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The Annual Magazine of the Canadian Consumer Specialty Products Association (CCSPA)

INSIDE: Extended Producer Responsibility Programs Impact YOU

Regulated Up to Our Ears! Chemical Regulation by Listing: REACH and the Mother of All Lists! Products Under Fire

FORMULATOR

FORMULATOR

FORMULATOR

March2007March2007

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THE CCSPA FORMULATOR • 2007 3

March2007

Canadian Publication Agreement #40787580

Publisher Robert Thompson

Editor Ali Mintenko

Editorial Coordinator Nancy Hitchins

Canadian Sales Manager Steve Beauchamp

Sales Executives Hayden Dookheran, Carol Simpson

Publishing Manager Don Hutchinson

Graphic Design Specialists James T. Mitchell, Krista Zimmermann,

Zig Thiessen, Jorge Gérardin, Annette Carlucci

Project Co-ordinator Sharon Komoski

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While the information in this publication has been compiled from sources deemed to be

reliable, the opinions expressed by the authors are not necessarily those of the CCSPA.

FORMULATORFORMULATORThe Annual Magazine of the Canadian Consumer Specialty Products Association

The FORMULATORCanadian Consumer Specialty Products Association (CCSPA) 130 Albert Street, Suite 800 Ottawa, ON K1P 5G4 Tel: (613) 232-6616 Fax: (613) 233-6350 Email: [email protected] Websites: www.ccspa.org www.healthycleaning101.org

BOARD OF DIRECTORS

ChairDrew FranklinS. C. Johnson and Son, Limited

1st Vice ChairSabir SamiReckitt Benckiser (Canada) Inc.

2nd Vice ChairPaul HughesUnilever Canada, HPC

TreasurerRene BrabenderStepan Canada Inc.

SecretaryBill FitzPatrick Ecolab Co.

DirectorAndré AzarLavo Inc.

DirectorJim HunkingQuixtar Canada Corporation DirectorBill MetzgerSpectrum Brands, Inc.

DirectorBrian PrendergastRecochem Inc.

DirectorDouglas ThiemannHome Hardware Stores Limited

Soap & Detergent DirectorErnie RosenbergThe Soap and Detergent Association

CSPA DirectorChris CathcartConsumer Specialty Products Association

Past ChairDennis DarbyProcter & Gamble Inc.

Shannon CoombsPresident, CCSPA

CONTENTSMessage from the President ................................................................4Message from the Minister of Health....................................................5CCSPA Board of Directors 2007 ...........................................................6CCSPA Staff 2007 ................................................................................7FEATURESExtended Producer Responsiblity Programs Impact YOU .......................9By Stephen Rathlou

Regulated Up to Our Ears! ................................................................12By Marina Kovrig

Chemical Regulation by Listing: REACH and the Mother of All Lists! .15By Ernie Rosenberg

Products Under Fire .........................................................................17By Jill Fairbrother

Cover photo by Angelo Macchia, Technical Manager, Consumer Products, Recochem Inc., Brampton, Ontario.

4 THE CCSPA FORMULATOR • 2007

Despite this workload, CCSPA and our member companies continue to manage our myriad of issues. The secret to our success is the dedicated staff at CCSPA and the exceptional member volunteers, who are instrumental in helping us deliver positive wins.

This year’s magazine profiles a range of issues that illustrate the hard work and the level of passion our writers have for their issues and this industry. Stephen Rathlou provides an excellent overview of the post consumer waste issue in various jurisdictions across Canada. Our industry is working diligently with other associations and affected stewards to deliver an effective, cost efficient program – a definite challenge given the breath of the MHSW regulation and the Ontario Government’s political need to show environ-mental initiatives leading up to the October 2007 provincial election.

Marina Kovrig, a long-time and dedicated member of CCSPA, provides a spirited view on how a lack of science and common sense has impacted the proposed regulation for VOCs. Marina and Stephen both touch upon a key point in their articles - sound science is the basis for good regula-tion and policy but good science is often ignored for other purposes. While this is a sad commentary on current politics, our industry must continue to demand nothing less than science-based, credible regulation. To get good policy, we can never compromise on this element of our arguments and rationales.

While the categorization of the DSL (Domestic Substances List) has taken 6 years of our lives, it came to a head in December 2006 with the government’s action plan and industry challenge. While Canada now leads the world

MESSAGE FROM THE PRESIDENT

in how existing substances are managed, other jurisdictions are creating other forums and barriers for substances and products. Ernie Rosenberg focuses on the challenges of REACH ( Regulation, Evaluation and Authorization of Chemicals), which passed in the EU (European Union) Parliament in December 2006, and how we have to live with lists; but we need to change how we focus our ener-gies in order to get good regulation and the appropriate use of “lists” around the world.

Jill Fairbrother tells us a story of survival - how Scotts and other member companies overcame the challenges for selling their prod-ucts in yet another hostile regula-tory environment - under the restrictions in Québec. Following Jill’s presentation at our Annual Conference in September 2006, many members commented on how good it felt to hear a posi-tive story emerge from such a negative situation.

We are also pleased to include a letter of greeting from Minister Clement, who talks about our i n d u s t r y ’s g re a t w o r k i n i t s collaborative partnership with his Department – recognition of our positive and proactive input and relationships in Ottawa.

I don’t think that 2007 is going to be any easier. We will have more issues, more communications challenges, more regulation, and more legislation; but your CCSPA team is here to work with you and ensure that we defend our industry! On behalf of myself and the staff, I would like to say that it is an honour to work for such a great industry and such great people.

Shannon Coombs President CCSPA

The work ethic, the pace, and the intriguing approach to consultation by the new

Tory minority government have provided extensive challenges for CCSPA issues in 2006. The review of the Canadian Environmental Protection Act (CEPA) by two parliamentary committees has been an exhausting experience. CCSPA appeared 4 times before the Committee and provided 5 submissions regarding this important piece of legislation. The Tory government also tabled Canada’s Clean Air Act , which wil l impact the t iming of the regulations for Volatile Organic Compounds ( VOCs) . We also had the Pest Control Products Act (PCPA) come into force with new regulations. Then the year ended with the announcement of the federal government’s Chemicals Management Plan – impacting all substances – including those regulated under the PCPA and the Food and Drugs Act . And just to keep us on our toes, the Ontario Government designated Municipal Hazardous and Special Waste (MHSW) as an additional waste stream.


I would like to thank the Canadian Consumer Special-ty Products Association for your assistance in devel-oping quality health programs in Canada.

Your contributions through the two advisory councils for the Pest Management Regulatory Agency have led to improvements in Canada’s pesticide regulation system.

Your interest in Health Canada’s Blueprint for Renewal initiative – which aims to modernize Canada’s regula-tory framework for health products and food – is also greatly valued. The CCSPA’s participation in the Blue-print consultations will help improve Health Canada’s efficiency and responsiveness as a regulator of health products and food.

As well, your work with food substance notifications has been invaluable. I am pleased that you are participat-ing in the multi-stakeholder environmental assessment working group, which will allow you to further contrib-ute to the development of environmental regulations for these substances.

Finally, by providing focussed and reasoned arguments, CCSPA contributed to our preparations for the parlia-mentary review of the Canadian Environmental Protec-tion Act, as well as to the development of the Chemicals Management Plan, which will result in a cleaner environ-ment and reduced risks to the health of Canadians.

With your help, we have strengthened our policies in these areas – to benefit Canadians’ health and the environment.

On behalf of Canada’s New Government, I thank you for your hard work and assistance over the past year. I look forward to working in collaboration with you in the years ahead.

Tony Clement Minister of Health / Ministre de la Santé Government of Canada / Gouvernement du Canada

Je tiens à remercier l’Association canadienne de produits de consommation spécialisés (ACPCS) qui nous a aidé à mettre au point des programmes sani-

taires de qualité au Canada.

Votre participation aux deux conseils consultatifs de l’Agence de réglementation de la lutte antiparasitaire a permis d’améliorer le système de réglementation des pesticides au Canada.

Nous apprécions grandement l’intérêt que vous portez au Plan de renouveau de Santé Canada qui vise à mod-erniser le cadre de réglementation des produits de santé et des aliments au pays. La participation de l’ACPCS aux consultations sur ce plan aidera Santé Canada à être plus efficace et réceptif comme organisme de réglemen-tation des produits de santé et des aliments.

Votre contribution en ce qui concerne les avis relatifs aux substances alimentaires revêt une valeur inesti-mable. Je me réjouis de votre participation au groupe de travail sur l’évaluation environnementale réunissant divers intervenants, qui vous permettra d’étoffer votre contribution à la mise au point de la réglementation environnementale de ces substances.

Enfin, vos arguments ponctuels et rationnels nous ont aidés à nous préparer en vue de l’examen par-lementaire de la Loi canadienne sur la protection de l’environnement et de la mise au point du plan de ges-tion des produits chimiques, qui permettra d’assainir l’environnement et de réduire les risques pour la santé des Canadiens.

Grâce à votre apport, nous avons pu améliorer nos politiques dans ces secteurs, et ce, dans le but ultime d’améliorer la santé des Canadiens et d’assainir l’environnement.

Au nom du nouveau gouvernement du Canada, je vous remercie de vos efforts soutenus et de votre aide au cours de la dernière année. Je me réjouis à l’idée de collaborer avec vous au cours des prochaines années.

Tony Clement Minister of Health / Ministre de la Santé Government of Canada / Gouvernement du Canada

MESSAGE FROM THE MINISTER OF HEALTH

Phone: (905) 752-1212Fax: (905) 752-1211

25 Centurian Dr., Suite 102Markham, Ontario L3R 5N8


Past Chair

Dennis Darby External Relations

Officer – Canada Procter & Gamble Inc.

Soap & Detergent Director

Ernie Rosenberg President and CEO

The Soap & Detergent Association (U.S.)

Director

Bill MetzgerDivision VP

Regulatory andGovernment Affairs

Spectrum Brands, Inc.

Director

Jim Hunking

General Manager Quixtar Canada

Corporation

Treasurer

Rene BrabenderGeneral Manager

Stepan Canada Inc.

2nd Vice Chair

Paul HughesLead Technical ManagerUnilever Canada, HPC

1st Vice Chair

Sabir SamiGeneral ManagerReckitt Benckiser

(Canada) Inc.

Chair

Drew Franklin President and

General ManagerS.C. Johnson and

Son, Limited

Secretary

Bill FitzPatrickRegional Manager

CanadaPest Elimination Division

Ecolab Co.

Director

André AzarDeputy to the President

Lavo Inc.

Director

Brian PrendergastSenior VP

Consumer DivisionRecochem Inc.

CCSPA BOARD OF DIRECTORS 2007

Shannon CoombsPresident

CCSPA

Director

Douglas Thiemann

General Manager Home Hardware

Stores Limited


CSPADirector

Chris CathcartPresident

Consumer Specialty Products Association


SHANNON COOMBS, PRESIDENT Shannon has a degree in Political Science from Carleton University as well as extensive experience in government and political arenas. Prior to joining the association, she worked for the Canadian Federation of Agriculture and Agriculture Canada. Her responsibilities at CCSPA include overall management and implementation of effective government relations and regulatory strategies on critical issues for members, coalition building and member recruitment. She is also the spokesperson for the industry.

BRUCE REBEL, DIRECTOR - REGULATORY AFFAIRSBruce joined CCSPA after having worked extensively in the pharmaceutical industry for Allergan Optical, Warner-Lambert, and Canadian Blood Services. His career has seen him work in analytical laboratories, quality assurance, and regulatory affairs. He has extensive knowledge of Good Manufacturing Practices (GMP) and has been responsible for the implementation of quality assurance systems. Bruce has a B.Sc. in Chemistry from Concordia University in Montreal. His responsibilities at CCSPA include the Categorization and Screening of the Domestic Substances List, substance defence, CEPA Review, GHS, waste management issues, and the provision of technical assistance to CCSPA committees.

CHERA JELLEY, DIRECTOR - POLICYOriginally from Prince Edward Island, Chera moved to Ottawa in 1990 with her family. Chera has an Honours BA in Law – Concentration in Law, Policy and Government with a minor in Political Science from Carleton University. Prior to joining the association, she worked on Parliament Hill for three different Members of Parliament, including the Leader of the Opposition. Her responsibilities at CCSPA include negotiation, stakeholder representation, and regulatory and government relations support for all pesticide issues and antimicrobial issues, as well as assisting the President with increasing CCSPA’s profile on Parliament Hill.

CCSPA STAFF 2007


NANCY HITCHINS, DIRECTOR - ADMINISTRATION & MEMBER SERVICESAs Director, Administration & Member Services, Nancy is responsible for all aspects of office management and administration and the co-ordination of all CCSPA events and member communications. She joined the association in 1995 as Executive Assistant to the President. Originally from Newfoundland, she worked in the Faculties of Education and Medicine at Memorial University and as Executive Assistant to the former premier Frank D. Moores. She has a Diploma in Secretarial Science and in 1987, transferred to Ottawa to work for GCI (Government Consultants International Inc.) as Executive Assistant to the Chairman.

They’re not just products.

They’re family.

As a family company, we work hard to

create innovative, quality products for other

families. We also strive to be responsible corporate

citizens, helping protect the planet’s resources, giving back

to local communities and being a great place to work. Maybe

that’s why families have trusted our products for over fi ve generations.

©2006 S.C. Johnson & Son, Inc. All rights reserved.


municipal lists than by demon-strable issues of environmen-tal or public safety. The program requirements are driven more by the need to address demands from municipalities for additional funding without using tax dollars. The timing is driven more by the fixed date of the next provincial election and the need to appear to be taking a tough stance on the environment and waste issues.

This presents a challenge to trade associations when we step out of the black and white world of sci-ence and into the gray mists of perceptions and paradigms. When science holds sway, members can be represented with little direct input, once positions and basic facts have been established. But when sci-ence is discounted, more direct

In the ideal world, decisions on scientific issues would be made using science. In the ide-

al world, logic, fact, and rational judgement would rule. While this seems like a statement of the obvi-ous, the reality is that the world is far from ideal.

Chemophobia and political expedi-ency continue to override science, logic and fact. This is a recurring theme in the imposition of extend-ed producer responsibility (EPR) regulations. In December 2006, the Ontario Government passed a regulation that will require com-panies (stewards) to pay “eco-fees” on a broad range of products des-ignated as Municipal Hazardous and Special Waste (MHSW). The scope of this regulation is driven more by a need to match existing

Extended Producer Responsibility Programs

Impact YOU

By Stephen RathlouSenior Manager Regulatory AffairsS.C. Johnson and Son, LimitedChair, CCSPA Ad Hoc Post-consumer Waste Committee


input from affected companies is critical to the success of our con-sultations with government. These stewardship initiatives affect virtually everyone.

Across Canada now, there are sever-al associations lobbying on behalf of those members who step up to express their concerns, issues, and proposed solutions. Government takes these representations as

being the collective statements of all of the members; and in that way, our positions have added credibil-ity and strength. However, the con-sensus implied in these represen-tations is only as valid as the level of input received from members. And we want to make sure that the decisions that will affect all of us in the foreseeable future are not negotiated with limited input.

EPR regulations have been estab-lished in Ontario, Québec, and Manitoba for packaging. British Columbia has had a regulation for Household Hazardous Waste (HHW) for a few years where indus-try pays 100 per cent of program costs. In addition to the Ontario MHSW regulation, a household hazardous waste regulation is im-minent in Manitoba, with pro-grams expected to be established before the summer. EPR programs for paint – the largest fraction of household special waste programs – have been established in British Columbia, Saskatchewan, Québec, and Nova Scotia. Other provinces are in the consultation phase and

the EPR regulations that capture our products in Ontario today will expand across most of Canada in the very near future. Unfortunately, the “household hazardous waste” label – applied to our products and given added credence through these programs – fuels the chemo-

Across Canada now, there are several

associations lobbying on

behalf of those members who

step up to express their

concerns, issues, and proposed

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ing hard to minimize the impact of these new regulations, but with-out your input, decisions that affect your future may be based on input from a vocal minority. Here is one issue that needs your attention and advice so that we can properly represent you and the broad membership to work to-wards a better future. You can find past bulletins and the latest infor-

mation on post-consumer waste management in the Issue Update section of the CCSPA Members Only website at http://www.cc-spa.org/members/issue/it-hhw.html. If you can participate on the CCSPA Ad Hoc Post-consumer Waste Committee, contact Shan-non Coombs at the CCSPA office at 613-232-6616, ext. 18, or [email protected].

phobia that not only impacts our business, but incites these pro-grams. This is a vicious cycle that we are fighting to arrest.

In addition to the efforts of the CCSPA, individual companies have been adding to the tally of letters sent to government to raise concerns or simply to support association positions. The main objectives are to:

• Limit the scope of the regula-tions - in British Columbia, we were successful in negotiating a very narrow definition of HHW. In Manitoba, we are hopeful that the CSA Standard for HHW will be adopted.

• Avoid having industry shoul-der the entire burden of these programs - in Ontario, we were instrumental in achieving a system for packaging steward-ship where industry shares costs equally with municipalities. A similar program is being estab-lished in Québec.

• Avoid having our products stig-matized by these programs - in Ontario, we were successful in persuading the government to recognize and distinguish between household hazard-o u s w a s t e a n d h o u s e h o l d special waste.

Now that the Ontario MHSW regu-lation is passed and Stewardship Ontario designated as the indus-try funding organization, we are involved in fundamental dis-cussions that will determine the design of the stewardship program and the governance of this orga-nization. In other words, we are influencing how much you will pay and how much you have to say about it. That is significant!

There is no question that all com-panies are running hard and run-n i n g l e a n , a n d re s o u rc e s f o r issues like EPR are hard to find. But if these issues are not addressed, they will, without a doubt, impact your business. The CCSPA is work-

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By Marina Kovrig Vice President, Development & External AffairsRecochem Inc.

Some months ago, a tidy little magazine entitled Green Liv-ing fell through my mail slot.

At first, it looked like a resource for saving energy and being more environmentally sensitive. After a few pages of useful household tips, I came to the following statement in an article entitled “Living in a Toxic Soup” – “Because not only is there no legislation to oversee the manufacturing and use of chemi-cals in this country, the Canadian Environmental Protection Act is d e s c r i b e d by E n v i r o n m e n t a l Defence as weak and ineffective.”

What outright nonsense! If there is no legislation governing manu-facturing and use of chemicals in Canada, then what are the Con-sumer Chemicals and Contain-ers Regulations, the Domestic Substance List, the Pest Control Products Act and a variety of oth-er rules and regulations? Green Living magazine, which is pub-lished by Environmental Defence and distributed to homeowners, is communicating an inaccurate message when it says “no legisla-tion” exists.

It is frustrating that in order for me and my industry colleagues to make, label and sell a product, we must follow strict test procedures, strict labelling rules and take care that hazards are carefully spelled out and no exaggerated claims are made. Yet any environmental group can make statements like the one above with no consequences.

That, and the fact that the media prints this, is the root of our prob-lem. Politicians are pressured into “doing something” to show the electing public that they are pro-tecting citizens, so the pressure is on to regulate. This zeal to regulate is purely political and optical and often not based on any sound sci-ence or real threat to health and the environment. Unfortunately, the growing federal, provincial and even municipal regulations are having an economic impact on industry and consumers as the costs get passed on.

Here are a few examples of regula-tions we don’t need - regulations that will cost a lot to implement but bring little benefit to anyone:

1. Proposed Environment Canada Regulations to reduce VOCs in Consumer Products

Environment Canada has decid-ed to regulate the VOC (Volatile Organic Compound) emitted from consumer products (which represents a small percentage o f V O C e m i t t e d ) a n d t h e n decided to model its regulation on California, which we all know has a rather different climate from ours and which has unique smog-forming conditions. A few of us at the consultation session did a little number crunching and came to the conclusion that at huge cost to industry to reformulate, re-do efficacy testing, re-label products,

and re-market new versions, the proposed regulation would actu-ally only bring about a reduction of VOCs of 1.45 per cent! Does this make economic sense? And if you include emissions from oil and gas refining and natural VOC emis-sions, the reduction would actually be well below 1 per cent, at great expense to industry and consum-ers. That’s politics at work!

2 . Wa s t e M a n a g e m e n t a n d “Extended Producer Responsi-bility” and Proliferating Provincial Stewardship Programs

Before we talk about this expensive provincial patchwork quilt of regu-lations taking up huge amounts of time and dollars, let us go back and point out something that often seems to be missed. The Canadian chemical industr y, both at the basic producer level and downstream as formulators, manufacturers and packagers, has an excellent track record of acting responsibly, proactively and mak-ing public health and environ-mental concerns a core of its op-erating ethics. Whether a company abides by the CCPA Responsible Care Codes of Practice or Product Care, we work very hard to mini-mize any impact on health and the environment while providing C a n a d i a n s w i t h p r o d u c t s t o improve the quality of their life.

Those of us in the consumer prod-ucts sector unleashed a ton of

The number and complexity of current and proposed regulations have a greater impact on

our industry and economy than many realize.

Regulated Up to Our Ears!


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ingenuity to meet the Packaging Protocol and reduced packaging voluntarily so much that we were so well ahead of the targets that most media lost interest in us. Good news doesn’t sell papers, I guess!

Having conveniently forgotten our huge efforts in the Packaging Protocol, provinces and municipalities facing an ever-increasing waste management burden are looking at where to shift the expense. They conve-niently forget that the producer of the product is not really the generator of the “waste.” A growing popula-tion of smaller households is generating more waste, not the manufacturers of the products. But to make homeowners pay, to dispose of waste they generate, would look too much like a tax, so let’s sock it to indus-try producing these products and get them to shrink their profits by funding waste management. We could probably make this work if it were under a federal umbrella with all jurisdictions using the same criteria for what is collected and the same fee structure. But no, we have to do it the Canadian way so what is col-lected and funded in B.C. is very different from what is collected in Ontario and Québec. And now Manitoba is joining the group and has decided that materials such as automotive antifreeze – not included in any other jurisdiction – should have a Stewardship Plan.

Does anybody realize what the accounting depart-ment of a small company has to go through to cal-culate how much of the goods it sends from coast to coast end up in a given province, then convert that to weight of resin or box board and calculate the fee owing? Every company will have to hire a Waste Man-agement Analyst just to track these numbers. This increases the cost of doing business in Canada and reduces our global competitiveness. But, guess what? The ultimate cost is to the consumer, since manu-facturers have no choice but to pass costs down the line. Would it not be a lot easier to keep product costs low and charge consumers or end users for managing their waste? We don’t make waste. We make products! It is in the hands of the consumer to ensure that as little as possible ends up as waste.

VOC regulations and waste regulations are just two of the many regulations constraining and adding finan-cial burdens on our industry and making it difficult for companies to be competitive in a global market.

Which government agency will ask the editors of Green Living why they claim there is “no legislation to oversee the manufacturing and use of chemicals in this country?” Yet the day I make a claim of “Environ-mentally Friendly” on my product label, there will be all kinds of government agencies jumping on me to prove my claim.

We are playing in an unfair game - where politics rules over science and economic facts - and our industry and consumers will suffer. Sad but true.

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CHEMICAL REGULATION BY LISTING:REACH and the Mother of All Lists!


ment Plan and they will be going forward to review and poten-tially restrict chemicals list-ed as “CEPA toxic.” This article focuses on REACH.

In recent years, lists have become the single most powerful tool for “managing”- that is, restricting - chemical uses. Lists are issued by governments - local, state/pro-vincial, national, regional (e.g., Europe) or even globally, by treaty. More recently, retailers in North America and in Europe have begun to issue their own. A major retailer’s list becomes a virtual regulation.

Certifying organizations, such as Green Seal and others, are issu-ing lists (sometimes with a finan-cial interest) that declare certain products or ingredients “environ-mentally preferable.” Government purchasing agencies and retailers can then restrict chemicals and products that are not on the lists or give preference in purchasing to those that are.

Lists and restrictions go together and drive one another. Gov-ernment lists validate activist allegations against products and those allegations generate pres-sure on government for explicit restrictions. But often the objec-tive of listing is only secondary regulation. The primary objec-

tive may be to drive what we call “deselection” - decisions to stop using a chemical for one or more uses because of fear of liability or of public or activist pressure. That pressure, in turn, can drive legislation or regulation as well. The “deselectors” can be formula-tors anticipating these pressures or trying to use “green” claims for lines/products to build or pre-serve their markets.

Perhaps the most dangerous list will be issued in Europe under REACH. REACH presents costs and many other problems for formula-tors, but Authorization may have its greatest impact in restricting chemical uses because of the lists it will use. REACH contemplates the elimination of “Substances of Very High Concern” unless specific uses

Companies and their trade associations are accus-tomed to dealing with gov-

ernmental efforts to restrict chem-ical uses. In recent years, we have seen the growing influence and impact of lists of chemicals that do not explicitly restrict their use, but simply label them as targets for restrictions or as “toxic,” “haz-ardous,” or “of concern.” These chemicals may well be restricted in the future, but by then the regu-lation might be largely irrelevant. The simple listing and labeling of a chemical can be enough to make the manufacturers of for-mulated products stop using it or can prompt retailers to refuse to accept products containing the chemical into their stores.

The trend toward chemical reg-ulation by l ist ing culmi-nated in 2006 with chemical listing processes announced in Europe and Canada. In Europe, the REACH regulation (Regula-tion, Evaluation and Authoriza-tion of Chemicals) was made final on December 18, 2006, and will begin to go into effect in June 2007. In Canada, the government announced the completion of the first phase of the mandated Cat-egorization and Screening of the Domestic Substances List. This was a key plank in the govern-ment’s Chemicals Manage-


are Authorized. Other substances will not be eligible for Authoriza-tion except for short periods of time, and then only if they can be shown to be managed safely.

The showing that a substance is safe is likely to be a high hurdle.

In addition, applicants have to do an analysis of possible substitutes, which may be even more difficult. Beyond the technical difficulty and cost of this use-by-use process, every application for Authoriza-tion will likely be opposed, espe-

cially for consumer uses, by activ-ists, some European governments, and by competitors of the ingredi-ent or of the finished product, who use other ingredients. Although the applicant for Authorization may not consider a potential sub-stitute acceptable (because of performance, cost, etc.), regula-tors, activists and the producers or users of the rejected substitutes are likely to disagree.

Under REACH, there will be two lists, one of which is a list of “Candidates” for Authorization that have not yet been put on a schedule for Authorization. Per-haps 1,500 chemicals are expected to be listed on the Candidates list as “Substances of Very High Con-cern.” Many chemicals on this list will be commonly used or will be the commodity chemicals from which they are made.

There are other lists, such as the lists being issued in Canada, but they generally target the listed chemicals for management, not elimination. Authorization car-ries a presumption of elimination. Candidate chemicals will wait a long time - in most cases many years - to be “cleared” by Autho-rization, if ever. Until (and maybe even if) an Authorization is grant-ed for a chemical’s uses, the con-cern is that it will be blacklisted. The continued use of such chemi-cals in consumer products will be problematic to say the least.

Once a chemical is listed in one country or region, the impact can be global—especially pressures for deselection. We have to start taking listing, even beyond our borders, as seriously as we have proposals of explicit restrictions. Advocacy, against listing and after listing, presents new challenges for companies and their associa-tions, challenges we are not yet fully prepared to meet. One thing is clear: lists will be with us from now on and we have to do a better job of getting in front of listing, not just reacting to it.

Since 1976, primary in Household andCosmetic fragrances. Modern Gas Chromatography equipmentenables us to maintain constant quality fragrances. High inventory of raw materials strengthens ourstability and reliability.

Fleurarôme Limitée, Ontario 585 Industrial blvd, Tech. rep.: W. Schlichtig St-Eustache QC J7R 6C3 Tel.: 416-383-1640 Tel.: 450-491-3000 Fax: 416-383-1695 Fax: 450-491-2079 [email protected] Toll free: 1-800-361-4093 Rep.: B. Fafalios [email protected] Tel.: 416-574-0660 www.fleurarome.com Fax: 905-773-0332

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The challenge for a company, indeed an industry, confronting such ac-tion is both significant and ongoing. Maintaining customer confidence in the face of negative publicity and restrictive regulations involves dedi-cation to transparent and timely communications. In the case of Scotts Canada, the company made key decisions at the outset designed to protect the company’s corporate reputation, leadership position and long-term success in the consumer lawn and garden market. Key among these decisions was to provide cus-tomers with the benefit of Scotts’ global network of research and de-velopment experts. Scotts shared its experience in other jurisdictions, especially in Europe, where similar regulations were implemented in the 1980’s. And finally, Scotts expanded its product portfolio to include soils and grass seed in order to provide consumers with the tools they need to help maintain a healthy lawn.

Members of Scotts’ sales and mar-keting teams traveled to Europe to see first hand how “out of reach of the consumer” was implemented in a variety of retail formats. Next, they met with customers to apprise them of the European experience, its im-plementation challenges, and the impact on sales as consumers ad-justed to new regulations. The Scotts team was able to share more than 15 years of key learnings with Canadian customers who were grappling with pending Québec regulations.

Anticipating that consumers would search for a weed and feed solution for their lawns during the first year under the new laws, Scotts worked with customers to move regular Turf Builder fertilizer and Killex weed control spot spray solution next to each other on the store floor. Typi-

cally, these items are merchandised in different areas of the store. When brought together with educational signage promoting regular fertilizer with spot spraying of weeds when necessary, consumers successfully migrated to the new solution.

In year two, when restricted access products were moved into locked cages and sales associates required higher levels of training and certifi-cation, two retailers, Wal-Mart and Costco, exited the category. In year three, as most federally regulated synthetic products were taken off the market in Québec, CBC News reported that some Québec con-sumers crossed the border to buy their lawn and garden care prod-ucts. Others adapted and moved to purchase the non-restricted alternative pest control products formulated using active ingredients from Québec’s accepted list.

Over the past five years, Scotts Canada has grown its business by embracing change and leading the market on product innovation and consumer communications. The Scotts EcoSense line of alterna-tive pest control products provides pest solutions using active ingredi-ents accepted by most municipali-ties and the province of Québec. The naturals market is expected to more than double in Canada by 2009. Scotts’ experience indicates that when you take a longer-term view and provide customers and consumers with good information, your business can evolve success-fully in a changing regulatory envi-ronment. As public opinion influ-ences public policy, the best advice is to keep your finger on the pulse and get ahead of the game!

In 1990, the tiny hamlet of Hud-son, Québec, passed Canada’s first anti-pesticide bylaw. A lo-

cal lawn care operator, Spraytech, challenged the new regulation on the grounds that municipalities, they believed, did not have the right to ban the use of products that are registered by Health Cana-da’s Pest Management Regulatory Agency (PMRA) and further regu-lated at the provincial level. Some ten years later, the Supreme Court of Canada ruled that municipali-ties do have the right to pass regu-lations that go above and beyond, as long as they do not contradict federal and provincial regulations.

Hudson, Québec, was at the fore of an issue led by such organizations as the Canadian Environmental Law Association, the Canadian Association of Physicians for the Environment, the Sierra Club and the World Wildlife Federation. Over time, many municipalities in Québec adopted local bylaws; and in August of 2002, André Boisclair, then Environment Minister for the dying Parti Québécois Government in Québec, passed the most restric-tive regulations for pest control products in any jurisdiction in the world. Despite an acknowledge-ment that there was no scientific basis on which to do so, just days before the Government fell, a three-year phase in of new regulations was passed.

It included a complete ban on combination fertilizer and herbi-cide products in year one, the po-sitioning of certain synthetic prod-ucts “out of reach of the consumer” in year two, and the removal from the marketplace entirely of a num-ber of federally registered synthetic pest control products in year three.

By Jill FairbrotherDirector of Stakeholder Relations Scotts Canada Ltd.

Products Under Fire


Index to Advertisers

Chemicals/Specialty ChemicalsCognis Canada Corporation .................................18Mississauga, ON

DuPont ..........................................13 Mississauga, ON

ISP (Canada) Inc. .........................18 Mississauga, ON

Recochem, Inc. .............................10Brampton, ON

Consumer Product ManufacturingProcter & Gamble Inc. ............................ Inside Front CoverNorth York, ON

Dispensing Systems Seaquist Canada Limited ..............5Markham, ON

Fragrance CompoundsCompagnie Parento Ltd. .............11Toronto, ON

Fragrance ManufacturersFleurarôme Ltée ...........................16St. Eustache, QC

Hydrocarbon Aerosol Propellants Diversfied CPC International ................................18Channahon, IL

ISP (Canada) Inc.4055 Sladeview Cr. Unit 7Mississauga, Ontario L5L 5Y1

Tel. 905-607-2392 Fax 905-607-9086

Increasing Product Performance™

InternationalSpecialty Products

1-800-465-5094

i n n o v a t i o nCognis North America is part of a global chemical business

where meeting the needs of our customers is our foremost

purpose. We are committed to satisfying and adding value

to our customers through superior, I N N O V A T I V E

chemical products and services.

Laboratory Test Kits & ServicesInVitro International ...........13 & 14Irvine, CA

Packaged GoodsSC Johnson ......................................8Brantford, ON

Packaging SystemsPremier Tech Systems...................18Riviere-Du-Loup, QC

Regulatory & Technical ConsultingTechnology Sciences Group Inc. .....................................11Washington, DC

SurfactantsAjinomoto USA Inc. ...........................Outside Back CoverNew York, NY

McIntyre Group ..............................Inside Back CoverUniversity Park, IL

Stepan ............................................16Mississauga, ON

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