With consumers attempting to navigate quarantine and “shelter-in-place” orders, businesses that sell basic necessities are facing overwhelming demand.

This new level of demand is placing stress on both businesses that sell basic necessities and their employees. Many businesses are experiencing increased overall customer service inquiries, call volume, and website orders. They are needing to meet increased consumer demand while making unprecedented provisions for their own employees’ health and well-being (which we have written about here and here).


Continue Reading

Current thinking from public health experts is that COVID-19 will affect the American economy for several months. But during this period businesses still have responsibilities to their brands and obligations under law. And unlike during last year’s government shutdown, the pandemic has forced government agencies like the U.S. Consumer Product Safety Commission (CPSC) to operate differently, but it hasn’t closed its doors. For that reason, businesses will still have legal obligations and face the possibility of CPSC enforcement efforts.

Here are three steps companies can take to protect their brands and reduce the risk of CPSC enforcement.
Continue Reading

Cannabidiol (CBD) is a naturally occurring compound derived from the hemp plant, a member of the cannabis family. Because CBD is also found in the marijuana plant (a cousin of hemp), its use fell into a legal gray area until recently.

In December 2018, however, Congress passed the Farm Bill and legalized hemp and hemp-derived products. CBD products since have skyrocketed in popularity, with analysts projecting that CBD will grow to a $16 billion industry in five years. CBD product manufacturers and retailers across America are working to meet the high demand for their goods.
Continue Reading

The U.S. Consumer Product Safety Commission (CPSC) will hold its annual public hearing on the agency’s agenda and priorities (Priorities Hearing) on April 15 in Bethesda, Md. At a minimum, CPSC-regulated companies – particularly those who make or sell products that have been politically sensitive recently – should watch the hearing to get a sense of both the public pressures the agency may be facing and how the CPSC (especially the four sitting commissioners) feel about the issues of the day. Companies may also want to consider participating, either in person or in writing.
Continue Reading

As we speculated late last year, the White House has announced that President Trump intends to nominate Dr. Nancy Beck to both the open seat on the U.S. Consumer Product Safety Commission (CPSC) and the chairmanship of the agency. If Dr. Beck is confirmed, the CPSC would be back to its full five-commissioner strength. Dr. Beck’s confirmation would also shift both the day-to-day management of the agency and its partisan balance, ending both current Acting Chair Bob Adler’s (D) tenure and its 2-2 party split.
Continue Reading

Frequently the U.S. Consumer Product Safety Commission (CPSC) shares big news at the annual meeting of the International Consumer Product Health & Safety Organization (ICPHSO), the body that brings together all stakeholders in the product safety space, from consumer advocates to industry to regulators. A few years ago, then-Chairman Elliot Kaye shared his desire to see penalties in the “double-digit millions.” That statement preceded – by mere weeks – the announcement of a $15.45 million penalty against Gree Electric Appliances, Inc., the maximum penalty allowed by CPSC’s statutes.
Continue Reading

“Hello.  This is an automated call from Acme Manufacturing. Our records indicate that you purchased Product X between December 2019 and January 2020. We wanted to let you know that we are recalling Product X because of a potential fire risk. Please call us or visit our website for important information on how to participate in this recall.”

When companies recall products, they do so to protect consumers.  In fact, various federal laws, including the Consumer Product Safety Act (CPSA), the Federal Food, Drug, and Cosmetic Act (FDCA), and National Highway and Motor Vehicle Safety Act (MVSA), encourage (and may require) recalls. And the agencies that enforce these statutes would likely approve of the hypothetical automated call above, because direct notification is the best way to motivate consumer responses to recalls.[1]

But automated calls to protect consumers can run into a problem: the Telephone Consumer Protection Act (TCPA).
Continue Reading

A U.S. Supreme Court ruling from last summer may have changed the trajectory of a high-profile pending commercial speech case. In National Institute of Family and Life Advocates v. Becerra, the Court modified the traditional commercial speech tests, perhaps placing a greater burden on the government when it seeks to regulate commercial speech. Becerra could influence the D.C. Circuit Court’s decision in Cigar Association of America v. U.S. Food and Drug Administration as to whether FDA-mandated cigar health warnings violate the First Amendment. If cigar regulations are found to violate the First Amendment, it could lead to a new wave of litigation.
Continue Reading