U.S. sector spotlight

As 2021 closed, consumer product manufacturers were looking ahead at the myriad of regulations set to take effect in January 2022. While the Consumer Product Safety Commission (CPSC) seems to be looking for ways to make reporting easier for businesses, there is no sign that they are pulling back on the aggressive stance they have taken on compliance and enforcement.

But the CPSC is not only using its regulatory power. The agency is also clearly committed to ensuring that businesses take a holistic approach to notifying consumers about product recalls, using the power of public opinion to coerce action. Additionally, the agency is trying to force e-commerce companies and other retailers to play an active role in executing product recalls, as well as boosting their accountability for the disposition of those products recalled. It seems that the CPSC may increase its demands for proof this step was taken, something all consumer product companies should prepare for.

While product recall numbers are important, they are only part of the story. Here's what you should take away from consumer product safety developments in 2022:

• With the CPSC’s aggressive approach to oversight and enforcement, companies need to be thinking about their product recall and corrective action plans from end-to-end. Have you closely reviewed your plans, processes, and procedures? Can you clearly show that you have removed dangerous products from circulation and not just refunded consumers?
• The agency’s new budget for fiscal year 2022 provides a nearly 25% increase for the Office of Communication, which may be a sign that the CPSC is planning more frequent outreach to businesses and consumers. Have you considered how this will affect your company in the long run? What steps are you taking now to prepare for increased scrutiny and oversight in the future?