2. A Small Business Guide to the U.S. Consumer Product Safety Commission

Who We Are

We're the U.S. Consumer Product Safety Commission (CPSC), an independent federal regulatory agency created in 1972 by Congress in the Consumer Product Safety Act (CPSA). In that law, Congress directed the Commission to "protect the public against unreasonable risks of injuries and deaths associated with consumer products."

Types of Products We Cover

We cover about 15,000 types of consumer products used in the home, schools, and recreation. Examples include toys, clothing, appliances, furniture, and playground and sports equipment.

We do not regulate on-road motor vehicles, boats, aircraft, food, drugs, cosmetics, pesticides, alcohol, tobacco, firearms, and medical devices.

Types of Businesses We Cover

We cover every company -- regardless of how few employees it has or how few hours a week it operates -- that manufactures, imports, distributes, or sells any type of consumer product covered by any law we administer.

What We Do

CPSC protects the public against unsafe consumer products. We issue mandatory safety standards for some products, such as bicycles and cigarette lighters. We can ban a product, as we did with lead-containing paint, if no feasible standard would adequately protect consumers. If we find that a product is hazardous for consumers but there is no mandatory product safety standard, we work with the manufacturer, importer, distributor, or retailer to develop a plan that may include design changes, repair, or recall of the product.

Reporting Responsibilities for Businesses

There are three reporting requirements in the CPSA that apply to small businesses:

1. Any manufacturer, importer, distributor, or retailer of consumer products must notify CPSC immediately if it could be concluded that one of its products: (a) has a defect that creates a substantial risk of injury to the public; (b) creates an unreasonable risk of serious injury or death; or (c) violates a consumer product safety standard or ban of the product. (15 U.S.C. 2064)
   
   
2. A manufacturer must report to CPSC when any of its consumer products has been involved in three or more lawsuits in a two-year period. Each lawsuit must have alleged death or grievous bodily injury and resulted in a settlement or a court judgment in favor of the person who filed the suit. (15 U.S.C. 2085)
   
   
3. A manufacturer, distributor, retailer, or importer of marbles, small balls, latex balloons, or toys or games that contain such items must report to CPSC any incidents of children choking on those items. (15 U.S.C. 2064 note)

If you think you may need to report to us or if you have any questions, contact CPSC's headquarters compliance staff. (See listing in the "Where You Can Get Additional Information" section.)

Other Laws We Enforce

• Federal Hazardous Substances Act: applies to hazardous household substances and children's products. Some substances must be labeled as hazardous; some are banned. Some of the hazards addressed under this Act are toxicity, flammability, and corrosiveness.
  
  
• Flammable Fabrics Act: applies to products such as clothing, mattresses, and carpets.
  
  
• Poison Prevention Packaging Act: requires child-resistant packaging for certain drugs and other hazardous household substances, such as furniture polish and turpentine.
  
  
• Refrigerator Safety Act: applies to household refrigerators. Refrigerator doors must be easy to open from the inside (to prevent children from becoming trapped).

How We Can Help You

We are ready, willing, and eager to assist you in any of several ways. For example:

• Our field staff and headquarters compliance staff can answer your questions about CPSC's jurisdiction, laws, and reporting requirements and can give you the appropriate CPSC materials.
  
  
• CPSC has a small business ombudsman. Through the ombudsman, you can get answers to your questions and advice about compliance with CPSC laws and regulations, as well as technical assistance in resolving problems.
  
  The Small Business and Agriculture Enforcement Ombudsman and 10 Regional Fairness Boards were established to receive comments from small businesses about federal agency enforcement actions. The Ombudsman will annually evaluate the enforcement activities and rate each agency's responsiveness to small business. If you wish to comment on the enforcement actions of CPSC, call 1-888-REG-FAIR (1-888-734-3247) or visit www.sba.gov/ombudsman
  
  
• We have many publications. Some explain our laws and regulations. Others contain safety information on consumer products or hazards.
  
  
• We have a user-friendly Web site on the Internet that have useful information for businesses, including our compliance handbooks and reporting requirements under the Consumer Product Safety Act.
  
  
• Finally, we have a toll-free hotline that provides recorded information on recalled products. The hotline has bilingual English- and Spanish-speaking staff.

Where You Can Get Additional Information

Help is as near as your mailbox, telephone, fax machine, or computer.