Canadian product safety pledge for consumer products and cosmetics

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Organization: Health Canada

Date published: 2023

Guidance for signatories
September 28, 2023

Contents

Introduction

The global e-commerce landscape has seen a significant and rapidly growing number of Canadians using online marketplaces for purchasing goods which offer consumers a range of benefits including convenience, greater product variety and choice of seller.

Health Canada recognizes that the increasing popularity of online shopping by Canadians may bring with it an increase in the availability of unsafe products and the serious risks to users that these products may pose.

Product safety is a shared responsibility, and online businesses play an important role in shaping and enhancing product safety compliance in the digital economy to help keep Canadian consumers safe.

The Canada Consumer Product Safety Act (CCPSA) is administered and enforced by Health Canada's Consumer Product Safety Program. Its purpose is to protect the public by addressing or preventing dangers to human health or safety that are posed by consumer products in Canada. The CCPSA prescribes responsibilities that apply to suppliers of consumer products, including manufacturers, importers, sellers, or advertisers, including entities that operate in these capacities via online marketplaces.

The Consumer Product Safety Program is also responsible for the safety of cosmetics that are regulated under the Food and Drugs Act (FDA) and its Cosmetic Regulations (CR). The FDA and its CR apply to the manufacture, import for sale, or sale of cosmetics in Canada, including entities that operate in these capacities via online marketplaces.

The owners and operators of online marketplaces are ideally positioned to play a significant role in helping to keep Canadians safe by:

For the purpose of this Canadian Product Safety Pledge, "products" include both consumer products and cosmetics. A full lexicon in the next section provides important clarification of the terms used throughout this document.

Lexicon

About the pledge

The Canadian Product Safety Pledge (pledge) is a commitment made voluntarily to Health Canada by signatories reflecting a commitment to strengthen and improve product safety online through a combination of preventative and corrective actions, and annual reporting on the outcomes and effectiveness of the signatories' product safety initiatives. It is the first of its kind in Canada and is modelled on guidance by the Organisation for Economic Cooperation and Development (OECD) and product safety pledges that exist in the European Union, the Republic of Korea and Australia.

Health Canada is undertaking this initiative acknowledging the increasing popularity of online shopping and the importance of improving the safety of products sold online in Canada. The pledge will be assessed one year after its initial implementation and regularly thereafter. Key reporting requirements and performance indicators will be used to assess each signatory's success, as well as the success of the pledge itself, which may be adjusted or expanded, as appropriate.

The pledge has 14 commitments that are grouped into four parts:

The commitments, actioned together, work to efficiently recognize, prevent, take action against and inform the assessment of serious risks to the health and safety of consumers.

This document provides guidance for signatories on each of the commitments and describes ways that they could be met, along with key performance indicators (KPIs) that outline the information that is to be reported on annually to Health Canada. It also describes the support and resources Health Canada will provide to signatories. Informed by this guidance, signatories are encouraged to look at their own operations and processes to identify the best and most appropriate way they can fully implement each of the 14 commitments of the pledge.

Signatories' participation in this project and their fulfilment of the commitments of this voluntary pledge do not automatically imply or demonstrate that the signatory is in compliance with applicable Canadian laws and regulations. Health Canada will publish the names of signatories, and signatories are welcome to advertise their participation in this pledge, however, it is important they do not give the impression that their participation equates to compliance with applicable Canadian laws and regulations.

While the commitments of this voluntary pledge complement what is already established in the applicable legislation, it is important to note that they are not intended to substitute for, supersede or limit the existing requirements set out in legislation in any way. In case of any discrepancy between this document and the legislation, the legislation will prevail. This voluntary initiative does not preclude Health Canada from taking immediate compliance and enforcement action when there is a reason to believe that a product poses a danger to human health or safety or is non-compliant with the legislation or its regulations.

Canadian product safety pledge

For consumer products and cosmetics

Canadian Product Safety Pledge PDF format (149 KB, 1 page)

  1. Establish systems to keep aware of recalled, prohibited or non-compliant products that are communicated by Health Canada.
  2. Implement measures aimed at proactively preventing the listing of recalled, prohibited or non-compliant products.
  3. Conduct internal compliance verification projects or post-listing audits to assess if products listed in the signatory's online marketplace are recalled, prohibited or non-compliant products. Take swift action to remove from sale the unsafe products identified in the projects or audits.
  4. Implement measures aimed at identifying and sanctioning third-party sellers who repeatedly and intentionally sell recalled, prohibited or non-compliant products in the signatory's online marketplace.
  5. Evaluate and take appropriate action on product issues identified by consumers through direct reports or online reviews when the issues relate to consumer health or safety risks.
  6. Regularly assess and explore new innovations, processes and systems to improve on all commitments of this pledge.
  7. Establish and provide a clear contact point(s) to be responsive to Health Canada.
  8. Remove a recalled, prohibited or non-compliant product from sale within two business days of the dedicated contact point receiving information from Health Canada that the product is a recalled, prohibited or non-compliant product.
  9. Provide Health Canada with the name and contact information of the third-party seller of a recalled, prohibited or non-compliant product within 5 business days of the dedicated contact point receiving a request for this information from Health Canada.
  10. Assist Health Canada with obtaining a response from a third-party seller if the third-party seller is non-responsive to Health Canada's requests for information.
  11. Implement measures to facilitate sellers' compliance to Canadian product safety laws.
  12. Provide an accessible mechanism for consumers to report product concerns or issues related to health or safety to Health Canada and the signatory.
  13. Inform consumers about recalls on products they purchased in the signatory's online marketplace.
  14. Maintain product listing systems which permit third-party sellers to provide clear and accurate product descriptions in their product listings. Publish the business name or username of the third-party seller of every third-party product offered for sale in the signatory's online marketplace.

Pledge commitments 1-8 and 11-14 do not cover technical compliance matters not posing serious risks to the health and safety of consumers.

The Canadian product safety pledge – Guidance for signatories

Part 1: Detecting and preventing the sale of unsafe products

The purpose of Part 1 is to improve the detection of unsafe products by keeping up-to-date on information provided by Health Canada, and to prevent the sale of these products by establishing internal systems to identify and take action on them. These commitments will enable signatories to play an important role in improving the safety and compliance of the products sold in their online marketplace by taking timely preventative action on unsafe products.

1. Establish systems to keep aware of recalled, prohibited or non-compliant products that are communicated by Health Canada.

Health Canada continually communicates information to industry and the public on products that are deemed to be unsafe for consumers because they are prohibited or non-compliant or are recalled for other safety reasons. The regular monitoring by signatories of communications from Health Canada relating to these unsafe products is a critical step in detecting unsafe products in their online marketplaces.

The following are ways in which this pledge commitment could be fulfilled. (Signatories may choose to fulfil this pledge commitment in other ways.):

2. Implement measures aimed at proactively preventing the listing of recalled, prohibited or non-compliant products.

Sellers may unknowingly (or knowingly) list recalled, prohibited or non-compliant products for sale, putting Canadians at risk. Signatories can be instrumental in mitigating this risk by putting in place systems to prevent the listing of these unsafe products.

The following are ways in which this pledge commitment could be fulfilled. (Signatories may choose to fulfil this pledge commitment in other ways.):

3. Conduct internal compliance verification projects or post-listing audits to assess if products listed in the signatory's online marketplace are recalled, prohibited or non-compliant products. Take swift action to remove from sale the unsafe products identified in the projects or audits.

With high numbers of new products and sellers continuously being introduced to the online market, the systems put in place to identify and prevent the listing of unsafe products may not be absolute in their effectiveness. Regular compliance verification projects or post-listing audits on known product categories of concern will further help to detect unsafe products and keep them out of the hands of Canadians.

The following are ways in which this pledge commitment could be fulfilled. (Signatories may choose to fulfil this pledge commitment in other ways.):

4. Implement measures aimed at identifying and sanctioning third-party sellers who repeatedly and intentionally sell recalled, prohibited or non-compliant products in the signatory's online marketplace.

Certain third-party sellers may repeatedly and intentionally sell unsafe products more than others. Signatories are in a position to recognize and put actions in place to deter or prevent such activities from these third-party sellers.

5. Evaluate and take appropriate action on product issues identified by consumers through direct reports or online reviews when the issues relate to consumer health or safety risks.

Product issues related to health or safety risks are often first detected by the consumers who have purchased and are using the product. Signatories are well placed to use information provided via complaints and online reviews to proactively mitigate the risks to Canadians posed by unsafe products.

The following are ways in which this pledge commitment could be fulfilled. (Signatories may choose to fulfil this pledge commitment in other ways.):

6. Regularly assess and explore new innovations, processes and systems to improve on all commitments of this pledge.

The number of online consumers, sellers and products available to Canadians continues to increase with the rapid growth of e-commerce. Signatories should look to not only maintain, but improve effectiveness and efficiencies in processes and systems, leveraging new technologies where possible.

The following are ways in which this pledge commitment could be fulfilled. (Signatories may choose to fulfil this pledge commitment in other ways.):

Part 2: Co-operating with Health Canada

The purpose of Part 2 is to strengthen the partnership between signatories and Health Canada and to facilitate swift and effective action when a product safety issue poses a risk to the health or safety of Canadians. Signatories are in a good position to take action in situations involving unsafe products.

7. Establish and provide a clear contact point(s) to be responsive to Health Canada.

A dedicated contact point enables efficient and reliable communication and is a cornerstone to effective cooperation between the signatory and Health Canada.

  1. The contact point should have the ability to receive and quickly action requests from authorities. These requests could include:
    1. removing the listings and stopping the sale of recalled, prohibited or non-compliant products;
    2. providing information about a reported product safety issue, seller or product;
    3. sharing information with Health Canada on emerging product safety trends; and
    4. providing information to Health Canada relating to commitments under the pledge.
  2. The contact point should be knowledgeable in Canadian laws and regulations related to product safety, including the roles of federal, provincial and territorial regulatory bodies in regulating the safety of different types of products in Canada.
  3. If the contact point is away or no longer holds the same position, an alternate contact should be provided to Health Canada through an out of office message or through direct communication with the program.

8. Remove a recalled, prohibited or non-compliant product from sale within two business days of the dedicated contact point receiving information from Health Canada that the product is a recalled, prohibited or non-compliant product.

Given the popularity and reach that online marketplaces have, the removal of recalled, prohibited or non-compliant product listings as soon as possible is crucial to quickly limiting the further sale of an unsafe product.

Sections 5, 6, 7 and 8 of the CCPSA prohibit the manufacture, import, advertisement or sale of recalled, prohibited or non-compliant products. This commitment is intended to reinforce the provisions of the CCPSA and does not in any way preclude the signatories that manufacture, import, advertise or sell a consumer product from meeting their legal obligations under the CCPSA.

A signatory will remove the listing of a recalled, prohibited or non-compliant product within two business days of the dedicated contact point receiving a complete standard form stop sale requestFootnote 3 from Health Canada or, where available, a submission through the signatory's regulatory portal:

  1. Where the request is particularly urgent, Health Canada will liaise with the signatory to discuss options for an expedited removal of the listing.
  2. The main signatory contact point should send confirmation to Health Canada once the product has been removed from sale.
  3. If the information provided in the completed stop sale request form to remove the product from sale does not contain enough information for the signatory to identify the product or to identify whether the product is recalled, prohibited or non-compliant, the signatory will respond to the request within two business days indicating what specific information is missing in order to action the request. Once all the necessary information is received, it is expected that the signatory will remove the product from sale within two business days.

9. Provide Health Canada with the name and contact information of the third-party seller of a recalled, prohibited or non-compliant product within 5 business daysFootnote 4 of the dedicated contact point receiving a request for this information from Health Canada.

It is necessary for Health Canada to have accurate third-party seller information to take the appropriate enforcement action. Signatories are well placed to provide accurate and relevant information needed by Health Canada.

  1. Provide Health Canada with the name and contact information (for example, email address, business address and any alternative contact details that may not be publicly available) of the third-party seller of a recalled, prohibited or non-compliant product within 5 business days of the dedicated contact point receiving a request for this information from Health Canada.
  2. The request by Health Canada will contain information to help the signatory identify the correct name and contact information of the third-party seller (for example, the user ID, unique item number, ASIN number, product listing URL).
  3. Where the request is particularly urgent, Health Canada will liaise with the signatory to discuss options to provide information in an expedited manner.

Section 13(2) of the CCPSA includes record keeping requirements for anyone who manufactures, imports, advertises, sells or tests a consumer product for commercial purposes. The intent of these requirements is to ensure that consumer products are able to be traced throughout the supply chain at all times for the purposes of reporting and recalls. This commitment is intended to reinforce the provisions of the CCPSA and does not in any way: (1) preclude the signatories that manufacture, import, advertise, sell or test a consumer product for commercial purposes from meeting their legal obligations under the CCPSA or (2) impose new legal, record-keeping obligations on signatories.

10. Assist Health Canada with obtaining a response from a third-party seller if the third-party seller is non-responsive to Health Canada's requests for information.

Health Canada often requires information on products in order to carry out its mandate as a regulator (for example, to make classification decisions, determine compliance to regulations, conduct risk assessments). In cases where third-party sellers are non-responsive to Health Canada requests, signatories are able to assist by intervening to obtain a response from the third-party seller.

Part 3: Raising product safety awareness amongst sellers

The purpose of part 3 is to enhance sellers' awareness of Canadian product safety laws regardless of the geographical location(s) of the seller's operations.

11. Implement measures to facilitate sellers' compliance to Canadian product safety laws.

Providing sellers with information regarding their responsibilities under the CCPSA or the FDA will help them to engage as a responsible partner in Canadian product safety.

The following are ways in which this pledge commitment could be fulfilled. (Signatories may choose to fulfil this pledge commitment in other ways.):

Part 4: Empowering consumers on product safety issues

The purpose of part 4 is to make sure that consumers have the information and tools needed to make informed product purchase decisions related to their health or safety and to facilitate the reporting of product safety issues.

12. Provide an accessible mechanism for consumers to report product concerns or issues related to health or safety to Health Canada and the signatory.

Product issues related to health or safety risks are often first detected by the consumers who have purchased and are using the product. Making sure that they are aware of where they should report these events can be the first step in identifying products that may be unsafe and require action.

The following are ways in which this pledge commitment could be fulfilled. (Signatories may choose to fulfil this pledge commitment in other ways.):

13. Inform consumers about recalls on products they purchased in the signatory's online marketplace.

Signatories are ideally positioned to mitigate the risk associated with the use of recalled products by directly informing purchasers that a product they purchased has been recalled and ensuring that the consumer has the information needed to protect their health or safety.

14. Maintain product listing systems which permit third-party sellers to provide clear and accurate product descriptions in their product listings. Publish the business name or username of the third-party seller of every third-party product offered for sale in the signatory's online marketplace.

Product safety is a shared responsibility. Providing consumers with the information they need to make safe buying decisions not only promotes safer product purchases, but advances product safety literacy.

  1. Publish the business name or username of the third-party seller of every third-party product offered for sale in the signatory's online marketplace.
  2. Maintain product listing systems which enable third-party sellers to provide clear and accurate product descriptions, good quality product images, ingredient lists, labels, instructions for safe use, warnings and certification information as applicable. This may include the use of templates, completion instructions and mandatory fields. These systems should also allow third-party sellers to create product listings in English and French, or alternatively, allow consumers to view the product listings in English or French, according to their preference.

Health Canada support to signatories of the pledge

Health Canada will support signatories in fulfilling the pledge commitments by:

Annual pledge report

Fulfillment of the pledge commitments will be measured by the quantitative and qualitative KPIs listed below. Once per year, each signatory will submit a pledge report to Health Canada which includes the KPIs listed below for the previous 12-month reporting period. Pledge reports should not contain financial, commercial, scientific or technical information that is confidential information. Pledge reports from signatories will not be made public. However, following collection of individual reports from signatories, Health Canada will aggregate the information and publish an annual pledge report with anonymized information that outlines the outcomes attained by all signatories during the previous 12 month reporting period.

(1) Quantitative KPI

  1. Pledge commitment no. 13
    • total number of recalls which were communicated to consumers by the signatory for products listed in the signatory's online marketplace

(2) Quantitative and qualitative KPIs

  1. Pledge commitment no. 3
    • total number of internal compliance verification projects or automated surveillance, post-listing or manual audits conducted by the signatory to assess if products listed in the signatory's online marketplace were unsafe products
      • number of products removed as a result of these projects or as a result of automated surveillance, post-listing or manual audits
    • Alternatively, explain how post-listing audits were used to assess if products listed in the signatory's online marketplace were unsafe products.
  2. Pledge commitment no. 8
    • Total number of recalled, prohibited or non-compliant products listed for sale in the signatory's online marketplace that were:
      • removed from sale as a result of a stop sale request (A); and
      • removed from sale within two business days of receipt of a stop sale request (B).Footnote 6
    • Implementation ratio (%) = (B/A)
    • If the implementation ratio is not 100%, explain any issues that prevented the signatory from removing a recalled, prohibited or non-compliant product subject to a removal request within two business days of receipt of the stop sale request.

(3) Qualitative KPIs

  1. Pledge commitments nos. 1 to 2, 4 to 6, 9 to 12 and 14
    • Provide a narrative with details and/or examples explaining how the pledge commitment was satisfied.

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