Corded Window Coverings Regulations: SOR/2019-97

Canada Gazette, Part II, Volume 153, Number 9

Registration

SOR/2019-97 April 15, 2019

CANADA CONSUMER PRODUCT SAFETY ACT

P.C. 2019-322 April 12, 2019

Her Excellency the Governor General in Council, on the recommendation of the Minister of Health, pursuant to section 37 ^{footnote a} of the Canada Consumer Product Safety Act ^{footnote b}, makes the annexed Corded Window Coverings Regulations.

Corded Window Coverings Regulations

Interpretation

Definitions

1 The following definitions apply in these Regulations.

• cord means any of the following:
  • (a) a band, rope, strap, string, chain, wire or any other component that, when any tension is removed, is capable of folding in every direction; or
  • (b) any combination of components that are connected end to end that, when any tension is removed, is capable of folding in every direction. (corde)
• corded window covering means an indoor window covering that is equipped with at least one cord. (couvre-fenêtre à cordes)
• loop means a shape, the majority of which is formed by a reachable cord, that creates a completely bounded opening. (boucle)
• reachable with respect to a cord, refers to the part of the cord that any person can touch when the corded window covering has been installed, whether the window covering is fully opened, fully closed or in any position in between. (atteignable)

Specifications

Small parts

2 Every part of a corded window covering that is accessible to a child and is small enough to be totally enclosed in a small parts cylinder as illustrated in Schedule 1 must be affixed to the corded window covering so that the part does not become detached when it is subjected to a force of 90 N applied in any direction.

Lead content

3 Every external component of a corded window covering must not contain more than 90 mg/kg of lead when tested in accordance with the principles set out in the Organisation for Economic Co-operation and Development document entitled OECD Principles of Good Laboratory Practice, Number 1 of the OECD Series on Principles of Good Laboratory Practice and Compliance Monitoring, ENV/MC/CHEM(98)17, the English version of which is dated January 21, 1998 and the French version of which is dated March 6, 1998.

Unreachable cords

4 A cord that is not reachable must remain so, whether the corded window covering is fully opened, fully closed or in any position in between, throughout the useful life of the corded window covering.

Reachable cord with one free end — length

5 A reachable cord with one free end must not exceed 22 cm in length when it is pulled in any direction by the gradual application of force attaining 35 N.

Reachable cord between two consecutive contact points — length

6 A reachable cord with no free end must not exceed 22 cm in length between two consecutive contact points when it is pulled in any direction by the gradual application of force attaining 35 N.

Loop created by a reachable cord — perimeter

7 If a reachable cord is pulled in any direction by the gradual application of force attaining 35 N, the perimeter of any loop, whether it is existing, created or enlarged, must not exceed 44 cm.

Two reachable cords

8 If two reachable cords with one free end each can be connected to one another, end to end, after each has been pulled in any direction by the gradual application of force attaining 35 N, the following criteria must be met:

• (a) the length of the resulting cord must not exceed 22 cm; and
• (b) the perimeter of the loop that is created must not exceed 44 cm.

Information and Advertising

Reference to Canada Consumer Product Safety Act or Regulations

9 Information that appears on a corded window covering, that accompanies one or that is in any advertisement for one must not make any direct or indirect reference to the Canada Consumer Product Safety Act or these Regulations.

Presentation — general

10 The information required by these Regulations must

• (a) appear in both English and French;
• (b) be legible and prominently and clearly displayed and, in particular, the characters must be in a colour that contrasts sharply with the background;
• (c) remain legible and visible throughout the useful life of the corded window covering under normal conditions of transportation, storage, sale and use; and
• (d) in the case of information that is required on the corded window covering, be indelibly printed on the corded window covering itself or on a label that is permanently affixed to it.

Print

11 (1) The required information must be printed in a standard sans-serif type that

• (a) is not compressed, expanded or decorative; and
• (b) has a large x-height relative to the ascender or descender of the type, as illustrated in Schedule 2.

Height of type

(2) The height of the type is determined by measuring an upper case letter or a lower case letter that has an ascender or descender, such as “b” or “p”.

Signal words

12 (1) The signal words “Warning” and “Mise en garde” must be in boldfaced, upper case type not less than 5 mm in height.

Other information — height of type

(2) All other required information must be in type not less than 2.5 mm in height.

Required information — general

13 The following information must appear on every corded window covering, as well as on any packaging in which the corded window covering is displayed to the consumer:

• (a) its model name or model number;
• (b) its date of manufacture, consisting of the year and either the month or week, listed in that order;
• (c) in the case of a corded window covering that is manufactured in Canada, the name and principal place of business of the manufacturer or the person for whom the corded window covering was manufactured; and
• (d) in the case of a corded window covering that is imported for commercial purposes, the name and principal place of business of the manufacturer and the importer.

Instructions — assembly, installation and operation

14 The following instructions must accompany every corded window covering in text, drawings or photographs, or in any combination of them:

• (a) how to assemble the corded window covering and a quantitative list of its parts, if it is sold not fully assembled;
• (b) how to install it; and
• (c) how to operate it.

Warning

15 The following warning or its equivalent must appear on every corded window covering, the packaging of the corded window covering, any accompanying instructions and all of the advertisements for the corded window covering:

WARNING

• STRANGULATION HAZARD — Young children can be strangled by cords. Immediately remove this product if a cord longer than 22 cm or a loop exceeding 44 cm around becomes accessible.

MISE EN GARDE

• RISQUE D’ÉTRANGLEMENT — Les enfants en bas âge peuvent s’étrangler avec des cordes. Enlevez immédiatement ce produit si une corde mesurant plus de 22 cm devient accessible ou si le contour d’une boucle de plus de 44 cm devient accessible.

Repeal

16 The Corded Window Covering Products Regulations ^{footnote 1} are repealed.

Coming into Force

17 These Regulations come into force on the second anniversary of the day on which they are published in the Canada Gazette, Part II.

SCHEDULE 1

(Section 2)

Small Parts Cylinder

SCHEDULE 2

(Paragraph 11(1)(b))

Standard Sans-serif Type

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Background

From 1989 to November 2018, Health Canada is aware of 39 strangulation fatalities in Canada related to corded window coverings.

Strangulation incidents related to CWCs have also been reported internationally. From 1996 through 2012, the U.S. CPSC received, on average, 11 reports of strangulation deaths per year. More recent data in the United States suggests no significant change in this fatality rate. The Australian Competition and Consumer Commission (ACCC) notes that between one and two children die in Australian homes every year as a result of CWCs. In the United Kingdom, the Royal Society for the Prevention of Accidents reports that 18 deaths involving looped blind cords occurred between the beginning of 2010 and early 2015. Each of these fatality rates is roughly comparable to Canada when accounting for the population differences among these jurisdictions.

Health Canada has taken various actions to help reduce the risk of strangulation by CWCs. Since 1991, Health Canada has

• requested that industry voluntarily label CWCs in order to warn consumers of the risk of strangulation (1991, 1996);
• implemented consumer education campaigns and various public outreach strategies, including safety messages; letters to daycares, public health units, health care professionals, and realtor associations for distribution to parents and new home owners; media coverage; product safety publications; multiple information bulletins; a window covering safety web page; public consultation about the regulation of CWC products; an “Out Of Reach” public education campaign; a retail poster; a social media, radio, and print public information campaign; frequent social media safety messaging (1992, 1996, 1998, 2005, 2007, 2008, 2013, 2014 to 2017);
• issued 39 product recalls related to strangulation hazards, along with advisories and consumer alerts (1998, 2000, 2002, 2003, 2008 through October 2018);
• collaborated with other regulatory bodies on initiatives such as the development of and amendments to the American voluntary standard prior to the 2018 update; a joint letter with the U.S. CPSC to the window covering industry encouraging the elimination of the strangulation hazard; a joint consensus letter on a pilot alignment statement with the U.S. CPSC, the EC, and the ACCC sent to standards-development organizations [e.g. ANSI/WCMA, ISO, and the Canadian Standards Association (CSA)] recommending the elimination of the strangulation hazard (1996, 2007, 2010, 2012);
• engaged with industry stakeholders by holding face-to-face meetings to encourage the elimination of the CWC strangulation hazard; sending a letter to industry requesting the voluntary retrofit of Roman shades and roll-up blinds (a follow-up market surveillance project found 91% of Roman shades and 100% of roll-up products were non-compliant with this request); making ongoing requests to eliminate the strangulation hazard via participation in standards-development committees (ANSI/WCMA and CSA) alongside industry and consumer stakeholders (1994, 1998, 2010 through 2016);
• participated in the development of standards by funding a CSA committee to write a Canadian national standard on CWCs; proposing the incorporation by reference of the national standard into the CWCPR; participating in the update to the national standard; encouraging the application of the national standard to eliminate the strangulation hazard (1998, 2007, 2008, 2013, 2014); and
• enacted the CWCPR to incorporate by reference the requirements of the national standard, which was equivalent to the American voluntary standard of that time (2009).

Issues

Despite more than 25 years of public education, active industry engagement, concerted attempts to improve the standard, and the introduction of the CWCPR in 2009, fatalities and injuries continue to occur. None of the risk-mitigation measures undertaken by Health Canada or other stakeholders have resulted in a sufficiently reduced fatality rate. The most impactful risk mitigating measure of the past number of years may reasonably be attributed to the emergence of safer technology that does not pose a risk of strangulation, which has grown significantly in market share.

The CWCPR still allow cords that are long enough to form hazardous loops and be wrapped around a child’s neck, and rely upon safety devices that require additional installation and regular active consumer intervention (e.g. cord cleats). Incident narratives of all of the fatalities that have occurred in Canada, including since 2009 when the CWCPR came into force, state that a long cord became entangled around a child’s neck and strangled them to death. Provisions in the new American voluntary standard, published in January 2018, continue to permit long accessible cords. As long as the root cause of strangulation injuries and fatalities is not adequately addressed, incidents will continue to occur.

Updated regulations with stronger safety requirements are needed to better protect children in Canada. The risk of injuries and fatalities posed by corded window coverings is not justified when safe alternatives exist.

Fatalities and injuries

Pathway to injury

Minimal compression of any of the major blood vessels in the neck can lead to unconsciousness within 15 seconds and brain damage begins to occur after about four minutes without oxygen. Death can occur in less than six minutes.

Evidence shows that toddlers and young children have the ability to gain access to window covering cords in ways that are not anticipated by the caregiver. Children may climb or reach to gain access, cribs or other furniture may be placed near CWCs, or parents may simply underestimate the abilities of the child to access these cords. Given that strangulation occurs quickly and silently, incidents may occur even when caregivers are nearby.

Fatal incidents are sometimes incorrectly perceived to be the fault of caregivers. It is unreasonable to expect caregivers to maintain visual contact with a child at all times. Injuries and fatalities have occurred even with a typical level of supervision. Even if actions are taken most of the time to keep cords away from a child, it is reasonably foreseeable that there will be times when safety devices are not used, for instance, when the caregiver’s attention is divided, or the product is used by another person (grandparent, babysitter) who is not aware of the risks and is unfamiliar with the use of a safety device. As per existing requirements, many CWCs already come with safety devices such as cord cleats or tension devices, yet incidents continue to occur.

The following are examples of three Canadian cases for which Health Canada was able to obtain product details, which illustrate that even when a CWC meets the safety requirements of the CWCPR, it can still pose a fatal strangulation hazard.

Strangulation death of a 14-month-old girl

In September 2012, a 14-month-old girl was strangled in the cords of a CWC installed on a window near her crib. The operating cords were tucked into the highest part of the blinds to prevent the daughter from reaching them. Either the cords fell down, or the child managed to climb up to reach them and then became entangled. Individual cords had become knotted together and formed a hazardous loop.

Health Canada subsequently sampled a product of the same design from the importer for testing. The CWC product met the performance criteria of the CWCPR.

Strangulation death of a two-year-old boy

In November 2012, a two-year-old boy was strangled in the cords of a CWC product. The product was horizontal blinds consisting of one headrail and three panels of blinds, each panel having a set of two separate operating cords with toggles on the ends of the cords.

The manufacturer provided a test report showing the product met the performance criteria of the CWCPR.

Strangulation death of a 20-month-old boy

In July 2018, a 20-month-old boy was strangled by the operating cords of a CWC installed on a window near a bed. It was reported that before the child was found, the CWC was in the fully raised position with the operating cords wrapped up high around the top of the blind. The child was later found entangled in the operating cords.

Health Canada was able to determine the product involved in the incident from original purchasing receipts, and followed up with the manufacturer to obtain test reports. The test reports demonstrated that the product met the performance criteria of the CWCPR.

These incidents highlight the fact that requirements that allow long accessible cords, such as those of the CWCPR and also of the new American voluntary standard, allow the strangulation hazard to persist. These requirements do not address the pathway to injury for all products and rely on active consumer intervention to mitigate the risk, which has repeatedly proven to be ineffective in preventing all fatalities.

Statistics and data sources

The number of deaths in Canada attributed to CWCs in any given year varies, and has ranged between 0 and 4 deaths per year since 1989. Prior to the enactment of the CWCPR, from 1989 to 2009, Health Canada is aware of 30 fatalities in Canada involving strangulation from CWCs for an average fatality rate of 1.4 child fatalities per year over that period. Over the past nine years, since the CWCPR has been in force, Health Canada is aware of 9 fatalities in Canada for an average fatality rate of 1.0 child fatalities per year.

In addition to Health Canada’s database of fatalities and injuries, the Canadian Hospitals Injury Reporting and Prevention Program (CHIRPP) recorded 15 cord-related incidents involving CWCs between 2011 and 2016. Two children were admitted to hospital for further treatment and there was one death. It is unknown how many of these may be duplicates of reports received by Health Canada, and they have therefore not been included in the calculation of average fatality rates.

Health Canada primarily receives reports of fatalities and injuries related to corded window coverings from coroners, media reports, and hospital injury data. For some incidents Health Canada was able to obtain specific product information, and in each case the CWC that killed the child was compliant with the CWCPR. Since 2009, when the CWCPR came into force, four fatalities have been confirmed to involve compliant products. However, in most cases, product details are missing from these reports. As a result, whether the CWC was compliant to the requirements of the CWCPR is often unknown. Given the less stringent pathway to compliance in the CWCPR, wherein any product with two separate cords of any length is compliant, it assumed that any incident involving tangled cords that wrapped around a child’s neck and strangled them would involve a product that meets the requirements of the CWCPR.

Despite the lack of product details for many incidents, every fatality involving a CWC resulted from a long accessible cord that wrapped around a child’s neck and strangled them. The CWCPR and the new American voluntary standard both continue to allow this hazard.

Gaps in the CWCPR

In 2014, Health Canada completed a risk assessment on CWCs to assess the effectiveness of the CWCPR to address the strangulation hazard. The CWCPR incorporate by reference the requirements of the Canadian national standard, the current version of which is equivalent to the 2012 American voluntary standard. The deficiencies identified in the risk assessment were as follows:

• The requirements focus on loops only and do not address the hazard caused by long accessible cords that can become wrapped around a child’s neck, or that can become knotted or tangled, thereby forming a hazardous loop.
• Loops are still allowed when multiple cords are combined in a cord connector.
• Consumer intervention is required to install certain safety devices (e.g. tension devices, cord stops for stock blinds) and incident data show that they are not always properly installed or used by consumers.

Incidents that have occurred with CWCPR-compliant products have drawn attention to these deficiencies. The risk assessment concluded that the risk of dying due to strangulation on window covering cords is high for one-year-old children in Canada who live in a home where CWCs are used.

Both Health Canada’s risk assessment and the U.S. CPSC’s January 2015 advance notice of proposed rulemaking (ANPR) regarding CWCs stated that CWCs that meet the requirements of the CWCPR and the equivalent 2012 version of the American voluntary standard continue to present an unreasonable risk of injury or death to young children.

In addition to Health Canada’s and the U.S. CPSC’s findings, an article published in The Journal of Pediatrics also identified gaps in how CWCs are regulated. In a 2017 epidemiologic study investigating fatal and nonfatal window blind-related injuries among American children younger than six years of age between 1990 and 2015, the authors concluded: “Despite existing voluntary safety standards for window blinds, these products continue to pose an injury risk to young children. Although many of the injuries in this study were nonfatal and resulted in minor injuries, cases involving window blind cord entanglements frequently resulted in hospitalization or death. A mandatory safety standard that eliminates accessible window blind cords should be adopted” (Onders et al. 2018).

Gaps in the new American voluntary standard

Some stakeholders of the window covering industry have urged Health Canada to harmonize with the new American voluntary standard rather than proceed with updating the Regulations. The latest version of the American voluntary standard was published in January 2018. Corrections were published in May 2018, and the standard takes effect in December 2018. The new American voluntary standard continues to allow CWCs to pose an unreasonable risk of strangulation.

• The requirements for cord length for custom products are not adequate to eliminate the risk.
• Although stock products are required to have no operating cords (or only short or inaccessible ones), inner cords of stock are permitted to be long and accessible. Despite a restriction on the size of loops that can be created, inner cords are allowed loops that can easily fit over a child’s head.
• Moreover, the definition of what is stock and what is custom is somewhat subjective, potentially leading to a greater proportion of products being considered custom over the course of time.

The new American voluntary standard does not sufficiently address the underlying issues leading to fatalities. In the absence of further regulatory action and even assuming 100% compliance with the new American voluntary standard for products in Canada, a risk of strangulation will remain in the Canadian market from custom products and the inner cords of stock products, and incidents are likely to continue.

Standards development process — past efforts and current status

Since 1996 Health Canada has participated in the development of safety standards for CWCs, both in Canada and the United States. Health Canada funded a CSA committee to draft the national standard (CAN/CSA Z600 — Safety of corded window covering products, as amended from time to time) that was incorporated by reference into the CWCPR in 2009, with requirements that were essentially harmonized with the American voluntary standard of that time. Amendments to the national standard (and therefore to the CWCPR) have historically reflected amendments made to the American voluntary standard.

Throughout more than a decade of standards-development processes, including amendments and updates to the CWC standards in Canada and the United States, Health Canada has consistently pointed out gaps related to strangulation. Similar comments have been made by the U.S. CPSC and consumer advocates. However, changes have not been made to either the national standard or the equivalent American voluntary standard, including the most recent update to the American voluntary standard in 2018, that would eliminate the risk of strangulation.

The consensus-based process of standards development for CWCs has not yielded a result that provides adequate protection to children. Some industry stakeholders are of the view that long accessible cords must be permitted to provide for consumer choice and unique use situations, despite safer alternatives being available in the market. So long as the root cause of fatalities is not sufficiently addressed, the development of an adequate standard will not be achieved.

In August 2015, Health Canada published a notice to interested parties, which stated that if a more protective standard for preventing strangulations was not forthcoming, Health Canada would consider taking regulatory action to address the risks from blind cords.

In October 2016, citing the lack of progress by industry in instituting a strong, protective standard, the former Minister of Health announced that Health Canada would move forward with amendments to the CWCPR. Health Canada officials advised the Window Covering Manufacturers Association (WCMA), which is the industry association for CWCs, the accredited standards development organization in the United States and a member of the technical committee for the Canadian national standard, that the Department remained interested in participating in the standards development process. However, Health Canada stated that a proposal based on market segmentation along custom versus stock lines would require evidence of a differential risk.

In November 2016, representatives of the WCMA informed Health Canada that the forthcoming edition of the American voluntary standard would be based on market segmentation along stock and custom lines, and did not provide evidence of a differential risk to justify this approach. In December 2016, Health Canada advised the WCMA that the department would no longer continue to participate on the WCMA standard development committee in order to focus on drafting regulations.

Alignment with the new American voluntary standard

Alignment with the new American voluntary standard would require an update to the Canadian national standard, which is referred to in the CWCPR, to align the requirements.

When evaluating alignment with the requirements of the new American voluntary standard, two options may be considered: full alignment, or alignment with only the “stock” product requirements of the new American voluntary standard for all CWCs in Canada. An analysis of each option is discussed below.

Full alignment with the new American voluntary standard

The new American voluntary standard segments the market based solely on whether the product is completely or substantially fabricated in advance of any consumer request. “Stock” window coverings (substantially fabricated prior to purchase) are subject to strong restrictions on the length of operating cords and are subject to a restriction for the size of loops that can be formed by inner cords, while the operating cords of “custom” products (any product that is not “stock”) are permitted to have long accessible cords. Furthermore, the new American voluntary standard continues to allow for a risk of strangulation by imposing no restrictions on the length of inner cords for either stock or custom products.

The definition of “stock” in the new American voluntary standard is subjective, which may lead to industry treating more products as custom versus stock, effectively circumventing the cord restrictions for stock products. What is “stock” under the new American voluntary standard hinges on the definition of “substantially fabricated.” The interpretation of what constitutes “substantially fabricated” is not definitive, and may create uncertainty for stakeholders about whether products comply with the applicable requirements. During the development of the new American voluntary standard, one stakeholder noted “the current proposed definitions will create confusion among manufacturers, distributors, testing labs, retailers, consumers, and government enforcement officials as to the specific products subject to the new proposed safety standard and could lead to inconsistent market offerings and enforcement” (Retail Industry Leaders Association 2016).

Some existing manufacturing processes may also effectively bypass the cord restrictions imposed on stock products due to the definition of “stock” in the new American voluntary standard. Some components of CWCs can be pre-assembled in one location (foreign or otherwise), and then shipped with final assembly of the remaining components occurring later for delivery of a “custom” product. Such products may be considered “custom” since the finished product is not “substantially fabricated” prior to distribution as the definition of stock requires and, therefore, would be permitted to comply only with the less-protective requirements for custom products and have long accessible cords.

The market segmentation approach of the new American voluntary standard, if adopted in Canada, runs the risk of violating Canada’s international trade agreements. Given that most custom products are domestic and most stock products are imported, the Government of Canada would be exposed to the risk that it is imposing a non-tariff trade barrier by applying different requirements to products from different jurisdictions.

Full alignment with the new American voluntary standard is therefore not appropriate in consideration of both health and safety and trade law risks.

Alignment with only the stock product requirements of the new American voluntary standard for all CWCs

A second option is applying the stock product requirements of the new American voluntary standard to all CWCs in Canada. The new American voluntary standard requires operating systems of stock products to be cordless or have short or inaccessible cords. This would eliminate the strangulation risk associated with operating cords. However, this approach is more prescriptive than the Regulations, which are outcome-based and provide the flexibility for industry to develop innovative safe solutions.

While the provisions in the new American voluntary standard relating to operating cords for stock products would likely be effective at eliminating the strangulation hazard, those relating to inner cords of stock products would not. Stock products are still permitted by the standard to have long accessible inner cords that can wrap around a child’s neck. Furthermore, the requirements for loops that may be formed by inner cords allow a circumference of 125 cm when 22 N of force is applied. (A 45 N pull force test for the creation of inner cord loops with a maximum allowable circumference of 30.5 cm, which has been part of the standard since 2002, has been eliminated in the new American voluntary standard.) The test that remains in the new American voluntary standard is insufficient both in terms of the permissible circumference, which can easily pass over the head of a young child, and the pull force, which a young child is easily capable of exerting.

Alignment with only the stock product requirements of the new American voluntary standard for all CWCs in Canada is not an appropriate approach for Canadian regulation. The stock product requirements of the new American voluntary standard unnecessarily limit compliance solutions available to manufacturers for operating systems with only three design options, and do not adequately address the inner cord strangulation hazard.

Alignment at this time with the new American voluntary standard, whether full or partial, means that many compliant products would still pose an unreasonable risk of strangulation, and could run the risk of violating international trade obligations.

Feasibility of a different approach

While technical solutions may not exist today for all current design types of CWCs, many safe and affordable window coverings that are easy to use already exist in the Canadian market and are available for all sizes of windows. For example, a significant percentage of the Canadian market consists of “cordless” products (with no accessible cords) that can be manufactured to the same size as some of the most common widest corded products. CWCs that shield cords or enclose cords in wands, for example, are also safe alternatives that provide easy-to-access operating controls to the user. Existing designs with easily accessible cords that incorporate retraction mechanisms can also be designed with a pull force that meets the requirements of the Regulations if they do not already do so. Innovative solutions are also emerging for the Canadian market. A third-party firm contracted by Health Canada indicated at least 55 devices, methods or innovations exist with working functional products in the market that enable cords to be made inaccessible by various means.

An industry association has stated to Health Canada and other government departments that no company has engineered its window coverings to meet the requirements of the Regulations, specifically with respect to the pull force requirement for inner cords. This claim has formed the basis for this industry association rejecting the Regulations as “not technically feasible,” and supporting alignment with the new American voluntary standard. However, a 45 N pull force requirement for inner cords, which is more stringent than the 35 N pull force requirement set out in the Regulations, has been in place since 2009 in Canada (in section 6.7 of the national standard referenced in the CWCPR), and has also been part of the American voluntary standard since 2002.

Further discussion of the technical feasibility of the Regulations is set out below under the section “Canada Gazette, Part I, consultation and cost-benefit analysis consultation.”

Objective

The objective of the Regulations is to help eliminate the strangulation hazard and to help reduce the rate of fatal strangulations associated with all CWCs by specifying requirements for construction, performance, labelling, and required product information across all market segments, without prohibiting any innovation that achieves this objective. The Regulations are a set of requirements that address the root cause of the pathway to injury or death by strangulation. Eliminating the hazard from new products would also increase awareness of the hazard posed by some existing products in consumers’ homes, and may help motivate consumers to replace the more dangerous, older products sooner than the full lifespan of the product.

Description

The CWCPR will be repealed and replaced with the Regulations, which specify requirements for construction, performance, labelling, and required product information without reference to the national standard.

The Regulations restrict the length of accessible cords and the size of loops that can be created. The Regulations require that any cord that can be reached must be too short to wrap around a one-year-old child’s neck (i.e. not more than 22 cm in length) or form a loop that can be pulled over a one-year-old child’s head (i.e. not more than 44 cm in circumference) when subjected to the gradual application of force attaining 35 N. Cords that cannot be reached must remain unreachable throughout the useful life of the product. Cords that are shielded or made inaccessible are not subject to the length and loop requirements, though they must remain inaccessible. Cords that can be reached cannot exceed 22 cm in length or create a loop greater than 44 cm in circumference when they are at rest, whether the product is fully covering the window, fully open, or at any position in between. Reachable cords may be any length or have loops of any size so long as a pull force of more than 35 N is required to draw them out. When this force is removed, cords that can be reached must retract to less than 22 cm in length or 44 cm in circumference.

Further to the above-mentioned restrictions, the Regulations will require a warning on the product, packaging, instructions, and associated advertisements that speak to the hazards and specifications outlined above, with instructions to immediately remove the product should those hazards become present.

Coming into force

To provide flexibility for small businesses and help address concerns expressed during consultations, the Regulations will come into force 24 months after the day on which they are published in the Canada Gazette, Part II. During the 24-month period, the CWCPR will continue to apply to all CWCs sold, advertised, imported, or manufactured in Canada.

Regulatory and non-regulatory options considered

Status quo

Under the status quo, CWCs in Canada would continue to be subject to the legislative requirements of the CWCPR. Products that are compliant with the CWCPR would continue to pose a risk to children in Canada. In the absence of any other regulatory or voluntary action, it is likely that an average of approximately one death per year would continue. Under the assumption that Canadian manufacturers would voluntarily adhere to the requirements of the new American voluntary standard when it takes effect, incidents are likely to continue to occur in Canada from custom products and the inner cords of stock products. Therefore, the status quo has been rejected, as it does not adequately protect this vulnerable population.

Voluntary measures

From 1991 to 2009, Health Canada was actively engaged in encouraging industry to take voluntary measures to address the strangulation risk posed by CWCs. Despite ongoing education and active industry engagement, changes sufficient to make products adequately protective were not made. In addition, the United States and Australia have undertaken consultations surrounding mandatory requirements for these products or acknowledged deficiencies in existing rules in their respective jurisdictions, suggesting that existing measures have not been effective at mitigating this risk in their jurisdictions. Since 2009, the CWC market has been subject to regulations in Canada that have not produced the expected outcomes. Health Canada is of the view that further voluntary measures, including the new American voluntary standard that permits a risk of strangulation, will not be sufficient to adequately protect Canadian children.

Education and outreach to consumers

Education measures alone cannot eliminate the strangulation hazard associated with long accessible cords on CWCs. Education efforts by Health Canada, industry, and various non-governmental groups to change consumer behaviour with this product category have not significantly helped reduce strangulation injuries and deaths. Continued outreach activities may be considered a complementary instrument for raising awareness and helping to mitigate the risk from products already in people’s homes. Additional education and outreach activities on their own are unlikely to be any more successful in preventing injuries and deaths than the education campaigns to date.

Prohibition

An outright prohibition on CWCs would be more stringent than what is required to eliminate risks from new window coverings, would unduly restrict consumer choice, and would place a greater financial burden on industry.

Updating the Canadian national standard

Updating the Canadian national standard would likely yield the same result of not eliminating the strangulation hazard that the consensus-based process has produced in the past. Some stakeholders are of the view that long accessible cords must be permitted, and that alignment with the new American voluntary standard is the only option for the national standard. This would continue to allow CWCs to pose a risk of strangulation. Therefore, this option was rejected.

Regulatory approach

All prior approaches, including voluntary measures, industry outreach and education, consumer outreach and education, standards development and incorporation of the national standard by reference into regulation have failed to eliminate the strangulation risk posed by CWCs. Furthermore, alignment with the new American voluntary standard that continues to allow long, accessible cords that pose a risk of strangulation, in spite of the existence of safe alternatives, fails to protect children. Therefore, a regulatory approach where performance requirements that address the underlying issues leading to fatalities are specified in the regulation is the preferred option.

Benefits and costs

Introduction

Prior to the enactment of the CWCPR, from 1989 to 2009, Health Canada is aware of 30 fatalities in Canada involving strangulation from CWCs for an average fatality rate of 1.4 child fatalities per year over that period. Over the past nine years, since the CWCPR has been in force, Health Canada is aware of 9 fatalities in Canada for an average fatality rate of 1.0 child fatalities per year.

According to the WCMA, the target lifespan is 10 years for custom CWCs and 3–5 years for stock CWCs (WCMA 2015a and 2015b). Based on the market share of stock and custom products (as discussed in the “Baseline” section), the weighted average useful life of blinds is about 7 years. This aligns with comments received from industry stakeholders during public consultations that suggested the useful life of blinds was approximately 7 years. Therefore, we estimate that the Regulations would reduce risks by about 14% per year, as Canadian households gradually replace existing blinds with new, safer alternatives.

Noting that it has been nine years since the enactment of the CWCPR and that the useful life of blinds is approximately seven years, sufficient time has passed to gauge the impact of the CWCPR.

Assuming broad voluntary compliance with the new American voluntary standard, over the next 20 years, we expect that the Regulations would prevent the death of approximately six Canadian children. In addition to reducing health risks, we expect the Regulations to substantially reduce industry’s cost of testing CWCs. The reduction in testing costs, combined with reduced health risks for children, is estimated to have a present value of $77 million over the next 20 years (2017 price level, discounted at 7%).

As shown in this cost-benefit analysis, industry will assume costs from complying with the Regulations. We estimate the total increase in costs to have a present value of $145 million over the next 20 years (2017 price level, discounted at 7%). We do not know how much of these incremental costs will be borne by manufacturers or passed along to importers, distributors, retailers, and consumers.

Based on this analysis, we estimate the Regulations would have a cost-to-benefit ratio of 1.88, with a net present cost to Canadians of up to $67.7 million. When annualized over the study period, the net present value amounts to a cost of $6.4 million per year.

The analysis is based upon the estimates outlined below. Uncertainties are discussed in the section on sensitivity and uncertainty.

Baseline

This analysis assumes that, without the Regulations, the manufacture, import, and sale of CWCs in Canada would comply with the provisions of the new American voluntary standard beginning in 2019. This analysis also assumes that there will be no material changes to the new American voluntary standard that would affect costs or benefits. Furthermore, this analysis assumes that no other factors will affect benefits or costs in the baseline scenario based on the rationale that there would be no incentive for industry to alter their products to meet requirements beyond those reflected in the new American voluntary standard’s provisions.

Thus, any benefits or costs imposed by the Regulations would be limited to those that are incremental and attributable to moving from the new American voluntary standard to the Regulations.

The new American voluntary standard has different requirements depending on whether the product in question is “stock” or “custom.” Data on the breakdown of stock and custom products in the Canadian market is decidedly limited. In 2015, the WCMA commissioned GLS Research to conduct a web-based survey of a nationally representative sample of 400 Canadian adults. When asked what product they had most recently purchased, 64% said stock, 29% said custom, and 7% were not sure (WCMA 2015a). In addition, recent U.S. data suggests that 80% to 90% of shipments in the analogous American market are stock products (Industrial Economics, Incorporated 2017).

In the absence of additional data, we assume that 75% of the Canadian market consists of stock and 25% custom products. This estimate is, broadly speaking, in line with WCMA’s statement that “stock products account for more than 80% of all window covering products sold in the U.S. and Canada” (WCMA 2018). This analysis assumes the market share of stock and custom products will remain unchanged over the next 20 years.

The new American voluntary standard helps to reduce the risk of strangulation by including restrictions on the length of operating cords of stock products and the size of hazardous loops that can be formed by inner cords on both stock and custom products. However, it continues to allow for a risk of strangulation by imposing no restrictions on the length of inner cords for both stock and custom products, and allows for the formation of loops that can easily pass over a child’s head. Moreover, it provides some exceptions for the provisions relating to the length of operating cords of custom products and the size of loops they can form.

Therefore, the operating cords of custom products and the inner cords of both stock and custom products that comply with the new American voluntary standard may continue to pose a risk of strangulation.

Canadian data on the type of cord involved in CWC strangulations (i.e. operating cords versus inner cords) do not exist. Data from the United States, however, suggest that approximately 80% of strangulations are caused by operating cords and 20% are caused by inner cords (U.S. CPSC 2015). This study considers incidents up to 2012. Accessible inner cords have been subject to hazardous loop testing since the 2002 version of the American voluntary standard, in which free-standing loops were subjected to a 45 N pull force with a maximum allowable loop circumference of 30.5 cm. In 2012, an additional hazardous loop test for inner cords was introduced in the American voluntary standard. This test permits a circumference of 125 cm when subjected to a pull force of 22.2 N. A child is easily capable of exerting this force to create a loop that can easily pass over their head. The new American voluntary standard has dropped the 45 N pull force test, leaving only the 22 N pull force test that allows a loop that can easily fit over a child’s head. The pathway to injury is not eliminated by these requirements.

Based on the foregoing, we have assumed that voluntary compliance with the new American voluntary standard will eliminate the risk of strangulation for operating cords of stock products and have no impact on the risk associated with the operating cords of custom products and the inner cords of both stock and custom products. Based on this assumption and the assumed proportions of stock and custom products (75% and 25%, respectively), the new American voluntary standard will result in an estimated 60% reduction in strangulations (i.e. by adequately addressing stock products [75%] × the risk [80%] presented by operating cords). Conversely, based on this calculation, the new American voluntary standard would not result in any reduction for the remaining approximate 40% of strangulations (i.e. by not adequately addressing stock products [75%] × the remaining risk [20%] of inner cords, plus custom products [25%] × the remaining risk [100%]). About 1.0 child has died per year in Canada since the introduction of the CWCPR. Based on the analysis above, the new American voluntary standard is estimated to reduce the baseline fatality rate to 0.4 child fatalities per year.

In the absence of sufficient data for the Canadian market, data from the United States market is used as the basis for estimating the analogous Canadian market. With respect to the manufacturing location of CWCs, it is estimated that 87% of installed residential CWCs in the United States are produced overseas while 13% are produced domestically (Industrial Economics, Incorporated 2017). With respect to sales, the WCMA estimates that 100 million window-covering units are sold annually in the United States. Applying a prorated adjustment for relative population (10.91%) and household counts (11.39%), the estimate for annual sales of window coverings in Canada is 11 149 143 units. Window coverings that are not affected by the Regulations (cordless, interior shutters, curtains, etc.) are then subtracted from the total, yielding total annual sales in Canada of CWCs with long accessible cords of 9 927 104 units.

Noting that voluntary compliance with the new American voluntary standard will prevent an estimated 60% of strangulation incidents from occurring, the remaining number of units with long accessible cords impacted by the Regulations is estimated to be 3 970 842 annually. The calculations for component and assembly costs are thus derived from this annual number of units that are incrementally impacted by the Regulations.

Benefits

The primary benefit of the Regulations is that children in Canada will no longer be strangled by CWCs. The Regulations will eliminate the remaining 40% of strangulation incidents (that exists in the baseline scenario), thus reducing fatalities to zero. That said, the Regulations will take time to have this effect, as existing non-compliant CWCs are progressively replaced with compliant products.

Assuming an average 7-year life expectancy for all CWCs (75% stock market share × 5 years, plus 25% custom market share × 10 years, rounded up to account for the impacts of price changes on quantities sold), fatalities will decrease by 14% per year following the coming into force of the Regulations. Based on this figure, we estimate that there would still be two deaths over the next 20 years after the coming into force of the Regulations, due to yet-to-be-replaced CWCs. Subtracting these deaths from the total number of expected fatalities over 20 years, the Regulations are estimated to prevent the deaths of six children in Canada over the 20 years after their coming into force.

The reduction in risk faced by families in Canada can be monetized based on the value that people put on risk reduction. In social welfare terms, for an average Canadian, a 1 out of 100 000 reduction in the risk of death is estimated to provide a social benefit valued at $75. To get a total socio-economic benefit across Canadian households, the socio-economic value of this risk reduction is multiplied by the size of the risk reduction generated by the Regulations, and then multiplied by the number of Canadian households with children. Based on this approach, the Regulations will provide a socio-economic benefit valued at approximately $0.4 million per year starting in the first year the Regulations are in effect, increasing to $3.0 million per year once strangulation risks are fully eliminated in the seventh year and beyond. Over the next 20 years, this will provide a social benefit valued at up to $24.2 million (at a 7% discount rate).

The Regulations also substantially reduce testing requirements for the window covering industry in Canada. Under the CWCPR, industry has to perform a wide range of tests to ensure compliance with its requirements and must retain supporting documentation. The types of tests and the costs of these tests vary by product type but are extensive.

By contrast, the Regulations would require significantly fewer tests and omit the most costly tests required by the CWCPR. Based on a weighted average of the testing cost for all products under the CWCPR, costs related to testing would be reduced by approximately 90%, for a saving of approximately $3,100 per product line every time it is tested.

For the purpose of this analysis, it is assumed that approximately 800 CWC businesses with an average of six product lines will test each particular product line once every three years. Averaging out the $3,100 in cost savings over three years results in a saving of $1,025 per product line per year. The Regulations are thus estimated to save industry approximately $4.9 million per year in testing costs. This results in undiscounted cost savings of $89 million over the next 20 years, or $53 million at a 7% discount rate.

Total benefits to Canadians are calculated by adding the benefits associated with reduced mortality risk and the benefit of lower annual product testing costs for industry. Thus, the total benefits are estimated to be $5.4 million in the first year of the Regulations, increasing to $7.9 million by the seventh year and beyond. Cumulative benefits will amount to $134 million over a 20-year period. Discounting future benefits at 7% annually gives a total benefit valued at $77 million over the next 20 years.

Costs

The annual incremental cost imposed by the Regulations is the sum of the yearly costs to make the remaining 3 970 842 otherwise non-compliant units compliant. This includes component, assembly, research and development, and tooling costs. It is important to note that the analysis of costs considers incremental costs (and not the total cost) of all manufacturing activities.

This incremental cost may cause industry to reduce supply, or consumers to reduce demand, thus affecting quantities bought and sold. To the extent that industry assumes cost increases, supply may fall. To the extent that cost increases are passed on to consumers, demand may also fall. Reliable supply and demand curves, which would be necessary to accurately estimate changes in supply and demand, do not exist.

That said, Taylor and Houthakker (2010) estimate that a 1% increase in the price of home goods, which includes CWCs, reduces consumer demand by 0.34%. Panchal (2016) estimates the increased manufacturing cost of safer alternative products for both domestic and overseas production by calculating the increase as a percentage of retail price. The weighted average increase would be approximately 6.1% to the retail cost of window coverings. Assuming that manufacturers do not bear any of the cost increases themselves, thus passing on 100% of the cost increase directly to consumers, demand would fall by about 2.1%.

In the baseline scenario, the number of units with long accessible cords impacted by the Regulations is estimated to be 3 970 842 annually. A 2.1% reduction of that quantity yields 3 887 454 units annually affected by the Regulations. This reduction in annual sales by 83 388 units is estimated to result in annual lost profits valued at $2.66 million.

Components

Safer alternative window coverings already exist in the Canadian market and continue to be developed for all sizes of windows. The component costs associated with some safer alternatives are compared to baseline corded operating systems below.

Table 1 Incremental component costs (2017 Can$) for various safer alternative window covering operating systems

Category	Operating System	Component Costs for Operating System table 1 note 1	Component Costs for Operating System (+20%) table 1 note 2	Component Costs for Operating System (+50%) table 1 note 2	Incremental Cost vs. Baseline Corded Operating System table 1 note 3
Baseline corded operating system	Cord lock (>22 cm cord or >44 cm loop)	$1.14	$1.37	$1.71
	Continuous loop (>22 cm cord or >44 cm loop) with tension device	$1.47	$1.76	$2.20
Safer alternative (no operating cords)	Motorized	$12.08	$14.49	$18.12	$13.29
	Cordless (no button)	$2.68	$3.21	$4.01	$1.69
	Cordless (button)	$2.45	$2.95	$3.68	$1.42
	Cordless (with tilt wand)	$3.04	$3.65	$4.56	$2.14
	Wand/slider	$2.62	$3.15	$3.93	$1.63
	Pulley activated cordless	$1.48	$1.78	$2.22	$0.22
	Tethered loop cord	$4.99	$5.98	$7.48	$4.54
	Roller shades (spring assist)	$2.68	$3.21	$4.01	$1.69
Safer alternative (with operating cords) table 1 note 4	Cord shroud (fabric)	$0.35	$0.42	$0.53	$0.43
	Cord shroud (plastic)	$3.52	$4.22	$5.28	$4.34
	Cord winder retrofit device	$0.60	$0.72	$0.90	$0.74
	Retractable	$1.29	$1.54	$1.93	$1.59
Average incremental component cost:					$2.81
Table 1 note(s) Table 1 Note 1 Per Motiv (2017) and Health Canada calculations. Return to table 1 note 1 referrer Table 1 Note 2 In consultation with industry stakeholders, some stakeholders indicated the Motiv cost analysis was a reasonable estimate or higher than their costs. Other stakeholders indicated that the costs were underestimated by 15%, 20%, 40%, or 50%. Columns for 20% and 50% increases have been included. Return to table 1 note 2 referrer Table 1 Note 3 Calculated as the average of the three preceding columns minus the average cost of a baseline corded operating system. Return to table 1 note 3 referrer Table 1 Note 4 The cost of components is added in full. These parts are additional to a corded system. Return to table 1 note 4 referrer

Based on this analysis, the average incremental component cost of safer alternatives is estimated to be $2.81 per unit.

While a calculation based upon the market share of each type of operating system would be more precise than simply averaging all operating systems together, the future market share of each operating system remains uncertain. In the above calculation, by assigning equal weight to expensive motorized systems that are likely to account for a very small fraction of the market, the calculated average incremental component cost is increased disproportionately. Furthermore, averaging the three columns gives equal weight to each of the sources of information.

Assembly

Assembly costs depend on the cost of labour and the time involved in assembly.

The Canadian manufacturer labour rate is $17.64 per hour (2017 Can$), as per Statistics Canada (2016), and the foreign labour rate is $2.58 per hour (2017 Can$), as per Panchal (2016). The weighted average labour rate based on the percentage of domestic (13%) and imported (87%) production is thus $4.52 per hour.

The assembly time of a CWC is based upon the number of components and associated assembly operations. The percentage increase in the number of components associated with various safer alternatives is outlined below.

Table 2 Number of components for various operating systems

Category	Operating System	Number of Operating System Components (Low Estimate) table 2 note 1	Number of Operating System Components (High Estimate) table 2 note 1	Average Number of Operating System Components table 2 note 2	Incremental Number of Operating System Components vs. Baseline corded system
Baseline corded operating system	Cord lock	8	23	17
	Continuous loop with tension device	13	25
Safer alternative (no operating cords)	Cordless (no button)	13	30	22	125%
	Cordless (button)	16	30	23	133%
	Cordless (with tilt wand)	18	30	24	139%
	Wand/slider	40	40	40	232%
Average incremental number of components:					157%
Table 2 note(s) Table 2 Note 1 Sources for estimates of the number of operating system components, both low and high estimates, include: Motiv (2017), manufacturer exploded view diagrams and parts lists, and comments from industry stakeholders. Return to table 2 note 1 referrer Table 2 Note 2 Equal weight has been given to both the low and high estimates provided from all sources to arrive at an average. Return to table 2 note 2 referrer

As shown above, safe alternatives are estimated to have an average of 57% more components than a baseline corded operating system.

The assembly time of a cordless (no button) operating system module is estimated by Panchal (2016) to be 0.036 hours (129 seconds). Industry stakeholder comments indicate that some products, including those with cordless operating systems, are subject to both pre-assembly (in a low-cost foreign environment) and final assembly (in a high-cost domestic environment). Such products require additional assembly time for balancing and tuning of at least one minute, totalling 0.053 hours (190 seconds). Based on the decreased number of components of an average baseline corded operating system (Table 2), it is estimated that the average assembly time of a baseline corded operating system is 0.041 hours (147 seconds). Applying a 57% increase for assembly time to a baseline corded operating system results in an incremental assembly time for an average safer alternative operating system of 0.023 hours (84 seconds). Multiplying the incremental assembly time by the weighted average labour rate yields an incremental cost of $0.11 per unit.

Combining the incremental component cost with the incremental assembly cost yields a net incremental cost per unit of $2.92 for safer alternatives. The incremental component and assembly cost to make the 3 887 454 otherwise non-compliant units compliant is estimated to be $11.35 million.

Research and development

We assume that research and development costs will involve hiring one dedicated engineer for six months per company. We also assume that manufacturers with fewer than five employees will bear no such costs (i.e. those associated with hiring additional engineering staff) given the likelihood that they will source components rather than manufacture them. Furthermore, we assume that importers of finished products will switch to sourcing from suppliers already producing compliant window coverings, thus avoiding research and development costs.

The Canadian applied science (equivalent to engineer) labour rate is $35.67 (2017 Can$) per hour. Under the North American Industry Classification System (NAICS) 33792 — Blind and shade manufacturing, Statistics Canada reports that 54.5% of Canadian window covering manufacturers have more than five employees, for a total of 107 manufacturers. Multiplying the wages of one engineer for a period of six months by 107 manufacturers yields a total estimated research and development cost of $3.98 million. This cost is counted as a one-time expense imposed by the advent of the Regulations to achieve compliance and is not considered an annual cost thereafter.

Tooling

The tooling cost is calculated by multiplying the tooling fabrication time by the toolmaking cost, taking into account the number of Canadian businesses that are estimated to assume costs associated with a tooling change.

We assume that only medium- and large-sized Canadian manufacturers (employing at least 100 employees) have the capability of fabricating all components on site. Therefore, it is estimated that 10 domestic manufacturers may assume tooling costs, consistent with comments received during the Canada Gazette, Part I, consultation and data made available by Statistics Canada (NAICS 33792).

Furthermore, we assume that the remaining small manufacturers that may source components from overseas rather than manufacture them will absorb tooling costs in their purchasing contracts. Subtracting the 10 medium- and large-sized Canadian manufacturers accounted for above from the 107 Canadian manufacturers with more than five employees results in 97 businesses subjected to overseas tooling costs.

We estimate that tooling fabrication time would be 2 000 hours per manufacturer. Panchal (2016) estimates the domestic hourly tool-fabrication cost to be $77.92 (2017 Can$), and the overseas hourly tool-fabrication cost to be $49.35 (2017 Can$). When multiplying these costs by the number of businesses subjected to domestic and overseas tooling, the total tooling cost is estimated to be $11.1 million. This cost is counted as a one-time expense imposed by the advent of the Regulations to achieve compliance and is not considered an annual cost thereafter.

Conclusion

By combining the incremental costs outlined above, we estimate the total cost to be $29.1 million in the first year of the Regulations, and $14.0 million per year thereafter, with cumulative costs of $267 million over a 20-year period.

Discounting future costs at 7% annually provides a present cost of $145 million. With present benefits of $77 million, this results in a cost-benefit ratio of 1.88. When annualized over a 20-year period, the net present value amounts to a cost of $6.4 million per year.

Distributional and gender-based analysis

The Regulations take into consideration the amount of strength that children and the elderly can apply, and have specified force requirements to allow for the operation of products without difficulty for the elderly while still providing safety to children. Specifically, the Regulations have undertaken a gender-based analysis with respect to pull forces, by considering the strongest force that a young child (male) can exert, and also the forces that an elderly female can exert. There is no additional cost associated with this issue.

The Regulations take into consideration the incident characteristics associated with CWCs. The injury pathways are the same for all children aged one to four. The Regulations help to protect young children from the strangulation hazard of long accessible cords irrespective of their size or gender. There is no additional cost associated for gender-based considerations.

Persons of short stature and persons with a disability already encounter accessibility issues with many current CWCs that require wide arm motions and cleats to secure long cords up high off the ground. To accommodate disabled persons and people of short stature, a safe product should have operating controls within reach of the user, without the need to climb. Many affordable safe window covering designs that would meet the requirements of the Regulations can meet these needs without reducing accessibility.

The Regulations apply the same requirements to all types of products. In a 2015 survey conducted by GLS Research on behalf of WCMA, low-income respondents were the most likely to have bought stock window coverings (74%), while the likelihood of buying custom window coverings increased with household income (WCMA 2015a), meaning that higher-income households would be more likely to purchase window coverings more likely to pose a strangulation risk if a market-segmentation approach was adopted.

Noting that the geography of Canada extends far into the north where the number of hours of daylight in the summer can exceed 20 hours in many northern communities, there is a clear need for window coverings to help people sleep during the summer. According to a study of residential windows and window coverings prepared for the United States Department of Energy, the great majority of window coverings (75% to 84%) are not adjusted on a given day even when segregated into summer and winter, weekday and weekend (D&R International Ltd. 2013). One possible explanation offered by the author of the study is that in the winter it is dark when people wake up and dark when they return home from work, so there is no reason to adjust window coverings. Similarly, in northern climates when it is light for almost the entire day during the summer, there is no need to adjust window coverings. That is to say, the operating systems of window coverings are rarely engaged to raise or lower the blind. With this in mind, the Regulations have no additional effect on the people of northern territories, which are also home to a large population of Indigenous people: 53% of the combined population of Nunavut, Northwest Territories, and Yukon identify as Aboriginal (Statistics Canada 2016).

Sensitivity and uncertainty in the costs and benefits

Sensitivity analyses have been conducted for the baseline, costs, benefits and additional aspects of the cost-benefit analysis. For each sensitivity that generates a dollar value, a resulting cost-benefit ratio has been calculated. The highest cost scenario of the sensitivity analysis yields a cost-benefit ratio of 2.29. At the opposite end of the spectrum, a scenario for which benefits exceed costs at a ratio of 1.26 has been calculated.

Baseline sensitivity

Remaining risk

This analysis assumes that, without the Regulations, the manufacture, import, and sale of CWCs in Canada would comply with the provisions of the new American voluntary standard beginning in 2019. This analysis also assumes that the Canadian market consists of 75% stock and 25% custom products. Furthermore, voluntary compliance with the new American voluntary standard will eliminate the risk of strangulation for operating cords of stock products and have no impact on the risk associated with the operating cords of custom products and the inner cords of both stock and custom products. As a result, the remaining risk for the baseline scenario has been estimated to be 40% of the historic risk.

Comments received from industry stakeholders during public consultations suggest that cordless custom products presently make up between 5% and 10% of the total window covering product market, and therefore, the remaining risk should be reduced. If the remaining risk that would be affected by the Regulations is 30% rather than 40%, the value of the benefits of lives saved would decrease to $18.2 million, resulting in total benefits valued at $71 million over the next 20 years (2017 price level, discounted at 7%). Correspondingly, the number of units affected by the Regulations would decrease, lowering the costs associated with the manufacturing of components and with assembly costs. Total costs associated with a reduced remaining risk would be decreased to $112 million over the next 20 years (2017 price level, discounted at 7%). The resulting cost-benefit ratio would be 1.57.

Rate of compliance with the new American voluntary standard

With respect to the effectiveness of the new American voluntary standard in reducing strangulations, the baseline scenario of the cost-benefit analysis assumes 100% of products will comply with its provisions.

Compliance with the new American voluntary standard is entirely voluntary, and there is no organization or agency that purports to monitor or enforce compliance with its requirements.

In 2015 and 2017, Health Canada conducted compliance and enforcement projects under the CWCPR which incorporates by reference the Canadian national standard (the requirements of which are aligned with the 2012 version of the American voluntary standard). In 2015, 3 out of 21 products (14%) sampled from the Canadian market were recalled for non-compliance that posed a strangulation hazard. In 2017, 2 out of 19 products (11%) were recalled for non-compliance that posed a strangulation hazard. Based on these recent market compliance projects, less than 100% compliance with the new American voluntary standard may be expected in the baseline. This would result in a higher remaining risk of strangulation that the Regulations would impact, resulting in increased benefits and costs.

Cost sensitivity and uncertainty

This analysis includes only the costs associated with manufacturing (component costs and assembly costs), research and development, and tooling, and accounting for the impact of price changes on quantities sold. Based on the comments received during the Canada Gazette, Part I, consultation and the principal statistics related to manufacturing expenses for blind and shade manufacturing as per Statistics Canada (NAICS 33792), these costs are understood to comprise the vast majority of incremental costs that can be attributed to the Regulations. Potential costs related to stranded inventory, which was a noted concern of respondents to the Canada Gazette, Part I, consultation, are accounted for in the small business lens calculations and addressed by an extended coming-into-force period.

This analysis does not account for potential costs related to the licensing of technology (royalties), restrictions due to existing patents, and training of personnel on new products. When weighed against the incremental costs to manufacture a compliant product that were included in the analysis, which are noted to comprise the vast majority of incremental costs in the breakdown of expenses by Statistics Canada, these potential costs are considered to have a minimal impact on the cost estimates.

Comments from industry stakeholders indicated that, while most large manufacturers would choose to develop their own technology, smaller manufacturers who license technology may be faced with having to pay royalties of approximately 5% of product costs. Further comments suggested that these costs could be offset by savings related to parts obsolescence and faster assembly time.

High-end unit costs

This analysis takes into account a broad range of products available in the market that are generally available in higher volumes. While the source data for component and assembly costs considered both inexpensive (low end) and expensive (high end) window covering designs, the costs associated with low volume customized window coverings, or products incorporating much higher quality components, would increase the overall costs for those smaller segments of the market.

In consideration of the increased cost for low volume, customized, expensive window coverings and higher quality components, Industrial Economics, Incorporated (2017) estimates a high-end scenario unit cost increase of approximately 20%. A sensitivity analysis that increases the estimate of costs by 20% results in costs valued at $174 million over the next 20 years (2017 price level, discounted at 7%). The resulting cost-benefit ratio would be 2.26.

Research and development

This analysis included research and development costs for all Canadian window covering manufacturers that have more than five employees, for a total of 107 manufacturers. Comments received from industry stakeholders during public consultations suggested that the vast majority of small window covering businesses (who rely on large manufacturers for components) are not spending on research and development. Further comments indicated that most medium- and large-sized manufacturers already have cordless products in their lineup and so research and development costs would be reduced. Conversely, a comment from an industry stakeholder suggested that research and development costs should be increased by a factor of 10 to account for additional development and product validation activities, as well as preparation of facilities and suppliers.

If research and development costs are calculated only for the 10 medium- and large-sized Canadian manufacturers (with at least 100 employees), the costs associated with the Regulations for research and development would decrease to $0.37 million, resulting in total costs valued at $142 million over the next 20 years (2017 price level, discounted at 7%), with a resulting cost-benefit ratio of 1.84. If research and development costs are increased tenfold, the costs associated with the Regulations for research and development would increase to $39.8 million, resulting in total costs valued at $176 million over the next 20 years (2017 price level, discounted at 7%), with a resulting cost-benefit ratio of 2.29.

Tooling

This analysis assumed that 10 medium- and large-sized Canadian manufacturers would absorb tooling costs, and 97 small manufacturers who source components from suppliers rather than manufacture them will absorb tooling costs in their purchasing contracts. Comments received from industry stakeholders during public consultations suggested that businesses that source components pay no tooling costs. Further comments suggested that tooling changes and their related costs are a normal part of the business cycle (5 to 7 years) and, therefore, should not be considered an incremental cost imposed by the Regulations.

If tooling costs are only applied to the 10 medium- and large-sized Canadian manufacturers, the costs associated with the Regulations for tooling would decrease to $1.56 million, resulting in total costs valued at $137 million over the next 20 years (2017 price level, discounted at 7%), with a resulting cost-benefit ratio of 1.78. If tooling costs are considered part of the normal business cycle for all manufacturers and removed from consideration, the total costs would be valued at $135 million over the next 20 years (2017 price level, discounted at 7%), with a resulting cost-benefit ratio of 1.75.

Benefits sensitivity and uncertainty

Testing frequency

The CWCPR requires companies to maintain documents that show compliance with its requirements for a period of at least three years after the day on which the product is manufactured in Canada or the day on which it is imported. As a result, this analysis assumes that testing occurs every three years. If, however, testing occurs more frequently, the cost savings of the Regulations will increase. Thus, this analysis may underestimate the benefits of the Regulations.

If products are tested every other year, the benefits associated with the Regulations for reduced testing costs would increase to $7.4 million per year, resulting in total benefits valued at $104 million over the next 20 years (2017 price level, discounted at 7%), with a resulting cost-benefit ratio of 1.39. If products are tested every year, the benefits associated with the Regulations for reduced testing costs would increase to $14.8 million per year, resulting in total benefits valued at $183 million over the next 20 years (2017 price level, discounted at 7%). Benefits would outweigh costs in this scenario at a ratio of 1.26.

Social welfare

This analysis assumes that the value of risk reduction for children is the same as for an adult. However, a report prepared for Health Canada by Alberini and Scasny in 2016 estimated that reducing the risk of premature death among children delivers as much as 40% more socio-economic benefit compared to adults. Thus, this analysis may underestimate the benefits of the Regulations.

If this figure were applied to the analysis, the benefits associated with reduced mortality risk would increase to $0.6 million per year, resulting in total benefits valued at $87 million over the next 20 years (2017 price level, discounted at 7%), with a resulting cost-benefit ratio of 1.67.

Non-fatal injuries

This cost-benefit analysis has focused exclusively on the risk of death caused by strangulation. However, it is expected that the Regulations will also result in a reduction in the risk of non-fatal injuries related to CWCs.

Of the 75 incidents that Health Canada has received related to CWCs, 22 involved a non-fatal strangulation injury. Injuries ranged from temporary suffocation with rope burns to the neck, to life-threatening injuries requiring resuscitation and intensive care, to permanent disability. In the United States, the U.S. CPSC reports that 101 of 285 incidents investigated involve a similar range of injuries (U.S. CPSC 2015). By excluding these non-fatal outcomes from the calculations, this analysis underestimates the benefits of the Regulations.

Rate of compliance with the Regulations

After the coming into force of the Regulations, it would be illegal to manufacture, import, advertise, or sell non-compliant CWCs. Therefore, the cost-benefit analysis assumes that there will be 100% compliance with the Regulations after the coming into force. If the rate of compliance with the Regulations is less than 100%, it would result in a higher remaining risk of strangulation, and therefore, this analysis may overestimate the benefits related to the number of lives saved.

Additional sensitivity and uncertainty

Applying a 3% discount rate

Given that the benefits of the Regulations include significant human health benefits, a lower social discount rate of 3% could be applied in this analysis, rather than the accepted standard discount rate of 7%, which is typically applied when costs and benefits are primarily financial. Using a 3% discount rate over the next 20 years results in costs valued at $201 million and benefits valued at $104 million, yielding a cost-benefit ratio of 1.94.

Total sales

The estimate of approximately 10 million units sold in Canada each year is based on the limited Canadian data, combined with extrapolations from American data, and therefore, entails a degree of uncertainty. Thus, this analysis may underestimate or overestimate the benefits of the Regulations.

If the number of units sold in Canada were to be 10% higher, the benefits and costs associated with the Regulations would increase proportionately.

This analysis has assumed that increased component and assembly costs associated with the Regulations would be passed on to consumers and, accordingly, demand would wane and sales fall. That said, it is likely that the impact of the changes introduced by the Regulations would diminish over time, with the costs of compliance falling. As a result, it seems fair to assert that the costs associated with the fall in sales are an overstatement and that they too will diminish over time. Thus, this analysis may overestimate the costs of the Regulations.

If component and assembly costs were to fall by 10%, year over year, the benefits and costs associated with reduced sales would decrease proportionately.

Stock versus custom

The estimated market share of stock and custom products (75% and 25%, respectively) is based on limited data, and therefore, entails a degree of uncertainty. The breakdown between stock and custom has real consequences for the benefits associated with the Regulations given that this analysis has assumed the new American voluntary standard will eliminate all strangulations on operating cords of stock products. Costs are similarly affected given that the number of units impacted by the Regulations would change. To the extent that the proportion of stock products is less than 75%, the benefits and costs of the Regulations increase. To the extent that the proportion of stock products is more than 75%, the benefits and costs of the Regulations decrease.

Moreover, the proportion of stock relative to custom may shift to more custom products moving forward. This is due to the definition of what is considered stock under the new American voluntary standard, which rests on whether the product is “substantially fabricated.” Strictly speaking, the standard does not define substantially fabricated; however, it does provide an example of substantial fabrication while expressly providing that that example not be read as limiting the breadth of the definition itself. The example, read in conjunction with the direction that it is not to be read as a limitation, provides for broad interpretation when it comes to determining whether a given product is stock. Furthermore, some products may be pre-assembled in one location (foreign or otherwise) with final assembly occurring later. Products which are not completely assembled prior to distribution (not “substantially fabricated” as the definition of stock requires) thus become custom-ordered and later assembled with cords. As a result, it is both possible and likely that industry will consider, and be able to manufacture going forward, more of their products as custom. Consequently, the reduction in strangulations associated with the baseline will be less, thereby increasing the benefits associated with the Regulations. Thus, this analysis may underestimate the benefits of the Regulations.

If the proportion of the market that is stock were to fall to 65% stock or lower, the benefits and costs associated with the Regulations would increase proportionately over the next 20 years.

Summary and accounting statement

The Regulations are estimated to result in quantified benefits of $77 million over the next 20 years (2017 price level, discounted at 7%). These benefits are associated with the elimination of the strangulation risk of CWCs, and reduced product testing costs. Total costs over the next 20 years are estimated to be $145 million (2017 price level, discounted at 7%), resulting in a cost-benefit ratio of 1.88.

Although the Regulations are anticipated to result in net costs of $68 million over the next 20 years that will be distributed, to varying degrees, among manufacturers, importers, retailers, and consumers with window coverings in their homes, these costs are justified by the qualitative benefit of preventing the deaths of young children.

A summary of the quantitative and qualitative impacts of the Regulations is shown in Table 3. Note that the first two years have zero dollars for both costs and benefits, accounting for a coming-into-force period of 24 months.

Table 3: Accounting statement

A - Quantified impacts (in millions of 2017 Canadian $)

Benefits

	First Year: 2019	2020	2021	…	2028	2033	Final Year: 2038	20-year Total, Undiscounted	20-year PV at 7%	Annualized Value
Savings from reduced testing costs	$0.0	$0.0	$4.9	…	$4.9	$4.9	$4.9	$88.8	$53.1	$5.0
Monetized value of reduced mortality risk for Canadian children and their families	$0.0	$0.0	$0.4	…	$3.0	$3.0	$3.0	$45.0	$24.2	$2.3

Costs

	First Year: 2019	2020	2021	…	2028	2033	Final Year: 2038	20-year Total, Undiscounted	20-year PV at 7%	Annualized Value
Increased production cost to manufacture safer alternative window coverings	$0.0	$0.0	$29.1	…	$14.0	$14.0	$14.0	$267.4	$145.0	$13.7
Monetised net benefit (cost):	$0.0	$0.0	–$23.8	…	–$6.1	–$6.1	–$6.1	–$133.6	–$67.7	–$6.4

B - Quantified impacts, not monetized

	First Year: 2019	2020	2021	…	2028	2033	Final Year: 2038	20-year Total, Undiscounted	20-year PV at 7%	Annualized Value
Expected number of deaths avoided due to reduced strangulation risk	0.00	0.00	0.06	…	0.4	0.4	0.4	6	NA	NA

C - Unquantified and qualitative impacts

Benefits

• Reduced risks of non-fatal accidents.
• Establish guidelines that align with international consensus on the highest level of safety for CWCs.
• Create a level playing field for all CWCs.
• Provide incentive for development of new, safer technology, along with reduced testing and record-keeping costs.

Costs

• Possibility that some consumers may find compliant window coverings less practical or convenient.
• Some cordless window coverings may be difficult for some users to operate in certain limited settings.

“One-for-One” Rule

The Regulations result in administrative savings to the CWC industry related to the removal of the record-keeping provision that exists in the CWCPR.

In 2017, Health Canada conducted a market surveillance and enforcement project on CWCs, where approximately 800 stakeholders were identified as manufacturers, importers, and retailers of CWCs in Canada. Information obtained in 2015 from companies involved in product sampling and testing indicated an average of 6 different product lines per company, with test reports that were generally between one and three years old. Given this information, it is estimated that 4 800 product lines are tested every three years in Canada.

It is estimated that the activities related to record keeping — contracting a test facility (2 hours per year), maintaining a test report (0.5 hours per year), and producing a test report upon request (0.75 hours per year) — take an average of 3.25 hours per year, per company. It is assumed that the staff level involved with contracting activities and producing a test report for inspection and enforcement purposes would be management, at a labour rate of $46.26 per hour (Statistics Canada 2012). Clerical duties involved with maintaining a test report, such as storing, copying, and distribution are calculated at a labour rate of $25.30 per hour (Statistics Canada 2012). The annualized administrative cost savings (discounted to 2012 dollars) are estimated to be $50,668 for industry as a whole, or $63 per business.

Since the Regulations impact administrative burden, the “One-for-One” Rule applies. However, because the Regulations will result in administrative savings, this proposal is considered an “OUT” under the Rule and the administrative credits will be banked towards offsetting an increase in administrative burden to departmental stakeholders in the future.

Small business lens

The small business lens applies to these Regulations.

There are an estimated 800 small businesses involved in the manufacture, import, and sale of CWCs in Canada. This estimate is based on a list of establishments contacted by Health Canada in a 2017 market surveillance project. Of those 800 businesses, 197 were identified as manufacturers, according to Statistics Canada (NAICS 33792).

Following the publication of the proposed Corded Window Coverings Regulations in the Canada Gazette, Part I, the initial option considered was a 6-month coming into force of the Regulations, consistent with World Trade Organization guidelines. Given the net costs, and in response to the comments received during the Canada Gazette, Part I, public consultation, an alternative flexible option involves a coming-into-force period of 24 months. Industry concerns related to stranded inventories, contract obligations, research and development, manufacturing process changes, potential cost changes, and impacts on partner industries for affected CWCs may be better managed with an extended coming-into-force period.

Accordingly, the Regulations will come into force 24 months after the day on which they are published in the Canada Gazette, Part II. Costs to small businesses will vary depending on the extent to which their current mix of window coverings will meet the Regulations. Savings from reduced testing and record-keeping requirements will offset some of these compliance costs and benefit small businesses the most.

An estimate of the compliance costs for CWCs affected by the Regulations is presented in the table below. The savings of the flexible option, compared to the initial option, are estimated to be approximately $93,000 per small business. The vast majority of savings relate to the assumption that a business will have no inventory that it would not be able to sell when the Regulations come into force.

	Initial Option		Flexible Option
Short description	A coming-into-force period of 6 months		A coming-into-force period of 24 months
Maximum number of small businesses affected	800		800
	Annualized Average ($ 2017)	Present Value table 7 note * ($ 2017)	Annualized Average ($ 2017)	Present Value table 7 note * ($ 2017)
Total compliance costs	$77,146,092	$79,799,608	$3,426,832	$5,284,293
Average cost per small business	$96,433	$99,750	$4,284	$6,605
Table 7 note(s) Table 7 Note * Using a 10-year time horizon with a 7% discount rate. Return to table 7 note * referrer

Consultation

Consultation prior to Canada Gazette, Part I, publication

In August 2015, Health Canada published a notice to interested parties in the Canada Gazette, Part I, about the risk of strangulation posed by CWCs.

Health Canada received 41 comments on this notice from various manufacturers (both large and small businesses), consumers, consumer advocates, a test laboratory, and an industry association. Thirty-six of the comments were in favour of Health Canada taking further action to address the strangulation hazard associated with CWCs. Four comments stated that no further regulatory action is required, and one neutral comment was submitted.

Arguments in favour of Health Canada taking further action, including amendments to the CWCPR, included the following:

• Availability of safe window covering product alternatives, and the existence of technology to make safer products;
• Difficulty of using cord cleats for certain segments of the population based on the specified installation height requirement and dexterity required;
• Reliance on user intervention is not the best injury prevention model;
• Restrictive lease agreements for those who rent and are not allowed to replace CWCs that may be installed;
• Family and friend connections to a child who was fatally strangled by CWCs;
• Any measure that requires action by an installer or user does not guarantee product safety; consumers should not be required to install additional hardware for the product to be safe, especially when people may not be aware of the risk;
• Products with inaccessible cords are the most feasible solution to offering a combination of safety and traditional design; and
• There will be no elimination of the strangulation hazard unless Health Canada and the U.S. CPSC take action.

Arguments opposed to further regulatory action by Health Canada included the following:

• The issue/risk is overstated;
• Statements that dispute the data and conclusions presented by regulators;
• A requirement to reduce the risk of strangulation posed by CWCs would disrupt business and increase the cost of the product and subsequently result in increased retail costs to consumers, potentially causing a loss of customers, and causing a loss of revenue;
• The issue can be adequately addressed through consumer education and the promotion of safety devices;
• There will be a potential loss of business, and a loss of jobs;
• Cordless options are not always chosen by the customer due to a variety of reasons including cost, application, and accessibility;
• In some situations it is just not possible to go cordless for many applications;
• It is the homeowner’s responsibility to decide if there is a risk and ensure proper installation of safety devices; and
• The strangulation concern is adequately covered by current standards.

The Regulations do not address some of the opposing concerns presented by some stakeholders. Arguments that suggest the strangulation hazard was adequately covered by the CWCPR, that further consumer education would address the risk, and that safety devices are adequately protective are not supported by the incident data. The rate of child fatalities, even with the CWCPR in force and other measures in place for a number of years, has remained relatively constant at approximately 1.0 deaths per year. While the product cost may increase to varying degrees, it is justified, as it prevents the deaths of more children in Canada.

Canada Gazette, Part I, consultation and cost-benefit analysis consultation

On June 17, 2017, the proposed Corded Window Coverings Regulations were published in the Canada Gazette, Part I. A link to the publication was posted on the Health Canada website. Direct emails were sent to approximately 18 000 subscribers to Health Canada’s Consumer Product Safety distribution list, including the 41 stakeholders who commented on the August 2015 Notice to Interested Parties. Health Canada also directly mailed a letter with a link to the consultation document to a targeted group of approximately 800 stakeholders which included manufacturer and retailer associations, injury prevention associations, consumer advocacy groups, mobility restricted community groups, health care professionals, government partners, retailers, manufacturers, importers, and product-testing laboratories. Interested parties were invited to provide comments on the proposal within 75 days.

Two English and two French webinars were hosted by Health Canada near the start of the consultation period. The webinars provided details on the technical requirements of the proposed Regulations, along with instructions for submitting comments.

Following the Canada Gazette, Part I, publication, new information became available to help further assess the incremental costs and benefits associated with the proposed Regulations. As a result, Health Canada revised the cost-benefit analysis for the proposal to account for this new information, as well as to address the key comments received from stakeholders during the initial Canada Gazette, Part I, consultation period concerning both costs and the fatality rate. The updated cost-benefit analysis included a revised methodology, a revised baseline scenario, and more detail on incremental costs. Given the extent of the changes from the cost-benefit analysis included in the Canada Gazette, Part I, publication, an additional public consultation for the updated cost-benefit analysis was held from August 22, 2018, to September 17, 2018. Feedback from stakeholders on the updated cost-benefit analysis is presented below.

Feedback from stakeholders

Responses from 241 stakeholders were received on the Canada Gazette, Part I, publication. Comments were received from manufacturers, component suppliers, distributors, installation service providers, retailers, interior decorating businesses, industry associations, non-governmental organizations, consumer advocacy groups, regulatory agencies, corded window covering industry workers and consumers. A consolidation of representative comments, and responses from Health Canada, was sent to these stakeholders in March 2018.

Responses from 21 stakeholders were received on the cost-benefit analysis consultation. Comments were received from manufacturers, retailers, industry associations, non-governmental organizations, and consumer advocacy groups.

The comments from the Canada Gazette, Part I, consultation and the subsequent cost-benefit analysis consultation fell under the following themes:

Concerns with the content of the Regulatory Impact Analysis Statement

Some manufacturers and an industry association expressed concern with the lack of a quantitative cost analysis and asserted that strangulation risks were overstated in the Regulatory Impact Analysis Statement, resulting in an incomplete and possibly misleading cost-benefit analysis. In response, Health Canada revised its cost-benefit analysis based upon newly available data which addressed stakeholder comments from the Canada Gazette, Part I, consultation, and held an additional targeted consultation on this updated, more quantitative cost-benefit analysis. Specifically, more detail on costs was included, and a revised fatality rate that considered only fatalities since the enactment of the CWCPR was factored into the benefits, lowering the fatality rate used for calculations from 1.3 (in the Canada Gazette, Part I) to 1.0. Informative comments and supporting evidence provided by stakeholders to the Canada Gazette, Part I, consultation and following the cost-benefit analysis consultation have been incorporated into the Regulatory Impact Analysis Statement for publication in the Canada Gazette, Part II.

Application of the Regulations

Comments were received from a variety of stakeholders including manufacturers, distributors, installers, and retailers who sought clarification about the scope of the Regulations. Questions focused on what types of products would be affected (whether products sold or installed in commercial settings would be subject to the requirements of the Regulations), and what activities are covered under the Regulations.

A number of comments sought clarification concerning whether the Regulations would apply to CWCs that were sold or installed in commercial settings such as hotels, schools, hospitals, office buildings, and other non-residential establishments. The Regulations are made under the authority of the CCPSA and apply to CWCs that are consumer products. The CCPSA defines “consumer product” as “a product, including its components, parts or accessories, that may reasonably be expected to be obtained by an individual to be used for non-commercial purposes, including for domestic, recreational and sports purposes, and includes its packaging.” Window coverings are considered consumer products based on whether they may reasonably be expected to be obtained by consumers, not whether the purchaser is “commercial” nor whether the location where they are installed is “commercial.” It is reasonable to conclude that almost all indoor CWCs are considered consumer products, and are therefore subject to the Regulations. The Regulations apply equally to all CWCs manufactured in and imported into Canada.

The CCPSA legislates manufacturing, importing, advertising, or selling of consumer products. The acts of owning, using, installing and repairing a CWC are not legislated under the CCPSA. There is no transfer of ownership that occurs with these activities, so the Regulations do not apply to owning, using, installing, or repairing a CWC. The Regulations will apply to homeowners and corporations if they sell (including give away) any used CWC, once the Regulations come into force.

A related comment about the regulatory process was received which suggested that a threshold for danger, linked to section 7 of the CCPSA, has not been met in order to enact Regulations under the CCPSA. This is a misunderstanding of the requirements and enabling authority of the CCPSA. The Regulations are made under the authority of the Governor General in Council, on the recommendation of the Minister of Health, pursuant to section 37 of the CCPSA.

Since the enabling CCPSA addresses the comments associated with this issue, no changes have been made to the Regulations for this item.

Technical feasibility of a 45 N pull force requirement

During public consultation and follow-up meetings with an industry association, Health Canada learned that there existed a misunderstanding about the application of the technical requirements. In particular, some industry stakeholders interpreted the requirements of the proposed Regulations to mean that no cord could exceed 22 cm in length, or create a loop greater than 44 cm in circumference, at any time. This is not accurate. There is no restriction on the length of cords or the size of loops that can be created if a force greater than the specified force of the Regulations is required to create a length of more than 22 cm or a loop greater than 44 cm in circumference, so long as the cord is less than 22 cm in length or 44 cm in circumference when the force is removed. Health Canada will provide guidance on the technical requirements and testing to help facilitate industry’s understanding of compliance with each requirement.

Further to this misunderstanding, the industry association stated that if the proposed Regulations became law, no existing product could be sold on the Canadian market as the requirements are not technically feasible. Comments received during the cost-benefit analysis consultation and follow-up meetings with representatives of the industry association clarified that this claim specifically related to the 45 N pull force requirement.

The objective of the pull force requirement is to protect young children from being able to create a strangulation hazard by specifying a pull force that a child cannot normally exert, while still allowing an adult of limited strength to operate the product. In the development of the pull force requirement for the proposed Regulations for the Canada Gazette, Part I, Health Canada assessed mean strength data for both young children and elderly females. Pinch-pull strength was selected to mimic the grasping of a blind cord tassel and pulling of an operating cord. Ring-pull strength was selected to mimic the grasping of an inner cord (hooking a finger around it) and pulling it out.

The pull force requirement of 45 N had been selected for the Canada Gazette, Part I, draft of the Regulations as it is a force greater than a child within the age range at risk is able to exert for both pinch-pull and ring-pull, while within the range that an elderly female can exert (so they can still operate the product). Moreover, this force requirement aligns with the established tension test (pull force) requirements of safety standards for toys intended for children of the same age range at risk to mimic the forces a child can exert.

The industry association suggested that the 22.2 N pull force used in the hazardous loop test procedure of the CWCPR and the new American voluntary standard is sufficient to address the risk of strangulation. However, these requirements allow for a loop with a circumference of 125 cm when the 22.2 N force is applied. This is insufficient both in terms of the permissible circumference, which can easily pass over the head of a young child, and the pull force, which a young child is capable of exerting.

To further assess the feasibility of the 45 N pull force requirement, Health Canada contracted a third-party firm to conduct functional testing that applied a range of specified pull forces to a variety of CWC designs of differing widths and materials from the Canadian market, and measured the peak forces required to operate the tested products. In addition, a literature review was conducted by the firm to evaluate the technical requirements of the Regulations relative to the various available window covering operating systems.

Fourteen different products were subjected to a constant pull force of 45 N and a constant pull force of 22 N. The results show that a constant force of 45 N is more than the force required to operate many products (such as those that are narrow width and/or made of lightweight materials). Eleven of the 14 products tested were fully raised before reaching the 45 N test force level. Thus, 45 N could be considered excessive for pull force testing of many products in the market today. However, 22 N is also too much force for many products with these characteristics. Eight of the 14 products tested were fully raised before reaching the 22 N test force level. That is to say, a critique of 45 N being not technically feasible, or beyond the operating constraints of some products, also applies to 22 N in many cases.

With respect to the peak force required to operate the tested products, 5 of the 14 products tested recorded a peak force greater than 45 N to fully operate the blind, suggesting that 45 N would be an adequate specification for pull force testing of some products. On the other hand, 5 of the 14 products tested recorded less than 22 N of peak force to fully operate the blind. Again, while 45 N may be excessive for pull force testing of some products, 22 N is similarly excessive for some products.

The results of this testing align with comments submitted by industry stakeholders: in general, the force to operate the product is directly proportional to the mass of the product being tested. Wide, heavy CWCs can require more than 45 N of force (significantly more in some cases), while narrow, lightweight CWCs can require less than 22 N of force. Comments from industry stakeholders state that smaller CWCs that do not require 45 N of pull force could be redesigned to add weight or frictional elements to achieve the higher force value, although at a cost to manufacturers and at a qualitative cost to users given that more strength would be required to operate the CWC.

Health Canada undertook further assessment of the pinch-pull strength data for both young children and elderly females, beyond the previous evaluation. Pinch-pull strength, which relates to the grasping and pulling of an operating cord, represents the majority of the strangulation risk posed by CWCs. A 45 N force represents the 99.9th percentile for young children and the 32nd percentile for elderly females. That is, virtually no children can exert this force, and approximately 68% of elderly females can. A 22 N force represents the 32nd percentile for young children and the 1st percentile for elderly females. That is, virtually all elderly females can exert this force, but so can 68% of young children. A 35 N force represents the 97th percentile for young children and the 8th percentile for elderly females. In other words, for the most hazardous scenario (pinch-pull strength relating to operating cords), 97% of children cannot exert a force of 35 N, while 92% of elderly females can exert a force of 35 N.

An additional anthropometric study provided by an industry stakeholder demonstrated that the exertion of pull forces is affected by the angle of pull, height of pull, and distance of pull. While the ideal posture in terms of the angle, height, and distance would allow 5th percentile adult females to exert a range of pull forces that far exceeds 45 N, this is reduced when the ideal posture is not possible (such as an obstructed operation). This pull force is reduced further for the elderly.

With consideration given to the comments provided by stakeholders, third party testing, further assessment of strength data, and an additional anthropometric study, Health Canada has revised the pull force requirement in the corresponding sections of the Regulations from 45 N to a specified pull force of 35 N. This force maintains the objective of protecting children as it is still beyond the force that almost any young child can exert, while being less onerous on adults with limited strength. A 35 N force is also less than the 45 N pull force requirement in the CWCPR for loop testing of inner cords.

Suggestions to improve or clarify the proposed regulatory text

Some manufacturers, consumer advocacy groups, an independent safety consultant, an industry association, and a regulatory agency submitted suggestions for the revision of the regulatory text in order to provide greater clarity to certain requirements.

Some of the suggestions for clarifying the regulatory text, such as those for labelling requirements and lead content testing, are adequately covered in the Regulations.

An industry association stated that it is unclear if the Regulations apply to cords at rest and, therefore, the regulatory text should be clarified so that it clearly indicates all stages of use. No changes were made to the regulatory text, as the requirements stipulate that a “reachable” cord is the part of the cord that any person can touch when the CWC has been installed, whether the CWC is fully opened, fully closed, or in any position in between. In conjunction with this assessment for “reachable” in all stages of use, the requirements for a reachable cord include the gradual application of a pull force attaining 35 N, that is, from 0 N (i.e. at rest) to 35 N. If a reachable cord is found at rest (i.e. 0 N) already exceeding 22 cm in length, it would be non-compliant. Thus, the scenario of cords at rest is already covered by the requirements of the Regulations.

An independent safety consultant and consumer advocacy groups suggested that the wording of the warning of section 15 in the proposed Regulations was confusing since it warned of a hazard that may not be present with a particular product. Furthermore, it was suggested that a warning label is not required for hazards that are addressed by performance requirements of the Regulations. Although the performance requirements of the Regulations are intended to help eliminate the strangulation hazard presented by CWCs, the hazard may present itself due to a manufacturing defect, unexpected product failure, product use or misuse, wear and tear, incorrect installation, or other unforeseen circumstances. A warning is an appropriate defence against these factors that cannot be covered by performance requirements. The warning of section 15 remains in the Regulations; however, the wording has been revised to be more general in nature and warns against the potential of a hazardous cord or loop becoming accessible, rather than implying that a hazard does in fact exist with the product. As in the original proposal, equivalent wording that conveys the same meaning is acceptable.

Clarification on technical requirements and test methods

Manufacturers and an industry association posed a number of questions about the technical requirements and test methods. Many questions concerned whether or not certain types of cords (inner cords, continuous operating loop cords, cords under tension) on certain types of products (roman shades, horizontal blinds, top-down bottom-up shades, cordless cellular shades) were subject to the requirements of the Regulations. Any indoor window covering that is equipped with at least one cord is subject to the requirements of the Regulations. Any “cord” (as that term is defined in the Regulations) is subject to the requirements for a cord in the Regulations — if a cord is not reachable (inaccessible), it is subject to section 4; if a cord is reachable, it is subject to sections 5, 6, 7, and 8. The definition of “cord” in section 1 has been revised in the Regulations to clarify that cords under tension are subject to the requirements.

Some manufacturers sought clarification on test methods and how to assess a CWC to the requirements of sections 5 through 8 for reachable cords. A window covering should be installed before determining if each cord is reachable (the part of the cord that any person can touch). For any reachable cord or loop, a gradual force from 0 N to 35 N is applied to a location on the cord. The resulting length of cord or circumference of loop must meet the applicable requirement. For greater clarity, there is no restriction to the length of cords or the size of loops that can be created if a force greater than 35 N is required to create a length of more than 22 cm or a loop greater than 44 cm in circumference, so long as the cord is less than 22 cm in length or 44 cm in circumference when the force is removed.

No test method has been specified in the Regulations, as the requirements are straightforward and only prohibit design concepts that would pose a risk of strangulation. It is the responsibility of the manufacturer, importer, advertiser, and seller of CWCs to assess their products and ensure that their product meets the requirements of the Regulations.

Urging harmonization with the new American voluntary standard

Many comments were received, primarily as a form letter (173 copies), from retailers, CWC industry workers, manufacturers, distributors, installers, small businesses, and industry associations urging Health Canada to harmonize with the new American voluntary standard rather than proceed with the Regulations. The comments focused on reducing the regulatory burden, avoiding barriers to trade, and a desire for stock product versus custom product segmentation.

Health Canada supports alignment of requirements where it does not compromise health or safety. As described in the “Issues” section on alignment with the new American voluntary standard, however, alignment with that standard means compliant products would then be permitted to pose a risk of strangulation. Furthermore, aligning with the new American voluntary standard runs the risk of violating technical barriers to trade commitments in international trade agreements.

The same strangulation risks are present in any product that has long accessible cords, whether it is stock or custom. Mitigation of these risks should be applied equally across all CWCs, regardless of how they are sold. The objective of the Regulations is to help eliminate the risk of strangulation from all CWCs.

The new American voluntary standard does not meet the expectations set out in the former Minister of Health’s announcement in October 2016, and is not suitable for use in Canadian regulation.

Majority of window covering products can be made cordless or have inaccessible or short cords

Many comments were received from manufacturers, distributors, factory workers, retailers, small businesses, and industry associations about the North American market’s transition to making the vast majority of products similar to those that would meet the requirements of the Regulations by the end of 2018. Comments were also received from some manufacturers stating the requirements of the Regulations were feasible and new, innovative safe window covering designs can be manufactured at comparable costs to current similar products.

On January 12, 2018, the WCMA announced the approval of the new American voluntary standard, and stated that “it is likely that more than 90% of products sold in the United States and Canada will be cordless or have inaccessible or short cords once the new safety standard is in place” which will be in December 2018. Even if this figure is an overestimate, by the time the Regulations come into force it is expected that a majority of products will already be made to specifications similar to the requirements of the Regulations.

Several major Canadian retailers have also made public commitments to phase out the sale of corded window coverings in 2018, demonstrating an increasing shift in the market to cordless window coverings.

A literature review conducted by a third-party firm contracted by Health Canada included a search of the University of Ottawa library catalogue, PubMED, Google Scholar, and the United States Patent and Trademark Office database. The review determined that approximately 18 categories of window coverings exist in the market. The review indicates that cordless window blinds, wanded blinds, cordless motorized blinds and blind alternatives such as shutters, privacy panels and curtains are readily available in myriad number of styles and materials. A robust review of existing patents shows at least 55 devices, methods or innovations exist that could make CWC cords inaccessible. Finally, a review of aftermarket products from a large online retailer shows several of these patents have working functional products that enable cords to be made inaccessible by various means.

Based on a shifting North American market, comments submitted by industry stakeholders, a review of available solutions, and further market research, and evidence gathered from the literature review, Health Canada has concluded that any window can be covered by a safe product, and that no exemptions are necessary.

Coming into force

A key issue raised by many stakeholders, including manufacturers, distributors, retailers, installers, and small businesses was the proposed coming-into-force period of 6 months. A number of comments indicated that meeting the requirements of the Regulations is achievable, but that complying within 6 months would be challenging for a variety of reasons. In response to the comments received during the Canada Gazette, Part I, consultation, Health Canada is providing a 24-month coming-into-force period.

While some manufacturers agreed that CWCs should not pose a strangulation hazard to young children, they requested more time to come up with solutions for certain design types. Small businesses requested a longer implementation timeframe to adapt to the changes imposed by the Regulations. A 24-month coming-into-force period will help to address industry concerns related to research and development.

Some comments were received from installers, manufacturers, retailers, and small businesses expressing concerns about not having sufficient lead time to be able to sell existing stock, leaving a significant percentage of stranded inventory that would be a complete loss if the Regulations come into force in 2019. Linked to the issue of stranded inventory are contractual obligations that would be adversely affected by a short coming-into-force period. A 24-month coming-into-force period will provide substantial time for businesses to sell existing stock, meet contractual obligations, and manage inventories.

Some comments were received from retailers that stated that a 6-month coming-into-force period would force them to increase prices to remain competitive. Manufacturers and retailers also commented on behalf of consumers that the Regulations would unduly restrict consumer choice, limit product offerings and availability, and increase prices to consumers. A 24-month coming-into-force period provides considerable time for the market to transition to new product offerings, a transition that is already well underway in the Canadian market, which will help to alleviate consumer concerns related to product availability and diversity of options. Although the Regulations are estimated to result in net costs that may be distributed among manufacturers, importers, retailers and consumers of window coverings, the initial impact of the Regulations will be lessened by a 24-month coming-into-force period.

Some comments were received from manufacturers and an industry association stating that the Regulations will increase the cost of production that is magnified by a 6-month coming-into-force period. A 24-month coming-into-force period provides significant time for manufacturers to manage manufacturing process changes, and find sources for the components of new operating systems for the products they assemble, and associated costs may be better managed with more time to adapt operations.

In conjunction with a market where a majority of products are already transitioning to requirements similar to the Regulations, industry concerns related to stranded inventories, contractual obligations, research and development, manufacturing process changes, potential cost changes, and impacts on partner industries for the remaining market segment can be better managed with a 24-month coming-into-force period. Furthermore, retailer and consumer concerns related to product availability, affordability, and diversity of product options can be alleviated as the market gains significant time to transition to new product offerings.

Limitations imposed by the Regulations: product design constraints and situational constraints

A number of comments were received from manufacturers and an industry association stating the requirements of the Regulations were impractical due to technological limitations, and not feasible for extremely large windows or hard-to-reach situations (e.g. obstructed windows or very high windows). Comments of this nature focused on current spring-assist operating systems that do not function effectively with very large or very heavy window coverings, or motorized systems that are cost prohibitive and unaffordable for many people.

While some comments imply that technical solutions do not currently exist for all types of CWCs, many safe alternative window coverings already exist in the current market and are available for all sizes of windows. A review of available window coverings commonly found at retail demonstrate that both corded and cordless, or other safer alternative window coverings, of various design types are often manufactured and sold in the same sizes, including very large window sizes. Furthermore, Health Canada received comments stating that new, innovative safe window covering designs — including with cords — can be manufactured to meet the objective of the Regulations in a practical and cost-effective manner.

Various affordable safer window covering alternatives and innovations are available that leave operating controls within reach of a user, without having long accessible cords that present a strangulation hazard. Health Canada has determined that no changes or exemptions are necessary to address these concerns.

Increased cost of the Regulations

Comments were received from manufacturers, retailers, and an industry association stating that costs imposed by complying with the requirements of the Regulations would be excessively high, and that the increased production costs would effectively be passed on to consumers as price increases. Wide-ranging estimates of costs to the Canadian CWC industry were submitted, with the most detailed analysis put forward by the WCMA estimating an undiscounted net cost to Canadians of $228 million per year, and a cost-benefit ratio of more than 15 to 1.

This analysis submitted during the Canada Gazette, Part I, consultation significantly over-estimates the costs imposed by the Regulations.

• This analysis disregards the changing landscape of the Canadian market, which the WCMA has stated will be 90% cordless, or have inaccessible or short cords, by the end of 2018. Even if this figure is overstated, by the time the Regulations come into force the incremental impacts of the Regulations would be expected to affect a minority of products sold in Canada. The incremental costs do not affect all manufactured and imported shipments in Canada.
• This analysis is based upon the total expenses of all blind and shade manufacturing activities for all products in Canada, which includes many expenses that are not incremental costs imposed by the Regulations. In addition to including costs for every manufactured and imported shipment in Canada, WCMA included in its estimate: transportation costs, energy costs, fuel costs, facility costs, indirect labour costs and other activities that are not incrementally affected by the Regulations. The Regulations do not impose changes on these activities and would be required whether or not the Regulations for window coverings in Canada were modified.
• This analysis incorporates an estimate of costs as a percentage of retail price (of a finished product). The Regulations do not affect all of the costs (all of the components) built into a finished product. While operating systems for some products must change in order to comply, many components are not affected by the Regulations: for example, window covering materials, fabrics, slats, mounting brackets, and other components may remain the same.

An accurate analysis of the costs imposed by the Regulations is the sum of the incremental costs to manufacture a compliant product. Health Canada’s updated cost-benefit analysis assesses the incremental costs to manufacture a compliant product, and includes costs for research and development, tooling, and the cost of lost profits from reduced demand. The incremental costs imposed by the Regulations are estimated to have a net present value of $145 million over a 20-year period. When annualized over the study period, the net present value amounts to a cost of $6.4 million per year.

Lost revenues, lost jobs

Many comments were received from distributors, manufacturers, retailers, component suppliers, small businesses, and factory workers expressing concern about the negative impacts of the Regulations on their business or their employment. Some manufacturers and distributors stated that Canadian businesses will have a competitive disadvantage to foreign companies who do not have to deal with the same rules, and will encounter potential trade barriers with the United States due to the differences in requirements. Loss of revenues and the potential for lost jobs were common themes among all types of businesses who submitted comments on this subject, stating that the majority of their sales were related to corded products and the Regulations will threaten the viability of their business, or their employment.

Like the CWCPR, the Regulations will continue to apply equally to both imported and domestic CWCs, so there is no competitive advantage or disadvantage for manufacturers based on whether they are domestic or foreign. Compliance and enforcement of the Regulations would follow Health Canada’s established approaches and procedures, including sampling and testing of products, inspection at retail, and follow-up on complaints made by the Canadian public and reporting by industry. Non-compliant products that are manufactured, imported, sold, or advertised in Canada (regardless of their origin) will be subject to the compliance and enforcement options available to Health Canada inspectors and other officials.

Safe alternative window coverings already exist in the current market and are available for all sizes of windows. Innovative safe window covering designs continue to emerge and can be manufactured at comparable costs to current similar products. Window coverings are a common product in Canadian homes, and are expected to remain so. It is expected that Canadians will shift their purchases to whichever products are available after the Regulations come into force. As stated by the WCMA on January 12, 2018, the North American market is already moving towards making 90% of products that adhere to specifications similar to the requirements of the Regulations by the end of 2018. Even if this figure is overstated, when combined with the public commitments of several major retailers to phasing out the sale of CWCs in 2018, by the time the Regulations come into force the impacts of the Regulations on employment are expected to be minor.

Economic studies (Taylor and Houthakker 2010) estimate that a 1% increase in the price of home goods, which includes CWCs, reduces consumer demand by 0.34%. Panchal (2016) estimates the increased manufacturing cost of safer alternative products for both domestic and overseas production by calculating the increase as a percent of retail price. The weighted average increase would be approximately 6.1% to the retail cost of window coverings. Assuming that manufacturers do not bear any of the cost increases themselves, thus passing on 100% of the cost increase directly to consumers, demand would fall by about 2.1%. A 2.1% reduction in sales has been estimated to result in annual lost profits valued at $2.66 million spread across the industry.

Taking all of these factors into consideration, including a 24-month coming-into-force period that will provide additional time for the market to transition to new product offerings, the overall impact of the Regulations on the remaining minority of the window covering market is lessened. Aside from a 24-month coming-into-force period, Health Canada has determined that no additional changes to the Regulations or exemptions are necessary to address these concerns.

Accessibility concerns for the elderly, persons with disabilities, persons of short stature

Comments were received from manufacturers, consumer advocacy groups, retailers, and small businesses on behalf of the elderly, persons with disabilities, and persons of short stature, stating the Regulations will make it impossible for these groups to operate their window coverings. Comments expressed concern about operating controls being out of reach, and associated concerns about fall injuries from climbing to gain access.

Accessibility and difficulty in operating CWCs are issues that already exist with many current products. Many current CWCs require wide arm motions to operate and cleats to secure long accessible cords up high; existing CWCs are not designed to address the challenges faced by disabled persons or people of short stature. Comments received directly from an organization representing little persons indicated that the key characteristics of CWCs for persons of short stature are affordability, operating mechanisms that are flexible with regard to accessibility, and operating controls that are within reach without the need to climb.

Many affordable safe window covering designs that leave operating controls within reach of a user, at heights similar to current products, without having long accessible cords that present a strangulation hazard already exist. In most cases, accessibility issues may be overcome by attaching a wand or cord shroud to the operating cord, eliminating dangling cords. In addition, innovative safe designs continue to emerge. While the Regulations may not immediately solve every accessibility issue that already exists with some current products, many design solutions avoid making things worse, and some may even make them better. Health Canada has determined that no additional changes to the Regulations or exemptions are necessary to address these concerns.

Risk management should focus on outreach and education

Comments were received from retailers and small businesses that stated outreach and education are adequately effective, or expanded outreach and education should be the primary risk management activity in addressing the strangulation hazard of CWCs. Conversely, comments received from consumer advocacy groups stated that providing legislative requirements for the manufacture of safe products is more effective than the failed attempts to change consumer behaviour.

Education measures alone do not eliminate the strangulation hazard associated with long accessible cords on CWCs. Relying upon safety devices that require additional installation and regular active consumer intervention, or attempts to change consumer behaviour to ensure that a product is always used safely, have not proven to adequately protect children in Canada and is not an effective safety measure. The objective of the Regulations is to specify requirements so that the product is inherently safer, shifting away from ineffective attempts at changing consumer interaction with this product category.

Outreach activities and education campaigns will continue to act as a complementary instrument used by Health Canada for raising awareness and helping to mitigate the risk from consumer products already in people’s homes.

Risk management should focus on safety devices and safe installation

Comments were received from installers, retailers, and small businesses that promoted safety devices and other safe installation practices as adequately protective measures. Respondents suggested that cord tension devices and cord release devices are acceptable compliance paths to address the strangulation hazard posed by long accessible cords and loops. In addition, a specified height-above-the-floor installation requirement was suggested as a method of ensuring cords would remain out of the reach of young children.

Many CWCs in the Canadian market today already come with safety devices such as cord cleats or tension devices, yet incidents continue to occur. Consumer intervention is required to install certain safety devices and incident data show that they are not always properly installed or used by consumers. In fact, it is a legislated requirement of the CWCPR that cord cleats be provided with CWCs with accessible operating cords, yet children have strangled on CWCPR-compliant products. A comment was also received from an installer that indicated developers, builders, and consumers often advise against the installation of safety devices, or simply choose not to have safety devices installed. Relying on regular active consumer intervention to ensure that a product is safe is not a reliable risk-mitigation measure. Rather, the objective of the Regulations is to specify requirements so that the product itself is inherently safer.

With regard to mandatory installation practices, the CCPSA applies to the acts of manufacturing, importing, advertising, and selling. The act of installing a CWC is not captured under the CCPSA or the Regulations.

To provide further clarification that cords under tension are captured by the Regulations and subject to the requirements, the definition of “cord” in section 1 has been revised.

Regulations are needed

Some comments were received from consumer advocacy groups and parents connected to a CWC tragedy or near-miss incident that supported the need for the Regulations. Comments focused on the ineffectiveness of standards that continue to allow the strangulation hazard to exist, the limited impact of past education efforts, the promotion of safe alternatives, and personal connections to the tragic deaths of young children.

The comments highlight the issues surrounding fatalities and injuries that occur with CWCs. When hazardous long cords are accessible, strangulation can occur quickly and quietly, even when efforts are made to keep cords out of reach and when caregivers are nearby.

The Regulations specify requirements to help eliminate the strangulation hazard from all CWCs so that the products themselves will be inherently safer without relying on installation, alteration, additional safety devices, or consumer behaviour.

Differences between the Regulations and the proposed version that was published in the Canada Gazette, Part I:

• 1. Revised the definition of “cord” in section 1 to clarify that cords under tension are subject to the requirements.
• 2. Revised the specified pull force for reachable cords in sections 5, 6, 7, and 8 from 45 N to 35 N.
• 3. Revised the suggested wording of the warning of section 15 to be more general in nature with respect to the hazard of strangulation, rather than implying that a hazard does in fact exist with the particular product that is labelled. As in the original proposal, equivalent wording is acceptable.
• 4. Revised the coming-into-force period stated in section 17 from 6 months to 24 months.

Regulatory cooperation

Health Canada and the U.S. CPSC have collaborated since the 1990s to improve the safety of CWCs, with efforts focused on outreach and education, product recalls, and the development of safety standards. Since 2009, the regulatory approach to CWCs has differed between Canada and the United States, with Canada having mandatory requirements for these products and the United States relying on a voluntary standard.

In 2012, a Pilot Alignment Initiative in which Canada participated with Australia, the United States, and the European Commission released a consensus statement on CWC safety. This statement indicated that the highest level of protection from the strangulation hazard associated with window coverings was the elimination of accessible cords that could form a hazardous loop under any conditions.

Health Canada supports regulatory cooperation to the extent that it does not compromise the health and safety of people in Canada. The new American voluntary standard does not eliminate the strangulation hazard associated with CWCs. Health Canada will continue to collaborate with the U.S. CPSC to help continue to improve the safety of this product category.

Rationale

Strangulation from CWCs is a preventable hazard that affects a vulnerable population. Despite more than 25 years of public education, active industry engagement, concerted attempts to improve the standard, and the introduction of the CWCPR in 2009, fatalities continue to occur at a rate of about one per year.

The Regulations adhere to the framework of Canada’s Food and Consumer Safety Action Plan, namely the concepts of active prevention and targeted oversight. The Regulations will enable Health Canada to take swift enforcement action to address non-compliant CWCs entering the Canadian market.

Although the Regulations will result in economic costs that may be distributed among manufacturers, importers, retailers and consumers of window coverings, these costs are considered justifiable to eliminate this hazard and help to prevent the deaths of young children.

Implementation, enforcement and service standards

The Regulations will not result in any major changes to Health Canada’s enforcement activities. The incremental financial and non-financial resources required for Health Canada to implement the Regulations are estimated to be extremely low; a compliance and enforcement program currently exists for CWCs and no additional government resources are anticipated.

Compliance and enforcement of the Regulations will follow Health Canada’s established approaches and procedures, including sampling and testing of products, inspection at retail, and follow-up on complaints made by the Canadian public and reporting by industry. Non-compliant products will be subject to the risk management instruments available to Health Canada inspectors and other officials, and would depend on the seriousness of the circumstances. These actions may include a voluntary commitment to product correction by industry, negotiation with industry for the voluntary removal of non-compliant products from the market, seizure, orders for recall or other measures, administrative monetary penalties, and prosecution under the CCPSA. Health Canada will also seek to maximize compliance with the Regulations through ongoing industry and retailer education, and maximize corded window covering safety through consumer outreach and education.

Contact

Scott Postma
Consumer Product Safety Directorate
Healthy Environments and Consumer Safety Branch
Health Canada
Address Locator: 4908B
269 Laurier Avenue West
Ottawa, Ontario
K1A 0K9
Fax: 613‑952‑2551
Email: scott.postma@canada.ca

References

D&R International Ltd. 2013. Residential Windows and Window Coverings: A Detailed View of the Installed Base and User Behavior. Prepared for the U.S. Department of Energy. Silver Spring, MD.

Industrial Economics, Incorporated 2017. “Assessment of Compliance Costs Associated with Proposed Corded Window Coverings Regulations.” Memorandum to Health Canada from Ann Czerwonka and Brian Morrison.

Motiv 2017. Technical Feasibility and Cost Improvement Analysis of Safer Window Covering Technologies. Prepared under contract for the Consumer Product Safety Commission.

Onders, B., Kim, E.H., Chounthirath, T., Hodges, N.L., and Smith, G.A. 2018. Pediatric Injuries Related to Window Blinds, Shades, and Cords. Pediatrics, 141(1). Originally published online December 11, 2017. http://pediatrics.aappublications.org/content/141/1/e20172359

Panchal, J.H. 2016. Manufacturing Cost Analysis: Cordless vs. Corded Window Covering Products. Prepared under subcontract to Industrial Economics, Incorporated for the Consumer Product Safety Commission.

Retail Industry Leaders Association 2016. Letter to U.S. Consumer Product Safety Commission. “RE: Current American National Standards Institute (ANSI) Process for Voluntary Safety Standards for Window Coverings”. December 16, 2016.

Statistics Canada. Canadian Industry Statistics for North American Industrial Classification System (NAICS) 33792 — Blind and Shade Manufacturing.

Statistics Canada. Focus on Geography Series, 2016 Census. Total population by Aboriginal identity and Registered or Treaty Indian status (Nunavut, Northwest Territories, Yukon) 2016 Census.

Statistics Canada. Labour Force Survey, Table 282-0070; Wages of employees by type of work, sex and age group, National Occupational Classification for Statistics. As cited by Treasury Board Secretariat Regulatory Cost Calculator (2012 Can$).

Taylor, L.D. and Houthakker, H.S. 2010. Consumer Demand in the United States: Prices, Income and Consumption Behaviour (3rd Ed.). Springer: New York, NY.

U.S. Consumer Product Safety Commission 2015. “Corded Window Coverings; Request for Comments and Information.” Federal Register, Vol. 80, No. 11, January 16, 2015. Docket No. CPSC–2013–0028.

Window Covering Manufacturers Association 2015a. Submission on the “Notice to interested parties — Risk of strangulation posed by corded window covering products”, Canada Gazette, Part I, Vol. 149, No. 31 — August 1, 2015.

Window Covering Manufacturers Association 2015b. Submission on the “Corded Window Coverings; Request for Comments and Information”, Federal Register, Vol. 80, No. 11, January 16, 2015. Docket No. CPSC–2013–0028.

Window Covering Manufacturers Association 2018. “New US Window Covering Safety Standard Opportunity for Canada/U.S. Regulatory Alignment.” Letter to the Minister of Health from Ralph Vasami, April 10, 2018.