REGULATED PRODUCTS HANDBOOK 

 

 

U.S. Consumer Product Safety Commission 

Office of Compliance 

Recalls and Compliance Division 

Washington, DC 20207 

Telephone: (301) 504-7913

www.cpsc.gov

January 2005

3rd Edition 

This handbook contains information needed by manufacturers, distributors, importers, and 

retailers charged with violating a CPSC statute or regulation to ensure appropriate steps are 

taken to comply with CPSC requirements. 

A GUIDE FOR MANUFACTURERS, IMPORTERS, DISTRIBUTORS, AND 

RETAILERS ON PROCEDURES RELATING TO THE ENFORCEMENT OF 

STANDARDS AND REGULATIONS ISSUED UNDER THE CONSUMER 

PRODUCT SAFETY ACT (CPSA), THE FEDERAL HAZARDOUS 

SUBSTANCES ACT (FHSA), THE FLAMMABLE FABRICS ACT (FFA), 

THE POISON PREVENTION PACKAGING ACT (PPPA), 

AND THE REFRIGERATOR SAFETY ACT (RSA)
i 

REGULATED PRODUCTS HANDBOOK

TABLE OF CONTENTS

INTRODUCTION ......................................................................................................................................1

HOW CPSC ENFORCES ITS STATUTES...........................................................................................1

CHAPTER 1 - SANCTIONS UNDER CPSC STATUTES.........................................................................3

PENALTIES APPLICABLE TO FIRMS AND INDIVIDUALS .................................................................3

PENALTIES AVAILABLE UNDER THE CPSA..................................................................................................3

PENALTIES AVAILABLE UNDER THE FHSA ..................................................................................................3

PENALTIES AVAILABLE UNDER THE FFA .....................................................................................................3

PENALTIES AVAILABLE UNDER THE PPPA ..................................................................................................4

INJUNCTIVE ACTIONS........................................................................................................................4

INJUNCTIONS UNDER THE CPSA ..................................................................................................................4

INJUNCTIONS UNDER THE FHSA ..................................................................................................................4

INJUNCTIONS UNDER THE FFA .....................................................................................................................4

INJUNCTIONS UNDER THE PPPA ..................................................................................................................4

SEIZURE OF VIOLATIVE PRODUCTS................................................................................................5

SEIZURE UNDER THE CPSA...........................................................................................................................5

SEIZURE UNDER THE FHSA...........................................................................................................................5

SEIZURE UNDER THE FFA..............................................................................................................................5

SEIZURE UNDER THE FD&CA (FOR CERTAIN PRODUCTS REGULATED UNDER THE PPPA) ...............5

CHAPTER 2 - PRESENTING EVIDENCE THAT A PRODUCT IS NOT VIOLATIVE..............................6

RESPONDING TO CPSC NOTIFICATION OF VIOLATIVE PRODUCT STATUS ...............................6

CPSC RESPONSE TO INFORMATION SUBMITTED BY FIRM..........................................................6

CHAPTER 3 - HOW A FIRM UNDERTAKES A PRODUCT RECALL ....................................................7

PREPARING FOR A PRODUCT RECALL ...........................................................................................7

ELEMENTS OF A RECALL ..................................................................................................................7

COMMUNICATING RECALL INFORMATION......................................................................................8

NEWS RELEASES ............................................................................................................................................8

RECALL ALERTS ..............................................................................................................................................9

VIDEO NEWS RELEASES ................................................................................................................................9

POSTERS..........................................................................................................................................................9

OTHER FORMS OF NOTICE..........................................................................................................................10

TOLL-FREE NUMBERS ..................................................................................................................................10

WEBSITE INFORMATION...............................................................................................................................10

DEVELOPING A FIRM POLICY AND PLAN TO IDENTIFY DEFECTIVE PRODUCTS AND TO 

UNDERTAKE A PRODUCT RECALL.................................................................................................11

DESIGNATING A RECALL COORDINATOR..................................................................................................11

RESPONSIBILITIES OF A RECALL COORDINATOR....................................................................................11

ROLE OF THE RECALL COORDINATOR ......................................................................................................11

RECORDS MAINTENANCE...............................................................................................................11

CONCLUSION ....................................................................................................................................12

CHAPTER 4 - APPLICATIONS FOR AUTHORIZATION TO RECONDITION VIOLATIVE IMPORTS .13

PROCEDURES FOR OBTAINING AUTHORIZATION TO RECONDITION.......................................13

COSTS CHARGEABLE IN CONNECTION WITH RECONDITIONING VIOLATIVE IMPORTS.........13

CHAPTER 5 - REPORTING REQUIREMENTS .....................................................................................15

STATUTORY REQUIREMENTS ........................................................................................................15

REPORTING UNDER SECTION 15 OF THE CPSA.......................................................................................15

REPORTING PRODUCTS INVOLVED IN LAWSUITS ...................................................................................15

REPORTING CERTAIN CHOKING INCIDENTS.............................................................................................15

WHY REPORTING IS REQUIRED..................................................................................................................15

WHEN TO REPORT ........................................................................................................................................16

REPORTING PROCEDURES .........................................................................................................................16

PENALTIES FOR FAILURE TO REPORT ......................................................................................................16
ii 

CHAPTER 6 - EXPORT REQUIREMENTS............................................................................................17

POLICY STATEMENT REGARDING PROHIBITION OF EXPORTATION ........................................17

PROHIBITION ON EXPORTATION....................................................................................................17

EXPORT NOTIFICATION REQUIREMENTS .....................................................................................17

CHAPTER 7 - CONFIDENTIAL TREATMENT OF INFORMATION SUBMITTED ................................19

CONFIDENTIALITY OF INFORMATION UNDER SECTION 6 OF THE CPSA .................................19

CONFIDENTIALITY OF REPORTS UNDER SECTION 15(b) OF THE CPSA...................................19

CONFIDENTIALITY OF REPORTS UNDER SECTION 37 OF THE CPSA .......................................19

USE OF INFORMATION BY THE COMMISSION ..............................................................................20
1 

REGULATED PRODUCTS HANDBOOK

INTRODUCTION

The U.S. Consumer Product Safety Commission 

(CPSC) is an independent Federal regulatory agency 

charged with reducing unreasonable risks of injury and 

death associated with consumer products. The CPSC 

has jurisdiction over about 15,000 types of consumer 

products used in the home, in schools, and in 

recreation. To carry out its mission, CPSC administers 

five statutes passed by Congress. They are: (1) the 

Consumer Product Safety Act, 15 U.S.C. §§ 2051-

2084 (CPSA), (2) the Federal Hazardous Substances 

Act, 15 U.S.C. §§ 1261-1278 (FHSA), (3) the 

Flammable Fabrics Act, 15 U.S.C. §§ 1191-1204 

(FFA), (4) the Poison Prevention Packaging Act, 15 

U.S.C. §§ 1471-1476 (PPPA), and (5) the Refrigerator 

Safety Act, 15 U.S.C. §§ 1211-1214 (RSA). 

This Handbook has been developed to assist firms in 

understanding what steps they should take when 

CPSC informs them or they become aware of a 

violation of CPSC statutes and regulations. Firms 

should review this Handbook in conjunction with the 

Letter of Advice (LOA) CPSC staff sends informing a 

firm of a violation and the applicable statutes and 

regulations provided with the LOA. After reviewing the 

information in the Chapters which follow, please direct 

any questions to the appropriate CPSC Compliance 

Officer or the Office of Compliance at 301-504-7913. 

HOW CPSC ENFORCES ITS 

STATUTES 

The goal of the Commission’s Compliance Program is 

to ensure that firms comply with the laws, regulations, 

and standards that protect consumers from hazardous 

products. To achieve this goal, the agency conducts 

three main types of compliance activities: 

• Informing industries of CPSC requirements for 

their products and educating them through 

seminars and information letters, as 

appropriate; 

• Maintaining surveillance over consumer 

products and following up on reports of 

products that may not be in compliance with 

federal standards or may be potentially 

hazardous products; 

• Identifying and obtaining corrections of 

violations and recalls of hazardous products 

from the marketplace or consumers, primarily 

by working cooperatively with industry, but 

through litigation when necessary. 

Specific compliance activities include the following: 

• Enforcing existing regulations and laws by (1) 

conducting both domestic surveillance through 

inspections of the regulated industry and 

import surveillance at Ports of Entry in 

conjunction with the U.S. Bureau of Customs 

and Border Protection, and (2) following up on 

injury reports, consumer complaints, trade 

complaints or other allegations or indications 

that a firm is manufacturing or distributing a 

consumer product not in compliance with the 

law. 

• Section 15 of the CPSA requires manufacturers, distributors, and retailers to report to the 

CPSC, among other things, products that fail 

to comply with a standard or banning rule 

issued under the CPSA. If a product violates 

a mandatory standard under the FHSA, FFA, 

PPPA or RSA, the firm must determine 

whether the violation rises to the level of a 

defect that could create a substantial product 

hazard or creates an unreasonable risk of 

serious injury or death∗. If so, the firm must 

report. Section 37 of the CPSA requires 

manufacturers to report to the Commission 

products which are the subject of at least three 

civil actions within a 24-month period that 

result in a judgment or final settlement in favor 

of the plaintiff. The Commission has the 

authority to remove hazardous products from 

the marketplace under section 15 of the CPSA 

and section 15 of the FHSA. 

Once the CPSC staff determines a product violates a 

specific statute or regulation, CPSC Compliance staff 

generally notifies the responsible firm (the product 

manufacturer, importer, distributor, or retailer). 

Notification to the responsible firm is usually in the form 

of an official letter, referred to in this handbook as a 

Letter of Advice (LOA). 

 

∗ When the Commission issues a product standard, 

it finds that the standard is necessary to protect 

against an unreasonable risk of injury. Thus, for 

reporting purposes, firms must determine whether a 

violation of a standard under the FHSA, FFA, PPPA, 

or RSA creates a risk of serious injury or death. 
2 

The LOA informs the firm of the specific product and 

violation involved, requests the firm to take specific 

corrective actions, and informs the firm of the legal 

actions available to the Commission in the event the 

firm does not agree to correct the violations voluntarily. 

In addition, the LOA informs the firm that if it disagrees 

with CPSC staff that a violation has occurred or 

believes the product is not subject to the Commission’s 

laws, it may question the staff’s findings and present 

evidence to support its position. 
3 

CHAPTER 1 - SANCTIONS UNDER CPSC STATUTES

In enacting the various statutes administered by 

CPSC, Congress provided specific sanctions which 

may be imposed against firms that violate any 

provision of the statutes. These sanctions include both 

civil fines against the responsible firm and individual, 

up to a maximum of $1.825 million** (69 Fed. Reg. 

68884, November 26, 2004) and criminal fines, and 

imprisonment of the responsible individual(s) for not 

more than one year. In addition, firms and individuals 

may be enjoined from continuing to violate CPSC 

statutes and regulations, and pursuant to court order, 

violative products may be seized to prevent distribution 

in commerce. Following is a discussion of the 

penalties and other sanctions that may be imposed by 

CPSC for violations of its statutes. 

PENALTIES APPLICABLE TO 

FIRMS AND INDIVIDUALS 

When a product is found to violate a CPSC statute, 

safety standard or banning regulation, the Compliance 

staff issues a LOA to the responsible firm and 

individuals. The LOA informs the firm what regulation 

or standard has been violated, what statute has been 

violated and states that a prohibited act has occurred. 

The prohibited acts are found in section 19 of the 

CPSA, 15 U.S.C. § 2068; section 4 of the FHSA, 15 

U.S.C. § 1263; section 3 of the FFA,15 U.S.C. § 1192; 

 and section 403 of the Federal Food, Drug, and 

Cosmetics Act (FD&CA), 21 U.S.C. § 343, for 

violations involving foods, drugs, and cosmetics 

subject to special packaging standards under the 

PPPA. 

Once a firm and/or individual is informed of the 

prohibited act(s), the firm and individual can determine 

the maximum sanctions to which they may be subject. 

Generally, the LOA will not contain specific details 

regarding penalties but will refer to this Handbook for 

assistance in determining the applicable penalties. 

Following is a summary of the penalties available 

under the CPSA, FHSA, FFA, and PPPA enforced 

through the FHSA and FD&CA. 

PENALTIES AVAILABLE UNDER THE CPSA 

Civil Penalties under CPSA - Under section 20 of the 

CPSA, any person who knowingly violates section 19 

of the CPSA shall be subject to a civil penalty not to 

exceed $8,000 for each such violation**. With some 

exceptions, a violation of § 19(a)(1), (2), (4), (5), (6), 

(7), (8), (9), (10), or (11) shall constitute a separate 

 

** The maximum penalty amounts are adjusted for 

inflation every five years. The next adjustment will 

occur in January 2010. 

offense with respect to each individual consumer 

product involved, except that the maximum civil penalty 

shall not exceed $1.825 million for any related series of 

violations (69 Fed. Reg. 68884, November 26, 2004). 

Criminal Penalties under CPSA - Under section 21 of 

the CPSA, any person who knowingly and willfully 

violates section 19 of the CPSA after having received 

notice of noncompliance from the Commission shall be 

fined (as described below) or imprisoned for not more 

than one year, or both. The Criminal Fine 

Improvements Act of 1987, Public Law 100-185, 

increased maximum criminal penalties under the CPSA 

to $100,000 for individuals and $200,000 for 

organizations unless a death occurred, in which case 

the maximum fine is $250,000 for individuals and 

$500,000 for organizations. 

PENALTIES AVAILABLE UNDER THE FHSA 

Civil Penalties under FHSA - The Consumer Product 

Safety Improvement Act of 1990, Public Law 101-608, 

amended section 5 of the FHSA by adding a new 

section 5(c)(1), 15 U.S.C. § 1264, which gives the 

Commission the authority to seek civil penalties 

against any person who knowingly violates section 4 of 

the FHSA. The term “knowingly" is defined in section 

5(c)(5) of the FHSA. 15 U.S.C. § 1264(c)(5). The 

Commission may seek a civil penalty of up to $8,000** 

per violative product, up to a maximum of $1.825 

million for any related series of violations (69 Fed. Reg. 

68884, November 26, 2004). 

Criminal Penalties under FHSA - Under section 5(a) 

of the FHSA, 15 U.S.C. § 1264(a), any person who 

violates section 4 of the FHSA shall be guilty of a 

misdemeanor and shall upon conviction thereof be 

subject to a fine (described below) or to imprisonment 

for not more than 90 days (one year for violations 

committed with intent to defraud or mislead or for 

second and subsequent offenses), or both. The 

Criminal Fine Improvements Act of 1987, Public Law 

100-185, increased the maximum criminal penalties 

provided for in section 5(a) of the FHSA to $5,000 for 

individuals and $10,000 for organizations for first 

violations; $100,000 for individuals and $200,000 for 

organizations for second and subsequent offenses and 

for offenses committed with intent to defraud or 

mislead; and $250,000 for individuals and $500,000 for 

organizations for violations resulting in death. 

PENALTIES AVAILABLE UNDER THE FFA 

Civil Penalties under FFA - The Consumer Product 

Safety Improvement Act of 1990, Public Law 101-608, 

amended section 5 of the FFA, by adding a new 

section 5(e), 15 U.S.C. § 1194 (e), which gives the 

Commission the authority to seek civil penalties 
4 

against any person who knowingly violates a regulation 

or standard issued under section 4 of the FFA, 15 

U.S.C. § 1193. The term "knowingly" is defined in 

section 5(e)(4) of the FFA, 15 U.S.C. §1194. The 

Commission may seek a civil penalty of up to $8,000** 

per violative product, up to a maximum penalty of 

$1.825 million for any related series of violations (69 

Fed. Reg. 68884, November 26, 2004). 

Criminal Penalties under FFA - Under section 7 of 

the FFA, 15 U.S.C. § 1196, any person who willfully 

violates section 3 or 8(b) of the FFA or fails to comply 

with section 15(c) of the FFA shall be guilty of a 

misdemeanor, and upon conviction thereof shall be 

fined (as described below) or imprisoned not more than 

one year or both. The Criminal Fine Improvements Act 

of 1987, Public Law 100-185, increased the maximum 

criminal penalties provided for in section 7 of the FFA 

to $100,000 for individuals and $200,000 for 

organizations unless a death occurred, in which case 

the maximum fine is $250,000 for individuals and 

$500,000 for organizations. 

PENALTIES AVAILABLE UNDER THE PPPA 

In enacting the PPPA, Congress chose to incorporate 

the penalties available under two existing statutes 

rather than provide separate penalties for prohibited 

acts involving products regulated under the PPPA. 

Depending on the type of product and the specific 

prohibited act involved, penalties provided for under 

the FHSA or the FD&CA may be applicable. 

Civil Penalties - The failure to comply with a standard 

under the PPPA results in the product being classified 

as either a misbranded hazardous substance under the 

FHSA or a misbranded food, drug, or cosmetic under 

the FD&CA, as amended. If the product involved is 

classified as a misbranded hazardous substance, see 

Civil Penalties under FHSA, above. If the product 

involved is a misbranded food, drug, or cosmetic, refer 

to Criminal Penalties below, since no civil penalties are 

provided for under the FD&CA. 

Criminal Penalties - If the product involved is a 

misbranded hazardous substance, see Criminal 

Penalties under FHSA, above. If the product involved 

is a misbranded food, drug, or cosmetic, criminal 

penalties for violations of the PPPA are spelled out in 

section 303(a)(1) of the FD&CA, 21 U.S.C. § 333. 

Under that section, any person who violates a 

provision of section 301 shall be guilty of a 

misdemeanor, and upon conviction thereof shall be 

fined (as described below) or imprisoned for not more 

than one year (or for subsequent offenses and 

offenses committed with the intent to defraud or 

mislead, three years). The Criminal Fines 

Improvements Act of 1987, Public Law 100-185, 

increased maximum criminal penalties under the 

FD&CA for first violations to $100,000 for individuals 

and $200,000 for organizations and for second and 

subsequent offenses and for offenses committed with 

intent to defraud or mislead to $250,000 for individuals 

and $500,000 for organizations. 

INJUNCTIVE ACTIONS 

Following are the applicable provisions which authorize 

the Commission to seek to enjoin firms from violations 

of the CPSC statutes and regulations. 

INJUNCTIONS UNDER THE CPSA 

Section 22(a) of the CPSA, 15 U.S.C. § 2071, states: 

“The United States district courts shall have jurisdiction 

to take the following action: 

1. Restrain any violation of section 19; 

2. Restrain any person from manufacturing for 

sale, offering for sale, distributing in commerce, or importing into the United States a 

product in violation of an order in effect under 

section 15(d).; 

3. Restrain any person from distributing in commerce a product which does not comply with a 

consumer product safety rule.” 

INJUNCTIONS UNDER THE FHSA 

Section 8(a) of the FHSA, 15 U.S.C §1267, states: 

"The United States district courts and the United States 

courts of the territories shall have jurisdiction, for cause 

shown and subject to the provisions of rule 65 (a) and 

(b) of the Federal Rules of Civil Procedure, to restrain 

violations of this Act." 

INJUNCTIONS UNDER THE FFA 

Section 6(a) of the FFA, 15 U.S.C. §1195, states: 

"Whenever the Commission has reason to believe that 

any person is violating or is about to violate section 3, 

or a rule or regulation prescribed under section 5(c), of 

this Act, and that it would be in the public interest to 

enjoin such violation until complaint under the Federal 

Trade Commission Act is issued and dismissed by the 

Commission or until an order to cease and desist made 

thereon by the Commission has become final within 

the meaning of the Federal Trade Commission Act or 

is set aside by the court on review, the Commission 

may bring suit in the district court of the United States, 

for the district in which such person resides or 

transacts business ... to enjoin such violation and upon 

proper showing a temporary injunction or restraining 

order shall be granted without bond." 

INJUNCTIONS UNDER THE PPPA 

For violations of the PPPA which result in a product 

being classified as a misbranded hazardous 

substance, see Injunctions Under The FHSA, above. 

For PPPA violations which result in the product being 

classified a misbranded food, drug, or cosmetic, the 

injunctive provisions of the FD&CA apply. 
5 

Section 302(a) of the FD&CA, 21 U.S.C. § 332, states: 

 "The district courts of the United States and the United 

States courts of the Territories shall have jurisdiction, 

for cause shown, to restrain violations of section 331 of 

this title, except paragraphs (h), (i), and (j).” 

SEIZURE OF VIOLATIVE 

PRODUCTS 

Products which are in violation of an applicable 

standard or regulation are subject to seizure and 

condemnation proceedings under the various statutes. 

SEIZURE UNDER THE CPSA 

Section 22(b) of the CPSA, 15 U.SC.§ 2071(b), states 

"Any consumer product 

1. which fails to conform with an applicable 

consumer product safety rule, or 

2. the manufacture for sale, offering for sale, 

distribution in commerce or the importation 

into the United States of which has been 

prohibited by an order in effect under section 

15(d), 

when introduced into or while in commerce or while 

held for sale after shipment in commerce shall be liable 

to be proceeded against on libel of information and 

condemned in any district court of the United States 

within the jurisdiction of which such consumer product 

is found...." 

SEIZURE UNDER THE FHSA 

Section 6(a) of the FHSA, 15 U.S.C. §1265(a), states 

"Any misbranded hazardous substance or banned 

hazardous substance when introduced into or while in 

interstate commerce or while held for sale (whether or 

not the first sale) after shipment in interstate 

commerce, or which may not, under the provisions of 

section 4(f), be introduced into interstate commerce, or 

which has been manufactured in violation of section 

4(g), shall be liable to be proceeded against while in 

interstate commerce or at any time thereafter, on libel 

of information and condemned in any district court in 

the United States within the jurisdiction of which the 

hazardous substance is found: Provided, That this 

section shall not apply to a hazardous substance 

intended for export to any foreign country if it (1) is in a 

package branded in accordance with the specifications 

of the foreign purchaser, (2) is labeled in accordance 

with the laws of the foreign country, and (3) is labeled 

on the outside of the shipping package to show that it 

is intended for export, and (4) is so exported." 

SEIZURE UNDER THE FFA 

Section 6(b) of the FFA, 15 U.S.C. §1195(b), states 

"Whenever the Commission has reason to believe that 

any product has been manufactured or introduced into 

commerce or any fabric or related material has been 

introduced into commerce in violation of section 3 of 

this Act, it may institute proceedings by process of libel 

for the seizure and confiscation of such product, fabric, 

or related material in any district court of the United 

States within the jurisdiction of which such product, 

fabric, or related material is found...." 

SEIZURE UNDER THE FD&CA (FOR 

CERTAIN PRODUCTS REGULATED UNDER 

THE PPPA) 

Section 304(a) of the FD&CA, 21 U.S.C. § 334, states 

"Any article of food, drug, or cosmetic that is 

adulterated or misbranded when introduced into or 

while in interstate commerce or while held for sale 

(whether or not the first sale) after shipment in 

interstate commerce, or which may not, under the 

provisions of section 404 or 505 of this title, be 

introduced into interstate commerce, shall be liable to 

be proceeded against while in interstate commerce, or 

at any time thereafter, on libel of information and 

condemned in any district court of the United States or 

United States court of a Territory within the jurisdiction 

of which the article is found...." 

 
6 

CHAPTER 2 - PRESENTING EVIDENCE THAT A PRODUCT IS NOT 

VIOLATIVE

This Chapter contains the procedures to be followed if 

a firm disagrees with the Commission staff 

determination that a product is in violation of a 

regulation or standard administered by CPSC. 

RESPONDING TO CPSC 

NOTIFICATION OF VIOLATIVE 

PRODUCT STATUS 

When the CPSC Compliance Officer notifies you in a 

LOA that a product you manufacture, import, or 

distribute fails to comply with a CPSC statute, standard 

or regulation, you may disagree with the staff’s 

determination. 

The LOA will state that the firm may present evidence 

that a violation does not exist or that a product is not 

covered by the applicable statute or regulation. In 

response to the LOA, you may submit to the 

Compliance Officer evidence and arguments that 

support why you believe the product is not violative, 

not covered by a specific regulation, or should not be 

refused admission into the U.S. (if the violation 

involves an import sample). 

A firm may respond to a Letter of Advice in writing 

and/or the firm may request an informal hearing to 

meet personally with the Office of Compliance staff to 

orally present views and evidence. 

Such evidence may consist of: 

• results of tests indicating the product complies 

with the applicable regulation; 

• marketing data indicating the product is not 

intended for the population group protected by 

the regulation; 

• any other type of information. 

CPSC RESPONSE TO 

INFORMATION SUBMITTED BY 

FIRM

Any additional evidence or arguments that a firm 

presents are reviewed by the appropriate CPSC 

Compliance staff, including appropriate technical staff. 

 If the information you present does not, in the staff’s 

opinion, refute the staff’s claim that the product is 

violative or covered by a specific regulation, the 

Commission staff generally will notify you in writing 

why it believes the information submitted is insufficient 

before pursuing any enforcement action against the 

products or your firm. 

If a firm continues to disagree with the staff and 

declines to take corrective action, the staff may request 

the Commission to approve appropriate legal 

proceedings including issuance of an administrative 

complaint, injunctive action, seizure action, or such 

other action as may be appropriate. 
7 

CHAPTER 3 - HOW A FIRM UNDERTAKES A PRODUCT RECALL 

This Chapter provides information on initiating a 

product recall when the CPSC staff determines that the 

hazard associated with a product warrants such action. 

PREPARING FOR A PRODUCT 

RECALL 

Once the CPSC staff determines that a product is in 

violation of a Commission statute or regulation, it will 

notify you in the LOA that corrective action to address 

the violation is warranted. The LOA generally will also 

include specific corrective actions the CPSC staff 

believes are appropriate to address the violation. 

Where appropriate, based on the nature of the hazard 

and the likelihood of injury associated with the 

noncomplying product, the Compliance staff will 

request that the firm recall the product from the 

marketplace, including consumers who already own 

the product. This corrective action plan, after being 

reviewed by the CPSC staff for adequacy, forms the 

basis for any action you take to resolve the problem. 

It is unlikely that any two recall programs will ever be 

identical. Therefore, companies should be prepared to 

address issues that invariably arise. For instance: 

• How did the product fail to comply with 

government safety regulations? 

• Where are the unsafe products located? How 

many are there? 

• Has the firm discontinued production and 

shipments of these products to distributors 

and retailers? 

• Has the firm notified distributors and retailers 

to stop selling the product and asked them to 

help identify consumers who own the product? 

• Has the firm started reviewing existing 

databases to identify potential product owners, 

e.g., product registration and customer service 

records? 

• Has the firm drafted a press release 

announcing the recall? What other forms of 

public notice are needed? 

• Has the firm set-up a toll-free telephone 

service that will be able to handle the number 

of calls expected after the recall is 

announced? 

• Is the firm prepared to deploy people and/or 

fund an effort to provide replacement parts for 

defective products or to exchange them for 

new products that do not have the problem? 

• Has the firm developed a plan to ship 

replacement parts or new units to distributors 

and/or retailers involved in the product recall, 

or otherwise repair the units in their inventory? 

• Is the firm prepared to monitor the product 

recall and provide timely reports to the 

Commission on the progress of the recall? 

• Has the firm developed a plan to dispose of 

recalled units? 

• How is the firm upgrading its quality control or 

risk analysis procedures to prevent a similar 

product recall in the future? 

This list addresses administrative and operational 

functions of a firm involved in a product recall. Even if a 

product recall is merely potential, a firm should be 

prepared to respond to the questions listed above. 

ELEMENTS OF A RECALL 

A firm that undertakes a recall should develop a 

comprehensive plan that reaches throughout the entire 

distribution chain and to consumers who have the 

product. The firm must design each communication to 

motivate people to respond to the recall and take the 

action requested by the firm. 

Once the CPSC Compliance staff and a firm agree on 

a remedy to correct a violative product, the CPSC 

Compliance staff works with the firm to put together an 

effective plan for public notification and implementation 

of the recall. The Commission will publicize the terms 

of the plan to inform the public of the nature of the 

noncomplying product hazard and the actions being 

undertaken to correct that hazard. 

The objectives of a recall are: 

1. To locate all noncomplying products as quickly 

as possible; 

2. To remove noncomplying products from the 

distribution chain and from the possession of 

consumers; and 

3. To communicate accurate and understandable 

information in a timely manner to the public 

about the noncomplying product, the hazard, 
8 

and the corrective action. Companies should 

design all informational material to motivate 

retailers and media to get the word out and 

consumers to act on the recall. 

In determining what forms of notice to use, companies 

should consider where and how the product was 

marketed, its user population, the estimated useful life 

of the product, and how the product is most likely to be 

maintained and repaired. 

A firm conducting a recall must take particular care to 

coordinate the notice portion of the recall so that all 

participating parties, including retailers, have sufficient 

advance notice so that they can carry out the actions 

agreed upon. Notice also needs to be balanced -- the 

purpose of some elements, such as news releases, 

press conferences, and video news releases -- is to get 

the media to publicize information about the recall 

widely. Other elements, such as advertisements and 

posters, assure that the information is available to the 

public throughout the course of the recall and is to be 

designed to reach consumers who did not hear the 

original announcement. 

COMMUNICATING RECALL 

INFORMATION 

The Commission encourages companies to be creative 

in developing ways to reach owners of recalled 

products and to motivate them to respond. The 

following are examples of types of notice that may be 

appropriate. This list is meant as a guide only, and is 

by no means all-inclusive. As new or innovative 

methods of notice and means of communication 

become available, such as use of the Internet, the staff 

encourages their use. 

• A joint news release from CPSC and the firm; 

• Targeted distribution of the news release; 

• A dedicated toll-free number and/or fax 

number for consumers to call to respond to the 

recall notice; 

• Information on recalling firm’s world wide web 

sites and ability to register for recall remedy 

on-line; 

• A video news release to complement the 

written news release; 

• A national news conference and/or television 

or radio announcements; 

• Direct notice to consumers known to have the 

product -- identified through registration cards, 

credit cards, sales records, catalog orders, or 

other means; 

• Notices to distributors, dealers, sales 

representatives, retailers, service personnel, 

installers, and other persons who may have 

handled or been involved with the product; 

• Purchase of mailing lists of populations likely 

to use the product; 

• Paid notices via television and/or radio; 

• Paid notices in national newspapers and/or 

magazines to reach targeted users of the 

product; 

• Paid notices through local or regional media; 

• Incentives such as money, gifts, premiums, or 

coupons to encourage consumers to return 

the product; 

• Point-of-purchase posters; 

• Notices in product catalogs, newsletters, and 

other marketing materials; 

• Posters for display at locations where users 

are likely to visit, such as stores, medical 

clinics, pediatricians' offices, day care centers, 

repair shops, equipment rental locations, etc.; 

• Notices to repair/parts shops; 

• Service bulletins; 

• Notices included with product replacement 

parts/accessories; 

• Notices to day care centers; 

• Notices to second hand stores. 

The Compliance staff must review and agree upon 

each communication that a firm intends to use in a 

product recall before publication or dissemination. It is, 

therefore, imperative that companies give the 

Compliance staff advance drafts of all notices or other 

communications to media, customers, and consumers. 

Following are some specific suggestions for 

communicating recall information: 

NEWS RELEASES 

Unless a firm can identify all purchasers of a product 

being recalled and notify them directly, the 

Commission typically issues a news release jointly with 

the firm. The Compliance staff develops the wording of 

the release with the recalling firm and in conjunction 

with the Commission's Office of Information and Public 

Affairs. The agreed-upon language for the news 
9 

release provides the foundation for preparing other 

notice documents. The Commission discourages 

unilateral releases issued by companies because they 

create confusion among the media and public, 

particularly if CPSC is also issuing a release on the 

same subject. 

The CPSC’s Office of Information and Public Affairs 

sends the news releases to national wire services, 

major metropolitan daily newspapers, television and 

radio networks, and periodicals on the agency's news 

contact mailing list. News releases from the 

Commission receive wide media attention and 

generate a good response rate from consumers. 

Each recall news release should use the word "recall" 

in the heading and should begin, "In cooperation with 

the U.S. Consumer Product Safety Commission 

(CPSC)...." 

Recall news releases must include the following: 

• The name and location of the recalling firm 

• The name of the product 

• The number of products involved 

• A description of the hazard 

• The number of deaths, injuries, and incidents 

involving the product 

• Detailed description of the product, including 

model numbers, colors, sizes, and labeling 

• A line drawing or photograph of the product 

• Major retailers and where and when the 

product was sold and retail cost 

• Complete instructions for consumers on how 

to participate in the recall 

CPSC posts recall news releases on its Internet web 

site (available via: www.cpsc.gov or www.recalls.gov) 

and requests companies to provide color photographs 

of recalled products for the web site. 

RECALL ALERTS 

When a recalling firm has the ability to reach all owners 

of a recalled product through direct notification (for 

example, by registration cards, membership or loyalty 

cards, catalog sales, credit card purchases, extended 

warranty sales, etc.), the staff will prepare a recall alert 

in the form and style of a press release. It will be 

posted on the CPSC website (available via: 

www.cpsc.gov or www.recalls.gov) so consumers can 

confirm and verify the Commission is involved in the 

recall. Summaries of recall alerts are also provided to 

national wire services. 

VIDEO NEWS RELEASES 

A video news release (VNR) is a video version of the 

written news release that describes the recall in audiovisual terms. Distributed via satellite to television 

stations nationwide, it is an effective method to 

enhance a recall announcement. A VNR increases the 

chances that television news media will air information 

about a recall because it effectively provides news of 

the recall to television news producers in the form that 

they need. 

Commission staff works with firms to produce VNRs 

announcing recalls. Like news releases, VNRs need to 

communicate basic information clearly and concisely. 

VNRs should incorporate the same information as the 

news release, as well as video images of the product. 

They often also include brief statements of firm officials 

and/or the Chairman of the Commission. When writing 

a VNR script, remember that, if this information is to 

reach consumers, television networks or local stations 

must pick it up -- which means that the script must be 

written for television producers. 

A brief guide describing how to produce a VNR is 

available from the Office of Compliance upon request 

or at: http://www.cpsc.gov/BUSINFO/vnrprod.html. 

POSTERS 

Posters are an effective means of providing continuing 

notice of recalls to consumers at points of purchase or 

other locations that they visit. Guidelines for posters 

and counter cards are as follows: 

• Keep them BRIEF and eye-catching; in 

general, a poster requires far fewer words 

than a news release. 

• Describe the hazard and tell consumers what 

to do. 

• Use color to make the poster stand out. 

• Use a print font, size, and color that provides a 

strong contrast to the background color of the 

poster. 

• Include the terms "safety" and "recall" in the 

heading. 

• Use a good quality line drawing or photograph 

of the product with call outs identifying product 

information, such as model numbers and date 

codes. 
10 

• The firm’s toll-free telephone number should 

be in large size type at the bottom of the 

poster. 

• The poster should include "Post until [date at 

least 120 days from recall announcement]." 

• Consider tear-off sheets with each poster with 

information on the recall for consumers to take 

home. 

When a firm produces a point of purchase poster 

announcing a recall, it must contact its retailers or 

other entities that the firm wants to display the posters 

before the recall is announced. The firm must explain 

the reason for the recall and the contribution to public 

safety that the posters provide. The firm must also: 

• Advise retailers or other firms to place the 

posters in several conspicuous locations in 

their stores or offices where customers will 

see them, e.g., the area where the product 

was originally displayed for sale, store 

entrances, waiting rooms in pediatric clinics, 

service counters at repair shops. 

• Provide sufficient numbers of posters for 

retailers or others to display them in more than 

one place in each store or location, and 

provide a contact for ordering additional 

posters. 

CPSC recommends that posters be 11 x 17 inches, but 

in no case smaller than 8.5 x 11 inches. These two 

sizes are easiest to mail in bulk quantities. Larger sizes 

may be appropriate for repair and service shops. Also, 

many retailers, particularly large chains, have specific 

requirements for posters, including size and some 

product identification information. To avoid delays and 

having to reprint, a firm producing a recall poster must 

contact retailers in advance to see if they have any 

such requirements. 

OTHER FORMS OF NOTICE 

Like news releases and posters, letters, 

advertisements, bulletins, newsletters, and other 

communications about a recall need to provide 

sufficient information and motivation for the reader or 

listener to identify the product and to take the action 

you are requesting. They should be written in language 

targeted to the intended audience. 

• Letters or other communications should be 

specific and concise. 

• The words "Important Safety Notice" or 

"Safety Recall" must appear at the top of each 

notice and cover letter or in the subject line of 

an email notification and must also be on the 

lower left corner of any mailing envelope. 

• Notices to retailers and distributors must 

explain the reason for the recall, including the 

hazard, and include all the instructions needed 

to tell them how to handle their product 

inventory, as well as instructions for displaying 

posters or notices, providing information to 

consumers, and disposing of returned 

products. 

• All letters and other notices to consumers 

must explain clearly the reason for the recall, 

including injury or potential injury information, 

and provide complete instructions. 

TOLL-FREE NUMBERS 

A firm conducting a recall must provide a toll-free 

(800/888/877/866) telephone number for consumers to 

respond to the recall announcement. Generally, this 

number should be dedicated only to the recall. 

Historically, the Commission staff has found that most 

firm’s systems for handling consumer relations or for 

ordering products, repairs, or accessories are unable 

to respond effectively to callers about recall 

announcements, particularly during the first few weeks 

after the initial announcement. 

When establishing a telephone system to handle a 

recall, be over-generous in estimating consumer 

response, especially during the first several 

days/weeks. It is easier to cut back than it is to add 

more capacity once a recall is announced, and 

consumers who are unable to get through may get 

upset. 

Whether you use an automated system or live 

operators to answer the calls, prepare scripts and 

instructions for responding to questions. Operators or 

taped messages should begin by identifying the firm 

and product and explaining the reason for the recall. 

Most consumers who hear about a recall by radio, 

television, or word of mouth will not remember all the 

information they initially heard. Again, at its beginning, 

the message should reinforce the need for listeners to 

act, particularly if the message is lengthy. 

CPSC Compliance staff must review all scripts before 

the recall is announced. All automated systems should 

provide a number for consumers to contact the firm for 

special problems, e.g., problems completing repairs or 

installing parts. 

WEBSITE INFORMATION 

Companies should post and make available a notice 

of the recall in a conspicuous location on their own 

website. The recall information should be 

segregated from other company information with a 
11 

distinct icon or heading designating this safety 

information. Firms should provide historical recall 

information since not all products are returned during 

the designated recall period. Companies should 

provide an opportunity for owners of recalled 

products to register for the recall remedy on-line. 

DEVELOPING A FIRM POLICY AND 

PLAN TO IDENTIFY DEFECTIVE 

PRODUCTS AND TO UNDERTAKE 

A PRODUCT RECALL 

Companies whose products come under the 

jurisdiction of the CPSC should develop an 

organizational policy and plan of action before a 

product recall or similar action becomes necessary. 

This policy and any related plans should focus on the 

early detection of product safety problems and prompt 

response. 

DESIGNATING A RECALL COORDINATOR 

Designating a firm official or employee to serve as a 

"recall coordinator" is a significant step that a firm can 

take to meet its product safety and defect reporting 

responsibilities. Ideally, this coordinator has full 

authority to take the steps necessary (including 

reporting to the Commission) to initiate and implement 

all recalls, with the approval and support of the firm's 

chief executive officer. 

RESPONSIBILITIES OF A RECALL 

COORDINATOR 

We suggest the recall coordinator have the following 

qualifications and duties: 

• Knowledge of the statutory authority and recall 

procedures of the Consumer Product Safety 

Commission; 

• Ability and authority to function as the central 

coordinator within the firm for receiving and 

processing all information regarding the safety 

of the firm’s products. Such information 

includes, e.g., quality control records, 

engineering analyses, test results, consumer 

complaints, warranty returns or claims, 

lawsuits, and insurance claims; 

• Responsibility for keeping the firm's chief 

executive officer informed about reporting 

requirements and all safety problems or 

potential problems that could lead to product 

recalls; 

• Responsibility for making decisions about 

initiating product recalls; 

• Authority to involve appropriate departments 

and offices of the firm in implementing a 

product recall; 

• Responsibility for serving as the firm's primary 

liaison with CPSC. 

ROLE OF THE RECALL COORDINATOR 

At the outset, the recall coordinator should fully review 

the firm's product line to verify regulatory conformance 

of each product. 

The firm should institute a product identification system 

if one is not now in use. Model designations and dateof-manufacture codes should be used on all products, 

whether they carry the firm's name or are privately 

labeled for other firms. If a product recall is necessary, 

this practice allows the firm to identify easily all 

affected products without undertaking a costly recall of 

the entire production. Similarly, once a specific product 

has been recalled and corrected, a new model number 

or other means of identification used on new corrected 

products allows distributors, retailers, and consumers 

to distinguish products subject to recall from the new 

items. Until a production change can be made to 

incorporate a new model number or date code, some 

companies have used sticker labels to differentiate 

products that have been checked and corrected from 

recalled products. 

RECORDS MAINTENANCE 

The goal of any product recall is to retrieve, repair, or 

replace those products already in consumers’ hands as 

well as those in the distribution chain. Maintaining 

accurate records about the design, production, 

distribution, and marketing of each product for the 

duration of its expected life is essential for a firm to 

conduct an effective, economical product recall. 

Generally, the following records are key both to 

identifying noncomplying products and conducting 

recalls: 

1. Records of complaints, warranty returns, 

insurance claims, and lawsuits. These types 

of information often highlight or provide early 

notice of safety problems that may become 

widespread in the future. 

2. Production records. Accurate data should be 

kept on all production runs -- the lot numbers 

and product codes associated with each run, 

the volume of units manufactured, component 

parts or substitutes use, and other pertinent 

information which will help the firm identify 

defective products or components quickly. 

3. Distribution records. Data should be 

maintained as to the location of each product 

by product line, production run, quantity 
12 

shipped or sold, dates of delivery, and 

destinations. 

4. Quality control records. Documenting the 

results of quality control testing and evaluation 

associated with each production run often 

helps companies identify possible flaws in the 

design or production of the product. It also 

aids the firm in charting and sometimes 

limiting the scope of a corrective action plan. 

5. Product registration cards. Product 

registration cards for purchasers of products to 

fill out and return can help to identify owners of 

recalled products. The easier it is for 

consumers to fill out and return these cards, 

the greater the likelihood the cards will be 

returned to the manufacturer. For example, 

some firms provide pre-addressed, postagepaid registration cards that already have 

product identification information, e.g., model 

number, style number, special features, 

printed on the card. Providing an incentive can 

also increase the return rate. Incentives can 

be coupons towards the purchase of other 

products sold by the firm, free accessory 

products, or entry in a periodic drawing for a 

product give away. The information from the 

cards then needs to be maintained in a readily 

retrievable database for use if recall becomes 

necessary. 

6. Membership/Bonus/Loyalty cards. Many 

stores, whether membership or available to all 

consumers, offer bonus or loyalty value cards 

which may be useful in identifying purchasers 

of recalled products. Availability and storage of 

these records should be considered in the 

event of a recall. 

7. Credit card purchases. An increasing 

number of firms are utilizing records from 

credit card purchases of recalled products as 

a way of identifying and notifying owners of 

recalled products. Through the cooperation of 

issuing banks or through the firms own 

branded credit cards, many owners of recalled 

products have been directly notified of the 

recall, often avoiding other more traditional 

means of generic notification. 

CONCLUSION 

Consumers no longer view product recalls in a 

negative light. Many thousands of products have been 

recalled over the years. Today, consumers believe 

they enjoy a safer, better product as a result of a recall. 

How well a firm conducts a timely, reasonable recall of 

a product it produced can have a strong influence on 

the consumer’s attitude about the firm. Successful 

product recalls in the past have often rewarded 

companies with continuing consumer support and 

demand for the firm’s products. 
13 

CHAPTER 4 - APPLICATIONS FOR AUTHORIZATION TO 

RECONDITION VIOLATIVE IMPORTS

This Chapter provides information to firms whose 

products have been sampled at a Port of Entry on the 

procedures to be followed in requesting authorization 

to recondition violative products. This Chapter also 

includes information on costs chargeable to firms for 

CPSC monitoring of the reconditioning process. 

PROCEDURES FOR OBTAINING 

AUTHORIZATION TO 

RECONDITION 

When CPSC notifies you in a LOA that a shipment of 

goods imported by your firm fails to comply with CPSC 

requirements, you may wish to recondition the goods 

to bring them into compliance with the applicable 

requirements. Before undertaking such reconditioning, 

however, you must request and obtain authorization 

from CPSC to do so before the goods will be released 

by U.S. Bureau of Customs and Border Protection. 

The CPSC regulations at 16 C.F.R. § 1500.269 

covering imported products subject to the Federal 

Hazardous Substances Act (FHSA) state that 

application for authorization to relabel or perform other 

action to bring violative goods into compliance with the 

FHSA may be filed only by the owner or consignee of 

the product. This procedure applies to violative 

imported products subject to all statutes administered 

by the Commission. 

The application for authorization to recondition violative 

goods held at U.S. Bureau of Customs and Border 

Protection or released under bond must be submitted 

in writing to the Director of the Office of Compliance. 

The application must: 

1. Contain detailed proposals for bringing the 

article into compliance with CPSC 

requirements. 

2. Specify the time and place where the items 

will be brought into compliance and the 

approximate time for their completion. CPSC 

Form #332 may be used to submit this 

information to the Commission. A copy of the 

form generally is provided with the LOA or 

may be obtained by contacting the 

Compliance Officer. 

If the request for authorization to recondition is 

granted, the CPSC staff will notify you in writing (or via 

CPSC Form #332 if the application was submitted 

using the form), that authorization has been granted. 

The notice from CPSC will specify: 

1. The procedure to be followed; 

2. Who will supervise the reconditioning 

(normally CPSC or U.S. Bureau of Customs 

and Border Protection personnel); 

3. A time limit for completing the operation; 

4. Such other conditions as are necessary to 

maintain adequate supervision and control 

over the article. 

If you need an extension of time to complete the 

reconditioning, you must submit a request for an 

extension in writing to the Director of the Office of 

Compliance. The request must contain reasonable 

grounds for the extension, and the Director may grant 

additional time for completing the reconditioning as he 

or she deems appropriate. 

Once you submit an application and it is approved, you 

may amend the application by filing an amended 

application with the Director of the Office of 

Compliance, stating reasonable grounds for the 

amendment. The Director may approve such a 

request for amendment as deemed appropriate. 

If ownership of the goods covered by the authorization 

to recondition changes before the goods are 

reconditioned, the original owner will be held 

responsible, unless the new owner has executed a 

bond and obtained new authorization. 

COSTS CHARGEABLE IN 

CONNECTION WITH 

RECONDITIONING VIOLATIVE 

IMPORTS 

The cost of CPSC staff supervising the relabeling or 

other action necessary to bring the goods seized or 

detained at a Port of Entry into compliance with CPSC 

requirements shall be paid by the owner or consignee 

of the violative goods. The Commission’s regulations 

at 16 C.F.R. § 1500.272, provide for such costs for 

products seized or detained for violations of the FHSA. 

 The Commission also is authorized to charge for 

monitoring the reconditioning of products detained 

under other statutes (see § 17(f) of the CPSA, § 6(d) of 

the FFA, and § 304(d)(1) of the FD&CA for PPPA 

violations). The guidelines provided in 16 C.F.R. § 

1500.272 are used to determine costs chargeable for 

monitoring correction of violations under all statutes 

administered by the Commission. Such costs must be 
14 

paid to the Consumer Product Safety Commission. 

The cost of such supervision shall include, but not be 

restricted to, the following: 

1. Travel expenses of the supervising officer. 

2. Per diem in lieu of subsistence of the 

supervising officer when away from his home 

station as provided by law. 

3. Services of the supervising officer to be 

calculated at the rate of a GS-11, Step 1 

employee. 

4. Services of the analyst to be calculated at the 

rate of a GS-12, Step 1 employee (including 

use of chemical laboratories and equipment). 

5. The minimum charge for services of 

supervising officers and of analysts shall be 

not more than the charge for one hour, and 

time after the first hour shall be computed in 

multiples of one hour, disregarding fractional 

parts less than one-half hour. 
15 

CHAPTER 5 - REPORTING REQUIREMENTS

This chapter contains information to familiarize 

companies with their reporting obligations under the 

Consumer Product Safety Act (CPSA). Companies 

that distribute consumer products subject to the 

provisions of the Federal Hazardous Substances Act 

(FHSA), Flammable Fabrics Act (FFA), Poison 

Prevention Packaging Act (PPPA), and Refrigerator 

Safety Act (RSA) also must comply with these 

reporting requirements. The information which follows 

will help you to recognize potentially hazardous 

consumer products at an early stage, and will assist 

you in understanding when you are legally obligated to 

report information about the product to the 

Commission. 

The information contained in this Handbook does not 

replace the Commission statutes or Commission 

Interpretative Regulations set forth in 16 C.F.R. parts 

1115 and 1116. 

STATUTORY REQUIREMENTS 

REPORTING UNDER SECTION 15 OF THE 

CPSA 

Section 15(b) of the CPSA defines responsibilities of 

manufacturers, importers, distributors and retailers of 

consumer products. Each is required to notify the 

Commission if it obtains information that reasonably 

supports the conclusion that a product - 

1. fails to comply with a consumer product safety 

standard or banning regulation established by 

the Commission under the CPSA or a 

voluntary consumer product safety standard 

upon which the Commission has relied under 

section 9 of the CPSA; 

2. contains a defect which could create a 

substantial product hazard described in 

section 15(a)(2) of the CPSA; or 

3. creates an unreasonable risk of serious injury 

or death. 

The Commission's interpretative regulation (16 C.F.R. 

part 1115) explains the firm’s obligations and those of 

the Commission. A copy of the regulations can be 

found at: 

http://www.access.gpo.gov/nara/cfr/waisidx_00/16cfr

1115_00.html

Firms may report under Section 15 on-line at: 

https://www.cpsc.gov/sec15.html

REPORTING PRODUCTS INVOLVED IN 

LAWSUITS 

In addition to the reporting requirements at 15 U.S.C. 

§ 2064(b), section 37 of the CPSA, 15 U.S.C. § 2084, 

requires manufacturers (including importers) of a 

consumer product to report to the Commission if (1) a 

particular model of a consumer product is the subject 

of at least three civil actions that have been filed in 

Federal or State court, (2) each suit alleges the 

involvement of that model in death or grievous bodily 

injury (as defined in section 37(e)(1)), and (3) at least 

three of the actions result in a final settlement involving 

the manufacturer or in a judgment for the plaintiff within 

any one of the two year periods specified in section 

37(b). The first two year period began to run on 

January 1, 1991 and ended on December 31, 1992. 

Subsequent two year periods started on January 1 in 

the following years: 1993; 1995; 1997, 1999, 2001, 

2003, and so forth. Manufacturers must file a report 

within 30 days after the settlement or judgment in the 

third civil action to which the section 37 reporting 

requirement applies. 

REPORTING CERTAIN CHOKING 

INCIDENTS 

Section 102 of the Child Safety Protection Act (CSPA), 

(Public Law 103-267) requires that manufacturers, 

distributors, retailers and importers report certain 

choking incidents to the Commission. The products 

involved include marbles, balls with a diameter of 1.75” 

or less (“small ball”); or latex balloon, or a toy or game 

that contains such a marble, ball, balloon, or other 

small part. The firm must report information that 

reasonably supports the conclusion: 

1. that a child (regardless of age) choked on 

such a marble, small ball, balloon, or small 

part; and 

2. that, as a result of the incident, the child died, 

suffered serious injury, ceased breathing for 

any length of time, or was treated by a medical 

professional. 

The Commission’s interpretive regulation at 16 C.F.R. 

Part 1117 provides more information on this reporting 

requirement. 

WHY REPORTING IS REQUIRED 

The intent of Congress in enacting the reporting 

requirements was to encourage widespread reporting 

of potential product hazards. Congress sought not 

only to have the Commission uncover substantial 

product hazards, but also to identify risks of injury 
16 

which the Commission could attempt to prevent 

through its own efforts, such as information and 

education programs, safety labeling, and adoption of 

product safety standards. 

Although CPSC relies on sources other than firm 

reports to identify substantial product hazards, 

reporting by companies under the reporting provisions 

is invaluable because firms often learn of product 

safety problems long before the Commission. For this 

reason, any firm involved in the manufacture, 

importation, distribution or sale of consumer products 

should develop a system of reviewing and maintaining 

consumer complaints, inquiries, product liability suits 

and comments on the products they handle. 

If a firm reports to the Commission under section 15 of 

the CPSA, it does not necessarily mean there is a 

substantial product hazard. Section 15 simply requires 

firms to report whenever a product (1) fails to comply 

with a consumer product safety rule; (2) fails to comply 

with a voluntary standard upon which the Commission 

has relied; (3) contains a defect that could create a 

substantial product hazard; or (4) creates an 

unreasonable risk of serious injury or death. Thus, a 

product need not actually create a substantial product 

hazard to trigger the reporting requirement. 

WHEN TO REPORT 

It is the Commission's view that a firm should take that 

all important first step of notifying the Commission 

when the information available to the firm reasonably 

indicates that a report is required. It is in the firm's 

interest to assign the responsibility of reporting to 

someone in executive authority. 

REPORTING PROCEDURES 

The Commission considers a firm to have knowledge 

of product safety information when such information is 

received by an employee or official of the firm who may 

reasonably be expected to be capable of appreciating 

the significance of that information. Under ordinary 

circumstances, five (5) days is the maximum 

reasonable time for that information to reach the chief 

executive officer or other official assigned responsibility 

for complying with the reporting requirements. 

Weekends and holidays are not counted in that 

timetable. 16 C.F.R. § 1115.14(b). 

The Commission will evaluate whether and when a firm 

should have reported. This evaluation will be based, in 

part, on what a reasonable person, acting under the 

circumstances, knows about the hazard posed by the 

product. Thus, a firm shall be deemed to know what it 

would have known if it had exercised due care in 

ascertaining the accuracy of complaints or other 

representations. 

If the firm is uncertain whether the information is 

reportable, the firm may elect to spend a reasonable 

time investigating the matter, but no evaluation should 

exceed ten (10) days unless the firm can demonstrate 

that a longer timetable for the investigation is 

reasonable. If a firm elects to conduct an investigation 

to decide whether it has reportable information, the 

Commission will deem that, at the end of ten (10) days, 

the firm has received and considered all information 

which would have been available to it had a 

reasonable, expeditious, and diligent investigation 

been undertaken. 16 C.F.R. § 1115.14(d). 

PENALTIES FOR FAILURE TO REPORT 

Failure to report in accordance with the above 

referenced requirement is a prohibited act under 

section 19(a) of the CPSA, 15 U.S.C. § 2068, which 

makes it unlawful for any person to fail to furnish 

information required by section 15(b) or by section 37. 

Any person who knowingly commits a prohibited act is 

subject to civil penalties under section 20 of the CPSA, 

including fines up to $1.825 million for a related series 

of violations, and criminal penalties under section 21 of 

the CPSA, which includes fines up to $500,000 or 

imprisonment not more than one year, or both. 

Chapter 1 of this Handbook provides additional details 

regarding the penalties. 

If a firm is not certain about its reporting obligation, it 

can contact the Office of Compliance at 301-504-7913. 
17 

CHAPTER 6 - EXPORT REQUIREMENTS

This Chapter provides information on the requirement 

to notify the Consumer Product Safety Commission 

before exporting products that violate mandatory 

standards issued by the Commission. 

POLICY STATEMENT REGARDING 

PROHIBITION OF EXPORTATION 

When CPSC advises a firm that a product it 

manufactures, distributes, or imports fails to comply 

with an applicable CPSC statute or regulation, one 

option the firm may wish to consider is whether the 

goods may be exported. CPSC has established 

specific requirements relating to the exportation of 

noncomplying products that prohibit or restrict such 

exportation. Noncomplying foods, drugs, and 

cosmetics under the PPPA are not covered by the 

Commission’s export notification requirements. 

Following is a discussion of these limitations. 

Products Subject to the FHSA - The Commission’s 

regulation at 16 C.F.R. § 1019.33(b) states that the 

Commission interprets the provisions of the FHSA to 

prohibit the export of products that are misbranded 

hazardous substances or banned hazardous 

substances if those products have at any time been 

sold or offered for sale in domestic commerce. 

Therefore, export of such banned or misbranded 

hazardous substances can take place only if CPSC 

exercises its discretion not to prevent their export. 

Products Subject to the CPSA - The Commission’s 

regulation at 16 C.F.R. § 1019.33(a) states that the 

Commission interprets the provisions of the CPSA to 

prohibit the export of products that fail to comply with 

an applicable consumer product safety standard or 

banning rule issued under that Act if those products 

have at any time been distributed in commerce for 

use in the United States. Therefore, export of such 

products can take place only if CPSC exercises its 

discretion not to prevent their export. 

Products Subject to the FFA - In accordance with the 

Commission’s regulation at 16 C.F.R. § 1019.31(b)(6), 

the Commission’s prohibition on the export of 

noncomplying products that have been distributed in 

domestic commerce does not include products subject 

to standards issued under the FFA. Thus, products 

that violate a flammability standard under the FFA and 

that have been distributed in domestic commerce may 

be exported upon proper notification to the 

Commission. 

PROHIBITION ON EXPORTATION 

In accordance with § 18(a) of the CPSA, § 5(b)(3) of 

the FHSA, and § 15(a) of the FFA, the Commission 

may prohibit the exportation of any product regulated 

under these statutes if it determines that the 

exportation of such products presents an unreasonable 

risk of injury to consumers within the United States. 

This authority could be used to prohibit the export of 

products subject to the FHSA, CPSA, or FFA that have 

been stopped in import status and products subject to 

the FFA that have been in domestic commerce. 

Before prohibiting the exportation of such products the 

Commission would have to make a factual 

determination about the existence of an unreasonable 

risk. Relevant factors would include the nature and 

degree of the risk to consumers, the economic effects 

on business people, the attitude of the foreign country 

scheduled to receive the products, and the likelihood of 

the products re-entering the United States if 

exportation were permitted. 

EXPORT NOTIFICATION 

REQUIREMENTS 

The Commission’s regulations at 16 C.F.R. part 1019 

require that, before a firm may export products that fail 

to comply with the CPSA, FHSA, and FFA, a firm must 

notify the Commission at least 30 days in advance of 

the exportation date. This includes noncomplying 

goods stopped in import status. 

The following information must be provided to the 

Commission: 

1. Name, address and telephone number of the 

U.S. exporter; 

2. Name and address of each consignee; 

3. Quantity and description of the goods to be 

exported to each consignee, including brand 

or trade names or model or other identifying 

numbers; 

4. Identification of the standards, bans, 

regulations and statutory provision applicable 

to the goods being exported, and an accurate 

description of the manner in which the goods 

fail to comply with applicable requirements; 

and, 

5. Anticipated date of shipment and port of 

destination. 

Address the notification of intent to export to: 

Assistant Executive Director for Compliance 

U.S. Consumer Product Safety Commission 

Washington, D.C. 20207 
18 

The following paragraphs reflect the requirements of 

the various statutes: 

FHSA Violations - Export notification is required by 

section 14(d) of the FHSA, 15 U.S.C. §. 1273. The 

failure to provide such a notice is a prohibited act 

under section 4(i) of the FHSA, 15 U.S.C. § 1263(i), 

and subject to the penalties described in section 5 of 

the FHSA, 15 U.S.C. § 1264. 

CPSA Violations - Export notification is required by 

section 18(b) of the CPSA, 15 U.S.C. § 2067(b). The 

failure to provide such a notice is a prohibited act 

under section 19(a)(10), 15 U.S.C. § 2068(a)(10), and 

is subject to the penalties described in sections 20 and 

21 of the CPSA,15 U.S.C. §§ 2069 and 2070. 

FFA Violations - Export notification is required by 

section 15(c) of the FFA, 15 U.S.C. § 1202(c). The 

failure to provide such a notice is subject to the 

criminal penalties of section 7 of the FFA, 15 U.S.C. 

§ 1196. 
19 

CHAPTER 7 - CONFIDENTIAL TREATMENT OF INFORMATION 

SUBMITTED

This Chapter provides information on the confidential 

treatment of information submitted to the CPSC in 

response to a Letter of Advice (LOA) or a report filed 

with the Commission under sections 15 and 37 of the 

Consumer Product Safety Act (CPSA), Section 102 of 

the Child Safety Protection Act, and requests for 

Exportation of violative products. 

CONFIDENTIALITY OF 

INFORMATION UNDER SECTION 6 

OF THE CPSA 

Section 6(a) of the CPSA, as amended by the 

Consumer Product Safety Amendments of 1981, 15 

U.S.C. § 2055(a), provides protection for trade secrets 

or confidential information. Section 6(a)(3), 15 U.S.C. 

§ 2055(a)(3), gives manufacturers an opportunity to 

mark information as confidential. 

If you believe any of the information you submit to the 

Commission is a trade secret, or privileged or 

confidential information, you must accompany the 

submission with a request that the information be 

considered exempt from disclosure or indicate that a 

request will be submitted within 10 working days of the 

submission. The failure to make a request within that 

time will be considered an acknowledgment that you 

do not wish to claim exempt status. In accordance with 

the Commission’s regulations at 16 C.F.R. § 

1015.18(c), the following information must be included 

with the request for exemption: 

1. Specifically identify the exact portion(s) of the 

document claimed to be confidential; 

2. State whether the information claimed to be 

confidential has ever been released in any 

manner to a person who was not an employee 

or in a confidential relationship with the firm; 

3. State whether the information so specified is 

commonly known within the industry or is 

readily ascertainable by outside persons with 

a minimum of time and effort; 

4. State how release of the information so 

specified would be likely to cause substantial 

harm to the firm’s competitive position; and 

5. State whether the submitter is authorized to 

make claims of confidentiality on behalf of the 

person or organization concerned. 

If the Commission determines that information marked 

as confidential may be disclosed because it is not 

confidential, the Commission must provide written 

notice that it intends to disclose this information. This 

notice must be provided not less than 10 working days 

prior to disclosure. Any person receiving such notice 

may bring an action in an appropriate district court to 

prevent disclosure of the information, 15 U.S.C. § 

2055(a)(5). 

The Commission’s regulations under the Freedom of 

Information Act, 16 C.F.R. 1015, govern confidential 

treatment of requests for exportation of violative 

products which have claimed trade secret or 

confidential commercial or financial information. 

In addition, section 6(b) of the CPSA, 15 U.S.C. § 

2055(b), also provides limitations on the Commission’s 

disclosure of any information identifying manufacturers 

or private labelers, and further limits the Commission’s 

disclosure of information received under section 15(b) 

of the CPSA, 15 U.S.C. § 2055(b)(5). 

CONFIDENTIALITY OF REPORTS 

UNDER SECTION 15(b) OF THE 

CPSA 

The Commission often receives requests for 

information provided by firms under section 15(b) of 

the CPSA, 15 U.S.C. § 2064(b). Section 6(b)(5) of the 

CPSA, 15 U.S.C. § 2055(b)(5), prohibits the release of 

such information unless a remedial action has been 

accepted in writing, a complaint has been issued or a 

firm consents to the release. 

Reports under section 102 of the Child Safety 

Protection Act receive the same confidential treatment 

as information submitted under Section 15 of the 

CPSA. 

CONFIDENTIALITY OF REPORTS 

UNDER SECTION 37 OF THE CPSA 

Section 6(e) of the CPSA, 15 U.S.C. § 2055(e), 

protects from disclosure certain information submitted 

to the Commission by a manufacturer pursuant to 

section 37 of the CPSA, 15 U.S.C. § 2084. See 

Chapter 5 of this Handbook for information on the 

Section 37 reporting requirement. 

Section 6(e)(1) provides that information furnished 

under sections 37(c)(1) and (c)(2)(A) may not be 

publicly disclosed, 15 U.S.C. §§ 2084 (c)(1) and 

(c)(2)(A). Section 6(e)(2), 15 U.S.C. § 2055(e)(2), 

provides that any report submitted pursuant to section 

37(c)(1) or (c)(2)(a) shall be immune from legal 

process and shall not be subject to subpoena or other 
20 

discovery in any civil action in a State or Federal court 

or in any administrative proceeding, except in an action 

against such manufacturer under section 20, 21, or 22 

of the CPSA, 15 U.S.C. §§ 2069, 2070, 2071,for failure 

to furnish information required by section 37. 

USE OF INFORMATION BY THE 

COMMISSION 

As part of any recall or other corrective action plan 

undertaken by your firm, pertinent information relating 

to the corrective action plan may be included in the 

recall section of the CPSC web site or in other publicly 

available materials. The information may include the 

date the corrective action plan is initiated, the name of 

the firm involved, the name of the product(s) involved, 

the geographic area of distribution of the product(s), 

the hazard identified by the Commission staff, the 

labeling of the product(s) and the type of corrective 

action being taken.