Canada's Food and Consumer Safety Action Plan
Overview

February 14, 2008

Toward a Modernized Safety Regime RCC and its members support the fundamental principles outlined in the Discussion Paper on Canada's Food and Consumer Safety Action Plan, in keeping with the commitment to food and consumer safety. Industry does have a responsibility for the safety of products it brings onto the market, consumers and health professionals need access to accurate information to make informed decisions and the government should have appropriate authority to address science-based health and safety risks in a timely manner. RCC and member comments pertain largely to how the Plan is to be implemented in the best interests of Canadian consumers in a responsible, focused and sustainable manner.

RCC fully endorses a collaborative approach, recognizing that the safety of food, health and consumer products is a shared responsibility. The federal, provincial and territorial governments, industry, consumers and trading partners each play vital roles in the establishment and maintenance of an effective safety regime.

Specific comments and recommendations are outlined on the following pages on behalf of RCC and its members.

Common Issues (Item 1.3)
Improved Authorities to Take Compliance, Enforcement and Other Corrective Measures Retailers support the creation of integrated and complementary measures in a modernized safety regime both internationally and within Canada.

With respect to monetary fines and penalties, retailers require a clear framework and definitions of standards, and how these fines and penalties relate to civil and criminal liability. Fines and penalties should only be issued for those who blatantly disregard public safety after due process and warning, including the provision of sufficient time to comply with directives. RCC requests that a fair and balanced appeals process be instituted to resolve any disputes that may arise.

Common Issues for Retailers
Retailers have overall recommendations that span the scope of food, health and consumer products as outlined in the Discussion Paper. They are as follows:

  1. RCC strongly recommends that Health Canada, the Canadian Border Services Agency and the Canadian Food Inspection Agency ensure that all legislation and regulations are harmonized at all levels of government to ensure that fair, efficient and consistent standards exist with respect to food, health and consumer safety. The current safety regime is fragmented and inconsistent across various levels and functions of government, making compliance in a timely and effective manner extremely difficult and costly.

    The Plan as outlined requires significant new administrative accountabilities for industry. While every effort will be made to comply in as efficient a manner as possible, it must be noted that costs will be passed on to Canadian consumers. This highlights the need to ensure the safety regime is integrated and harmonized across government bodies at all levels.

  2. RCC requests that specific accountabilities be defined for each level and body of government and all industry players (factory, manufacturer, supplier, national brand owner, private brand owner, broker, importer of record and retailer). The federal government should ensure that there is an equal playing field and that enforcement of the system is properly resourced.
  3. Testing requirements should be uniform and use consistent safety criteria, regardless of which entity in the supply chain has accountability for conducting them and reporting results.
  4. Globalization and the need for product innovation have resulted in an increasingly complex environment in which to do business. In order to serve customers better, retailers have increasingly shopped the world for merchandise to offer and have become direct importers to reduce costs and improve efficiency. Many of the foreign suppliers to Canadian retailers manufacture for world markets. As a fractional portion of the world market, Canadian retailers have limited influence over or insight into the manufacturing process. For this reason, RCC recommends that the federal government work with Canada's global trading partners to establish international standards to ensure that safety regimes — including standards, testing, monitoring and reporting requirements — are comprehensive and consistent. This is the only effective way to address the volume of imports from a variety of countries and to ensure that rules are fairly and consistently applied to imported and domestic product.
  5. Decisions taken under the new safety regime must be science-based and factual in nature. While it is understood that there must be sufficient time for Health Canada to investigate a potential consumer hazard and decide the right course of action, it must be recognized that there are significant financial and reputational risks in unnecessarily ordering product to be held or recalled from the marketplace. It is incumbent on government bodies to ensure that due diligence is taken and that directives are prudent and warranted, and in keeping with sound risk management practices.
  6. RCC and its members recommend that Health Canada and others specify the processes and systems, including recourse for any breaches, to ensure that proprietary information is held in the strictest of confidence.
  7. Similarly, with respect to reporting requirements, retailers are concerned about privacy issues relating to individual consumers. These must be addressed in the implementation of a new safety regime.
  8. The Plan as written does not contemplate an appeals process with respect to the risk posed by a particular product, a decision to recall product(s) or corrective actions, fines and penalties. RCC urges the government to specifically outline the measures to be taken by industry if there is a disagreement with respect to a particular decision. Government authorities should be accountable for lost revenues and decreased value of inventories brought forth by unsubstantiated recalls or holding of product.
  9. RCC agrees that it is best to prevent consumer safety problems as early in the product life cycle as possible. With respect to testing, monitoring, reporting and tracing of product, retailers recommend that product manufacturers and national brand owners are in the best position to be accountable for these requirements, the exception being private brands for which retailers would be accountable. This ensures a comprehensive, systematic approach at source, and avoids duplication and inefficiency that ultimately increase costs to consumers.
  10. RCC urges that a graduated and staggered schedule for implementation of any legislative amendments, including the implementation of resulting regulations, be adopted. Plans and contractual arrangements are currently being finalized for late 2009 shipments, given required production lead times.
  11. The ability to quickly bring innovative products to market is critical to retailers competing in the global marketplace. Recognizing that food and consumer safety are paramount, the implementation of the Plan must consider this critical factor. Similarly, the government must ensure sufficient enforcement resources for any new system (e.g. border surveillance) to minimize unnecessary operational disruptions in the flow of product.
  12. Retailers are also concerned about the use or misuse of products by consumers; they should not be held accountable for unsafe consumer practices. The Plan requires a retailer to determine in advance how customers might use the products it sells. While a retailer likely will know what a product is intended to be used for, it is unreasonable to require them to determine in advance all foreseeable uses. Most retail products sell for a low or moderate price. A requirement that they undergo this type of scrutiny would effectively remove them from the market or require retailers to accept unknown but substantial levels of corporate risk.

    2007, Retail Council of Canada — The Voice of Retail