CPSC at ICPHSO: Office of Compliance Activity

This second installment of our series highlights CPSC’s Office of Compliance Activity and continued aggressive enforcement efforts.

Multiple presenters emphasized CPSC’s continued aggressive enforcement. Commenters frequently repeated the statistic that CPSC obtained over $52 million in civil penalties in its fiscal year 2023. Further, since January 2021, CPSC has settled 11 civil penalty investigations, for a combined total of over $100 million. Jana Fong-Swamidoss, Chief of Staff to CPSC Chair Alexander Hoehn-Saric, explained that this trend is consistent with CPSC’s view that it is an enforcement agency and not just a regulator.

CPSC Deputy Director of the Office of Compliance and Field Operations Jen Sultan also provided an update on CPSC’s unilateral notifications, recent compliance guidance and letters, recall monitoring activities, and civil penalty announcements. She explained that CPSC has increasingly turned to unilateral press releases where firms are not responsive, go out of business, decline to take corrective action, or do not provide what CPSC views as a sufficient remedy to consumers. In its fiscal year 2023, CPSC issued 26 unilateral notifications. She explained that, in CPSC’s view, this same pattern of behavior has led to the increase in civil penalties. Sultan also provided an overview of recent CPSC guidance on micromobility products, categorization of Youth ATVs, and new regulatory authorities on infant sleep products, magnets, crib bumpers, and adult portable bed rails.

Acknowledging this trend, CPSC representatives provided advice to stakeholders. Fong-Swamidoss encouraged firms to develop and continuously review robust compliance programs. For example, she advocated for firms to use CPSC enforcement actions as an opportunity to educate employees outside of compliance roles who may not be familiar with applicable regulatory requirements. Multiple representatives also reiterated the importance of early reporting of potential product hazards to avoid civil penalties, which Fong-Swamidoss succinctly summarized: “Report and report early.”

Some industry members commented that, looking ahead, the outcome of the 2024 election will likely have a significant impact on whether these enforcement trends continue, given that CPSC’s enforcement decreased under the previous presidential administration. If the administration reverts to prior leadership, many in the industry anticipate a return to the less aggressive CPSC enforcement levels observed between 2016 and 2020.