Definitions Advertisement

Refer to section 2 of the Act: includes a representation by any means for the purpose of promoting directly or indirectly the sale of a consumer product.

1.2. Consumer product

Refer to section 2 of the Act: a product, including its components, parts or accessories, that may reasonably be expected to be obtained by an individual to be used for non- commercial purposes, including for domestic, recreational and sports purposes, and includes its

packaging.

1.3. Days

"Days" are calendar days.

1.4. Document

Refer to section 2 of the Act: means anything on which information that is capable of being understood by a person, or read by a computer or other device, is recorded or marked.

1.5. Health Canada/Minister

For the purposes of this guide any obligations under section 13 for providing information or reporting to the Minister are referenced as being provided to Health Canada.

1.6. Importer

Adapted from section 2 of the Act: a person who imports consumer products into Canada.

1.7. Manufacturer

Adapted from section 2 of the Act: includes a person who produces, formulates, repackages and prepares as well as reconditions consumer products for sale.

1.8. Seller

Adapted from section 2 of the Act: includes a person who offers consumer products for sale or lease, exposes for sale or lease or has in possession for sale or lease. This definition includes a person who distributes to one or more persons, whether or not the distribution is made for consideration (i.e. giving away).

1.9. Year

Refer to section 2 of the Act: "Year" is interpreted as calendar year.

2. Background

The Canada Consumer Product Safety Act modernizes the consumer product safety regime in Canada. The Act adopts modern tools and techniques that help protect the public from dangers to human health or safety posed by consumer products and brings Canada's consumer product safety system into line with our key trading partners.

Under section 13 of the Act, a retailer must prepare and maintain documents indicating who they obtained the product from and the location where and the period during which they sold the product. Any person who manufactures, imports, advertises, sells or tests a consumer product for commercial purposes who is not a retailer must prepare and maintain documents indicating who they obtained the product from or to whom they sold it (or both if applicable).

Note that regulations under the Act have additional record keeping requirements. A complete list of these regulations and their record keeping requirements are listed in Appendix A.

Requirements under section 13 may be similar to records already retained by business as part of their normal book keeping practices (i.e., documents for GST requirements or income tax purposes).

This guidance provides an overview of the requirements under section 13 of the Act and describes the compliance and enforcement policy regarding this section. Specifically, it includes information on:

Requirements

Responsibilities of a person, and

Time and Manner for preparing and maintaining documents.

Exemptions

Recommendations for Preparing and Maintaining Documents What Happens to the Information

Compliance and Enforcement

4

-3. Requirements

Section 13 of the Act requires any person who manufactures, imports, advertises, sells or tests a consumer product for commercial purposes to prepare and maintain documents. The purpose of this requirement is to help improve the traceability of non-compliant products through the supply chain in the event that a danger must be addressed.

As part of the inspection process, an inspector may request access to documents that are required to be maintained under section 13 of the Act and its regulations. In addition, subsection 13(3) of the Act stipulates that persons shall, on written request, provide these documents to the Minister of Health.

Persons should be aware that, in addition to the requirements of section 13, there are additional record keeping requirements prescribed by regulations made under the Act (see Appendix A).

3.1. Responsibilities of a Person 3.1.1. In the Case of a Retailer

Requirements for retailers differ from those for other persons. Subparagraph 13(1)(a)(i) requires retailers to keep documents that include the following information:

The name and address of the person(s) from whom they obtained the product;

and

The location(s) where they sold the product and the time period during which they sold the product.

There is no requirement under the Act for retailers to keep documents of every consumer transaction or their personal information. Instead, subparagraph 13(1)(a)(i) requires retailers to keep documents that specify the location where and the time period when they sold the product. Some retailers maintain documents that record to whom each purchase was made.

Such practices may be beneficial when corrective action concerning a consumer product is required.

3.1.2. In the Case of a Manufacturer, Importer, Advertiser, Seller or Tester

For persons who manufacture, import, advertise, sell or test a consumer product for

commercial purposes (excluding retailers), subparagraph 13(1)(a)(ii) requires the person to prepare and maintain documents that indicate:

The name and address of the person(s) from whom they obtained the product;

or

The name and address of the person(s) to whom they sold the product;

Or both as applicable.

3.2. Time and Manner

3.2.1. Period for Document Retention

Subsection 13(2) requires that the person keep the documents until the expiry of six years after the end of the year to which they relate, unless regulations specify another time

period. For example, unless otherwise specified in a regulation, a document that relates to June of 2011 must be retained until December 31, 2017.

This period was chosen so that it aligned with existing document retention requirements that persons may already be required to meet, such as those required under the Income Tax Act.

3.2.2. Keeping and Providing Documents in Canada

Under subsection 13(3), persons "shall keep the documents at their place of business in Canada or at any prescribed place and shall, on written request, provide the Minister with them".

Whether records are stored in paper or electronic format, it is required that all records will be accessible at a person's place of business in Canada. For example, if a server that stores electronic files is located outside of Canada, those files must be easily and readily accessible on a computer terminal at the person's place of business in Canada.

Subsection 13(4) allows the Minister to grant an exemption if he or she considers that keeping the documents in Canada is unnecessary or impractical. Requests for an exemption from this requirement will be reviewed on a case-by-case basis.

As part of the inspection process, an inspector may request access to documents that are required to be maintained under section 13 of the Act and its regulations. During an inspection, persons should be prepared to provide documents upon request. Additionally, subsection 13(3) stipulates that persons shall, on written request, provide documents to the Minister of Health. Persons should be prepared to produce records upon request within the timelines set in the written request or within the time period as set out in the regulations (see Appendix A).

4. Exemptions

There may be cases of certain donated consumer products - such as when a donation is from a person other than a manufacturer, importer, distributor, or retailer - where requirements to prepare and maintain documents would do little to support product traceability.

As a result, Health Canada is developing a regulatory proposal to allow for an exemption from the documentation related requirements in subsection 13(1), to apply to persons when they are the recipients of consumer products that are donated by a person other than a person who manufactures, imports, or sells consumer products.