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November 2023

California’s Proposition 65 – Regulatory Compliance for Risk Management and Measures to Empower Your Business with Responsibility and Sustainability

In an era where environmental consciousness and social responsibility are paramount, Proposition 65, California's Safe Drinking Water and Toxic Enforcement Act of 1986, presents an invaluable opportunity for your business to thrive while contributing to the well-being of the community and taking regulatory compliance measures to manage risk of possible civil penalties assessed through public, and private, attorney enforcement actions.

Background

Proposition 65 was designed to protect California residents and their drinking water sources from harmful chemicals and to inform citizens about exposures to such chemicals. This landmark voter initiative requires businesses to provide clear and reasonable warnings on products and in areas frequented by the public, alerting consumers to the presence of chemicals known to cause cancer, birth defects, or other reproductive harm.

Why Proposition 65 Matters

Legal Compliance: Compliance with Proposition 65 is not just a good idea; it's the law. Failure to adhere to the regulations can result in litigation and costly civil penalties ranging up to $2500 per violation (i.e. each single product sold into CA that violates Prop 65 can be considered a separate violation). By ensuring your business complies with Proposition 65, you safeguard your company's future.  There are over 950 chemicals on the Proposition 65 chemical list for carcinogens and reproductive toxicants.  Private enforcers have served approximately 3,000 Proposition 65 Notices of Violation every year for the past few years.  Enforcement actions range from Bisphenol-A in sportswear to heavy metals in fresh and frozen seafood to phthalate in plastic packaging to hexavalent chromium in tanned leather gloves.  The inclusion of certain forever chemicals (PFAS, PFOS) has created heightened concern for many consumer goods industries. As the regulatory agency has just proposed changes to “safe harbor” warnings that will directly impact internal compliance measures and management of risks and exposure to liability, stay ahead of the curve.

Consumer Trust: Transparency builds trust. By providing clear and reasonable warnings, your business demonstrates a commitment to the well-being of your customers, which can lead to increased brand loyalty and positive customer relationships.

Community Health: Beyond compliance, Proposition 65 helps safeguard the health of California residents. As a responsible business, your adherence to the Act contributes to the collective effort of reducing exposure to potentially harmful chemicals or providing public awareness of potential exposures to such chemicals.

Competitive Advantage: Companies that embrace Proposition 65 tend to be seen as industry leaders in sustainability and responsibility. This can give you a competitive edge in a market where consumers are increasingly conscious of the products they purchase.

How We Can Assist Your Business

At GRSM, we specialize in helping businesses navigate the intricacies of Proposition 65 compliance. Our expert team can:

  • Assess Your Products: We'll evaluate your products and processes to identify any potential exposure to chemicals covered by Proposition 65.
  • Create Custom Warnings: We'll work with you to create clear and reasonable warnings that adhere to Proposition 65 requirements while maintaining your brand's integrity.
  • Provide Training: We offer training and support to ensure your team understands the Act and how to effectively implement it within your organization.
  • Maintain Compliance: We'll assist you in staying up-to-date with changing regulations and ensuring ongoing compliance, allowing you to focus on your core business operations.
  • Peace of Mind: By partnering with us, you will have peace of mind knowing that your business is operating responsibly and ethically.

Conclusion

Compliance with Proposition 65 not only demonstrates optimal risk management for business operations and avoidance of potential liability; it's an opportunity to foster trust, provide public health awareness, and bolster your business's reputation. Contact us today to get started on the path to Proposition 65 compliance.

Ryan S. Landis
Brian Ledger
Michael J. Pietrykowski


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