The CPSC has made compliance initiatives designed to save lives and prevent injuries more cost- and time-effective by: (1) establishing a procedure to expedite the process through which firms, in cooperation with CPSC, recall hazardous products in the marketplace without the necessity for a staff preliminary finding of hazard ("No PD Program"); (2) establishing a special investigative unit to uncover defective consumer products which present a high risk of injury using data sources both within and outside CPSC; (3) using the special investigative unit to develop new data sources to provide information about potentially defective consumer products; and (4) improving the effectiveness of recalls by establishing a recall monitoring unit to assure recalls are conducted in the manner agreed upon.

The "No PD Program," initiated in August 1995, encourages industry cooperation through paperwork reduction, cutting red tape, and cutting potential legal expenses related to the recall of potentially defective products. CPSC staff will forego making a preliminary determination that a product presents a substantial risk of injury to the public when a firm reports a potentially hazardous or defective product to the Commission, and within 20 working days of the report implements a plan agreed upon by the Commission staff to correct the problem. Industry favorably views the "No PD Program" as an advantage in product liability suits.

Also in August 1995, the Commission provided manufacturers, distributors, and retailers a one-time six month amnesty from civil penalties for past failure to report information concerning potential product defects, unreasonable risks of injury or noncompliance with mandatory safety standards. The program encourages firms to "clean out the closets" of matters that should have been reported earlier without fear of penalty.

The "Compliance Special Investigative Unit" integrates data sources from inside and outside CPSC to uncover defective products presenting a high risk of injury. Historically, the Commission receives approximately 200 reports annually from industry on dangerous or defective products. However CPSC, through its own initiatives, has identified a greater number of hazards than those reported to the Commission by industry. This special unit will enable Commission staff to more efficiently identify defective consumer products that prevent the most serious safety hazards and to identify new sources outside the Commission that can provide information on defective consumer products.

The "Compliance Recall Monitoring Unit" is intended to increase quality control in getting hazardous and defective products off the marketplace and out of the homes of American consumers. Once a recall of a consumer product is underway, the recall monitoring unit: (a) assigns investigators to check that the recall is being conducted in the manner agreed upon by the firm, e.g. recalled products are removed from store shelves, recall posters are posted in stores; (b) obtains timely progress reports from the recalling firm; (c) improves data entry, summaries and analysis related to recalled products; and (d) identifies specific corrective action problem areas. The CPSC staff negotiates more than 150 voluntary corrective action plans annually.

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