[Federal Register Volume 66, Number 2 (Wednesday, January 3, 2001)]
[Notices]
[Pages 351-352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-134]


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CONSUMER PRODUCT SAFETY COMMISSION


Policy Statement on Reporting Information Under 15 U.S.C. 2064(b) 
About Potentially Hazardous Products Distributed Outside the United 
States; Request for Comments

AGENCY: Consumer Product Safety Commission.

ACTION: Notice of proposed policy statement.

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SUMMARY: Section 15(b) of the Consumer Product Safety Act, 15 U.S.C. 
2064(b), requires manufacturers, distributors, and retailers of 
consumer products to report potential product hazards to the 
Commission. The Commission is seeking public comment on a policy 
statement that information concerning products sold outside of the 
United States that may be relevant to evaluating defects and hazards 
associated with products distributed within the United States is 
reportable under section 15(b).\1\
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    \1\ The Commission voted 2-1 to publish this policy statement 
for public comment. Commissioner Gall voted against publication of 
the policy statement. Her dissenting statement is available from the 
Office of the Secretary, Consumer Product Safety Commission, 
Washington, DC 20207-0001.

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DATES: Comments are due no later than March 5, 2001.

ADDRESSES: Comments should be submitted to the Office of the Secretary, 
Consumer Product Safety Commission, Washington, DC 20207-0001, or 
delivered to room 502, 4330 East West Highway, Bethesda, MD 20814.

FOR FURTHER INFORMATION CONTACT: Marc Schoem, Director, Division of 
Recalls and Compliance, Consumer Product Safety Commission, Washington, 
DC 20207, telephone (301) 504-0608, ext. 1365, fax. (301) 504-0359, E-
mail [email protected].

SUPPLEMENTARY INFORMATION: Section 15(b) of the Consumer Product Safety 
Act (CPSA), 15 U.S.C. 2064(b), imposes specific reporting obligations 
on manufacturers, importers, distributors and retailers of consumer 
products distributed in commerce. A firm that obtains information that 
reasonably supports the conclusion that such a product:
    (1) Fails to comply with an applicable consumer product safety rule 
or with a voluntary consumer product safety standard upon which the 
Commission has relied under section 9 of the CPSA,
    (2) Contains a defect that could create a substantial product 
hazard as defined in section 15(a)(2) of the CPSA, 15 U.S.C. 
2064(a)(2), or
    (3) Creates an unreasonable risk of serious injury or death must 
immediately inform the Commission unless the firm has actual knowledge 
that the Commission has been adequately informed of the failure to 
comply, defect, or risk.
    The purpose of reporting is to provide the Commission with the 
information it needs to determine whether remedial action is necessary 
to protect the public. To accomplish this purpose, section 15(b) 
contemplates that the Commission receive, at the earliest time 
possible, all available information that can assist it in evaluating 
potential product hazards. For example, in deciding whether to report a 
potential product defect, the law does not limit the obligation to 
report to those cases in which a firm has finally determined that a 
product in fact contains a defect that creates a substantial product 
hazard or has pinpointed the exact cause of such a defect. Rather, a 
firm must report if it obtains information which reasonably supports 
the conclusion that a product it manufactures and/or distributes 
contains a defect which could create such a hazard or that the product 
creates an unreasonable risk of serious injury or death. 15 U.S.C. 
2064(b)(2) and (3); 16 CFR 1115.4 and 6.
    Nothing in the reporting requirements of the CPSA or the 
Commission's interpretive regulation at 16 CFR Part 1115 limits 
reporting to information

[[Page 352]]

derived solely from experience with products sold in the United States. 
The Commission's interpretative rule enumerates, at 16 CFR 1115.12(f), 
examples of the different types of information that a firm should 
consider in determining whether to report. The regulation does not 
exclude information from evaluation because of its geographic source. 
The Commission interprets the statutory reporting requirements to mean 
that, if a firm obtains information that meets the criteria for 
reporting listed above and that is relevant to a product it sells or 
distributes in the U.S., it must report that information to the CPSC, 
no matter where the information came from. Such information could 
include incidents or experience with the same or a substantially 
similar product, or a component thereof, sold in a foreign country.
    Over the past several years, the Commission has received reports 
under section 15(b) that have included information on experience with 
products abroad, and, when appropriate, has initiated recalls based in 
whole or in part on that experience. Thus, a number of companies 
already view the statutory language as the Commission does. However, 
with the expanding global market, more firms are obtaining this type of 
information, but many may be unfamiliar with this aspect of reporting. 
Therefore, the Commission proposes to issue this policy statement to 
assist those firms in complying with the requirements of section 15(b) 
of the Consumer Product Safety Act.
    The Commission is not required to seek public comment on what is a 
straight-forward reading of the CPSA. Nevertheless, because this is the 
first public announcement of this interpretation, the Commission is 
providing the public with this opportunity to comment prior to issuance 
of this policy statement.

    Dated: December 28, 2000.
Sadye E. Dunn,
Secretary, Consumer Product Safety Commission.
[FR Doc. 01-134 Filed 1-2-01; 8:45 am]
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