Goodman Co. agrees to pay $5.55 million for delay and misrepresentations in reporting fire hazard involving air conditioner/heater
September 8, 2016, cpsc.gov
The Consumer Product Safety Commission announced the $5.55 million settlement and agreement to other terms of a consent decree for delay and misrepresentation in reporting a fire hazard associated with air conditioners and heaters. The complaint against Goodman was filed by the U.S. Department of Justice in the U.S. District Court for the Southern District of Texas and alleged that the firm knowingly failed to inform the CPSC immediately, as required by federal law, that its packaged terminal air conditioners/heaters (PTACs) contained a hazardous defect and posed an unreasonable risk of serious injury or death to consumers. The complaint also alleges that when Goodman ultimately reported the fire risk to the CPSC, it misrepresented the number of fires that had occurred.

            SAMSUNG CRISIS: Government action, praise and criticism for Samsung

CPSC Urges Consumers to stop using Samsung Galaxy Note 7
September 9, 2016, cpsc.gov
The CPSC has issued a press statement urging all consumers who own a Samsung Galaxy Note7 to power them down and stop charging or using the devise. The warning is based on recent reports involving lithium-ion batteries in certain Note7 devices that have resulted in fires, while charging and during normal use. The CPSC and Samsung are working cooperatively to formally announce an official recall of the devices, the statement says. The CPSC action follows a statement by the Federal Aviation Administration strongly advising passengers not to turn on or charge the Samsung Galaxy Note7 on board aircraft and not to stow them in any checked baggage.

Opinion: Recall of Samsung phone a PR disaster
September 10, 2016, Otago Daily Times
Samsung’s release of its troubled Galaxy Note 7 has turned into a financial and PR disaster with the halting of sales and recall of millions of phone, according to one blog.The problem has been batteries on the phones catching fire, although Samsung only alludes to there being a “battery cell issue” and that only a limited number of cases have been reported so far.

Opinion: Samsung recall:  An exercise in ‘bold and brilliant” crisis management
September 7,2016, PR Week
While the Samsun Galaxy Note 7 recall has sent shockwaves across the technology industry and growing consumer concerns and calls for regulatory intervention, PR experts have weighed in that the brand has handled the crisis “almost perfectly” so far. “They were bold and got ahead of the problem in almost real time,” in the opinion of one PR firm officer. Trying to confine its response to local markets, the firm instead went global with its action,  understanding that “everyone sees, hears, knows and shares pretty much everything about all global brands.”

Prop 65: California Adopts new “clear and reasonable warning” requirements
September 6, 2016, The National Law Review (Keller Heckman)
The California Office of Environmental Health Hazard Assessment (OEHHA) announced September 2 a final rule concerning “clear and reasonable warnings” required under Prop 65. The new requirements attempt to provide consumers with more detailed information about potential chemical exposures, as well as clarify the responsibilities of manufacturers and others in the chain of distribution for providing warnings for products that are eventually sold at retail.

New York schools must test lead levels in drinking water under new law signed by Gov.Cuomo
September 6, 2016, New York Daily News
Schools must test their drinking water for lead contamination by no later than Oct. 31 under legislation signed by Gov. Cuomo. The legislation was passed by the Legislature in June, and also required school officials to shut down any drinking water sources found to have excessive levels of lead. Officials must also notify state Health Department and parents of the findings and develop plans to remedy the contamination.

 CPSC Quarterly Report to Congress: Two Reports expected on Third Party Testing Cost Relief by end of 2016
June 10, 2016, CPSC Quarterly Report to Congress
CPSC staff engaged a contractor to study the production, use, and disposition of phthalates in consumer products according to its report to Congress in June. In addition, the contractor researched four specified plastics to assess whether those specified plastics contain more than the maximum allowed level of phthalates for children’s toys and child care articles. CPSC staff is developing a draft NPR report recommending that the Commission determine that the four specified plastics do not contain phthalates above the limit specified in section 108 of the CPSIA (0.1 percent, or 1,000 parts per million (ppm)), and thus, do not require third party testing for use in children’s toys and child care articles. The draft NPR report is due to the Commission in the third quarter of FY 2016. In addition, CPSC has engaged a contractor to study the presence of phthalates in additional specified plastics, and separately to study the presence of lead, phthalates, and various elements of the Toy Standard in specified manufactured fibers, and submit a report in the fourth quarter of FY 2016

The Modern Play Pen: A guide to current and proposed regulations of play yards
September 7, 2016, Lexology (Stinson Leonard Street)
The passage of the Consumer Product Safety Improvement Act (CPSIA) in 2008 marked Congress’ recognition that consumer confidence in children’s products would increase if safety standards were made mandatory, and that every child should be safe while sleeping. As a result Congress has created some of the strictest child sleeping device standards in the world.  Among the different types of child sleeping devices, this article focused on current and proposed regulations related to play yards, which are at the heart of Section 104 of CPSIA.

China’s cross-border e-commerce trade facing uncertainties amid government regulations
September 8, 2016, South China Morning Post
One in five online Chinese shoppers made a purchase on cross-border e-commerce platforms last year, twice as many as in 2014, but tighter tax and customs regulations signal that the flourishing industry has reached an inflection point, according to a recent study by consultancy Oliver Wyman. Dubbed Haitoo in Chinese, the 120 billion yan in cross-border online trade propelled by demand for global brands and facilitated by an explosion of online marketplaces in China is now plagued by policy uncertainties over tax, product safety and logistic issues.

 EU retains proposed migration limits for lead in toys
September 7, 2016, SGS
On August 18, 2016 the World Trade Organization (WTO) circulated a communication from the EU to confirm the migration limits for lead in toys are to remain identical to those in an earlier draft regulation. The new draft regulation is expected to be adopted in Q1 2017 and  the provisions, summarized in this article, would take effect 18 months after publication in the Official Journal, Q3 2018.

Risky Business: A cheaper air bag and Takata’s road to a deadly crisis
August 27, 2016, New York Times
Automakers embraced Takata’s cheaper technology 20 years ago despite signs that it was unsafe, ultimately costing the supplier and its automaker customers billions of dollars in recall expenses. While tests then showed that Takata was introducing a less expensive but dangerously volatile compound in its inflators, automakers such as General Motors were challenging their current airbag supplies to meet Takata’s prices or risk loosing GM’s business. Today more than 100 million Takata air bags installed in vehicles in the U.S. are under recall by GM and 16 other automakers.

Safety inspections of thrill rides vary by state
August 14, 2016, Insurance Journal
Safety experts agree on one alarming truth in the wake of accidents and a grisly 10 year old’s death this summer: how closely thrill rides are regulated varies greatly from state to state. “Fifty states in the United States of America and no two inspect rides the same way. That’s wrong,” according to one amusement park safety consultant and critic of the nation’s patchwork of state laws.

Questions, research on possible synthetic turf link to athletes’ cancer continue
August 26, 2016, Insurance Journal
There is a growing chorus of concern from parents about whether the rubber specks from synthetic turf fields that stick to skin, hair, and clothing, and get in player’s eyes, mouths, and open wounds contain toxic substances that contribute to cancer in young athletes. A call for more action by government is starting to grow among parents around the country.

COMMISSION VIEWPOINTS:

Chairman Elliot Kaye: An Olympic-sized moment to save lives and prevent child drownings
August, 2016, cpsc.gov
Chairman Kaye pays tribute to the breathtaking athletic achievement and stunning new records set by athletes, including swimmers, at the 2016 summer Olympics that took place in Brazil. But as wonderful as swimming is, pools contribute to present real drowning risks, especially for children. He sees the Olympic event, itself, as a good way to help build awareness of pool safety measures that can help reduce pool risk.

Commissioner Ann Marie Buerkle: On the road: St. Louis: Reflections on the product safety classroom 
August, 2016, cpsc.gov
Commissioner Buerkle looks back on her recent visit to the Gateway to the West city, where she participated in Saint Louis University’s 2016 Product Safety Management Course as the graduation keynote speaker. She posed a challenge to the course members: what suggestions would they make to revive the Retailer Reporting Program that has been in limbo since 2014? The class came up with some very interesting ideas she reports.

Window coverings makers may finally go cordless to avert child strangulation deaths
August 26, 2018, Claims Journal
Two months ago the U.S. Consumer Product Safety Commission joined 24 other countries in an international safety campaign to prevent future child strangulations associated with accessible window covering cords, the cause of more than 800 deaths of children globally. The Window Covering Manufacturers Association has since announced technology advances proposed in a new standard for its members, that represent an “historical opportunity” to reduce risk in its products.

China determined to improve quality, standard of consumer goods
August 26, 2016, China Economic Net
China plans to lift he quality and standards for consumer goods through more market-oriented efforts and adopting a wider range of global standards within the coming five years, as part of the country’s supply side structural reform and boosting consumer’s confidence. This was pledge in a new guideline approved during a recent State Council executive meeting chaired by Premier Li Keqiang.

California: Billionaire political activist Tom Seyer backs upholding the state’s plastic bag ban
August 22, 2016, Los Angeles Times
The billionaire Democratic activist has announced his support for Proposition 67, a ballot measure that will let voters decide whether to uphold or overturn a 2014 law imposing a state wide ban on plastic bags. The ban on single-use plastic bags in grocery stores was signed by Gov. Jerry Brown.

Brexit & Slow Growth: Deteriorating global supply chain market faces increasing obstacles
August 25, 2016, Engineering News
The latest data from the Chartered Institute of Procurement and Supply (CIPS) reveals escalating operational risks, both globally and in sub-Saharan Africa, owing to a prolonged slump in global commodity prices and the slowdown in emerging markets. “The UK’s departure form the European Union could lead to some of the most dramatic shifts and severe implications for global supply chains in coming years,” according to one CIPS economist.

Report details lead contamination in water at St. Louis schools
August 25, 2016, St. Louis Post-Dispatch
Water samples from 16 schools in the city school system contained lead levels that exceeded those most commonly found in homes in Flint, Michigan after a contamination crisis there, according to a new study. Following a public presentation of the study’s results, a Special Administrative Board of the school system approved immediately a $1 million expenditure to eliminate the contamination.

ALARM GROWS OVER AMUSEMENT PARK RIDES’ THREAT TO SAFETY

>Kansas water slide death highlights concerns about theme park oversight nation wide
August 8, 2016, Fox News (video)
The death of a 20-year-old Kansas boy, Caleb Schwab, has renewed concerns about conditions at America’s waterparks. The boy, son of Kansas State Representative Scott Schwab, died while riding a 168-foot-high slide at Schlitterbahn Waterpark in Kansas City, Kansas. The ride, which can reach speeds of up to 70 miles per hour, opened in 2014 after multiple delays due to failed safety tests. Mobile rides, like those found at circuses and traveling carnivals, can be inspected by the U.S. Consumer Product Safety Commission, but theme parks with permanent fixed rides like roller coasters and water slides are exempt from federal oversight due to a “self reporting deal the theme parks negotiated to avoid routine inspections.”

>Amusement park death highlights need for safety
August 9, 2016, USA Today
The death of a 10-year-old Kansas boy at a giant water slide highlights the fact that fun doesn’t always mean safe. A 2013 study by the Nationwide Children’s Hospital, a pediatric and research center found that from 1990 to 2010, 92,885 children under 18 were treated in U.S. emergency rooms for amusement ride-related injuries, or an average of 4,423 per year. More than 70% of those injuries were in the summer months of May through September.

>Boy falls off Pennsylvania roller coaster
August 11, 2016, WESH.com (video)
The nation saw its fourth amusement park incident in five days when a boy apparently fell out of a roller coaster in Pennsylvania. The child was air lifted to Children’s Hospital in Pittsburgh. Details were sketchy about the child and injuries he received at Idlewild and SoakZone in Ligonier. The roller coaster was built in 1938 and does not include seat belts. The roller coaster was inspected August 6 and passed, according to the Pennsylvania Department of Agriculture, which oversees the state’s 10,200 amusement rides.

Your Place: Regulators seek safety labels on flooring
August 11, 2016, The Herald/Philadelphia Inquirer
The Consumer Product Safety Commission is tackling a very interesting problem. The National Floor Safety Institute has petitioned it to require floor covering manufacturers to label their products to indicate that there is a possibility of slips and falls that could result in injury. However, flooring manufacturers are vehemently opposed. One company says that “providing coefficient of friction information on product packaging misdirects the consumer and can lead to a false sense of safety.” A spokesman for the Tile Council of North America, the trade association representing the ceramic tile industry, says “safe floors are only insured by keeping floors clean and dry.”

Safety groups, grieving mom call for stricter furniture safety standards
August 9, 2016, Chicago Tribune
Consumer safety advocates are calling for stricter and enforceable standards for furniture after a report shows current criteria do not keep children safe from dresser tip-overs. The 21-page report by nonprofit safety groups Kids In Danger and Shane’s Foundation, named for a boy who lost his life in a dresser tip over accident in 2011, details the findings after tests on 19 different dressers. Nine of the 19 passed performance tests based on current safety standards developed by ASTM International, while only two passed more rigorous tests developed by Kids In Danger. Of the 19 tested, four have been recalled since the groups began work on their report about a year ago.

California struggles to lead the way on drone regulation
August 5, 2016, Los Angeles Times
Fans and critics of drones, those buzzy, compact remote controlled aircraft that have become all of the rage among hobbyists, expect the skies to become very crowded in coming years. Drones are being eyed by industry and government agencies to perform work that’s too costly or dangerous for human. The drone industry emphasizes the aircraft’s potential in arguing for measured- or self-regulation, while the FAA leaves most regulation to state and local authorities, except in areas around airports. California is struggling because of some of its most popular areas are bedeviled by drones, creating an increasing risk.

Takata recall spreads to more BMWs
August 9, 2016, goauto.com.au
Takata’s seemingly endless global airbag recall saga continued to spread with another 28,577 BMW models now added to the list of vehicles that may be rolling on Australian roads fitted with potentially dangerous airbags. That figure pales by comparison with the United States where the tally for effected vehicles has passed 68 million, spreading to a number of major global automakers, including General Motors, Ford, Daimler, BMW, Honda, Mitsubishi, Mazda, Subaru, Nissan, Fiat, Chrysler, and Toyota.

UK to benefit from supply chain changes following Brexit vote
August 9, 2016, Cambridge News
The origin of the products on British shelves could change as retailers adjust their supply chains following the UK’s vote to leave the EU, finds new research published by Barclays. In a potentially positive sign for the British economy, a third of retailers (32%) predict they will source from the UK, with only 12% expecting a reduction. Asia could also be a winner; 52% expect to increase supply chain activity in India, and 43% in China.

New ACCC app lists unsafe goods
August 9, 2016, psnews.com.au
The Australian Competition and Consumer Commission (ACCC) has launched a new online service for consumers to check that the goods they buy are safe. The app, Product Safety Australia, includes recalls pages and allows consumers a single entry point to national, State and Territory product safety and recalls information. There were 670 recalls in Australia last financial year compared to 596 the previous financial year.

Product recall in the digital era
August 8, 2016, CXOToday.com
Moving from the age of manufacturing in India, with a focus on productivity and cost reduction to the age of the customer has seen a steep rise in the number of product recalls. The year 2015 saw the highest number of automobile recalls in India for more than one million vehicles according to the Ministry of Heavy Industries. The Internet, mobile and social media platforms have provided companies a way to keep customers engaged and loyal. The flip side is that company risks have increased due to product recalls and the threat to customer brand loyalty and purchase habits.

Ikea under fire in China after limiting dresser recall to North America
July 5, 2016, The New York Times
The announcement that Ikea was recalling 36 million chests and dressers in the United States and Canada linked to the deaths of at least 6 children has set off heated discussions among Chinese consumers over being excluded from the deal and the relatively lax safety standards in their own country.  Ikea has said that the chests and dressers are safe when anchored to a wall as instructed with the supplied equipment, but its decision came after pressure from the U.S. Consumer Product Safety Commission to abide by voluntary industry standards for the stability of free standing clothing storage units. Ikea’s position is that limiting the recall to North America was justified since its products meet safety standards in China, the European Union, and other markets.

Half a million “hoverboards” recalled over risk of fire, explosions
July 6, 2016, NPR
The U.S. Consumer Product Safety Commission announced that a number of manufacturers and retailers are recalling the balancing scooters due to the growing number of incident reports, adding that many devices not included in the recall should be discarded for consumer safety. The list of 10 recalling manufacturers is posted at the agency’s website, cpsc.gov.

SelectBlinds.com: Responds to WCMA Statement regarding timeline to update window coverings safety standard
July 1, 2016, 4-Traders.com
SelectBlinds.com, an online retailer of cordless custom window coverings has responded to a statement by the Window Covering Manufacturers Association (WCMA) announcing the timeline to update the window covering safety standard. CPSC Chairman Elliot Kaye praised the association’s approach to having “the vast majority of window covering products sold in the U.S. (would be) cordless or have inaccessible cords – meaning they would be safe for children – as soon as possible in 2018.”  The CEO of SelectBlinds.com, Al Silverberg, is pushing the association to make a standard stating that “effective January 1, 2018, window coverings sold in the USA must have no accessible cords.”

San Francisco officially decrees itself a No-Foam Zone
July 1, 2016, NBC News
When San Francisco’s Board of Supervisors voted on a law that expanded the city’s existing ban on the use of foam food containers, it dealt a blow to some things summer barbecue lovers and beachgoers in the rest of the country take for granted. Swim aids like foam kick boards and lightweight coolers—gone. Even utilitarian items like polystyrene dock floats and buoys will be illegal to sell in the city beginning in 2017.

Opinion: When lawyers get in the way of compliance
July 5, 2016, jdsupra.com
A legal practitioner for nearly 35 years, attorney Michael Volkov takes lawyers to task when they engage in “territorial” battles, or controversies over petty issues.  “They always lose, no matter what the result,” he feels.  This is especially true with in-house counsel and their “adjustment” to the rise of the compliance profession. He notes there is plenty of risk to go around in a company, and there is more than enough work to keep compliance officers and lawyers busy.

House staffers could’ve been drinking lead-tainted water for months
July 6, 2016, Politico
Lawmakers and staff at a U.S. Capitol building were notified about the discovery of lead-contaminated water in the drinking fountains, leading to a period of anxiety about being tested for lead in their blood. House staffers working in the Cannon House Building may have been exposed to lead contaminated water for as long as nine months. The water was previously tested in September and turned up clean.

Critics: BPA exception underscores major flaw in Prop 65
July 7, 2016, chem.info
Public health advocates argue that a caveat in California’s regulation of bisphenol A (BPA) effectively nullifies the measure. The reason is that state regulators last year added BPA to the list but delayed requiring individual labels on canned or bottled foods containing the substance. Instead, retailers that sell products containing BPA began displaying a Prop 65 warning at the point of sale this summer. Critics argue that the exemption prevents consumers from knowing which products contain BPA.

China survey: Quest for quality trumps taxes, prices
July 4, 2016, China Daily
Since April 8, 2016, cross-boarder e-commerce consumers face the fact that such orders, previously treated as lower-taxed postal articles, have been classified as imported goods and face relevant tariffs, a value added tax and consumption tax. Thanks to the growing number of cross-border e-commerce platforms, China consumers are getting exposed to a wider range of goods and prices.  A KPMG survey of China consumers shows that one third of 10,150 respondents of online spending had made luxury online purchases at full, non-discounted prices in 2015. Consumers said they valued the origin of luxury products, a product’s unique features, and its overall quality.

How will emission scandal affect the future of VW’s vehicles?
July 7, 2016, NPR
The $15 billion price tag for Volkswagen’s diesel deception won’t put VW out of business, but it will greatly hamper the company’s position in the global market place. “VW is not going to be the same because they don’t have the money to be the same,” according to Erik Gordon, a University of Michigan business school professor. “Car companies live or die on their new models. You have to regularly bring out new, exciting models,” Gordon says.

Using big data as a supply chain asset
July 7, 2016, ebnonlilne
One of the most obvious and essential starting points in turning big data into a supply chain reality is building a strong foundation, according to industry analysts. This is the base level through which all data passes, how it is filtered, cleansed, verified, and ultimately used and distributed. Key elements for the foundation’s platform architecture include factoring in mobility, workflow support, connecting the Internet of Things, advanced analytics, exception management and content management.