The legal, financial and corporate risks associated with California
Proposition 65 violations
KANATA, ON, June 29 /CNW Telbec/ - Ageus Solutions
(www.ageussolutions.com), a leader in global environmental compliance
services, is helping businesses identify their California Proposition 65 risks
and obligations. Proposition 65 includes many material restrictions already
encountered by electronics manufacturers under product related RoHS-type
legislation, but is much broader and farther reaching, extending to all
The legal impact of Proposition 65 on businesses selling products into
California has steadily increased since the initiative's inception in 1986.
Over the past six years, there have been approximately 1309 settlements
totaling nearly $80 million USD. In 2006 major organizations such as Fluke
Electronics, Intel Corporation, Kmart, Vanco International, Pepsi, and
Wal-Mart were fined under California Proposition 65. With individual
settlements in excess of $2.2 million USD and civil fines up to $1 million
USD, Proposition 65 has come to the attention of many businesses whose
products may be exposed to scrutiny under the legislation.
Proposition 65 encourages citizens to inform on violators. If the state
has not initiated, or is not diligently prosecuting an enforcement action
within 60 days after being notified of the violation, then the informant, also
know as a "bounty hunter" may initiate an enforcement action of their own.
Lawsuits have been filed by the Attorney General's Office, by district
attorneys, by consumer advocacy groups, and by private citizens and law firms.
Penalties for violating Proposition 65 by failing to provide cautions and
indicate hazards to consumers can be as high as $2,500 for each day in which
the violation occurs.
"Companies who are prosecuted under Proposition 65 are not only exposing
themselves to financial risk, but also exposing their corporate image and
reputation to public scrutiny," reports Bruce Calder, President of Ageus
Solutions. "Unlike RoHS violations, prosecutions under Proposition 65 become
public record and are also published annually by the state leaving permanent
record of such violations in the public domain and to long-term public
Ageus Solutions provides detailed analyses of a company's products, its
potential Proposition 65 exposure; and reviews and provides recommendations on
risk-management within the company's supply chain. Ageus Solutions'
Proposition 65 services include:
- Product Analysis
- Identification of Proposition 65 requirements for each product;
- Collection and review of chemical content data;
- Product testing;
- Recommendations on material replacement and product warnings.
- Supply Chain Review and Recommendations
- Identification of risk exposure in client's supply chain;
- Recommendations on risk mitigation activities.
- Recommendations on product documentation and labeling;
- Preparation of documentation for due diligence and risk mitigation.
- Corporate education on Proposition 65.
Ageus Solutions' experts work with companies to analyze the chemical
content of their products, assess risks and exposure with respect to
Proposition 65, and provide strategies for meeting a company's obligations
under Proposition 65. Areas of focus include procurement agreements, data
collection, data verification, risk assessment, material replacement, and
California Proposition 65 was intended by its authors to protect the
citizens of California and their drinking water sources from chemicals known
to cause cancer, birth defects or other reproductive harm, and to inform
citizens about exposures to such chemicals. Since its enactment in 1986,
California Proposition 65 has evolved into one of the most enforced
legislative requirements for material content in consumer products.
It pays to plan ahead. The best way to avoid a Proposition 65 lawsuit is
to ensure that you are in compliance now.
About Ageus Solutions
Ageus Solutions is a global leader in environmental compliance solutions
offering a range of primary and supplementary services for WEEE, RoHS, Japan
Green, China RoHS, Korea RoHS, EuP, REACH and E-Waste requirements as well as
emerging battery and packaging compliance regulations including support for
compliance with the Wal-Mart packaging scorecard.
For further information:
For further information: Nicole Cooper, (613) 599-4321,