New law may have major implications for CPGs doing business in Canada

PRNewswire -

Bill C-36, the Canada Consumer Product Safety Act (CCPSA), received Royal Assent on December 15, and is now Canadian law.  The new Act impacts any U.S. or international business involved with manufacturing, selling, advertising, testing or importing consumer products sold in Canada. The Canadian government has indicated that an accelerated implementation plan is underway and the Act will come into force in the next few months. 
The Act is intended to protect the Canadian public by addressing dangers to human health and safety posed by consumer goods, with reference to the growing number of consumer products that flow across borders. 
Canada's largest law firm, Borden Ladner Gervais LLP (BLG), has been closely tracking the legislation since it was first introduced. Attorneys from BLG's Litigation Group point to the broad reaching impact the Act has for many U.S. and global companies, and emphasize the importance of companies needing to fully understand and assess the potential implications and compliance requirements specific to their business.
The Act greatly increases the regulatory and legal burden of affected companies, and empowers the government to take dramatic corrective action when concerns arise about unsafe products. Government power in Canada was previously limited in effectively reacting to consumer product safety concerns as the majority of product recalls in Canada are voluntary, linked to mandatory product recalls in the U.S.
Highlights of the Bill include:  
·    A ban on the import/sale of certain consumer products
·    Mandatory recalls with increased product liability
·    Potential obligation for manufacturers and importers to test and study consumer products at their own expense
·    Increased liability around packaging, labeling and advertising for consumer products
·    Strict record-keeping and reporting obligations for manufacturers, importers, retailers, product testers, and advertisers concerning where products are obtained and sold
·    Warrantless search and seizure powers for inspectors
·    New mandatory worldwide incident reporting obligations with strict timelines
·    Severe penalties for non-compliance, including fines of up to $5 million (Cdn) and prison terms of up to two years 

SOURCE: Borden Ladner Gervais LLP