Product Safety 201 January 15, 2013 Implementing Best Practices to Protect our Businesses and our Industry Product Safety and Regulatory Compliance for the Promotional Products Industry An Interactive Workshop on We Get the Basics. How Do We Put it into Practice?

Product Safety 201 January 15, 2013 Objectives Interactive discussion on how colleagues of varied sizes are implementing product safety, regulatory compliance and responsible sourcing practices in their companies – and how they are working to change the culture. Discuss the key challenges our industry faces in trying to comply with CPSIA and to suggest some best practices that can help. Identify best product responsibility practices you can adopt in to protect your business, your clients and the Industry. Identify resources that can help, such as PPAI and it’s lab partner UL-STR

Product Safety 201 January 15, 2013 Meet our All Star Industry Panel Rick Brenner, MAS Prime Moderator Anne Lardner-Stone PPAI Leeton Lee, Esq. ETS Express Caryn Stoll Freestyle Marketing Wayne Greenberg, MAS JB of Florida/Geiger Larry Whitney Polyconcept NA David Geiger Geiger

Product Safety 201 January 15, 2013 And Special Thanks to PPAI’s Expert Lab Partner Sue DeRagon UL-STR

Product Safety 201 January 15, 2013 Today’s Format Interactive and participatory discussion We welcome questions as we go along, rather than at the end Please participate in the discussion. Share your experiences. No negative experiences by vendor name please. If you a question don’t be afraid to ask This is your workshop. Take advantage of panels knowledge and experience. We may “park” a question if it will be covered later Be brief and to the point so we can cover a lot We can revisit topics if we have time at the end Please don’t be offended if I interrupt to move the discussion forward Questions are intended to raise awareness of issues Not intended to endorse a particular company’s policies Choose the policies that make sense for your company

Product Safety 201 January 15, 2013 Where it All Began……. The Summer of Recalls

Product Safety 201 January 15, 2013 The Result…. Heightened awareness of risks of imported products Far reaching new state and federal legislation Complicated and often ambiguous regulations Four years of “guidance” from CPSC - trying to explain what CPSIA means and how it affects our industry. Major industry initiatives by PPAI, by suppliers and distributors to develop and implement compliance programs, educate colleagues and customers, and to change the culture regarding product safety, compliance and responsible sourcing.

Product Safety 201 January 15, 2013 Product Responsibility Product safety Regulatory compliance Social accountability Environmental stewardship Supply chain security

Product Safety 201 January 15, 2013 Establishing a Product Responsibility Program Do you have a formal product responsibility process in your company? What does it include? How did you get started? What are some challenges you’ve had and how have you overcome them?

Product Safety 201 January 15, 2013 Distributor Sales Calls What should a distributor learn in a client meeting? – Intended audience? – Testing standards – compliance requirements? Does it risk the order? – How do you mitigate that? Does this information impact product or vendor selection? What about Internet orders?

Product Safety 201 January 15, 2013 Suppliers and Distributors Would you risk a $10,000 order to raise product safety questions?

Product Safety 201 January 15, 2013 Suppliers: Educating the Team Is this product OK for children? (or any similar compliance question) Who can reliably answer that question? CSR?, Sales rep?, Compliance person? Who can technically answer that question?

Product Safety 201 January 15, 2013 Suppliers: Product Strategy What is your blanks/children’s product policy? How do you communicate that to distributors? Do you have a process to protect against applying a juvenile imprint to a product without third party testing?

Product Safety 201 January 15, 2013 Suppliers: Test Reports How do you determine what products to test and what tests to perform? How do you communicate this to your staff and to distributors? What process do you use to keep up-to-date with third party tests? How often do you update third-party tests? Do you perform interim testing?

Product Safety 201 January 15, 2013 Distributors: Test Reports Do you have a process for obtaining test reports from suppliers? How do you educate your staff on how to read the reports?

Product Safety 201 January 15, 2013 General Use Products Is compliance enough for promotional products? What are the risks?

Product Safety 201 January 15, 2013 Distributor’s Decorating Apparel CPSC considers distributors who purchase blank goods and send them out for decoration as manufacturers. Recently the CPSC general counsel issued guidance requiring “an appropriate level of due care” to verify that the inks are compliant. How is your company dealing with this responsibility? How do handle the requirement for a second tracking label?

Product Safety 201 January 15, 2013 Challenges for Distributors Who Contract for Decoration of Children’s Products “An Appropriate Level of Due Care”

Product Safety 201 January 15, 2013 Trusted Advisor Is product safety/responsible sourcing an opportunity to create a stronger relationship with your customer? Is this a value add or has it become the minimum requirement for access?

Product Safety 201 January 15, 2013 Recall Preparedness Is your company prepared for a recall? What are the issues? How did you create the plan?

Product Safety 201 January 15, 2013 Social Accountability There is a great deal of publicity about working conditions in factories overseas. Do you have specific business requirements dealing with social accountability? Is it realistic for us to be able to impact factory conditions?

Product Safety 201 January 15, 2013 PPAI Resources Do you take advantage of PPAI Product Responsibilty resources? Webinars/Best Practices/Turbo Test Are there other ways PPAI could help you?

Product Safety 201 January 15, 2013 Supplier or Distributor 10 Things We All Must Do 23 1.Know the laws/regulations (or have a good resource) 2.Know your product (supplier, primarily) 3.Know your supplier 4.Know your client 5.Know your intended audience 6.Know the risks – regulatory, safety, PR 7.Educate the team 8.Stay current (Buckyballs, John Deere, /90, F963-11) 9.Instill a product safety culture in your company 10.Protect the industry

Product Safety 201 January 15, 2013 Thank You!