December 15, 2010

Almost 3 years to the day that Prime Minister Stephen Harper first announced his Food and Consumer Product Safety Action Plan proposing a series of initiatives to modernize and strengthen Canada's safety system for food, health and consumer products, Bill C-36, the Canada Consumer Product Safety Act (CCPSA), was finally passed by the Canadian Senate on December 13, 2010.  The Bill will shortly receive Royal Assent.

The passage of this new law comes on the heels of two failed attempts by the Conservative government to pass similar legislation and a last minute move by Liberal Senators to delay passage because of privacy concerns connected with certain enforcement rights provided in the legislation.

The CCPSA replaces Part I of the Hazardous Products Act and will generally apply to all Canadian consumer products, whether imported or domestically manufactured.  Certain products, such as food, cosmetics and drugs, the sale of which is governed by other federal legislation, are not covered by the CCPSA.

In addition to a general prohibition against the manufacture, importation, advertisement and sale of consumer products that are a danger to human health or safety, the CCPSA includes provisions for:

• maximum criminal fines of up to $5,000,000 and imprisonment for up to two years;
• the introduction, as an alternative to criminal prosecution, of an administrative monetary penalty scheme;
• mandated safety tests and results disclosure to Health Canada;
• required notification to Health Canada and others of reports of serious adverse incidents involving consumer products;
• the power to pull unsafe consumer products from store shelves;
• the power to institute mandatory recalls and other corrective measures; and
• mandatory supplier record keeping.

The CCPSA will not come into force until Health Canada puts in place the regulatory framework required by the Bill.  However, Health Canada has been fast tracking this process and has already issued proposals for a number of regulations for the purposes of public consultation.  Canadian manufacturers, importers, distributors and retailers with any involvement in the Canadian consumer product supply chain should use the time before the CCPSA comes into force to put in place the policies, processes and procedures that they will need to comply with this new legislation.

Caveat Venditor

The expression caveat emptor, let the buyer beware, is well known.  However, with the enactment of the Canada Consumer Product Safety Act, manufacturers, importers, distributors, advertisers and retailers will need to become familiar with the expression caveat venditor – let the seller beware.  Fines for offences and administrative monetary penalties for violations of the Canada Consumer Product Safety Act are potentially significant.