June 2010

The Federal Government will have the Power to Order Recalls

Bill C-36 respecting the Safety of Consumer Products: the Federal Government Proposes Tougher Rules for Consumer Product Safety and New Enforcement Tools.

On June 9th, 2010, the Honourable Leona Aglukkaq, Federal Minister of Health, introduced in the House of Commons Bill C-36 – An Act respecting the safety of consumer products.

This Bill will bring about changes to the current legislation, namely the Hazardous Products Act, which dates back more than 40 years. The economic reality has changed significantly since, and in the context of today's economy, the federal government believes that the rapid development and wide variety of consumer products available to consumers warrant this legislative update.

New Tools

The new Bill C-36 aims at better protecting the health and safety of Canadians and provides, among other things, the following new tools:

Recall

Health Canada will have the authority to order the recall of hazardous consumer products. Currently, it is up to the industry to voluntarily recall products, as the government can only suggest the withdrawal of the products from the market.

Prohibition

Bill C-36 proposes prohibiting the manufacturing, importing, advertising, labeling, packaging and selling of consumer products that represent an existing or potential danger to human health or safety.

Reporting

The industry will henceforth be required to report any serious incident or death linked to its products, as well as any action taken for human safety reasons, in order to provide Canadian experts with all the information necessary to make sound and informed decisions.

Tests or Studies

The government will have the power to request from manufacturers and importers test or study results on their products.

False or Deceptive Health or Safety Claims

Any false or deceptive health or safety claims on consumer product packages or labels will become illegal.

Tracking System

Companies will now be required to retain any documents allowing the tracing of products throughout the supply chain.

Fines

Bill C-36 provides for an increase of fines and penalties for non compliance. The fines will vary depending upon the provisions breached ranging anywhere between $250,000 and $5,000,000. The Bill also provides possible imprisonment for a maximum term varying between six (6) months and two (2) years depending upon the provisions breached.

Regulation and Order in Council

The carrying out of these legislative provisions will be determined by regulations or order in council.