Honda Q&A - Consumer Product Safety Improvement Act (CPSIA) This Q & A has been developed to answer what we believe will be frequently asked questions in regard to the lead content provisions of the CPSIA. THE LAW Q - What is the law effective February 10th? A - Children's Products with any accessible part that contains in excess of 600ppm of lead by weight become a banned hazardous substance. This law affects the Honda XR/CRF50F, XR/CRF70F, XR/CRF80F and TRX90 (all versions). Q - What is a "Children's Product?" A - A Children's Product is defined as any product designed and intended primarily for a child 12 years of age and younger. To determine if something is a Children’s Product, the CPSC will look at: The manufacturer’s statement about the intended use of product, so long as the statement is reasonable Representations in packaging, display and promotional material, and advertising that indicate appropriate use by children 12 and under Actual consumer usage – whether or not consumers recognize the product is intended for use by 12 and under. Q – Why are XR/CRF50F, XR/CRF70F, XR/CRF80F and TRX90 considered (by Honda) to be Children’s Products? A – Honda has determined these models fit the criteria of children’s products under the CPSIA definition. WHAT IT MEANS TO THE HONDA DISTRIBUTION CHANNEL UNITS Q – What should I do with my inventory until this matter is resolved? A – The CPSIA makes it illegal to display for sale or sell any children’s products with lead content that exceed the limit. Advertisements, brochures, web material, and the other print media specifically pertaining to these products also become illegal to display or distribute. All Honda entities in the distribution chain (factory, distributor, and dealer) will be in the same position of holding inventory until a satisfactory resolution is reached. Q – What about used inventory? A – Used inventory of these models also become illegal to sell (or display) if any component part exceeds the applicable lead limit.
Bulletin #09-0081
PARTS Q – Why are replacement parts affected? A – Replacement parts, though not installed on a unit by a child, become part of the product intended for a child and, therefore, also become illegal if they exceed the applicable lead limit. Q – What parts on the affected models have total lead content above the limit of 600ppm? A – Certain alloys, such as those used in the manufacture of the engine cases, cylinder head, and wheel hubs may have lead in excess of 600ppm. Please see Parts iN Landing Page, or Goto: iN > Parts > Parts Marketing information > New Products > CPSIA Affected Parts. SERVICE, WARRANTY WORK, AND HONDACARE Q – Can a dealer still service affected units? A – Since any affected replacement part cannot be legally distributed, any repair procedure involving affected parts cannot be completed. Service work may be performed on an affected unit AS LONG AS none of the affected parts are replaced. This pertains to customer pay work, warranty work, and HondaCare work. Q – Are affected units or parts returnable? A – The affected models were manufactured to comply with all applicable laws effective on the date they were produced. The retroactive effect of the lead content requirements of the CPSIA has caused thousands of products, including the affected youth motorcycles and ATVs (which were manufactured in good faith to be compliant with the then applicable law) to instantly become illegal. Investments made at all levels of the supply and distribution chain are stranded until exemptions are obtained or the CPSIA is amended. American Honda is extending limited financial support, in the form of flooring, to help your dealership weather this unfortunate turn of events. However, American Honda is unable to accept returns and asks for your patience and cooperation as we work together to resolve this matter. PENALTIES AND ENFORCEMENT Q – What are the penalties if a producer, distributor or retailer sells one of these models on or after February 10th? A – The current civil penalties for failing to comply with the law are up to $1,850 per violation or up to $1.825 million for a series of violations. Beginning August 14, 2009, these penalties will increase to up to $100,000 per violation and up to $15 million for a series of violations. At that time, criminal penalties, including imprisonment, can also be imposed for knowingly violating the law. Q – Who has the authority to enforce the lead provisions of the CPSIA? A – Mainly, the Consumer Product Safety Commission (CPSC); however, the CPSIA also authorizes state Attorneys General and other “state officials,” which would include District Attorneys in some states, to enforce the Act. Additionally, private citizens or interest groups (e.g., Consumer Federation of America) can seek injunctive relief (e.g., a court order barring sales or requiring repurchase of a product sold in violation of the CPSIA) to enforce the CPSIA’s provisions.
Bulletin #09-0081
LEAD CONTENT Q – Why do some of the alloys have lead content in excess of 600ppm? A – Lead is commonly found in aluminum, brass, and other alloys used to manufacture motor vehicles, and either is intentionally added for specific purposes or is inadvertently present as a result of recycling. Lead-free alloys are available (often times in limited quantities); however, these materials are not well suited for the types of applications and the manufacturing process used to make the parts on these vehicles. Q – Does the lead used in these products pose any health risk? A – No. As lead and other elements are trapped in the alloyed material, the only way for it to be released into the human body is by directly ingesting pieces of it through the mouth, assuming the alloy could be digested. Lead content standards applicable in Europe allow up to 2,000 ppm, and even plumbing fixtures in the United States are allowed to have lead content much higher than that now imposed by the CPSIA for Children’s Products. Q – How much lead is really in the alloys Honda uses? A – In compliance with pre-CPSIA standards (in Europe and elsewhere), Honda’s product specifications required that aluminum have less than 2,000 ppm, and Honda and its suppliers routinely checked the contents of the raw materials to ensure that the applicable standards were met. Honda’s general experience, however, is that most aluminum parts have much less lead than the standards allowed, ranging from 100 ppm to under 1,000 ppm, depending on the type of part and type of aluminum used. Q – What is Honda’s plan to comply with the lead limits? Will Honda use lead-free alloys in the future? A –Honda and the other manufacturers are working together to obtain an exemption for alloys that contain lead in excess of the CPSIA limit but less than the European standards. Since lead content in these materials can not be transferred through normal use, we believe vehicles are safe as designed and our efforts are focused on making changes to the law. Q – When does Honda expect to obtain the exemption? A – With so many industries affected and seeking similar exemptions, combined with the CPSC’s already limited resources, any action on their part may take several months. Additional efforts are being focused on requesting Congress to reform the CPSIA. Q – What if Honda is unable to obtain the exemption and Congress is unwilling to reform the CPSIA? A – Other options will need to be considered and we will inform you of any such direction. PRIVATE PARTY SALES Q - Can a private party sell an affected model? A - We do not believe that the law is applicable to private parties, but anyone concerned about the issue should check with their own attorney.
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INDUSTRY Q – Why isn’t Honda taking the same approach as some of the other manufacturers and labeling the affected units as not suitable for 12 and younger? A –Neither the CPSIA nor the CPSC’s guidance has provided any “safe harbor” for selling a Children’s Product by labeling (or, in the case of some ATVs, re-labeling) it as only suitable for persons aged 13 and above. If the CPSC or some other authority decides that a (re)labeled youth motorcycle or ATV is product designed and intended primarily for children age 12 and younger (i.e., a “Children’s Product”) despite the label stating otherwise, penalties could be imposed. Adding such a label does not take the product out of the realm of a “Children’s Product” as defined by and determined under the CPSIA. If a product was designed and intended primarily for children aged 12 and younger prior to the passage of the CPSIA (and advertised and sold as such, as many involved products were), the mere addition of a label will not instantly transform that product into something other than a “Children’s Product.” Under the CPSIA, these penalties could be imposed on anyone, including dealers and other retailers, who sells or offers for sale a youth motorcycle or ATV that contains lead in excess of the prescribed limits. Penalties likely would be higher if the person knew (or should have known) that the sale of the product violated the CPSIA (such as, if they knew that in the past the (re)labeled product typically was sold for use by children aged 12 and younger). Thus, absent positive guidance from the CPSC, (re)labeling youth motorcycles and ATVs could place both the dealer and the manufacturer/distributor at risk IMMEDIATE ACTION Q – How can I help? A – Honda is encouraging you to contact your Congressional delegation and Senators and request that they take the necessary action to exempt small motorcycles and ATV’s from the lead content provisions of the CPSIA. Please point out to your representatives that the alloys containing lead used on these products are never mouthed, swallowed, or otherwise handled in such a way that would expose a child to an unhealthy level of lead. Q: What if I have a question that is not answered in the bulletins or this Q&A? A- Contact your appropriate Honda representative in Sales, Parts, or Service. We will review the questions based on the changing situation, and plan to revise the Q&A as needed until an exemption is granted.
Bulletin #09-0081