Highlights of CPSC Forum on CPSIA Tracking Labels for Children's Products

Highlights of CPSC Staff Comments on CPSIA Tracking Label Requirement

While CPSC staff members made no formal presentations at the meeting, did not take questions, and took no official positions, they did make certain comments of interest:

Do not expect proscribed format soon. CPSC staff stated that it would be highly unlikely for the CPSC to proscribe a specific format for the tracking label any time soon. Though it would be likely to do so at some point in the future, this is "years away."

Possible international label. CPSC added that it is exploring the possibility of a uniform, international tracking label with its international counterparts.

Possible dual purpose. CPSC suggested that in the future, tracking labels might serve the dual purpose of meeting both the CPSIA tracking label requirement and the CPSIA testing and certification requirement. This could be accomplished through the use of a unique identifier (code) that could lead to an internet site in which both types of information would be available.

Risk is hard to predict. CPSC staff stated that while they appreciated participant suggestions that CPSC begin implementing the CPSIA tracking label requirement on products with the highest recall risk, it can be difficult to predict which products will present risks. CPSC staff gave the example of drywall from China as a product few would have predicted to present a risk.

With tracking labels, recalls will increase. CPSC staff disagreed with certain participants who questioned whether tracking labels would actually help serve their intended purpose of assisting during a recall, by affirming that they think the labels will help. In fact, CPSC staff stated that they thought the number of recalls would increase as CPSC will be better able to ascertain the manufacturers of products with problems.

Highlights of Participant Comments on CPSIA Tracking Label Requirement

The following are highlights of the comments made by the private sector participants at the CPSC's forum on CPSIA tracking labels:

One size does not fit all. A recurring point made by many of the participants is that each industry faces its own set of issues that make a "one size fits all" approach to fulfilling the tracking label requirement very difficult. For example, some industries already have similar but different tracking systems that could serve the same intended purpose; some industries face particular challenges to affixing tracking labels due to the material of their products, etc.

Practicality. Participants pointed to many issues regarding the practicality of placing tracking labels on specific products. For example, manufacturers of very small children's products such as earrings and small novelty toys stated that placing a permanent tracking label with all of the information required by the CPSIA is not practicable and will mar the aesthetics of the product. Manufacturers of children's footwear state that they may not be able to place a permanent label on products such as flip-flops, as the label would wear off quickly when the product was used.

Costs. Virtually all participants noted the high cost of the tracking label requirement. In addition to the obvious manufacturing costs associated with placing a new label, the participants pointed to the information technology costs necessary for companies to create and maintain an additional database to track their products, the costs of testing the system, record-keeping costs, etc.

Small business difficulties. Participants noted that while the tracking label requirement is difficult for large businesses, it is almost insurmountable for small businesses. Several audience members advocated an exemption for small businesses and those with small product runs.

Manufacturer often proprietary. Many of the forum participants objected strongly to the CPSIA requirement that the manufacturer name be "marked" on the label, stating that the name of the upstream manufacturer is often highly confidential.

Phased approach based on risk, etc. Several participants urged a phased approach to implementing the requirement, starting with products with a high rate of recall and durable, long-lived products.

Clarification, definitions, exemptions. Participants urged CPSC to provide clarity and guidance on the tracking label requirements, including: defining "to the extent practicable"; defining "permanent"; outlining instances in which it might not be effective to place markings on packaging, etc. Participants also suggested that CPSC exempt certain items such as those of low value, small size, few-runs, and low-risk.

¹Enacted as Public Law 110-314 on August 14, 2008.

²Children's products that are manufactured after August 14, 2009 will be required to have permanent distinguishing "marks" placed on the products and their packaging, to the extent practicable, that would enable the manufacturer and ultimate purchaser to ascertain: (i) the manufacturer or private labeler; (ii) location and date of production; (iii) cohort information (including batch, run number, or other identifying characteristic); (iv) etc. CPSC has previously stated that the scope of this tracking label requirement is quite broad in that it applies to all children's products (for children 12 and younger) including, but not limited to, items such as clothing or shoes, not just toys and other regulated products. CPSC has also stated that this requirement is intended to assist in the event of a recall.

(See ITT's Online Archives or 05/15/09 and 05/07/09 news, 09051510 and 09050715, for BP summaries of the Commission's tied vote on a stay of the tracking label requirement and theAdministration's plans to fully staff all five of the Commissioner positions later this summer, respectively.)

See ITT's Online Archives or 05/05/09 news, 09050510, for BP summary of CPSC announcement of this forum on the CPSIA tracking label requirement.

See ITT's Online Archives or 02/25/09 and 09/15/08 news, 09022505 and 08091515, for BP summaries of a CPSCnotice requesting comments and information on CPSIA tracking labels and the CPSIA tracking label requirement, respectively.

See future issue of ITT for further BP summary of the tracking label requirements.)