California’s Safer Consumer Products Regulations (SCPR) are effective October 1, 2013. The SCPR implement California’s “Green Chemistry” initiative by creating an expansive and complicated framework for consumer product regulation in California. Though not all California consumer products are directly affected, the SCPR requirements will impact product-sourcing and supply chain commerce throughout the State.
Background and Intent of SCPR
The SCPR are intended to address product life-cycle issues by reasonably balancing safety, science and common sense. The final result is a very broad regulatory scheme, ostensibly applicable to all entities in the supply chain (even retailers), premised on a liberal definition of consumer products. The process starts with prioritizing hazardous impacts of 1,200+ chemicals, and identifying certain “Priority Products” containing such chemical constituents. These Priority Products will be identified by evaluation of human exposures, health impacts and life-cycle criteria (e.g., distribution, use and disposal patterns). Priority Products are then subject to an assessment process, designed to foster safer product composition through the use of alternative chemicals. Once the alternatives assessment is evaluated by Cal-EPA, the next steps can range from “no action,” to product labeling, to use restrictions, to outright bans on distribution and sale.
And the entire process is transparent – California consumers and public interest groups have ready access to product details and assessments.
Potential Impacts to California Businesses
Many different chemicals are used in raw materials and constituents of hard and soft goods. Downstream impacts from SCPR may arise even for products appearing to pose no health risks by themselves. For instance, if an upstream dye or finish coating is removed or altered as a result of the SCPR, there may be adverse impacts rippling through the supply chain. Manufacturers and retailers, unaware of hazardous chemical use in portions of their products, may be hit with sharp price increases or outright material shortages or bans. In addition, there may be trade secret disclosure risks, due to upstream use of proprietary chemical blends or mixtures in finished products. The SCPR provides limited trade secret protections, but overall, the transparency of the process requires careful stewardship of proprietary information throughout the supply chain. Consequently, supply chain business relationships and duties may be altered by the SCPR framework, and existing contractual terms may need to be reviewed and modified.
Suffice to say, there are significant concerns about how the SCPR will directly and indirectly impact California supply chain commerce. More detailed information is available from Cal-EPA and McKenna, Long & Aldridge.
