CPSC Shutdown Plan: Continue Enforcement, Pause Public Engagement and Civil Penalties

The U.S. Consumer Product Safety Commission (CSPC) issued its Lapse Plan in advance of the federal government shutdown. The CSPC will furlough 35% of full-time employees, with the overwhelming majority of those retained focused on “protect[ing] life and property.” Under the Lapse Plan, consumer-oriented programs and, notably, civil penalties, will pause for the duration of any shutdown.

The anticipated pause in rulemaking and voluntary standards activities may not present a significant change as the CPSC recently withdrew several pending rulemakings and indicated it planned on being more pointed in this area moving forward. Notably, the CPSC will cease:

• • • Public information and education efforts regarding Safe Sleep practices, drowning prevention, toy safety, and other hazards;
    • Collection and enforcement of civil penalties (consistent with the CPSC’s 2019 and 2020 lapse plans); and
    • Responding to Freedom of Information Act (FOIA) requests

The CSPC, however, will continue to combat - “imminent threats to the safety of the American public” presented through consumer products by:

• • • Monitoring and analyzing reports of injuries and fatalities;
    • Conducting takedowns, negotiating recalls, and issuing public safety warnings;
    • Blocking high-risk shipments at the U.S. border;
    • Operating the Office of Inspector General (IG) hotline and other IG activities; and
    • Filing, prosecuting, or defending legal actions.

The CPSC recently announced its intent to adopt artificial intelligence and predictive analytics, and may accelerate this process to sustain operations with reduced personnel.

Importantly, regulated companies will still be subject to key monitoring and enforcement activities. While the CPSC staff designated as essential personnel are dedicated to protecting against “imminent threat[s] to human life” under the Lapse Plan, they will be reviewing reports to make that determination. The government shutdown does not affect a company’s obligations to timely report substantial product hazards under section 15 of the Consumer Product Safety Act (CPSA). Likewise, the government shutdown has no impact on the timely reporting of lawsuit settlements as required under section 37 of the CPSA.

Crowell will continue to monitor the CPSC’s activities and is ready to advise you and your company as events in Washington unfold.