Page 96 - An Indispensible Resource for Being a Credible Activist

CHAPTER 6

LEGAL ISSUES CONCERNING PUBLIC SAFETY

AND FRAUD

KNOWLEDGE OF THREATS TO PUBLIC SAFETY BECAUSE
OF SOMETHING THE COMPANY IS DOING OR PRODUCING

On August 14, 2008, Section 219 of the Consumer Product Safety Improvement Act (CPSIA)
was enacted, establishing new retaliation protections for employees in the consumer prod-
uct industry. In general, covered employers under the CPSIA include manufacturers,
importers, private labelers (owners of a brand or trademark on the private label of a con-
sumer product), distributors, and retailers.
Under the CPSIA,

a covered employer may not discharge or in any other manner retaliate against you
because you provided, caused to be provided or are about to provide or cause to be
provided to the employer, the federal government, or the attorney general of a state
information you reasonably believed related to any violation of, or any act or omission
the employee reasonably believes to be a violation of the Consumer Product Safety Act
(CPSA) or any other Act enforced by the Consumer Product Safety Commission (CPSC),
or any order, rule, regulation, standard or ban under any such Acts.
In general, under the CPSA, a ‘consumer product’ means any article, or component
part thereof, produced or distributed: (i) for sale to a consumer for use in or around a
permanent or temporary household or residence, a school, in recreation, or otherwise,
or (ii) for the personal use, consumption or enjoyment of a consumer in or around a
permanent or temporary household or residence, a school, in recreation, or otherwise.
Under the CPSA, the CPSC regulates about 15,000 types of consumer products used in
the home, schools, and recreation; but does not regulate on-road motor vehicles, boats,
aircraft, food, drugs, cosmetics, pesticides, alcohol, tobacco, firearms, and medical
devices. Other Acts enforced by the CPSC include the Federal Hazardous Substances
Act, the Flammable Fabrics Act, the Poison Prevention Packaging Act and the
Refrigerator Safety Act. Further information about the laws and related requirements
enforced by the CPSC can be found on the CPSC’s Web site at: http://www.cpsc.gov/
businfo/businfo.html.
In addition, under the CPSIA, your employer may not discharge or in any manner
retaliate against you because you participated in or assisted in a proceeding under the
laws, orders, rules, regulations, standards or bans enforced by the CPSC. Also, your
employer may not discharge or in any manner retaliate against you because you objected

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