May 2018 Regulatory Update

In 2016, the petitioner, Halogenated Solvents Industry Alliance, Inc., asked the CPSC to expand the policy statement to address the need for an acute hazard warning label on household products containing methylene chloride that are readily available for consumers to purchase and use (See Regulatory Recap: September 2016).On June 2, 2017, the CPSC voted unanimously (5-0) to grant the petition and the guidance was issued recently to address the labeling for acute hazards from inhaling methylene chloride vapors from paint strippers. The labeling will follow the general principles of warning labels by having the acute and chronic risks conveyed on the principal display panel following the minimum labeling recommendations and on the back or other panel following the minimum labeling recommendations.

In the final rule, the FTC amends 16 CFR 303.19, paragraph (a),to eliminate the requirements that an owner of a registered word trademark furnish the FTC with a copy of the mark’s registration with the United States Patent and Trademark Office (USPTO) before using the mark on labels.

With the input from the Child and Family Research Section staff at the National Institute of Child Health and Human Development (NICHD) within the National Institutes of Health (NIH), the CPSC staff revised the current age determination guidelines (version 2002) and issued the new drafted guideline based on literature review, parent toy survey and observational study. The drafted guideline addresses toys that have come onto the market since the last update and provide the industry a better guideline to reduce product related incidents, costly compliance and enforcement actions.

The comment period for the draft guidance will be closed on June 11, 2018.

The draft guidance provides recommendations to consumer product industry stakeholders, designers and manufacturers to improve their products’ usability, which aims to reduce the use-related hazards. Many product-related injuries can be prevented by better user-centered design. The document also discusses the benefits of employing human factors during the product design process, which is divided into the following six stages:

1. Product planning
2. Idea and concept generation
3. Design and development
4. Testing and validation
5. Production
6. Post-production evaluation

The comment period for the draft guidance will be closed on May 14, 2018.

In the settlement, a chocolate product is defined as chocolate candy, chocolate bars, pieces, chips, beverages and chocolate and cacao-based compounds in any form and other products derived primarily from cacao (i.e. more than 50%).The below table summarizes the minimum concentration of lead and cadmium present in chocolate products that require a product warning:

In 1986, California voters approved an initiative titled California Proposition 65 to address their growing concerns about exposure to toxic chemicals. Since its origin, there have been many lawsuits that have resulted in reformulations of consumer products containing carcinogenic and reproductively harmful chemicals on the Cal Prop 65 list. Prior to legal action, a 60-day Notice is served to provide an opportunity for public enforcers to decide whether they should pursue the action in lieu of private enforcement. It also provides the alleged violator an opportunity to consult with an attorney, respond to the alleged violation, and help prevent continuing penalties.

60-day notices from September of 2017 to March of 2018 include the following:

The requirements for toys in the resolution are summarized below (with the corresponding test standards):

The resolution will enter into force on March 5, 2019. During the transition period, toys and their accessories shall comply with the current requirements established in Resolution 3388/2008 and Resolution 3117/2015. Both Resolutions 3388/2008 and Resolution 3117/2015 will be repealed after the enforcement date of the new toys safety regulation.

In the proposed amendment, DIBP is added to entry 51 of the list of restriction and the scope for DEHP, DBP and BBP (together with DIBP) is expanded to any plasticized materials except the below:

• Articles used exclusively for industrial or agricultural use, or for use exclusively in the open air, provided that no plasticized material comes into contact with human mucous membranes or prolonged contact with human skin
• Aircraft, or motor vehicles within the scope of Directive 2007/46/EEC
• Measuring devices for laboratory use, or parts thereof
• Food contact materials and articles within the scope of Regulation (EC) No 1935/2004 or Commission Regulation (EC) No10/2011
• Medical devices within the scope of Directives 90/385/EEC, 93/42/EEC or98/79/EC, or parts thereof
• Electrical and electronic equipment within the scope of Directive 2011/65/EU (RoHS)
• Immediate packaging of medicinal products within the scope of Regulation (EC) No 726/2004, Directive 2001/82/EC or Directive 2001/83/EC

The proposed amendment also defined “plasticized materials” as the following homogeneous materials:

• Polyvinyl chloride (PVC), other polymers such as polyvinylidene chloride (PVDC) and polyvinyl acetate (PVA), as well as any other plastics, except polyolefins
• Rubber, except silicone rubber and natural latex coatings
• Polyurethanes and any other foam rubber or foam plastic
• Surface coatings, non-slip coatings, finishes, decals, printed designs
• Adhesives, sealants, paints and inks

The new amendment will be implemented 18 months after the proposal has entered into force. The deadline for comments on the proposal is May 27, 2018.

To assist producers, importers and distributors in complying with the PAHs restriction under REACH, a guideline was published to provide a clear definition of the products that are within the scope (See Regulatory Recap: March 2017).

Generally according to the guideline, PAHs in consumer products including toys may be found in the following sources:

1. Use of mineral oil or coal-based extender or plasticizer oils in the production of rubber and plastics
2. Carbon black (soot), which is intentionally added to elastomers to achieve the properties of the material (Examples include: color, damping, flexibility, or solubility in the polymer matrix)
3. Plastic materials, lacquers or varnishes
4. Coatings (Example: plastic coating made of synthetic organic polymers)

Apart from the sources, examples of articles within or excluded from the scope are also listed.

The inspection, which took place in Riyadh, Jeddah and Dammam, resulted in the confiscation of 126 lighting models that did not meet the standard specifications of energy efficiency. Therefore, all the sub-standard products, amounting to 90,884 items, were seized by MCI inspectors.

This inspection came within the framework of the efforts exerted by several governmental authorities, operating as one team within the Saudi Program for Energy Efficiency. The Saudi Program for Energy Efficiency works to ensure the commitment and compliance with the standard specifications related to increasing the efficiency of energy consumption. Notably, the program is run by various governmental authorities, including:

• The Ministry of Commerce and Investment
• The Ministry of Energy, Industry and Mineral Resources
• The Saudi Standard, Metrology and Quality Organization
• The General Authority of Customs
• The Saudi Center for Energy Efficiency

For more details, please visit: https://mci.gov.sa/en/MediaCenter/News/Pages/15-04-18-01.aspx

The violations included the following:

• Non-compliance with the Anti-Commercial Fraud Law
• Forging registered trademarks
• Failure to place a price tag on the products
• Non-disclosure of trade data of the goods
• Non-issuance of purchase invoices
• Invoices not written in Arabic
• Violations related to the Commercial Data System and the Commercial Registration

The seizures included many consumer goods and electrical appliances such as connectors, chargers, plugs that are non-conforming to standard specifications, detergents, cosmetics, accessories, hardware, sunglasses, children toys, etc.

Through this intensive inspection campaign covering all regions of the Kingdom, the Ministry aims to control and seize all fake and sub-standard goods, and all products that are not conforming to the approved standard specifications.

The Ministry has announced it will start its inspection and control campaign on outlets of reduced goods, as per their strict plan based on the monitoring and investigation of the sources of counterfeit and fake products. The inspection will be performed through concealed consumers, who will shop for the purpose of collecting information about the sources of fake goods and products, which violate the standard specifications.

MCI field inspection teams, in various regions of the Kingdom, have worked to collect information and do the necessary investigation to seize the products in violation by using the Procedural Guide of Inspectors, which includes the specifications of products and commodities available in the markets.

MCI would like to affirm that it will not hesitate to take stern measures and to impose the legal penalties against any establishment that offers counterfeit or fake goods. The Ministry calls on all consumers to lodge their complaints and observations through the MCI Consumer Call Center "1900" or through the application of a Commercial Violation Report, or via the Ministry’s official website.

For more details, please visit: https://mci.gov.sa/en/MediaCenter/News/Pages/14-04-18-01.aspx