Consumer Products
February 14, 2008
Preventing problems in the first place
Retailers are deeply committed to the safety of all Canadian consumers. They currently implement a variety of measures to ensure that the products on their shelves are safe:
- Those who own private brands work with manufacturers to ensure that products are properly tested.
- Seek verification of safety compliance with the manufacturer.
- Initiate random testing and inspections at the production stage.
- Regularly review vendors' quality control reports.
- Regularly review supplier compliance and sanctions for non-compliant manufacturers.
In addition to these proactive measures, retailers welcome the efforts of government to provide better information to consumers and guidance to industry on enhancing safety through supply chains. While RCC acknowledges that retailers play a critical role in ensuring food and consumer safety, emphasis and accountability must be placed as early in the product life cycle as possible at the research, development and manufacturing stages. This ensures safe outcomes and offsets issues before potentially unsafe product gets into the hands of consumers.
Targeting the highest or unknown risks
RCC agrees with a proposed legislated obligation on retailers and other suppliers to report to Health Canada products that the retailer or supplier is aware do not comply with product regulations or standards and products that present a substantial safety or health hazard.
Retailers are not in the best position to carry responsibility for the testing of the products they carry. First, there is the enormous number and diversity of products carried by a particular retailer. Second, retailers lack the production experience and product knowledge to test effectively. Third, they lack the human, physical and financial resources to carry out the testing. Finally, there would be enormous duplication of effort as each retailer carries out its own tests. These matters are particularly difficult to address for products sourced directly from foreign suppliers.
Rapid response
Retailers work collaboratively with manufacturers, Health Canada and other bodies when a product recall is initiated. They move quickly to identify affected product and to remove it from their shelves. Retailers also do their best to ensure that all consumers are aware of a voluntary recall through a variety of communication channels.
RCC recommends that industry works with the federal government to develop rapid response processes and systems for mandatory recalls to address emerging issues. These should leverage best practices based on past experience and lessons learned through the implementation of voluntary recalls.
It is critical that a mandatory recall process includes clear and consistent definitions both in terms of criteria, process and timelines. Similarly, the provision of comprehensive guidelines, tools and templates would facilitate consistent compliance.
Item 4.1 Expand the Post-Market Safety Regime — General Prohibition
"The proposed legislation would introduce a general prohibition against the manufacture, importation, advertisement and sale of consumer products that are, or are likely to be, a danger to the health and safety of the public regardless of whether they are subject to product-specific regulations."
RCC believes that this statement is too broad in nature. As previously stated, it is a concern that retailers may be accountable for "likely to be dangerous" products. RCC respectfully requests that the government set specific criteria and standards with respect to the hazards as listed in the Plan. Specific criteria must be outlined and communicated regarding safety standards, reporting requirements and required timelines before retailers can comply with it.
Similarly, specific standards, criteria, compliance process and appeals process should be set and communicated to stakeholders prior to corrective actions being taken.
Item 4.2 Report of Serious Product Safety Incidents and Record Keeping
RCC is concerned about the proposed requirement to report serious injuries, near-miss incidents and deaths arising from use of a product. Retailers are unaware of these incidents unless a consumer complaint is filed or civil action is taken. In these cases, retailers would only have information from a consumer perspective which has the potential to be incomplete or inaccurate. Also, retailers are concerned about the responsibility to comply with requirements at federal and provincial levels. This, again, points to the need to harmonize consumer safety legislation at all levels of government.
Item 4.5 More Effective Fines and Penalties
RCC recommends that the Administrative Monetary Penalties Scheme (AMPS) and resulting fines and penalties only be imposed in an instance when a company has repeatedly and knowingly disregarded public safety through noncompliance, and where due diligence is absent. Any fines should be consistent with those of global trading partners such as the United States and the European Union. This promotes accountability for compliance, while maintaining a fair and equitable regime in the global market. A fair and balanced appeal process must be defined should there be a dispute between the federal government and the affected entities.
Item 4.6 Improve Information for Consumers and Decision-Makers
Retailers want a process in place to ensure they have an opportunity to respond to any non-compliance issues prior to the public release of information. They favour industry-wide reporting versus the release of data relating to a particular manufacturer, importer or retailer. Information on specific injuries, incidents and compliance may be open to interpretation or communicated out of context. RCC and its members do not believe this to be in the best interests of informed decision-making and consumer safety.
The Plan gives Health Canada wide authority to collect and disseminate potentially proprietary corporate information. RCC believes the authority proposed is too wide and unconstrained. This could potentially damage a company's competitive position, expose information that could inadvertently affect the value of a publicly-held company's stock, and unduly damage a company's reputation.