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"We have done surveys that show that parents think that when they buy some- thing off the shelf, it has been tested and is safe. That is not in fact true. There are only standards for certain types of products like helmets and cribs." She has gathered statistics through the 15 pediatric centres across Canada that show 14,000 children under the age of 10 report to emergency with product-related injuries every year. The figure for children under 19 is 18,000 a year. "So there's lots of impact from dan- gerous products," Fuselli concludes. Under the Hazardous Products Act, the government has had no power to make a recall. "It could ban a product or put out an advisory warning, but then it has to work with the retailer and manu- facturer to get a voluntary recall," says Fuselli. "That is problematic because of the time it takes and what happens if the voluntary recall doesn't occur." She says the new general prohibition concept is already in place in the European Union and the United States. "It brings us more in line internationally with the large mar- kets where there are stricter standards. If Canada doesn't bring those standards in it risks being the country where products that aren't safe or don't meet those high standards are sold. Given that the U.S. only upgraded its own consumer product safety legislation in the past two years, we are entering the time when that could happen." In order for the Ministry of Health to have the information it needs to order mandatory recalls and order testing and changes to be made to non-compliant products, the legislation brings in a raft of record-keeping and incident-reporting obligations, in light of which McNaughton believes some companies will need a more formal compliance regime. "It is really important that companies have recall plans in place going forward," she advises. "In order to do a recall well, you need to be prepared. You must have a recall team established. You must know who's on it and how to get a hold of them." She rec- ommends companies do a trial run. Retailers will need to keep the name and addresses of the suppliers from whom they bought their stock and the time peri- od over which it was sold. Distributors, importers, and manufacturers will need records of who they bought the product from and sold it to. No one player has to trace the entire distribution chain. The ministry will put the pieces of the chain together. McNaughton warns there may be even more onerous obligations when the regulations come into play: "The power to make regulations is extremely broad. In the context of record keeping, the regulations can prescribe additional docu- ments." The new legislation also has a lot of detail requiring organizations to report an incident. There are specific situations where they specifically have to report: an incident or defect that caused or could have caused a death or serious injury; a recall elsewhere, including outside of Canada; incorrect or insufficient informa- tion on the label; or lack of a label. Despite these new obligations, no one is saying the NOT TOO BIG. NOT TOO SMALL. We are a full-service business and litigation law rm that combines Bay Street expertise, leadership and teamwork. Our fees are simply more realistic, transparent and affordable - the result of lower overhead, ef cient work ow and a right-sized approach to billing. We have an innate appreciation for your unique challenge, and the ability to build a team that's… JUST RIGHT If this sounds like the right t for you, you've discovered Right-sized Thinking® Let us show you where it can lead. Business Law • Commercial Litigation • Commercial Real Estate Construction • Insolvency & Corporate Restructuring Labour & Employment • Wills, Estates & Trusts . 90 Burnhamthorpe Road West, Suite 1600 Mississauga, ON L5B 3C3 32 • FEBRUARY 2011 Untitled-3 1 INHOUSE 8/24/10 9:55:25 AM