Introduction of the new Canada Consumer Product Safety Act Technical Briefing January 29, 2009

The Context Canada’s food and consumer product safety regime has served Canadians well, however, recent incidents relating to food, health and consumer products, underscore the need to modernize legislation Canada’s consumer product safety system was developed in an earlier era: Hazardous Products Act was introduced in 1969 New challenges: more complex products; more rapid innovation to market; new source countries; increased consumer demand for information International counterparts (US, EU) have updated their health and safety regimes Modern legislation is required to successfully implement Canada’s Food and Consumer Safety Action Plan 2

Current Status On December 17, 2007, the Prime Minister announced the Food and Consumer Safety Action Plan following a commitment from the 2007 Speech From the Throne The Action Plan is a comprehensive approach that builds on the strengths of the current protection system and addresses key gaps in consumer product safety by: raising the bar by updating product safety laws strengthening program capacity through new investment of $113 million over 2 years In the November 2008 Speech from the Throne, the government re-iterated its commitment to “follow through with legislation providing better oversight of food, drug and consumer products” 3

Three key pillars for action enhanced guidance to industry on regulatory requirements more effective deterrents, including steeper fines & penalties Active prevention encourage development of safety standards & dissemination of best practices more accessible consumer safety information improved surveillance and mandatory reporting of adverse events and incidents Targeted oversight risk communication & recall powers Rapid response 4

Former Bill C-52 Introduced on April 8, 2008 Went through first and second reading General support from all sectors Minimal concerns/comments in the House debates Referred to the Standing Committee on Health for study on May 1, 2008 Died on the order paper when the election was called 5

Challenges with current legislation for consumer products The Hazardous Products Act (HPA) is reactive and focuses on consumer products that have been regulated or prohibited Authority to take action is limited to seizure The HPA relies heavily on voluntary actions by industry when a problem arises The HPA does not apply to manufacturers 6

Proposed Canada Consumer Product Safety Act (CCPSA) Replaces Part I of the Hazardous Products Act Places additional safety obligations on industry while giving the Government of Canada modernized tools to take action quickly Focuses on continued cooperation and collaboration with stakeholders in promoting safe consumer products and achieving compliance with legislation Covers the majority of consumer products Notable exceptions include: food, drugs, natural health products, cosmetics 7

Proposed CCPSA (Continued) New “General Prohibition” provision Applies to almost all consumer products Prohibits supply of consumer products that poses an unreasonable danger to human health or safety Reduces dependence on regulatory processes Allows for prompt and effective action where a danger to human health or safety exists Compliance and Enforcement Power to compel consumer product recalls or other corrective measures, and carry out measures if industry does not cooperate Increased fines and penalties, including administrative monetary penalties Industry Obligations Strengthened accountability of manufacturers and other suppliers to take necessary measures to ensure safety of consumer products: Mandatory reporting of defects and adverse events Mandatory record-keeping for traceability of products throughout supply chain Authority to require tests and studies to verify compliance Importation Further clarifies role of importers to ensure their products do not pose a danger to human health or safety 8

Anticipated Outcomes of Proposed Modernized Legislation Government Has new authorities and tools to promote and enforce compliance and take action where necessary Industry Clearer responsibilities and obligations Consumers Equipped with information and tools OVERALL RESULTS: Safer consumer products Better protection of consumer health and safety More level playing field for responsible Canadian businesses and greater clarity of industry obligations Greater consumer confidence in products on the market More consistency and compatibility with international trading partners and competitors 9

Conclusion The federal government is taking action to address three key areas: Working to prevent problems in the first place Targeting the highest risks Rapid response when a problem occurs With the proposed legislation, Canadians will have increased confidence that their consumer products are safe 10