Consumer Product Safety Improvement Act of 2008

In August of 2008, President Bush signed into law the Consumer Product Safety Improvement Act ("CPSIA") which, among other things, mandated implementation of a certification protocol for all consumer products subject to safety rules under the jurisdiction of the Consumer Product Safety Commission ("CPSC").  Broadly, "consumer products" are defined as any product used in a residence, school, or for recreational or personal use (subject to enumerated exceptions).  Various CPSC bans and standards already in place will now operate in conjunction with CPSIA, such as the Federal Hazardous Substances Act ("FHSA"), the Flammable Fabrics Act ("FFA"), the Poison Prevention Packaging Act ("PPPA") and the Refrigerator Safety Act ("RSA").  While, for the most part, the CPSIA does not alter pre-existing safety standards for products, it does require that all such consumer products now certify compliance. Products not certified must be refused entry into the US and destroyed unless permission is given for re-shipment.  The CPSIA expands independent, state-level enforcement activities authorizing State Attorneys General to initiate proceedings in federal courts.  The CPSIA also imposes stricter civil penalties up to $100,000 per violation, with an overall cap on penalties of $15 million.  One area in which the safety standards have been changed is with regard to children's products, discussed in more detail here.
 

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New Children's Product Safety Lead Testing Requirements Already Having Effect

The Consumer Product Safety Improvements Act ("CPSIA") imposes new requirements on manufacturers, importers and retailers of children's products beginning February 10, 2009.  The CPSIA defines "children's products" as a "consumer product designed or intended primarily for children 12 years of age or younger," which includes children's clothing.  A General Certificate of Conformity (""GCC") is required for goods starting November 12, 2008.  Under the new requirements, children's products cannot be sold if they contain more than 600 parts per million (ppm) total lead.  Those that resell products or continue to sell products in existing inventory in violation of the limit could face civil and/or criminal penalties. 

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Going-Out-Of-Business Sale: Dealing With Troubled Companies - Does Purchasing Assets Avoid Seller Liabilities?

In these troubled times for the fashion and apparel industry, with consumer spending falling dramatically, many brands in need of capital will be forced to place their companies up for sale.  This present a prime opportunity for companies looking to make a key acquisition.

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