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U.S. Consumer Product Safety
Commission-2012 Safety Academy
                            Fast Track Panel




 This presentation was prepared by CPSC staff, has not been reviewed or
     approved by, and may not reflect the views of, the Commission.
U.S. Consumer Product Safety
           Commission
                               Safety Academy
        Office of Compliance and Field Operations Overview
                        September 20, 2012




                                Tanya Topka
                     Fast Track Team Lead, Compliance
This presentation was prepared by CPSC staff, has not been reviewed or approved by, and may not reflect
                                    the views of, the Commission.
Agenda

• Reporting Under Section 15

• Conducting a Fast Track Recall

• Conducting a Recall

• Monitoring Recalls
Reporting Under Section 15
Covers both Fast Track and Non-Fast Track
We encourage reporting under Section 15 on our website or
  via e-mail to the Section 15 mailbox.
   – Faster, easier to track and route
   – Add photos and other documents
• On our website at: www.cpsc.gov
   • On right-hand side under “Businesses”
• Or via e-mail to: Section15@cpsc.gov
We discourage reporting via phone, mailed letter, or fax.
   – Much slower, harder to track, and much easier to get
     lost or duplicated during routing
2012 Safety Academy: Fast Track Program
2012 Safety Academy: Fast Track Program
Reporting Under Section 15
         What to Provide When Reporting
Initial Report
• Details about product, stop sale date, potential
  defect and hazard, samples, and all available
  information
Full Report
• All information (1-15), customer list, CAP, notice
  documents, draft press release, test reports, list of
  foreign countries sold to, reverse logistics/disposal
  plan
• Compliance Lead assigns report and contact is
  Made Within 24 Hours
What is the Fast Track Program?
• Initiated in 1995, it eliminates “preliminary
  determination” (PD) of hazard for cases reported by a
  firm that can quickly implement a recall.

• WIN-WIN-WIN
  – Firm avoids PD and can implement a recall quickly
  – Staff expends less resources
  – Public gets quicker notice
What is the Fast Track Program?
• Firm must do public notice and initiate a stop
  sale quickly.

• Firm can do repair, replacement, or refund as
  corrective action.
  – Staff will review repair or replacement proposals
    before implementation.


• Firm must still provide a Full Report and all
  requested information for a Fast Track recall.
Conducting a Recall
  Ways to Reach Public About a Recall

• Hotline (toll-free)

• Posters at traditional retail locations (several locations)

• Forums, trade associations, magazines for industry,
  brochures, and catalogs

• Direct notice is BEST (e-mail, letter, phone calls)
   – Review all internal customer lists (loyalty cards, warranty,
     catalogues)
Conducting a Recall
  Ways to Reach Public About a Recall

• Website (initiate online registration, instructions)

• Social media (Twitter, Facebook, Google+, Blogs)
   – Firms expected to announce recalls on their social media
     platforms
   – CPSC routinely uses Twitter


• YouTube (recall message, how-to repair, step-by-step
  instructions, how to assemble)
Choosing a Remedy
        Refund/Replacement/Repair

• Refund is the fastest and easiest method for consumers.

   – Must consider if product will be returned and how.

   – Removal of a piece that can disable product and be
     returned at lower costs.

   – Pre-paid postage return for consumers.

   – If not returned, consider form to sign for refund.
Choosing a Remedy
     Refund/Replacement/Repair

• Replacement must be a comparable product.

   – Requires review of test reports/data by staff.

• Repair programs always need staff review of data.

   – Can be done by consumer, technician, or return to
     firm.
   – If done by consumer, must be easy with clear
     instructions.
   – If tools required, should provide them.
Conducting a Recall
• Press Releases

  – Recalls announced in press releases due to lack of
    direct notice and need for outreach.

  – Can be pitched to media, can be highlighted on
    CPSC’s main page, routinely tweeted

  – Can be embargoed
Conducting a Recall
• Recall Alerts

  – Very small percentage of recalls

  – Still posted on CPSC website

  – Requires direct contact for virtually all
    consumers, retailers, and distributors

  – Must provide a customer list to qualify for a Recall Alert
Conducting a Recall
       How to Speed Up the Recall Process

• Report electronically online or via Section 15
  mailbox.

• Provide all required and requested information;
  don’t make us ask for each missing item.

• Provide Full Report electronically in numbered
  format (1-15), not in a narrative.

• Provide samples, test reports, and engineering
  documents for repair or replacement programs
  early in process for staff review.
Conducting a Recall
    How to Speed Up the Recall Process

• Provide press release in Word format.

• Provide high-quality jpg photos of
  product.

• Respond promptly to technical questions.

• Flag issues to Compliance Lead.
Recall Monitoring
                  Reverse Logistics

• Reverse of distribution or product return
   – How you get product back from distribution

• Reverse logistics plan should outline details such as:
   – How to quarantine the product
   – How to get the product returned
   – How to remove product from shelves
   – How to repair, replace, or dispose of product

• Provide your reverse logistics plan to Compliance staff
  with your corrective action plan (CAP) and Full Report.
Recall Monitoring
                    Reverse Logistics


• Important process to plan and avoid having recalled
  products put back into distribution

• Illegal to sell recalled products

• Track, Track, Track
   – We need to know where your products are going at all times.
Recall Monitoring
• CPSC staff monitors all recalls.

• You must provide monthly progress reports via
  fax or e-mail until the case is closed by staff.

• Use the progress report form provided with
  CAP letter.
   – Report incidents pre- and post-recall.
Recall Monitoring
• We will check on implementation of the CAP
  through on-site recall checks with the recalling
  company, retailers, and consumers.

• Notify Compliance of any changes at the firm or to the
  CAP.
   – New POC, new address or phone, hotline
     hours, bankruptcy or purchase
Recall Monitoring
              Ineffective Recalls

• Notify Compliance if CAP appears not to
  have been effective.
• Compliance staff may seek additional
  notification for post-recall incidents,
  ineffective notification, low correction
  rates.
  – Re-announcement of recall
  – Additional forms of notification
  – Out-of-season recall group notification
Recall Monitoring
                        Disposal
• Know if you will need special disposal for items like
  batteries or electronics (federal, state, or local laws).
• If retailers will be disposing or destroying the product or
  if you are using a third party, we need to know.
• Before you destroy, dispose, or recycle recalled
  products, notify CPSC staff via e-mail to
  recallproductdisposal@cpsc.gov.
• Field staff may witness destruction/disposal/recycling or
  require an affidavit to verify process.
• Notify us of plan as early as possible to coordinate field
  staff.
Recall Monitoring
• Send a request to Compliance staff to close
  the formal monitoring of recall case.
• Provide monthly progress forms until you
  receive a close letter from Compliance.
• Continue to honor recall requests for
  remedy.
• Continue to post recall notification on
  firm’s website after formal monitoring
  ends.
2012 Safety Academy: Fast Track Program
2012 Safety Academy: Fast Track Program
2012 Safety Academy: Fast Track Program
Need Information?

• http://www.cpsc.gov/businfo/corrective.html

• Tanya Topka, Fast Track Team Lead
  ttopka@cpsc.gov or 301-504-7594

Defects Investigation Team Leads:
Blake Rose- Fire, Electrical, and Mechanical Products
  brose@cpsc.gov or 301-504-7613

Renae Rauchschwalbe- Children’s Products
  rrauchschwalbe@cpsc.gov or 301-504-7664
2012 CPSC Inaugural Safety
Academy
CPSC Fast Track Process
Michael Del Negro
Senior Counsel, Product Safety & Regulatory Compliance
GE Appliances / GE Lighting

September 20, 2012
Ensuring Coordination with the Office
of Compliance and Field Operations
 Organization
 Clear Communication
 Transparency
 Timeliness
 Anticipating (and minimizing) timing
  disruptions


                                         30
Fast Track Best Practices
 Dedicated recall coordinator
 Cross-functional team
  (service, technology, communicatio
  ns, legal, product mgt.)
  – Assign tasks, owners and deadlines
  – Regular rhythm to manage unknowns
 Communicate to compliance staff to
  avoid disruption and ensure an
  effective recall
 Anticipate / manage potential recall
  challenges
                                         31
Ensure Good Recall Communication

Creative notification plans
  Social media
  Branded recall website
Customer Coordination Keys
  Contact distributors early in process to identify
   potential consumers
  Work around service-delivery issues


                                                       32
Managing “Recall Fatigue”
Multiple sources of recall information
Clear, technically accurate hazard descriptions
Classifying hazards?
 • Staff classifies hazards by severity
 • Could factor into timing
 • Useful to prioritizing highest risk events


   We want to prioritize and address highest-risk
    recalls to promptly eliminate such hazards
                                                    33
Challenges of Fast Track Timing

Launching within 20 working days of report
 • Uncontrollable events (suppliers, service)
 • Challenges with complex products
 • “Getting to Yes” on the joint press release


Keys to success
 • Organization, clear communication and
   transparency

                                                 34
2012 Safety Academy: Fast Track Program
Consumer Product Safety
•
         Commission


Mr. Dean W. Woodard U.S. CPSC
Director   Office of Education, Global Outreach, and Small
           Business Ombudsman

           dwoodard@cpsc.gov
           business@cpsc.gov

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2012 Safety Academy: Fast Track Program

  • 1. U.S. Consumer Product Safety Commission-2012 Safety Academy Fast Track Panel This presentation was prepared by CPSC staff, has not been reviewed or approved by, and may not reflect the views of, the Commission.
  • 2. U.S. Consumer Product Safety Commission Safety Academy Office of Compliance and Field Operations Overview September 20, 2012 Tanya Topka Fast Track Team Lead, Compliance This presentation was prepared by CPSC staff, has not been reviewed or approved by, and may not reflect the views of, the Commission.
  • 3. Agenda • Reporting Under Section 15 • Conducting a Fast Track Recall • Conducting a Recall • Monitoring Recalls
  • 4. Reporting Under Section 15 Covers both Fast Track and Non-Fast Track We encourage reporting under Section 15 on our website or via e-mail to the Section 15 mailbox. – Faster, easier to track and route – Add photos and other documents • On our website at: www.cpsc.gov • On right-hand side under “Businesses” • Or via e-mail to: Section15@cpsc.gov We discourage reporting via phone, mailed letter, or fax. – Much slower, harder to track, and much easier to get lost or duplicated during routing
  • 7. Reporting Under Section 15 What to Provide When Reporting Initial Report • Details about product, stop sale date, potential defect and hazard, samples, and all available information Full Report • All information (1-15), customer list, CAP, notice documents, draft press release, test reports, list of foreign countries sold to, reverse logistics/disposal plan • Compliance Lead assigns report and contact is Made Within 24 Hours
  • 8. What is the Fast Track Program? • Initiated in 1995, it eliminates “preliminary determination” (PD) of hazard for cases reported by a firm that can quickly implement a recall. • WIN-WIN-WIN – Firm avoids PD and can implement a recall quickly – Staff expends less resources – Public gets quicker notice
  • 9. What is the Fast Track Program? • Firm must do public notice and initiate a stop sale quickly. • Firm can do repair, replacement, or refund as corrective action. – Staff will review repair or replacement proposals before implementation. • Firm must still provide a Full Report and all requested information for a Fast Track recall.
  • 10. Conducting a Recall Ways to Reach Public About a Recall • Hotline (toll-free) • Posters at traditional retail locations (several locations) • Forums, trade associations, magazines for industry, brochures, and catalogs • Direct notice is BEST (e-mail, letter, phone calls) – Review all internal customer lists (loyalty cards, warranty, catalogues)
  • 11. Conducting a Recall Ways to Reach Public About a Recall • Website (initiate online registration, instructions) • Social media (Twitter, Facebook, Google+, Blogs) – Firms expected to announce recalls on their social media platforms – CPSC routinely uses Twitter • YouTube (recall message, how-to repair, step-by-step instructions, how to assemble)
  • 12. Choosing a Remedy Refund/Replacement/Repair • Refund is the fastest and easiest method for consumers. – Must consider if product will be returned and how. – Removal of a piece that can disable product and be returned at lower costs. – Pre-paid postage return for consumers. – If not returned, consider form to sign for refund.
  • 13. Choosing a Remedy Refund/Replacement/Repair • Replacement must be a comparable product. – Requires review of test reports/data by staff. • Repair programs always need staff review of data. – Can be done by consumer, technician, or return to firm. – If done by consumer, must be easy with clear instructions. – If tools required, should provide them.
  • 14. Conducting a Recall • Press Releases – Recalls announced in press releases due to lack of direct notice and need for outreach. – Can be pitched to media, can be highlighted on CPSC’s main page, routinely tweeted – Can be embargoed
  • 15. Conducting a Recall • Recall Alerts – Very small percentage of recalls – Still posted on CPSC website – Requires direct contact for virtually all consumers, retailers, and distributors – Must provide a customer list to qualify for a Recall Alert
  • 16. Conducting a Recall How to Speed Up the Recall Process • Report electronically online or via Section 15 mailbox. • Provide all required and requested information; don’t make us ask for each missing item. • Provide Full Report electronically in numbered format (1-15), not in a narrative. • Provide samples, test reports, and engineering documents for repair or replacement programs early in process for staff review.
  • 17. Conducting a Recall How to Speed Up the Recall Process • Provide press release in Word format. • Provide high-quality jpg photos of product. • Respond promptly to technical questions. • Flag issues to Compliance Lead.
  • 18. Recall Monitoring Reverse Logistics • Reverse of distribution or product return – How you get product back from distribution • Reverse logistics plan should outline details such as: – How to quarantine the product – How to get the product returned – How to remove product from shelves – How to repair, replace, or dispose of product • Provide your reverse logistics plan to Compliance staff with your corrective action plan (CAP) and Full Report.
  • 19. Recall Monitoring Reverse Logistics • Important process to plan and avoid having recalled products put back into distribution • Illegal to sell recalled products • Track, Track, Track – We need to know where your products are going at all times.
  • 20. Recall Monitoring • CPSC staff monitors all recalls. • You must provide monthly progress reports via fax or e-mail until the case is closed by staff. • Use the progress report form provided with CAP letter. – Report incidents pre- and post-recall.
  • 21. Recall Monitoring • We will check on implementation of the CAP through on-site recall checks with the recalling company, retailers, and consumers. • Notify Compliance of any changes at the firm or to the CAP. – New POC, new address or phone, hotline hours, bankruptcy or purchase
  • 22. Recall Monitoring Ineffective Recalls • Notify Compliance if CAP appears not to have been effective. • Compliance staff may seek additional notification for post-recall incidents, ineffective notification, low correction rates. – Re-announcement of recall – Additional forms of notification – Out-of-season recall group notification
  • 23. Recall Monitoring Disposal • Know if you will need special disposal for items like batteries or electronics (federal, state, or local laws). • If retailers will be disposing or destroying the product or if you are using a third party, we need to know. • Before you destroy, dispose, or recycle recalled products, notify CPSC staff via e-mail to recallproductdisposal@cpsc.gov. • Field staff may witness destruction/disposal/recycling or require an affidavit to verify process. • Notify us of plan as early as possible to coordinate field staff.
  • 24. Recall Monitoring • Send a request to Compliance staff to close the formal monitoring of recall case. • Provide monthly progress forms until you receive a close letter from Compliance. • Continue to honor recall requests for remedy. • Continue to post recall notification on firm’s website after formal monitoring ends.
  • 28. Need Information? • http://www.cpsc.gov/businfo/corrective.html • Tanya Topka, Fast Track Team Lead ttopka@cpsc.gov or 301-504-7594 Defects Investigation Team Leads: Blake Rose- Fire, Electrical, and Mechanical Products brose@cpsc.gov or 301-504-7613 Renae Rauchschwalbe- Children’s Products rrauchschwalbe@cpsc.gov or 301-504-7664
  • 29. 2012 CPSC Inaugural Safety Academy CPSC Fast Track Process Michael Del Negro Senior Counsel, Product Safety & Regulatory Compliance GE Appliances / GE Lighting September 20, 2012
  • 30. Ensuring Coordination with the Office of Compliance and Field Operations  Organization  Clear Communication  Transparency  Timeliness  Anticipating (and minimizing) timing disruptions 30
  • 31. Fast Track Best Practices  Dedicated recall coordinator  Cross-functional team (service, technology, communicatio ns, legal, product mgt.) – Assign tasks, owners and deadlines – Regular rhythm to manage unknowns  Communicate to compliance staff to avoid disruption and ensure an effective recall  Anticipate / manage potential recall challenges 31
  • 32. Ensure Good Recall Communication Creative notification plans  Social media  Branded recall website Customer Coordination Keys  Contact distributors early in process to identify potential consumers  Work around service-delivery issues 32
  • 33. Managing “Recall Fatigue” Multiple sources of recall information Clear, technically accurate hazard descriptions Classifying hazards? • Staff classifies hazards by severity • Could factor into timing • Useful to prioritizing highest risk events We want to prioritize and address highest-risk recalls to promptly eliminate such hazards 33
  • 34. Challenges of Fast Track Timing Launching within 20 working days of report • Uncontrollable events (suppliers, service) • Challenges with complex products • “Getting to Yes” on the joint press release Keys to success • Organization, clear communication and transparency 34
  • 36. Consumer Product Safety • Commission Mr. Dean W. Woodard U.S. CPSC Director Office of Education, Global Outreach, and Small Business Ombudsman dwoodard@cpsc.gov business@cpsc.gov