CPSC has jurisdiction over thousands of types of consumer products and  hazardous substances, many of which are subject to mandatory  regulations or voluntary standards, or both. Its activities include enforcing mandatory  standards and reporting requirements, investigating product hazards, and  determining corrective actions (such as recalls) for manufacturers not in  compliance with safety standards. Standards Development Process, Industry Certification, and Legal Factors Help Ensure Compliance with Voluntary Standards

Industry representatives and consumer groups we spoke to said that  compliance with voluntary standards developed through the consensus  process is generally considered to be high, although they do not track  compliance. While CPSC Cannot Legally Require Compliance with Voluntary Standards, Industry Monitoring and Participation in Standards Development Help Encourage Compliance

CPSC cannot compel compliance with voluntary standards. Noncompliance with a voluntary  standard, however, can inform a determination of a substantial product  hazard by the CPSC. Staff may attend standards  development meetings, take an active part in the discussions, and  provide data and explanatory material, but CPSC’s regulation prohibits  staff from voting on the standards or from holding leadership positions in  standards development committees. CPSC’s rationale for limiting involvement in  standards development activity, as described in its regulation, is to  maintain its independence—such as not appearing to endorse a specific  standard. Specifically, it states that the federal government may  need to be actively engaged or play a convening role to accelerate  standards development in standard setting and implementation, including  supporting leadership positions for federal agency staff in SDO  committees. Consumer Product Safety Experts Value CPSC’s Input, but Also Called For Earlier and More Active CPSC Participation

CPSC, consumer groups, and industry officials with whom we spoke  generally viewed CPSC’s participation in voluntary standards  development activities favorably. Although voluntary standards do not  have the force of law, manufacturers are legally required to report  substantial product hazards to CPSC. Although failure to meet a voluntary standard alone is not sufficient for  CPSC to take action against a company—because voluntary standards  are not enforceable by law—CPSC’s analysis of the evidence of  noncompliance and determination that the product could pose a  substantial product hazard can lead to corrective action. In our review of CPSC documents, the agency focused much of its  surveillance and compliance work on imported products. Compliance investigators  examine the sample to determine whether it (1) complies with the relevant  mandatory standard or standards; (2) is accompanied by a certification of  compliance with relevant product safety standard that is supported by  testing, in some cases by a third party, (3) is or has been determined to  be an imminently hazardous product; (4) has a product defect that  presents a substantial product hazard; or (5) is produced by a  manufacturer who failed to comply with CPSC inspection and   According to a CPSC notice, from October  recordkeeping requirements.1, 2011, to December 1, 2011, officials identified about 240 noncompliant  products at ports of entry, including defective hair dryers, lamps, and  holiday lights. CPSC is required by law to  rely on these standards, developed through consensus by industry,  consumer, and government participants, when the standards are  adequate to address the risk of harm and substantial compliance with  them is likely. For fiscal years 2008 through 2011, 80 percent of  recalls have been of imported products that may be subject to voluntary  standards, highlighting challenges CPSC faces in helping to ensure the  safety of consumer products. While OMB guidance gives agencies discretion to  determine their level of participation in standard setting activities, CPSC  has chosen to limit participation to maintain impartiality and avoid  appearance of endorsing a specific voluntary standard. Recommendation for Executive Action

To strengthen the adequacy of voluntary standards, we recommend that   the Chairman of CPSC direct agency staff to review the policy for  participating in voluntary standards development activities and determine  the feasibility of assuming a more active, engaged role in developing  voluntary standards. Appendix I: Scope and Methodology

To evaluate the extent to which manufacturers comply with voluntary  standards for consumer products, we interviewed officials from the  Consumer Product Safety Commission (CPSC) and national consumer,  industry, standard-setting, and legal organizations that have expertise in  working on voluntary standards development for consumer products. To evaluate CPSC’s authority and ability to encourage compliance with  voluntary standards, we reviewed CPSC’s statutory and regulatory  authority related to voluntary standards. To evaluate the consequences for manufacturers that fail to comply with  voluntary standards, we reviewed documents from CPSC officials and  obtained and reviewed publicly available data on recalls and other  corrective actions.
Why GAO Did This Study

Growing numbers of recalls in 2007 and 2008, particularly of childrens products, focused increased attention on CPSC. Consumer products can be subject to mandatory or voluntary standards, or both. Questions have been raised about the level of compliance with voluntary standards and CPSCs ability to encourage compliance. The Consolidated Appropriations Act of 2012 directed GAO to analyze manufacturers compliance with voluntary industry standards. This report evaluates (1) what is known about the extent to which manufacturers comply with voluntary standards for consumer products, (2) CPSCs authority and ability to require compliance with voluntary standards, and (3) the consequences for manufacturers that fail to comply with voluntary standards.
To do this, GAO reviewed CPSCs statutory and regulatory authorities to encourage compliance with voluntary standards; reviewed agency documents and literature on consumer product safety; analyzed data on CPSC corrective actions; and met with representatives from national consumer, industry, legal, and standard-setting organizations who have expertise in developing consumer product safety standards.

What GAO Found

Although the Consumer Product Safety Commission (CPSC) enforces compliance with mandatory federal safety standards, it is also required by law to rely on voluntary safety standards when it determines that the standard adequately addresses the product hazard and is likely to have substantial compliance. Voluntary standardsdeveloped by industry, consumer, and government participants through a consensus processcover many of the thousands of types of products in CPSCs jurisdiction. Compliance with voluntary standards is not routinely tracked, but it is generally considered to be high by industry participants. Compliance with these standards also depends on industry and legal factors, such as retailer requirements to demonstrate proof of compliance with voluntary safety standards and risk of liability in product liability lawsuits.
Because voluntary standards do not have the force of law, CPSC cannot compel compliance with them. However, noncompliance with a voluntary standard can inform a determination of a substantial product hazard by the CPSC that in turn can lead to CPSC enforcement actions. CPSC has exercised its expanded authority to place a product on the substantial product hazards list. Specifically, it designated drawstrings from childrens upper outerwear and hair dryers without a ground fault circuit interrupter as hazardous products, and Customs has seized violative items at ports. CPSC also participates in standard development activities with industry and consumer representatives and monitors select voluntary standards. CPSC attends standard development meetings, supplies hazard and injury data and analysis, and provides input on draft standards. However, CPSCs regulation prohibits staff from voting on the final standards or from participating in any meeting that excludes other groups, such as media or consumers. CPSCs rationale for limiting involvement in standards development activity is to maintain its independencesuch as not appearing to endorse a specific standard. Office of Management and Budget guidance gives agencies discretion to determine their level of participation in standard setting activities, including full involvement in discussions, serving in leadership positions, and voting on standards. A January 2012 White House memorandum states that the federal government may need to be actively engaged in standards development and implementation, including playing an active role in standard setting and assuming leadership positions in Standard Development Organization committees. Committee participants GAO spoke to value CPSCs input but generally agreed that CPSC should participate earlier and take a more active role in standards development. These actions could enhance CPSCs oversight, and may strengthen voluntary standards.
Manufacturers that fail to comply with voluntary standards can face consequences when CPSC has determined that noncompliance poses a significant risk of injury or death to consumers. CPSC can take corrective action against the manufacturer, including recalls, or take longer term action to ban the hazardous product. CPSC has focused much of its surveillance and compliance work on imported products. For fiscal years 2008 through 2011, 80 percent of CPSC recalls have been of imported products that may be subject to voluntary standards, highlighting challenges CPSC faces in helping to ensure the safety of consumer products.

What GAO Recommends

To strengthen the adequacy of voluntary standards, CPSC should review the policy for participating in voluntary standards development activities and determine the feasibility of assuming a more active, engaged role in developing voluntary standards. CPSC supported the recommendation.