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CPSC creates portal for businesses to submit product safety complaints
In another move to enhance its enforcement efforts, the U.S. Consumer Product Safety Commission (CPSC) has launched a Business Product Safety Complaint portal on its website. While the new tool has gone largely unnoticed by industry stakeholders and commentators, businesses should be aware of how the portal could impact them.
Lawyers with Morrison & Foerster were among the first to analyze the new feature, noting that it has been met with mixed opinions. The portal allows businesses to report competitor products available in the marketplace that they believe are noncompliant with CPSC rules or that may be unsafe for consumers. The only required section of the complaint form is a description of the product safety complaint itself. This means businesses can anonymously report dangerous or violative competitor products.
Why create the portal?
The business complaint portal was spearheaded by CPSC Commissioners Peter A. Feldman and Douglas Dziak, who created it in response to concerns raised by industry stakeholders at a 2022 roundtable meeting. The Commissioners said they “heard the frustration of firms that are forced to compete against unscrupulous market participants” who are not complying with mandatory safety requirements.
The commissioners also acknowledge that businesses typically find out about violative products before the CPSC, but until now have not had an avenue to alert regulators of their safety concerns.
Businesses are not the only party that will benefit from the business complaint portal. The portal will also allow the CPSC “access to timely market intelligence and will serve as a force multiplier in [its] safety efforts.” The agency has an existing website, saferproducts.gov, that allows consumers to report dangerous products. The new tool is geared specifically towards businesses and will grant the CPSC insights from a very knowledgeable group that has an “incentive to alert regulators about competitor products.”
How will it impact businesses?
As the lawyers with Morrison & Foerster point out, some in the industry have already raised concerns about how the tool will be used. The anonymity allowed by the portal could have the unintended effect of causing some businesses to file false or misleading complaints about competitors’ products. Bogus claims will also make it more difficult and time consuming for CPSC agents reviewing the submissions to identify and act on credible complaints that pose a real threat to consumer safety.
Ultimately, the success of this new tool will depend on how businesses use it. Regardless, consumer product manufacturers and retailers, as well as operators of online marketplaces, should be aware that this business complaint portal exists and that their competitors now have an opportunity to draw CPSC’s attention to any product safety noncompliance. With these extra eyes on businesses, it is more important than ever that they regularly audit their operations to ensure compliance with all applicable regulations. In addition, it is important for companies to have robust recall readiness plans in place and ensure that safety and testing measures are well-documented in case the CPSC does have an inquiry.
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