Publication
Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Author:
Canada | Publication | July 16, 2024
Health Canada, the agency responsible for administering the Canada Consumer Product Safety Act (the CCPSA) has recently identified three new classes of products that pose a hazard of concern. Industry is advised to monitor Health Canada’s assessment of these products and take steps to mitigate the harms they may pose.
Consumer products are governed by the CCPSA, which prohibits anyone from manufacturing, importing, advertising or selling a product in Canada that is a danger to human health or safety. Health Canada regularly monitors the marketplace to determine whether consumer products pose a danger to human health or safety.
Health Canada adopts a three-step approach to identifying hazards and determining whether they pose a danger to human health or safety.
Table 1: Health Canada identifies products that are hazards of concern. Although the product has been flagged as potentially posing a danger to human health and safety, it has not yet been assessed. Health Canada will monitor and collect information. In the meantime, industry is encouraged to take steps to mitigate the hazard posed by products that they manufacture, import, advertise or sell.
Table 2: If Health Canada’s initial assessment demonstrates there is sufficient reason to believe the product poses a hazard to human health or safety, the product class is moved to Table 2 for stakeholder feedback. Industry and consumers will have an opportunity to provide comment to Health Canada on the product and the identified hazard.
Table 3: Products demonstrated to pose a danger to human health or safety are moved to Table 3. Manufacturing, importing, advertising or selling Table 3 products is prohibited. Health Canada can take enforcement measures to ensure parties comply with the CCPSA and stop distribution and sale of hazardous products in Canada.
As of July 10, 2024, Health Canada has added three classes of products to Table 1:
Lithium-Ion Batteries
Lithium-ion batteries and products containing lithium-ion batteries have been flagged as a potential hazard. These batteries are commonly used in electronic devices, e-mobility products and baby monitors, among other products. Compared to other batteries, lithium-ion batteries are more volatile and easily damaged. Health Canada has listed lithium-ion batteries under Table 1 due to their risk of overheating, burns, fires and explosions. Health Canada is evaluating a number of safety standards, including CSA C22.2 No. 62133-2:20, UL 1642, and UL 2054, to determine if they sufficiently mitigate the risk posed by this product.
Infant Bath Seats
Infant bath seats that are designed to support infants into a seated position while bathing in a regular bathtub have been deemed to pose a hazard to consumers due to the risk of drowning. Health Canada has determined that voluntary safety standards applicable to infant bath seats, such as ASTM F1967-19 and EN 17022:2018 do not sufficiently mitigate the drowning hazard posed by infant bath seats. Health Canada reports there have been instances where the infant bath seat tipped over, the infant climbed out of the bath seat or the infant slipped through the leg openings and drowned. Caregivers have been warned against relying on a bath seat without careful supervision.
Infant products that assist in retaining water for bathing have been excluded from Table 1, as these function as a small bathtub for infants and retain a small amount of water at a safe height for infants.
Water Beads
Water beads, such as superabsorbent polymer balls and water-absorbing beads, have been deemed to pose a hazard to consumers. These beads absorb water and can grow up to 1,500 times their size. When swallowed or inserted into the ear or nose, water beads can grow and cause gastrointestinal tract obstruction, choking or aspiration. Given that these products are brightly coloured, marketed towards children and resemble candy, they pose a significant hazard to children who ingest them. Health Canada is monitoring developments to ASTM F963 and evaluating whether other requirements, such as prohibiting water beads that fit within a small parts cylinder in their dry state, will sufficiently mitigate the risk posed by the product.
Regulated parties who manufacture, import, sell or advertise lithium-ion batteries, infant bath seats or products containing water beads in Canada should continue to monitor Table 1 and Health Canada’s assessment of the products. Industry is also advised to take steps to mitigate the risk to human health and safety posed by these classes of products.
Publication
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2023