Understanding Distributors, Logistics Providers, and Exemptions under the CPSA
The content discusses the definitions of distributors, third-party logistics providers, and the exemptions for common carriers, contract carriers, and freight forwarders under the CPSA. It clarifies the roles of these entities in distributing and transporting consumer products, emphasizing that certain entities are not automatically categorized as manufacturers, distributors, or retailers based on their activities. The definitions provided help in understanding the specific roles and responsibilities within the consumer product supply chain.
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In the Matter of Amazon.com, Inc. CPSC Docket No.: 21-2 Presented by: John Eustice, Senior Trial Attorney Serena Anand, Trial Attorney Thomas Mendel, Trial Attorney Complaint Counsel Division of Enforcement and Litigation
DISTRIBUTOR. The term distributor means a person to whom a consumer product is delivered or sold for purposes of distribution in commerce, except that such term does not include a manufacturer or retailer of such product. What is a Distributor Under the CPSA? 15 U.S.C. 2052(a)(8)
DISTRIBUTION IN COMMERCE. The term[] to distribute in commerce . . . mean[s] to sell in commerce, to introduce or deliver for introduction into commerce, or to hold for sale or distribution after introduction into commerce. Distribution in Commerce 15 U.S.C. 2052(a)(7)
THIRD-PARTY LOGISTICS PROVIDER. The term third-party logistics provider means a person who solely receives, holds, or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product. What is a Third- Party Logistics Provider Under the CPSA? 15 U.S.C. 2052(a)(16)
COMMON CARRIERS, CONTRACT CARRIERS, AND FREIGHT FORWARDERS. A common carrier, contract carrier, third party logistics provider, or freight forwarder shall not, for purposes of this Act, be deemed to be a manufacturer, distributor, or retailer of a consumer product solely by reason of receiving or transporting a consumer product in the ordinary course of its business as such a carrier or forwarder. Exemption Provision 15 U.S.C. 2052(b)
The term distributor means a person to whom a consumer product is delivered or sold, who takes title to the product for purposes of distribution in commerce, except that such term does not include a manufacturer or retailer of such product. The term third-party logistics provider means a person who solely, regardless of other activities, receives, holds, or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product. Amazon s Attempted Rewrite of the CPSA A common carrier, contract carrier, third party logistics provider, or freight forwarder shall not, for purposes of this Act, be deemed to be a manufacturer, distributor, or retailer of a consumer product solely by reason of receiving, holding, or transporting a consumer product orby providing a myriad of other services related to the sale of the product in the ordinary course of its business as such a carrier or forwarder.
REPAIR; REPLACEMENT; REFUNDS; ACTION PLAN. If the Commission determines . . . that a product distributed in commerce presents a substantial product hazard and that action under this subsection is in the public interest, it may order . . . and to take any one or more of the following actions it determines to be in the public interest: Refund, Repair, Replacement Legal Standard 15 U.S.C. 2064(d)(1)
The Commission shall specify in the order the persons to whom refunds must be made . . . . Authority to Direct Refund Conditions 15 U.S.C. 2064(d)(2)
REQUIREMENTS FOR RECALL NOTICES. Except to the extent that the Commission determines with respect to a particular product that one or more of the following items is unnecessary or inappropriate under the circumstances, the notice shall include the following: Mandatory Content Requirements 15 U.S.C. 2064(i)(2) RECALL NOTICE CONTENT REQUIREMENTS. Except as provided in 1115.29, every recall notice must include the information set forth below: 16 C.F.R. 1115.27
Content Deficiencies in Amazons Unilateral Message The word recall in the heading and text. 16 C.F.R. 1115.27(a) A photograph of the product at issue. 15 U.S.C. 2064(i)(2)(A)(iii); 16 C.F.R. 1115.27(c)(6) A description of the action being taken with respect to the product. 15 U.S.C. 2064(i)(2)(B); 16 C.F.R. 1115.27(d) The number of units of the product with respect to which the action is being taken. 15 U.S.C. 2064(i)(2)(C); 16 C.F.R. 1115.27(e) A description of the substantial product hazard and the reasons for the action, 15 U.S.C. 2064(i)(2)(D), enabling consumers to readily identify and understand the risks and potential injuries or deaths. 16 C.F.R. 1115.27(f) An identification of the manufacturers and country of manufacture. 15 U.S.C. 2064(i)(2)(E); 16 C.F.R. 1115.27(h)-(i) The dates between which the product was manufactured and sold. 15 U.S.C. 2064(i)(2)(F); 16 C.F.R. 1115.27(h)-(k) The approximate retail price or price range of the product. 16 C.F.R. 1115.27(l) A description of all incidents, injuries, and deaths associated wit the product. 15 U.S.C. 2064(i)(2)(G); 16 C.F.R. 1115.27(m) A description of any information a consumer needs in order to obtain a remedy or information about a remedy, such as mailing addresses, telephone numbers, fax numbers, and email addresses. 15 U.S.C. 2064(i)(2)(H); 16 C.F.R. 1115.27(n) Any other information as the Commission deems appropriate. 15 U.S.C. 2064(I); 16 C.F.R. 1115.27(o)
NOTICE OF DEFECT OR FAILURE TO COMPLY; MAIL NOTICE. If the Commission determines . . . that a product distributed in commerce presents a substantial product hazard and that notice is required in order to adequately protect the public from such substantial product hazard . . . The Commission may order . . . any distributor . . . of the product to take any one or more of the following actions. Notice Legal Standard 15 U.S.C. 2064(c)(1)
To give public notice of the defect . . . including posting clear and conspicuous notice on its Internet website. . . . Public Notice & Direct Notice 15 U.S.C. 2064(c)(1)(C) To mail notice to every person to whom the person required to give such notice knows such product was delivered or sold. 15 U.S.C. 2064(c)(1)(F)
Any such order shall specify the form and content of any notice required to be given under such order. Discretion as to Form and Content 15 U.S.C. 2064(c)
