Employment Alert: Consumer Product Safety Improvement Act Creates New Whistleblower Rights Affecting Manufacturers, Distributors, Private Labelers, and Retailers


On August 14, 2008, Congress enacted the Consumer Product Safety Improvement Act of 2008 (“CPSIA” or the “Act”), 15 U.S.C. § 2051 et seq., which significantly increased regulation of the consumer product industry.

Companies covered by the Act must comply with a host of new product safety standards, some of which became effective immediately. The Consumer Product Safety Commission (the “Commission”) has pledged to implement other new standards over time. The Act also grants the Commission a powerful array of enforcement powers, including the ability to impose enhanced monetary and nonmonetary penalties against companies that fail to comply.

Crucially, in addition to the regulatory implications of the Act and the regulations promulgated by the Commission, affected employers also must be very mindful of the whistleblower provisions and protections found in the Act.

Please see full alert for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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