What is California Prop 65? •Labeling Rule - Does not Ban or Limit Chemicals •Requires that the consumer be warned that product contains certain chemicals at time of purchase “This product contains “chemicals” known to the State of California to cause cancer, or birth defects or other reproductive harm.” •Prop 65 applies to ALL products sold in California •Children AND ADULT products •Exposure “limits”, not content limits like CPSIA •Micrograms Per Day (Mg/Day) Vs. Parts Per Million (PPM) •“Safe Harbor” Levels, where they exist, are based on exposure What is California Prop 65? 850 + chemicals on list •Lead and lead compounds •Phthalates (DEHP, DBP, BBP) •Chromium (hexavalent compounds) •Crystalline silica •Formaldehyde •Flame Retardants (Tris) •Cadmium •Salted Fish (Chinese Style) What is California Prop 65? •Prop 65 enforced through litigation (LAWSUITS) •Private California citizens •Consumer Advocacy Groups •These “Citizen Enforcers” or “Bounty Hunters” issue “60-Day Notices” of their intent to sue a company for an alleged violation of Prop 65 •Almost every case ends in a settlement •Average Settlement - $75,000 •Most of settlement goes to plaintiffs and their lawyers •Most settlements impose new content limits on the chemicals involved •Lead – 200ppm for substrate, 90ppm for paint/surface coatings (for garments and shoes) •Phthalates (DEHP, DBP, BBP) – 1,000ppm (for garments and shoes) •Cadmium – 300ppm (for jewelry) California Prop 65 Notices 400 350 300 250 200 150 100 50 0 Lead or Lead Compounds Phthalates Other 2007 2008 2009 2010 2011 2012(December 1) 21 17 43 66 64 44 9 1 39 0 90 0 133 9 343 14 107 6 Lead or Lead Compounds Phthalates Other California Prop 65 Notices 2011&2012 60 Day Notices by Category 200 180 186 160 140 120 100 2011 92 80 75 60 50 40 17 15 Apparel & Costumes 51 37 34 20 0 2012 (December 1) 12 Jewelry 17 Luggage, Tote & Back Packs 14 Belts, Hats & Gloves Footwear Hand bags & Fashion Accessories How Can You Comply With Prop 65? How Can You Comply With Prop 65? AAFA Prop 65 RSL Washington State Children’s Safe Products Act (CSPA) • Reporting Law • Applies to All Children’s Products Sold in Washington State (age 12 and younger) • 66 Chemicals of High Concern to Children (CHCC) • Manufacturers must report if: – CHCC intentionally added, and exceeds practical quantitation limit (PQL) – CHCC is a contaminant and exceeds 100 ppm Washington State Children’s Safe Products Act (CSPA) • Reporting Rule is Being Phased-In – First Reporting Deadline was August 2012 – Next Reporting Deadline is February 2013 • One Exception – Manufacturing Control Program (MCP) • For Contaminants • Essentially a Chemical Management Program • Use of a Restricted Substances List (RSL) Washington State Children’s Safe Products Act (CSPA) Reporting Deadlines Manufacturer Categories (based on U.S. gross sales – all products) Product Tier 1 Product Tier 2 Product Tier 3 Product Tier 4 (to set a date would require a revised rule) Largest 8/2012 2/2013 8/2013 case-by-case Larger 2/2013 8/2013 8/2014 case-by-case Medium 8/2013 8/2014 8/2015 case-by-case Small 8/2014 8/2015 8/2016 case-by-case Smaller 8/2015 8/2016 8/2017 case-by-case Tiny 8/2016 8/2017 8/2018 case-by-case Washington State Children’s Safe Products Act (CSPA) Reporting Results – August 2012 • 27 Companies • 2334 Reports • 2/3 of the Reports on Garments & Footwear – 1133 Reports on Garments – 412 Reports on Footwear Phthalates 6% Molybdenum 7% Methyl Apparel Reports by CHCC Octamethylcycl Ethyl otetrasiloxane Ketone 2% 2% Antimony 7% Cobalt 38% Styrene 7% Ethylene Glycol 31% Companies - 8 Reports - 1133 Source: Washington Children’s Safe Product Act Report Database Washington State Children’s Safe Products Act (CSPA) Consequences • Public Database with Chemical Information About Your Customer’s Products • Possible Attacks by Stakeholder Groups • New Target List for California Prop 65 “Bounty-Hunters” AAFA Guidance for Reporting AAFA created a guidance to provide the garment and footwear industry with common methodology for consistent reporting throughout the industry. The Guidance Includes: – – – – – – – Industry Interpretation of the CSPA What must be included in notice reported Three keys to approaching the regulations Frequently Asked Questions Best practices for decision making process Reporting Rule Decision Tree Separate document analyzing the current CHCs, their use in the industry, their “brick,” and whether the CHC typically appears on RSLs Washington State CSPA AAFA Guidance for Reporting Available for FREE on AAFA’s website http://www.wewear.org Maine Toxic Chemicals in Children’s Products Law • Reporting Rule – Applies to Children’s Products Sold in the State of Maine – Requires Reporting of “Priority” Chemicals to Maine Department of Environmental Protection (DEP) – Reports Made Publicly Available on Maine DEP website • July 2012, DEP Reduced Chemicals of High Concern (CHC) List to 49 Chemicals (from 1,400) • Maine CHC List and Washington State CHCC List Very Similar • Regulators Use CHC List to Determine “Priority” Chemicals • To Date, only 3 Chemicals Designated as “Priority” Chemicals: • Nonylphenol, Nonylphenol Ethoxylates A • Bisphenol A (BPA) California Safer Consumer Products Act • California Green Chemistry Initiative • Draft Regulation Published July 2012 – New Draft Regulations Expected this Month – Final Regulations Expected by End of 2013 • Reporting Rule ++++++ – Will Apply to All Products (Adult & Children) – Over 1,200 Chemicals of Concern (CoCs) • Narrowed Possibly to 200 CoCs – Requires: • Reporting • Alternatives Analyses • Regulatory Response for “Priority Products” Thank You Nate Herman Vice President of International Trade 703-797-9062 [email protected] www.wewear.org