2013 PMANC Showcase/Professional Development May 10, 2013, Monterrey, CA Best Practices to Protect your Clients, your Business, and the Industry Product.

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Presentation transcript:

2013 PMANC Showcase/Professional Development May 10, 2013, Monterrey, CA Best Practices to Protect your Clients, your Business, and the Industry Product Safety and Regulatory Compliance for the Promotional Products Industry An Interactive Workshop on BRANDProtection

2013 PMANC Showcase/Professional Development Meet Your Seminar Hosts Leeton Lee, Esq. General Counsel ETS Express Rick Brenner, MAS CEO Prime Line

BRANDProtection 2013 PMANC Showcase/Professional Development Where it All Began……. The Summer of Recalls

BRANDProtection 2013 PMANC Showcase/Professional Development The Result …. Heightened awareness of risks of imported products Significant risk to the promotional products industry Far reaching new federal and state legislation A new paradigm for the industry

BRANDProtection 2013 PMANC Showcase/Professional Development Responsible Sourcing Product SafetyRegulatory ComplianceSocial AccountabilityEnvironmental StewardshipSupply Chain Security

BRANDProtection 2013 PMANC Showcase/Professional Development Managing Risk - Protecting End Buyer End User (Recipient) Sales Rep The Industry Supplier Distributor

BRANDProtection 2013 PMANC Showcase/Professional Development RISKS Injuries from Product Defects

BRANDProtection 2013 PMANC Showcase/Professional Development RISKS Defective Product Recalls

BRANDProtection 2013 PMANC Showcase/Professional Development Canada Recalls John Deere T-Shirts for Excessive Lead in Decorating Inks Compliance Violations RISKS

BRANDProtection 2013 PMANC Showcase/Professional Development Social Accountability RISKS

BRANDProtection 2013 PMANC Showcase/Professional Development RISKS Civil Penalties

BRANDProtection 2013 PMANC Showcase/Professional Development RISKS The Unthinkable:Product Related Death

BRANDProtection 2013 PMANC Showcase/Professional Development RISKS Class-Action Litigation

BRANDProtection 2013 PMANC Showcase/Professional Development RISKS Brand Damage by Perception only

BRANDProtection 2013 PMANC Showcase/Professional Development RISKS Brand Damage by Perception only

BRANDProtection 2013 PMANC Showcase/Professional Development ACTION Where to begin? Develop a brand protection strategyEvaluate your resources Develop policies and programs to support the strategy Educate your employees and reps

BRANDProtection 2013 PMANC Showcase/Professional Development ACTION Brand Protection Strategy There is no “one-size fits all” strategy Even within largest companies, strategies differ Consider what makes most sense for your market, customer base and resources

BRANDProtection 2013 PMANC Showcase/Professional Development ACTION Examples of Strategies Customer by customer strategyProduct Safety as a Differentiator – Trusted AdvisorLimited products or vendorsCertification (QCA, FLA, PPAI, etc.)PPAI Education trackIn-house counselDedicated compliance support teamOutsource some of the riskAligning with larger organization

BRANDProtection 2013 PMANC Showcase/Professional Development ACTION Key Elements of EVERY Strategy Learn CPSIA, Prop 65 Basics Understand the Risks Client Communications Know the Intended Audience Product Considerations Understand the Product Vendor Selection Know the Vendor’s Processes Compliance Verification Obtain and Validate Test Reports Vendor Communication Annotate PO Carefully

BRANDProtection 2013 PMANC Showcase/Professional Development Key Product Safety Topics What is a “Children’s Product”?What is a “Children’s Toy”?What is a “General Use” product? The blanks issue in the promotional products industry

BRANDProtection 2013 PMANC Showcase/Professional Development Key Product Safety Topics 1.Children’s Products Lead in substrate 100 ppm Lead in surface coating 90 ppm Can be paint, decoration, applique 2.Children’s Toys and Child Care Articles Lead in substrate 100 ppm Lead in surface coating 90 ppm Six phthalates maximum.1% Toy Safety Standard ASTM F Mandatory 3.Mandatory periodic testing at CPSC certified 3 rd party lab 4.Periodic testing (reasonable testing program) 5.Children’s Product Certificate (CPC) 6.General Certificate of Compliance (GCC) 7.Permanent tracking labels Key CPSIA Highlights

BRANDProtection 2013 PMANC Showcase/Professional Development Challenges for Distributors Who Contract for Decoration of Children’s Products “An Appropriate Level of Due Care”

BRANDProtection 2013 PMANC Showcase/Professional Development Key Product Safety Topics 1.Safe Drinking Water and Toxic Enforcement Act of Annual list of chemicals known to the State of California to cause cancer or reproductive toxicity 3.Labeling law 4.Clear and reasonable warning 5.Safe harbor level (no significant risk) 6.Bounty hunters 7.Settlement agreements Issues: 1.What are the various strategies to comply? 2.How certain is any strategy? 3.Are there “Prop 65” lab tests? Key Proposition 65 Highlights

BRANDProtection 2013 PMANC Showcase/Professional Development Choose Your Suppliers Carefully Compliance Requires Daily Vigilance

BRANDProtection 2013 PMANC Showcase/Professional Development Choose Your Suppliers Carefully Compliance Requires Daily Vigilance

BRANDProtection 2013 PMANC Showcase/Professional Development Supplier or Distributor 10 Things We All Must Do 26 1.Know the laws/regulations (or have a good resource) 2.Know your product (supplier, primarily) 3.Know your supplier 4.Know your client 5.Know your intended audience 6.Know the risks – regulatory, safety, PR 7.Educate the team 8.Stay current (Buckyballs, John Deere, /90, F963-11) 9.Instill a product safety culture in your company 10.Protect the industry

BRANDProtection 2013 PMANC Showcase/Professional Development Thank you for the opportunity to speak to you. Feel free to contact Rick or Leeton anytime with questions. The better job we all do at product safety and compliance the more we preserve our industry and our living. Leeton H. Lee VP, Regulatory Compliance and General Counsel ETS Express, Inc. P: Rick Brenner CEO Senior Compliance Officer Prime Resources, Inc Thank You!