Compliance Program Seminar - Panel 3 - Role of Trade Associations in Program Compliance

1. Consumer Product Safety Commission
Compliance Plan Seminar
Autumn Moore
Director, Regulatory Affairs &
Compliance
November 1, 2018

2. • RILA’s Primary Mission – Education, Advocacy and Collaboration
• Disseminate information
• Educate members on legal requirements, voluntary standards
and compliance obligations
• Facilitate benchmarking on leading practices
• Be the voice of the retail industry for regulators and legislators
• Advocate on member’s behalf
• Build coalitions to further association reach
Role of Trade Associations
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3. RILA Consumer Product Committee
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• Comprised of in-house product compliance professionals and
counsel
• Bi-annual in-person meetings
• Monthly Calls
• Educational Component to all monthly calls, including legal
experts to provide guidance on regulations and legislation
impacting members
• Provide forum for members to discuss current issues within
their companies and share leading practices

4. • CPSC compliance is just one piece of companies’ broader
compliance programs
• Companies also have compliance plans for a broad range of
issues, including:
• OSHA
• Environmental compliance, including EPA requirements
• FDA, food safety
• Pharmacy
• Human resources
• Marketing and advertising compliance
• Foreign Corrupt Practices Act
• Potentially differing state programs for all these areas
Retailers Focused on All Compliance Activities
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5. • Retailers are often the face of a recall for consumers
• Retailers put in place “stop sale” technologies for stores once
products are recalled
• Often retailers are not alerted to a recall until the day of, or even
after, recall has been announced
• Useful for UPC code to be used rather than SKU
• Helpful when U.S. Government agencies partner on joint
announcements (e.g., lithium ion batteries with Department of
Transportation)
• Poster recall announcements should be used sparingly
Compliance in Reverse Logistics
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6. • Board of Directors increasingly focusing on companies’ overall
compliance risk, including product safety
• Increased number of “chief compliance officers”
• Increased budgets being dedicated to compliance efforts across
programs
Retail Compliance Programs
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7. Autumn Moore
Director, Regulatory
Affairs & Compliance
703.457.7919
Autumn.moore@rila.org

8. CPSC Compliance Program Seminar
Panel 3: Industry Trade Groups
Jennifer Cleary
November 1, 2018

9. Compliance Plans Are Only One Piece of the Puzzle
AHAM does not have policies or procedures on how to develop a
compliance plan—there are many other resources on this to which we
direct our members
AHAM members’ top priority is to design appliances that are as safe as
they are useful
Compliance plans are only one piece of the safety puzzle
Hazard-based safety engineering and risk assessment are the foundation—assessing risk and
designing safety into the product
AHAM members test products to ensure they meet or exceed safety
standards and continually work to proactively improve standards based on
new innovations to reduce potential risks and further improve consumer
safety
Consumer education is another key element
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10. Building a World-Class Safety System
Key elements for building a world-class safety system:
Organization within the company
Safety should not be bound by traditional reporting structures, but should be part
of a matrix organization
Alerts, training, and communication are key
Product safety responsibilities present in company culture, functions, policies,
communications
Need safety committees, procedures, and managers
Necessities for corporate consumer safety policy
Elements of a company-wide product safety system
Going beyond the minimum
Go beyond minimum safety standards and requirements
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11. Key Elements for Corporate Consumer Safety
1. Corporate Policy
2. Senior Management Ownership
3. Directed responsibilities
4. Clear Objectives
5. Corporate Product Safety Function
6. Processes with Disciplines
7. Regional authority
8. Hazard communications processes
9. Monitoring product safety performance
10. Defined Corrective Action procedures
11. Ability to modify procedures
12. Training
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12. Elements of a company-wide safety system
 Management support from the very top
 Clear policy/policies
 Decision to meet all standards and regulations around the world
 Establish decision-making procedures that account for all risks
 Unified level of safety in all regions
 Establish a world-wide post-sale monitoring system
 Train personnel world-wide on documentation
 Use attorneys (counseling and litigation)
Recommendation
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13. Establish a company organization that works
 Find the system that works
 Reporting structure is important, but access is greater
 There is no one-way to structure product safety reporting
 Make resources available for:
 Training
 Investigations
 Failure analysis
 Communications
 Consultants
 Don’t try to imitate other companies
Recommendation
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14. Recalls
AHAM members, like other manufacturers, produce hundreds of
millions of products each year.
Strive to and succeed in designing and building products to highest levels of quality and safety
Demonstrated commitment to internal safety design, monitoring, and evaluation/failure analysis
systems.
Sometimes, it is necessary to work with CPSC through reporting and,
sometimes, corrective action plans and recalls.
A recall, or even several, is not an indication that a compliance plan is inadequate
Multiple voluntary recalls over time often indicate that a firm has a broad product scope, makes
many products, and most importantly, has a robust compliance program.
Many companies that have effective compliance programs will have recalls from time to time
because an effective process will identify potential hazards and prevent future recalls. A firm
without such a program will likely fail to identify potential hazards.
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15. Juvenile Products Manufacturers Association
Kelly Mariotti, JD, CPA, CAE
Executive Director
November 1, 2018

16. Who we are
The Juvenile Products Manufacturers Association (JPMA) acts
as the voice of the industry on quality and safety for baby and
children’s products in North America.
It does so by advancing the interests of manufacturers, parents,
children and the industry at large through product performance
certification, events, consumer education, and advocacy with the
goal of bringing safe, functional products to market.

17. The Role of the Association
Member
Company
Support and
Education
Public
Affairs and
Advocacy
Certification
Program

18. Compliance Programs
Best Practices
• Evaluate Risk
• Trusted Partners
• Testing Laboratories
• Supply Chain Transparency
• Build the Corporate Culture
• Ongoing Maintenance and Evolution
• Certification
• Testing ≠ Compliance

19. Role of Technology
Evolving Technology = New Solutions
• Needs assessment and implementation
• Vendor surveillance
• Document management
• Data synthesis and analysis

20. Communications
Collecting Consumer Information
• Embedded technology
• Product registration at point of sale
• App-based registration solutions
• Consumer outreach to company
• Product evaluation

21. Thank You
Kelly Mariotti, JD, CPA, CAE
kmariotti@jpma.org

22. CPSC COMPLIANCE PROGRAM SEMINAR
November 1, 2018
Kristen Kern, Government Relations Representative,
American Apparel & Footwear Association

23. ABOUT AAFA

24. Supply Chain
As the industry’s source for supply chain compliance, AAFA helps you stay ahead of
sustainability and social responsibility matters, chemical management, transportation
and logistics, and more.

25. AAFA COMPLIANCE TOOLS
• AAFA RSL
• State-level Guidance Tools
 Prop 65
 State Chemical Reporting Laws
• CPSIA Testing Guidance
• Industry Recalls Running List
• International Labeling Matrix

26. CHEMICAL MANAGEMENT
• Key element to compliance program
• Restricting chemicals in products and factories
 Consumer safety, worker safety, environmental
sustainability

27. TESTING PLANS
• Testing as verification of compliance
• Testing as indication for state chemical reporting
 Prop 65- indicator to use/not use a product warning label
 Children’s products laws in Oregon, Washington, Maine,
Vermont

28. REGULATION TRACKING
• Staying up-to-date on regulations is key to
compliance
 State, federal, international
• Plan to update compliance plans

29. www.aafaglobal.org | @apparelfootwear
THANK YOU
Kristen Kern
kkern@aafaglobal.org