Here's a look at what's new with the Canada Consumer
Product Safety Act and regulations to the Food and Drugs
Act and Controlled Drugs and Substances Act.
1. New Incident Reporting Forms On Their Way
Health Canada has announced that it will be replacing the PDF
forms used to report consumer product incidents under the CCPSA,
cosmetic notifications under the Cosmetics Regulations and
to provide additional documents.
The forms will be replaced with HTML, which are expected to be
released this summer. Once the new forms are released, it
will not be possible to submit the PDF forms online. We will
circulate links to the new forms once they become available.
2. Update on Administrative Monetary Penalties
The CCPSA regime provides Health Canada with the power to
require companies to pay financial penalties called administrative
monetary penalties (AMPs) for failing to comply with certain Health
Canada-issued orders. The amount of an AMP is determined on the
basis of whether violation is "minor,"
"serious" or "very serious" having regard to
specific factors spelled out in the Administrative Monetary
Penalties Regulation. These factors address both the type of
violation and the company's history of compliance.
AMPs range from $1,000 to $5,000 for non-profit organizations or
any other person for non-commercial purposes. They range from
$10,000 to $25,000 for all other cases. Each day on which
non-compliance continues constitutes a separate violation, so these
AMP amounts can quickly escalate.
Health Canada has recently issued its first AMP Report with
respect to a Notice of Violation. The company in question was
determined to have committed "serious" violations in 2015
and 2016 by failing to comply with a recall notice in respect of
improperly packaged and labelled cleaning products and not
providing requested information regarding customers, etc. The
company was assessed AMPs of $15,000 to $20,000 per violation (for
a total of $95,000).
Health Canada's reports on this matter can be found
3. Postponement of Tamper-Resistant Properties of Drugs
Health Canada has announced that it will not move forward with
the previously proposed Tamper-Resistant Properties of Drugs
Regulations on which consultations were conducted last summer.
The recent decision of the Ontario Court of Appeal in BMW Financial Services Canada, a Division of BMW Canada Inc. v. McLean provides some useful insight into the relationship between automobile dealers and the financing arms of the manufacturers for whom those dealers are franchisees.
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