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JANUARY 2017

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59

GROW

What Are The QCA

Pillars Of Compliance?

The QCA Compliance

Accreditation Program is

comprised of Five Pillars

of Compliance

©

that

include Product Safety (and

Regulatory Compliance),

Quality, Social Accountability,

Supply Chain Security and

Environmental Stewardship.

Like many compliance

accreditation programs, QCA

employs a proprietary gap

analysis and corrective actions

that are validated by third-party

audit providers. No applicant is

accredited and no member is re-

accredited without completing

the gap analysis, the required

audits and two mock recalls of

products randomly selected from

their line.

The standards against which

QCA audits are performed are:

• ISO-9000 - Product Safety,

Quality and Elements of

Environmental Stewardship

• UN Global Compact Principles

- Social Accountability and

Balance of Environmental

Stewardship (a questionnaire

developed in-house and

benchmarked by Elevate, a

third-party audit provider for

social accountability)

• CTPAT - Supply Chain Security

For more details, download

the QCA Knowledge Series for

free at

http://www.qcalliance.

org/knowledge-series

Why Is QCA

A 501(c)(6) Entity?

QCA is categorized by the

IRS as a 501(c)(6) organization.

Our product is education and

information. QCA is subject to

the private inurement doctrine,

which means no benefit may

accrue to any individual member,

nor may unequal standards of

membership be applied. (QCA is

legally obligated to use the same

measuring stick regardless of

company size, name or location.)

Lastly, funding for QCA is based

on dues and fees for service.

Note: QCA does not certify

product or set standards.

An example of a similar board

structure would be PhRMA.

The PhRMA Code pertains to

the design, development and

introduction of new drugs to the

marketplace and the obligation

to educate stakeholders on

the role new medicines play in

patient care. Consistent with this,

a Code revision in 2008 limited

promotional items to only those

with educational value. QCA’s

board, like PhRMA’s, represents

the industry’s leading companies

which are devoted to advancing

the industry and protecting end

users of products.

Do I Need A

Compliance Program?

As a member of the

promotional products industry,

your company is not legally

obligated to adhere to industry

best practice standards. However,

should your product cause

harm to the end user (or violate

U.S. import law), you will want

to have considered the stance

federal regulators have taken:

When you are designing and

manufacturing (or importing)

your product, you should

contact a voluntary standards

organization that may have

standards in place for your

product or for products similar

to yours. Although this is not

a mandatory requirement,

you would be well advised

to consider the guidance

in these other standards

because it is based on the

considered judgment of other

manufacturers, designers and

safety experts.

Consumer Product Safety

Commission (CPSC) “Voluntary

Standards” are available

at

https://www.cpsc.gov/

Regulations-Laws--Standards/

Voluntary-Standards/

Voluntary-Standards

The CPSC has consistently

looked to industry best practice

(voluntary) standards when

evaluating culpability for harm

to the consumer, from product

to processes (see Best Buy

Settlement 2016 at https://www.

cpsc.gov/Best-Buy-Agrees-to-

Pay-38-million-civil-penalty.

The settlement included a tested

recall program similar to the

mock recalls performed by QCA

firms as noted above.)

U.S. Customs and Border

Protection is, likewise, poised to

take a more stringent position

(increased fines, embargo and

confiscation) on freight found to

violate import law whether the

product is banned, found to have

been manufactured with forced

and/or child labor or otherwise

violative actions. The State of

California and many promotional

products customers in other

states require certification that the

product was not manufactured

using forced labor.

Takeaway

Compliance programs focus

on detecting, deterring and

Whether

product orprocess,

industry standards

are simply

best practices.