in banning or severely restricting the inclusion of hundreds of chemicals present in every-day consumer goods, California just imposed upon the consumer product industry (culminating, at least most likely for 2021, right before the end of October), a sweeping range of bans that likely will fundamentally disrupt the California consumer product economy.
Continue Reading No Treats, Too Many Tricks, For PFAS This Halloween

In one of the most significant developments in product safety law over the past decade, Gree Electric Appliances Inc. of Zhuhai, Hong Kong Gree Electric Appliances Sales Co. Ltd., and Gree USA Inc. (the “Gree Companies”), an appliance manufacturer and two of its subsidiaries, have pled guilty to willfully failing to report to the Consumer Product Safety Commission (CPSC) under Section 15(b) of the Consumer Product Safety Act (CPSA). According to the U.S. Department of Justice (DOJ) and the CPSC, the Gree Companies knew their dehumidifiers were defective, failed to meet applicable safety standards, and could catch fire, but failed to timely report that information to the CPSC. Section 19 of the CPSA makes it unlawful to fail to furnish information required by Section 15(b), and such failures are subject to both civil and criminal penalties. While CPSC civil penalties have become fairly routine—the Gree Companies also paid a then-record $15.45 million civil penalty in 2016—this is the first corporate criminal enforcement action brought under the CPSA, according to the DOJ. …
Continue Reading Silence Isn’t Golden: Failure to Report Consumer Product Safety Issues Results in Rare $91 Million Criminal Penalty

Supply chain issues are a top concern for many companies across industries and markets. Please join Crowell & Moring for a webinar series that explores these issues and provides insights on the various legal and tactical considerations as companies think about supply chain disruption, impacts, and solutions.

Overview of Supply Chain 
Wednesday, November 17 at

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

Gree Appliance Companies Plead Guilty to Felony Charge for Failure to Report; Indicted Executives Await Trial.  In one of the most significant developments in product safety law over the past decade, Gree Electric Appliances Inc. of China, Hong Kong Gree Electric Appliances Sales Co. Ltd., and Gree USA Inc. (the “Gree Companies”), a global appliance manufacturer, have pleaded guilty to willfully failing to report to the CPSC under Section 15(b) of the Consumer Product Safety Act.  According to the DOJ and CPSC, the Gree Companies knew their dehumidifiers were defective, failed to meet applicable safety standards, and could catch fire, but failed to report that information to the CPSC for months.  Section 19 of the CPSA makes it unlawful to fail to furnish information required by Section 15(b), and that failure is subject to civil and criminal penalties.  While CPSC civil penalties (or at least investigations) have become fairly routine—indeed, the Gree Companies paid a then-record $15.45 million civil penalty in 2016—this is the first corporate criminal enforcement action brought under the CPSA by the Government.  As part of the Gree Companies’ plea agreement, they will pay a $91 million penalty.  Two Gree executives have been charged criminally by the DOJ as well, and await trial, scheduled for March 2022.  Stay tuned for a full analysis from the Crowell product safety team.
Continue Reading CPSC Insights – October 2021

Federal Trade Commission

Monday, October 18, 2021

Deceptive or Misleading Conduct & Protecting Older Consumers

  • The FTC issued its latest report to Congress on protecting older consumers, which highlights updated findings from the Commission’s fraud reports showing trends in how older adults report being affected by fraud with the most frequent type of fraud reported by older adults

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