New penalties for companies who do not pull recalled items
Today, the Honourable Leona Aglukkaq, Minister of Health, announced the Harper Government has introduced new fines of up to $25,000 per day for companies who violate orders under the Canada Consumer Product Safety Act (CCPSA). The Administrative Monetary Penalties (Consumer Products) Regulations coming into force provide a flexible and responsive enforcement approach for dealing with specific incidents of non-compliance with an order made under the Act, such as refusing to comply with a recall order.
“Canadian consumers expect the products they pick up on store shelves to be safe for them and their families,” said Minister Aglukkaq. “By introducing significant fines for companies who violate orders to recall unsafe products, our Government is ensuring that companies who break the law will pay the price.”
Penalties are calculated based on the Administrative Monetary Penalties (Consumer Products) Regulations. They reflect the seriousness of the violation and past violation history of the person or company. The maximum penalties range from $5,000, (for a violation committed by an individual or a non-profit corporation, for non-commercial purposes), to $25,000, (in any other case). These numbers represent daily penalties - meaning that the financial burden on the company can increase with each passing day until the matter is resolved.
“We all share an interest in making sure that Canadians are protected from unsafe consumer products,” said Louise Logan President and CEO of Parachute. “Today’s announcement by Minister Aglukkaq brings in new measures to support compliance with the Canada Consumer Product Safety Act. Canadian parents now have further reassurance that the products they’re buying won’t harm their children.”
Typically, industry voluntarily takes action to address unsafe products. Administrative monetary penalties only come into effect when a company does not comply with government orders to recall a product within specified time frames, or orders to take other measures such as stopping the manufacturing, importation, sale or advertising of a non-compliant product.
“In most cases industry shares our concern for having safe products on the Canadian marketplace,” concluded Minister Aglukkaq. “These penalties will zero in on companies and organizations who won’t take action to protect Canadians from dangerous products.”