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Vol. 141, No. 32 — August 11, 2007 Order Amending Part II of Schedule I to the Hazardous Products Act (Lighters)Statutory authority Hazardous Products Act Sponsoring department Department of Health REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Order.) Description This regulatory initiative is intended to maintain the protection of the health and safety of Canadians by proposing amendments to the Hazardous Products Act and making the Lighters Regulations (the Regulations). These Regulations were introduced in 1979 as a measure to reduce deaths, injuries and property damage associated with lighters. The proposed amendments also clarify administrative requirements for manufacturers. To maintain the protection of the health and safety of Canadians, this initiative proposes to expand the scope of the Regulations to include utility lighters (also known as multipurpose or barbeque lighters) and to update a standard referenced in the Regulations. To clarify manufacturers' administrative requirements, this initiative proposes to amend the language of the Regulations, as identified by the Standing Joint Committee for the Scrutiny of Regulations, and the date on which the amendments come into force. Issue of utility lighters When the original Hazardous Products (Lighters) Regulations were promulgated, lighters were established as Item 34 of Part II of Schedule I of the Hazardous Products Act. The term "lighters" was qualified with the phrase "intended for use for cigarettes, cigars and pipes." After promulgation, products began to appear in the marketplace with essentially the same technology and functions of lighters, but were sold as utility or multipurpose lighters. These products were intended for, and the packaging implied that they be used for, items other than ". . . cigarettes, cigars and pipes." This regulatory initiative proposes amending Item 34 to ensure that utility lighters are included in the definition of lighters. Issue raised by the Standing Joint Committee for the Scrutiny of Regulations One of the Regulations' child-resistance requirements stated that importers and manufacturers keep, for a specified period, Compliance Certificates for each model of lighter (other than luxury lighters) that they sell. This requirement (section 3.2) reads as follows: The manufacturer and the importer of a product other than a luxury lighter shall . . . . The Standing Joint Committee advised Health Canada that a manufacturer who fails to comply with section 3.2 will have contravened the Regulations even though no lighters may have been advertised, sold or imported. Since the intention is to apply these provisions only to those manufacturers who sell or import non-luxury lighters, it is proposed that section 3.2 be amended to read as follows: A person who manufactures and sells or who imports a lighter, other than a luxury lighter, must . . . . This proposed amendment will ensure that only manufacturers who intend to sell or import a lighter keep the required documentation. Issue of the new Code of Federal Regulations Standard (United States) Upon reviewing the test protocol 16 CFR 1212.4, a child-resistance test protocol for utility lighters introduced in the United States by the Consumer Product Safety Commission (CPSC), Health Canada discovered that the CPSC 16 CFR 1212.4 test is very similar to the 16 CFR 1210.4 protocol referenced in the Regulations (the difference between the two test protocols being that, for utility lighters, child-resistance tests are required to be conducted with any "on/off" switches placed in the "on" position at the start of the tests). In order to harmonize Canadian and American test protocols and procedures, this initiative proposes to add a reference to the new 16 CFR 1212.4 test protocol. Issue of the date of coming into force Regulations normally come into force as soon as they are registered but can only be enforced once published in the Canada Gazette, Part II. Representatives from the lighters industry have requested that enforcement of the proposed amendments begin 90 days after registration, thereby allowing them a period to comply with the new requirements. Alternatives Status quo The status quo for each of the issues addressed in this initiative was deemed unacceptable on the grounds that each proposed amendment addresses an issue that increases the overall effectiveness of the Regulations. Maintaining the status quo would continue to expose Canadians to risk when using utility lighters, as the Regulations do not apply to these products. The status quo also leaves open to interpretation the intention of section 3.2, as identified by the Standing Joint Committee for the Scrutiny of Regulations. Voluntary standard Health Canada has, for several years, taken a voluntary approach to address utility lighters. By means of an open letter (see footnote 1) to manufacturers and importers of utility lighters dated December 1, 1999, Health Canada asked the industry to voluntarily comply with the child-resistance performance-tested utility lighters. A degree of success was achieved through this initiative. However, some importers and distributors continue to provide utility lighters to the Canadian market. These products may not have the required child-resistance mechanisms and their safety is a concern. Since the Regulations do not apply to utility lighters, Health Canada is unable to take enforcement action against them. Continuing to rely on voluntary compliance is not an acceptable alternative because Health Canada is unable to ensure that these products are safe and that they do not pose a danger to individuals. Adopting the proposed Regulations The adoption of the proposed amendments would allow for the following:
Benefits and costs Benefits Benefits are assessed based on the identification and categorization of the adverse impacts that will be avoided through the regulatory action. Social benefits can be assessed and measured in terms of avoided social losses. These are not limited to reductions in out-of-pocket expenses or increased earnings. Therefore, non-monetary gains to society, such as avoided pain and suffering from illness or injury, are evaluated in monetary terms. A. Utility lighters The main purpose of these amendments is to ensure that utility lighters are considered as restricted products under the Hazardous Products Act. Concern over safe operation of utility lighters arose when lighters were recalled in the United States and Canada. As a result, Health Canada conducted a national survey of utility lighters in which selected lighters underwent performance evaluation tests similar to those already in place for cigarette lighters. Those brands named in the July 15, 1999 advisory, found in Appendix A, either leaked fuel, had flame heights over 150 mm (6 in.), caught fire, continued to burn after they were turned off, or exploded (without flame) when exposed to elevated temperature. In order to ensure the safety of the Canadian public, there are three requirements that utility lighters will need to meet. 1. Child-resistance requirements Child-resistance will be required for all utility lighters in Canada. Canadian Fire Services has reported that in 2001 alone, 519 fires were attributed to children playing with fire sources which included both lighters and matches. These fires resulted in 41 deaths, 499 injuries and $10.4 million in property loss. As previously mentioned, the test protocol 16 CFR 1212.4 introduced in the United States by the CPSC is currently a requirement in that country. In order to harmonize Canadian and American test protocols, it is the intention of this initiative to reference the 16 CFR 1212.4 test protocol. Having a required child-resistance mechanism in place will lower child-play fires and associated deaths, injuries and property losses. 2. Performance testing requirements Health Canada has a test protocol for utility lighters that has been formally available to industry since October 29, 2001. The protocol provides assurance to the manufacturer and importer that their products operate in a safe manner when used as intended. Testing helps in product quality control to identify when correction in the manufacturing process is required. If a problem is found and corrected immediately, it will save industry time and money in recall efforts should the product be found to be unsafe at a later time. Additionally, ensuring that utility lighters perform as intended will help reduce unnecessary fire incidents and injuries. 3. Safety labelling requirements Under the proposed amendment, utility lighters will be subject to mandatory labelling requirements where they were previously excluded. Utility lighters will be required to have warning statements and refuel instructions (in the case of refillable utility lighters) which are aimed at reducing the incidence of utility lighter fires and the resulting injuries and property losses. B. Coming into force The benefits of extending the "coming into force" date to 90 days after registration of the amended Regulations is seen as administrative. The benefits derived from this amendment are mainly achieved by manufacturers who advertise, sell or import lighters in Canada. With this proposed amendment, manufacturers will have an extended period before the Regulations come into force, thereby allowing them to realign their supply and manufacturing procedures. Additionally, they will have clarification with respect to the obligations of keeping Compliance Certificates information, and their products will be subject to harmonized test protocols in Canada and the United States. C. Level playing field The regulation of utility lighters will create a level playing field for manufacturers of these products. The majority of lighter manufacturers have been complying with the Regulations and the voluntary standards. This group, including members of the Lighter Association Inc., supports more rigorous regulation of utility lighters, as it will force non-complying manufacturers to meet the same standards and requirements. D. Social benefits Social benefits will result from reductions in three negative types of occurrences linked to the use of utility lighters: 1. Injuries or fatalities to the user of utility lighters; 2. Injuries or fatalities to non-users of utility lighters; and 3. Damage to personal property resulting from the use of utility lighters. In each of these three scenarios, social benefits can be divided into two general types: internal benefits and external benefits. Internal benefits (avoided internal losses) accrue to those who are directly using utility lighters. External benefits (avoided external losses) are those accruing to individuals who are not directly involved in the activity but who would nonetheless be negatively affected by the activity. For example, external benefits from improving the safety of utility lighters will include the avoided suffering of family members when a loved one is injured through the use of a utility lighter. Costs The assessment of cost considers incremental costs that arise from the regulatory action and does not include costs for pre-existing activities. The total cost of a revised regulation to encompass all lighters, including utility lighters, is represented by compliance costs to industry and government regulatory costs. Cost data come from industry representatives (responses from consultation) and expected government monitoring costs. A Canadian manufacturing sector of utility lighters does not exist and, as such, they are only available through importation. Consequently, the incremental cost of a new control measure to Canadian industry is low to nil. Costs will continue to apply to the Government for its standard enforcement and administration procedures. A. Utility lighters 1. Child-resistance requirements As the child-resistance requirement already exists in the United States under 16 CFR 1212.4, it is expected that the implementation costs for manufacturers will be low, as they are already manufacturing a product that conforms to this test protocol. 2. Performance testing requirements The nature of the tests and the order in which they are performed are the same as the method designed for cigarette lighters, mainly because the two products are very similar and could therefore present the same hazards. The fact that cigarette lighters are currently restricted and many manufacturers are aware of the Canadian requirements, and do adhere to them, will make the inclusion of utility lighters fairly straightforward. There may be a small cost to ensure that products meet the requirements, but it will be offset with the knowledge that a safe product is being marketed. 3. Safety labelling requirements Additional cautionary statements may result in marginal increase in printing costs. However, many of the utility lighters currently marketed in Canada already have a warning label, and it would only need to be expanded upon with the required statements and information proposed in the amendment. B. Coming into force The costs of extending the "coming into force" date to 90 days after registration of the amended Regulations is seen as administrative. It is anticipated that there will be no increase in costs to Canadians, manufacturers or our Government. Net benefits Net benefits are calculated as total social benefits less total social costs. Based on the most recent available data, between 1998 and January 2007, there have been four major injuries and four minor injuries associated with utility lighters reported to Health Canada. This is likely an underestimate for Canada as a whole, as it does not include injuries not reported to Health Canada. However, this averages to be approximately one injury per year resulting from the use of utility lighters. The data demonstrates that the benefit of a control measure will therefore be at least as much as one avoided injury per year. Since there is no indication as to the severity of the aforementioned injuries, assumptions must be made to assign a cost of illness value to the injury. Cost of illness measures include expenditures associated with physicians, care expenses, hospitalization and pharmaceutical products. Canadian injury valuation data for burns is not sufficiently detailed and, therefore, data from the United States was employed. Using data from the Healthcare Cost and Utilization Project (see footnote 2) (HCUPnet), and converted to Canadian dollars, the cost of illness for burns per injury for all ages in 2001 was $41,145. This obviously depends upon the injury severity, which is clearly not known. Given that the incremental regulatory and compliance costs are low, and even with one major injury avoided per year, there would be a positive net benefit to Canada from a new regulation on utility lighters. Consultation As part of the consultation for these proposed amendments Health Canada sent letters to industry and other interested parties on December 8, 1999, and September 1, 2000, to advise of the intention to include utility lighters in the Regulations. These letters were also posted on Health Canada's Web site. (see footnote 3) On March 13, 2004, Health Canada pre-published, in Part I of the Canada Gazette, proposed amendments to the Hazardous Products Act and the Lighters Regulations addressing the inclusion of utility lighters in the definitions of the Regulations and the proposed amendment addressing the issue identified by the Standing Joint Committee for the Scrutiny of Regulations. During the March 13, 2004 pre-publication comment period, responses were received that suggested the test protocol 16 CFR 1212.4, introduced by the CPSC in the United States, be included in the proposed amendments. Responses were also received that requested a 90-day period before the amendments come into force so that manufacturers can adjust their inventories and supply. The Lighter Association Inc., whose members provide over an estimated 50% of the lighters, utility lighters and luxury lighters sold in Canada has shown its support for this initiative. The utility lighters sold by the members of the Association are already in compliance with the proposed amendment. Compliance and enforcement Enforcement of the Lighters Regulations will follow standardized departmental product safety inspection and enforcement procedures. This will include the sampling and testing of lighter products, as well as the follow-up of both consumer and trade complaints. Action taken on non-complying products will range from negotiation with traders for the voluntary withdrawal of these products from the market to prosecution under the Hazardous Products Act.
Douglas R. S. Jacques Notice is hereby given that the Governor in Council proposes, pursuant to section 6 (see footnote a) of the Hazardous Products Act, to make the annexed Order Amending Part II of Schedule I to the Hazardous Products Act (Lighters). Interested persons may make representations concerning the proposed Order within 75 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice and be addressed to Douglas Jacques, Project Officer, Consumer Product Safety Bureau, Product Safety Programme, Healthy Environments and Consumer Safety Branch, Department of Health, MacDonald Building, Postal Locator: 3504D, 123 Slater Street, Ottawa, Ontario K1A 0K9 (fax: 613-946-9477; e-mail: douglas_jacques@hc-sc.gc.ca). Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act. Ottawa, July 30, 2007
MARY O'NEILL ORDER AMENDING PART II OF SCHEDULE I TO THE HAZARDOUS PRODUCTS ACT (LIGHTERS) AMENDMENT 1. Item 34 of Part II of Schedule I to the Hazardous Products Act (see footnote 4) is replaced by the following: 34. Lighters as defined in the Lighters Regulations. COMING INTO FORCE 2. This Order comes into force 90 days after the day on which it is registered. [32-1-o] www.hc-sc.gc.ca/cps-spc/advisories-avis/aw-am/ltr-1999_e.html HCUPnet: http://hcupnet.ahrq.gov/ www.hc-sc.gc.ca/cps-spc/advisories-avis/aw-am/ltr-1999_e.html and www.hc-sc.gc.ca/cps-spc/advisories-avis/aw-am/ltr-2000_e.html S.C. 1996, c. 8, s. 26 R.S., c. H-3 |
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