Most Amazon sellers I have dealt with over the last thirteen years contact me to fix an issue with a test report, rejection of a certificate, or supporting documentation or to identify regulations needed to develop and launch a new product. When I ask them if they have a compliance program, they only admit to having what Amazon requires to list their product, and only a few are interested in learning more. I am amazed that with the money they pay for search optimization, consultants, listing upgrades, etc., they are not interested in investing in a program that ensures that they maintain and protect their business and want to keep growing. Today more than ever, with factories selling against them in the same marketplace, sellers need to show “Due Care” to protect themselves against false claims and, more importantly, selling non-compliant products.
Legal Requirements: Compliance with consumer product safety regulations is mandatory for Amazon and major retailers. These regulations protect consumers from unsafe products that can cause harm or injury. By implementing a compliance program, Amazon sellers can ensure that their products meet all applicable safety standards and regulations, reducing the risk of legal penalties, fines, or even product recalls.
Customer Trust and Reputation: Maintaining customer trust is crucial for any business, including Amazon sellers. By prioritizing consumer product safety, sellers demonstrate their commitment to providing safe and reliable products. This builds customer trust and helps establish a positive reputation, leading to repeat purchases and positive reviews.
Risk Mitigation: Implementing a comprehensive compliance program helps sellers identify and mitigate potential risks associated with their products. By conducting thorough product testing, quality control checks, and risk assessments, sellers can identify and address any safety concerns before their products reach consumers. This proactive approach minimizes the risk of accidents, injuries, or negative incidents associated with product safety. While very important, very few sellers implement more than the minimum required to get their product listed.
Liability Reduction: A well-implemented compliance program can help mitigate potential liability for Amazon sellers if a product-related incident occurs. By having processes to demonstrate due diligence, such as keeping records of safety testing, certifications, and compliance documentation, sellers can better defend themselves against legal claims, and requests from the CPSC, or retailers and show that they have taken necessary precautions during the development and manufacture of their products.
Marketplace Requirements: Amazon has policies and guidelines that sellers must adhere to. Each new marketplace you enter may require or impose additional strict requirements related to product safety, quality, and compliance. Failing to meet these requirements can result in penalties, listing suspensions, or account suspensions. With a compliance program, sellers can ensure that they meet Amazon’s standards and, more importantly, regulatory requirements to avoid negative consequences.
Global Market Access: Many Amazon sellers operate in international marketplaces, which may have unique product safety regulations. Implementing a compliance program enables sellers to navigate the complexities of different regulatory frameworks and expand their business globally. It helps ensure that products meet the safety requirements of various countries, allowing sellers to access a broader customer base without facing regulatory barriers.
A consumer product safety compliance program is crucial for Amazon sellers to fulfill legal obligations, maintain customer trust, mitigate risks, reduce liability, comply with marketplace requirements, and access global markets. By prioritizing product safety, sellers can protect their customers, brand reputation, and business interests.
A consumer product safety compliance program typically consists of several key elements:
1. Appointment of a compliance manager to handle all compliance-related items and serve as a go-to person for escalating any quality or safety issues.
2. Regulatory Knowledge: Stay informed about the applicable consumer product safety regulations and standards in the regions where you sell your products. This includes understanding the specific requirements for labeling, packaging, product materials, testing, certification, and reporting.
3. Risk Assessment: Conduct a thorough risk assessment of your products to identify potential hazards, assess their severity, and determine the likelihood of occurrence. This involves considering factors such as product design, manufacturing processes, materials used, and potential consumer misuse or abuse.
4. Product Testing and Certification: Ensure your products undergo appropriate testing by CPSC-accredited laboratories to verify compliance with safety standards and regulations. This may include testing for physical safety, electrical safety, chemical content, flammability, and other relevant parameters. Obtain necessary certifications or marks to demonstrate compliance.
5. Supplier Due Diligence: Implement a process to evaluate and select reliable suppliers prioritizing product safety. Verify that your suppliers adhere to quality management systems and comply with applicable safety regulations. Maintain clear communication with suppliers to address any safety concerns promptly. If you want to sell to major retailers, this step is critical.
6. Quality Control Processes: Establish robust quality control procedures to monitor your products’ manufacturing, packaging, and labeling. Regularly conduct inspections to ensure that products meet safety and quality standards and that any identified issues are addressed promptly. Tailor your inspection protocols to your product, not to the category, making sure you look for items previously brought up in reviews or customer feedback.
7. Incident Reporting and Response: Implement a system to track and report any incidents or safety concerns related to your products. Develop a protocol and intake form for addressing customer complaints, conducting investigations, implementing corrective actions, and escalating issues when necessary.
8. Documentation and Record Keeping with Comply PRO+ Maintain thorough documentation related to product safety, including test reports, certifications, compliance documentation, supplier agreements, audits, certificates, and any relevant correspondence. Keep accurate records of product testing, Batch tracking, inspections, and other compliance-related activities.
9. Training and Awareness: Provide comprehensive training to your employees and suppliers regarding product safety requirements, best practices, and the importance of compliance. Foster a culture of safety awareness throughout your organization.
10. Continuous Improvement: Regularly review and update your compliance program to adapt to evolving regulations and industry best practices. Stay updated on product safety alerts, recalls, and emerging safety issues to proactively address potential risks. Use your quality program data to identify and fix issues identified during production and reported in bad reviews to upgrade your product over time.
11. Compliance Audits: Conduct periodic internal audits to assess the effectiveness of your compliance program. Identify any gaps or areas for improvement and take corrective actions as needed.
By incorporating all of the elements listed above into a consumer product safety compliance program using the Comply PRO+ framework, Amazon sellers can establish a robust program to sell globally, ensure the safety and compliance of their products, protect consumers, mitigate potential risks, and protect their brands.
Contact us today for a demo so we can show you how easy it is to protect your brand you worked so hard to build!
Regarding product safety, it is essential to stay ahead of the curve, and companies are often faced with the decision of how often to optimize their compliance program. Companies may ask themselves why they should change their existing program if it works. However, the real question should be: have I audited my program recently?
Not having a robust product safety compliance program can be risky if you are a business owner, executive, or Amazon Seller. Without proper policies in place, you could be putting your customers, employees, and brand reputation at risk. Consumers expect products to function correctly and meet specific safety standards in today’s market. Failing to comply with these standards can lead to costly lawsuits and damage your brand’s reputation. Amazon Sellers have seen increased compliance requests to approve a product, including instructions, warnings, labeling, and registration cards. Submitting these items will get your approval, but can you show proof of compliance to new retailers that need to see these policies and processes to ensure you deliver a safe product with each new shipment? More than having the documents is required, as all major retailers seek proof that you know what you are doing and have systems and training for your employees and contractors. Compare the Vendor qualification for Target in 2020 to today; you can now see the inclusion of a Quality Program Assessment and a Factory Assessment, and vendors are expected to employ best practices and well-documented manufacturing and GMP processes. Part of this results from being unable to visit your suppliers, but the other part is that good quality practices result in compliant products with fewer returns and chargebacks. But policies are part of the program as you also need staff training and process for record keeping. Your ideal compliance program will have all the components for identifying, capturing, and storing all company data, not just for Retailer qualification but in the event you would need to file a 15B report with the CPSC. Have you updated your program recently to identify and record where this data exists should you need to access it quickly? You also need a retention plan to back up this data should you migrate to a new system.
Adjust your Program to Changing Requirements
A product safety compliance program is essential for any business that produces or sells physical goods. The program should include policies that ensure all products meet mandatory requirements set by regulatory agencies, such as the Consumer Product Safety Commission (CPSC). It should also involve regular testing and documentation of each product’s performance and any necessary changes to meet the standard. Having proof of compliance can protect your business from liability claims if an injury occurs due to a faulty product. You should document all your steps, from the product’s design to delivery to the consumer. Your obligation does not stop with the sale. You also need an incident reporting policy and escalation program to satisfy the CPSC’s duty to report once you are notified of an incident while using your product. An incident can be reported to you via your customer service CRM system; it can come from a retailer or Amazon or be submitted to the Saferproducts.gov website. If you have a reportable incident and it is determined you need a recall, you should have a plan to prepare for this worst-case scenario. Amazon does not yet require a recall plan but has been discussing with the CPSC how they would handle recalls on their platform should one be needed.
Major retailers always ask about your recall plans, and having one can save you money on your product liability insurance. Today, many are now asking about how you are integrating ESG into your product safety program. ESG stands for “Environmental, Social, and Governance.” It can be described as a set of practices (policies, procedures, metrics, etc.) that organizations implement to limit negative or enhance positive impacts on the environment, society, and governance. Do you have the capability to add these items to your program in an integral way to meet these current and future requirements? Are you aware of new technology solutions that enable you to scale your program quickly and are more cost-effective than building or piecing together several systems?
We built Comply PRO+ for you to have an out-of-the-box platform to securely build your compliance program to show seller proof of compliance when entering new markets and sales channels. Post covid, more people are working remotely. Comply PRO+ is built on Amazon Web Services and is accessible anywhere there is an internet connection. We use 2-factor Authentication to secure your login and password so no unauthorized users are on your account. You still need to craft the policies and procedures to align with how you operate your business, but you do not need to spend time and money connecting several systems to capture the data you need for a robust program. If you haven’t done so in a while, audit your current program to see if it has the features you need to sell products in multiple sales channels and markets today and for what lies ahead tomorrow.
Compare these features to your current program…
1. Accessible anywhere
2. Secure platform with secure 2 Factor Authentication
3. Real-time Pro Dash Dashboard – Add dimension to your program with live stats.
4. Customizable Roles for Executives, Compliance Managers, Team Members, Employees, Consultants, and Authorized Representatives
5. Scheduler and Activities Calendar with Task Assignment
6. Incident Reporting on the Product Level
7. Policy and SOP Document Library
8. Licensed Products Tracking
9. Product Type Views
10. Where Products Sold by Country Map
11. Sales Channel Stats and Vendor Management
12. CPSIA Ready Live View for Children’s Products
13. Supplier Stats and Policy Reviews for Each
14. Supplier Audits with Sales Channel Tracking
15. Product Family Feature for uploading one document to many
16. Technical File Product folders format for selling globally
17. Custom Fields on the Product Page to fit your products and capture new ESG requirements.
18. Hide and or Create Custom Folders I
19. Test Lab Stats and Management
20. Test Report Expiration Reminder with Email Alerts
21. Test Plan Section
22. Production Runs / Batch Tracking
23. Shipping Details & Tracking
24. Quality & Inspection Tracking
25. Certificate Management
26. Authorized Representative Access ( for E.U. & U.K.)
27. Ez Uploader makes onboarding a breeze; be up and running quickly.
28. Extensive How to Knowledge Base
29. Great Customer Service
30. Coming Soon…. CO. Comply company branded microsite for employee training!
If you are happy with your current program but need to optimize it and add a 3rd dimension, we have the solution for you.
Complete Compliance with An Eye On Business Transformation™
Comply PRO+ is the most ergonomic, economical, and comprehensive product safety compliance suite for managing your compliance program. It offers an easy-to-use system that can help you document “Due Care” from design to delivery while providing data-driven insights to ensure effective compliance processes. With its intuitive dashboard and automated alerts, you can quickly audit your compliance program and manage all compliance and sales channel activities from one screen. Schedule a Demo today, so we can show you this revolutionary system and get an additional user FREE when you sign up.
Whether you are a manufacturer or Amazon Seller, product safety compliance is essential for any business selling products in today’s competitive markets. A comprehensive product safety compliance program can help protect brands, reduce liabilities, and expand sales channels. Companies must understand their product safety obligations and have the right program to ensure compliance with regulations and retailer requirements.
If you are an Amazon Seller, you may think that by using the manage your compliance dashboard, you would have everything you need to follow Amazon’s policies to manage compliance. Amazon states that you must still follow the laws, regulations, and standards. While their tool will guide you through submitting the necessary proof of compliance for your product category, do you have a program in-house to document these same policies and requirements for other retailers? More importantly, do you have all the other items that constitute a compliance program? Anyone wanting to enter new markets or sell with a major retailer is soon asked to provide proof of compliance with specific policies and evidence of training to ensure you consistently make and deliver safe products. You will find this out quickly if you want to sell at Target or Walmart. This is why it I important for you to build a robust compliance program, no matter how small your company, so that it can scale with you when you grow.
The CPSC not only expects companies to have effective compliance programs in place but to be able to document these processes properly. To build a compliance program that scales with your growth, you should, at a minimum, have the following:
Commitment to Compliance
Recognize that your compliance program is dynamic, involving not only multiple policies, procedures, and manufacturing activities but also the commitment of senior management and the support of all employees, contractors, vendors, and agents to make the program effective.
Assignment of a Compliance Manager or Officer
Appoint someone to handle all compliance-related activities; design an escalation policy to show everyone where to go with issues, concerns, or how to report undue influence by publishing contact details and instructions on how to report.
Written Policies
A policy is essential to any compliance program as it establishes the company’s commitment to providing safe products. It outlines the procedures for ensuring all employees follow established testing, labeling, packaging, and distribution protocols. SOPs are detailed instructions on performing various tasks correctly; they help ensure consistency in product development and provide clear guidance for employees. If you sell children’s Products, you will need a material change and undue influence policy with training. Everyone should have an Incident reporting and escalation policy and a recall plan.
Effective Lines of Communication
Establish a dialogue between management and employees so that when seeking answers to questions or reporting potential violations of law or policies, employees or contractors know whom to turn to for a meaningful response and do so without fear of retribution.
Education and Training
Training is crucial in promoting compliance as it ensures employees understand the importance of adhering to safety standards. It should be mandatory for all staff involved in product design, testing, production, marketing, or distribution.
Auditing and Monitoring
Audit your program at least once a year to evaluate the effectiveness of your program and consider pending changes to regulatory or retailer requirements. Doing so lets you determine if gaps in your current system need addressing.
Documentation and Record-keeping
Documentation should begin during the product design phase and include all third-party certification testing, testing of representative samples, material changes, corrective actions, training materials, and training records. Document the work you have done toward complying with the CPSC’s requirements and adhering to the regulations for your products. In the event of a product recall, this documentation will enable you to show the CPSC in helping understand what may have gone wrong to ensure future product safety and compliance. Retention policies should be set to maintain records for each market where you sell. In the U.S., the manufacturer must keep these records for five years, either in hard copy or electronically, such as a website or Framework like Comply PRO+.
A robust compliance program will protect consumers and businesses by reducing their liability when implemented correctly. Additionally, companies should leverage technology to automate processes and ensure all stakeholders are on the same page. The days of having policies in binders where no one can access them are over, and in the post-Covid world of remote work, they need to be accessible to everyone in your organization.
Comply PRO+ was built for Compliance Managers, Executives, and Business Owners. Schedule a Demo today to see how you can quickly build, manage and audit your compliance program to reduce risk and enter new sales channels and markets.
