Reprinted with permission from Business Law Today, a publication of the American Bar Association Business Law Section, Volume 19, No.1, Sept/Oct. 2009

In 1972, Congress passed sweeping legislation creating the Consumer Product Safety Commission (CPSC), which was established in 1973. The CPSC, an independent federal ag d sweeping reform targeted at manufacturers, distributors, and retailers of consumer products.

What Is Affected?

The CPSC defines "consumer products" as "any article or component part thereof produced or distributed (i) for the sale to a consumer for use in or around a permanent or temporary household or residence, a school, in recreation or otherwise, or (ii) for the personal use, consumption or enjoyment of a consumer in or around a permanent or temporary household or residence, a school, in recreation, or otherwise." The CPSC's jurisdiction covers thousands of consumer products that are produced or sold by manufacturers, distributors, and retailers. Despite its expansive regulatory territory-covering over 15,000 types of consumer products-CPSC has been limited in its enforcement ability by its small agency of only 400 to 500 employees, small budget, and disjointed enforcement. To fill these gaps in regulation, a number of states have gone so far as to promulgate their own safety standards, regulations, and testing protocols. These differing standards have been particularly onerous on businesses operating in multiple jurisdictions. These companies must comply not only with federal regulations and testing, but also with the relevant state regulation and testing regime. As would be seen in a number of high-profile recalls, this two-layer process left a number of gaps.

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