The Administrative Monetary Penalties (Consumer Products) Regulations are a key component of the Canada Consumer Product Safety Act (CCPSA). They provide a flexible and responsive enforcement approach for dealing with specific incidents of non-compliance with an order made under the Act, such as refusing to comply with a recall order.
The Regulations prescribe the time and manner in which a monetary penalty under the CCPSA is calculated, modified, or paid, as well as the manner in which certain documents must be provided.
Health Canada expects that the financial penalties issued under the Regulations will encourage compliance with the CCPSA and its requirements over the long term.
When is an Administrative Monetary Penalty issued?
Typically, industry voluntarily abides by Health Canada’s product safety recommendations. Administrative monetary penalties only come into effect when the government orders a company to recall a product or orders to take other measures such as stopping the manufacturing, importation, sale or advertising of a non-compliant product, and the company does not comply within the specified timeframes.
What are the penalties under the Regulations?
Penalties are calculated in accordance with the Regulations and reflect both the seriousness of the violation and any past violation history of the person or company. The maximum penalties range from $5,000, (for a violation committed by an individual or a non-profit corporation, for non-commercial purposes), to $25,000, (in any other case).
Each day that an incident of non-compliance is not addressed represents a separate violation of the Act- meaning that the financial burden on the company can increase with each passing day until the matter is resolved.