New Product Safety legislation has firms gearing up for business

San Diego Business Journal, Sept 15, 2008 by Heather Chambers

A law spurring changes to the Consumer Product Safety Act has prompted local law firms to ramp up their related legal offerings, with some choosing to dedicate entire practice groups to serving clients affected by the new mandates.

The Consumer Product Safety Improvement Act of 2008, signed into law Aug. 14 by President Bush, marks the most significant overhaul of the U.S. Consumer Product Safety Commission since the agency was established 30 years ago.

New requirements under the act are designed to avoid more rounds of massive recalls on imported consumer products. Most of the new requirements are largely in response to concerns about unsafe Chinese imports, particularly children's toys with high lead counts.

In essence, the law puts stricter safety requirements on manufacturers and retailers, increases penalties from $5,000 to $100,000 per violation, and makes company directors and officers criminally responsible for violations. Additionally, the act mandates third-party testing of certain children's products and requires new tracking labels and registration requirements in the event of a recall or safety alert.

"The act is really an overhaul of the Consumer Product Safety Commission and a substantial bolstering of the CPSC in many respects," said Christopher Young, a partner in the downtown San Diego office of DLA Piper LLP and cochairman of the firm's Product Liability and Toxic Tort group.

The act bans the sale of children's products, including cribs, potty training devices and pacifiers, that contain higher-than-approved amounts of lead. And it gives regulatory authority to the commission to destroy products that violate the rules.

"The act targets such a broad range of children's products," said Ellen Nudelman, an associate in the San Diego office of Morrison & Foerster LLP. "It's not just talking about lead limits; it's revising the safety standards for a whole slew of toys."

Nudelman said Morrison & Foerster, which employs more than 70 lawyers in San Diego, foresees a significant need for legal expertise because of varying interpretations of the law's language.

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC, a law firm that employs 32 attorneys in San Diego, launched a practice group in response to the new law. Its Consumer Product Safety Commission practice consists of a dozen attorneys with expertise in insurance, litigation, white-collar crime and customs, among other areas.

Send news about legal services to Heather Chambers, hchambers@sdbj.com.