More than 5 million Joy/JM-branded My Little Steamers were affected, resulting in over 200 incidents, including 106 burn injuries — a true nightmare for any brand.

Compliance regulations are in place for a reason. These standards guarantee the quality of manufacturing and production for various brands and products, but above all, they keep your customers safe. Non-compliance, on the other hand, has significant repercussions. As in the case of the mini-steamers, the results can be severe, ranging from injuries to fines, lawsuits, product recalls, and boycotts.

Fortunately, there are proactive steps you can take to ensure your products meet compliance standards and avoid the dangers of non-compliance. This guide covers the what, why, and how of compliance testing — everything you need to implement effective compliance testing strategies across your products.

What is consumer product compliance testing?

Consumer product compliance testing is the process of evaluating a product to ensure it meets all regulatory standards and safety requirements before it’s sold to consumers.

For instance, a direct-to-consumer (DTC) brand that sells children’s toys must conduct compliance testing to verify its products are free of hazardous materials and meet safety standards like those set by the Consumer Product Safety Commission (CPSC) in the U.S.

Benefits of compliance testing for consumer brands

The benefits of compliance testing — and the risks involved in failing to test — have serious implications for a business’s “health” and future.

According to a study by Edelman, 81% of consumers say brand trust is essential before choosing to purchase. When customers confidently believe a brand will do what’s necessary to deliver safe, high-quality products, they’re more likely to remain loyal and advocate for the company.

Compliance testing helps DTC brands boost this consumer trust by meeting safety standards and maintaining product quality — all while avoiding costly recalls, legal issues, and customer dissatisfaction in the process.

Ensure product safety

Early detection of safety issues through compliance testing helps companies identify and address potential hazards before products reach the market. From chemical risks to mechanical failures, this process uncovers defining issues like faulty wiring in electronics, toxic substances in materials, or choking hazards in children’s toys.

Making the necessary modifications during the development phase is both more cost-effective than adjusting post-launch and shows that your company prioritizes the customer’s well-being.

Protect product quality

Evaluating products against industry-specific benchmarks signals whether the items will meet or even exceed standards for durability, performance, and reliability. Similar to product safety concerns, compliance tests can also surface design inconsistencies or material flaws before mass production, saving time and resources down the line.

These tests help brands deliver a consistent customer experience, reducing variability that can lead to disappointment or product returns. Plus, consistently high product quality differentiates brands from competitors, turning compliance testing into a strategic asset.

Meet all regulatory requirements

Products must meet all relevant laws and standards, from safety and environmental guidelines to proper labeling. Compliance testing involves proper evaluation and documentation to confirm that a product adheres to specific regulations set by governing bodies in various markets. This thorough process helps companies avoid legal repercussions and facilitates smoother entry into new regions.

Boost customer satisfaction and trust

Customers recognize which brands put safety and quality first, especially in high-stakes categories like food, edibles, or children’s toys. Brands that consistently prioritize safety standards not only keep their customers coming back but also benefit from word-of-mouth recommendations.

Avoid fines and lawsuits

While proper compliance testing ensures products are safe, high-quality, and up to regulatory standards, failing to test leads companies down a slippery slope with the same outcome — legal fines and lawsuits.

As with the benefits described above, companies can dodge the financial penalties that come with non-compliance by catching issues early. This also plays a critical role in reducing legal liability and building trust — safe and compliant products mean fewer lawsuits from customers.

Yet, non-compliance lawsuits are relatively common. Take Peloton’s 2021 treadmill recall, for example. A safety defect in its at-home treadmills led to multiple injuries and a death, resulting in a $19 million lawsuit that hurt Peleton’s brand and reputation.

In Peleton’s case and many other compliance-related lawsuits, more stringent testing could have flagged safety concerns before the product reached consumers and prevented grievous harm.

Types of compliance testing

Whether you’re creating new products or working with an existing one, efficient compliance is crucial. The type of testing needed depends on the stage of the manufacturing process and can be broadly categorized into four main types:

• Internal company testing
• Third-party testing mandated by law
• Obligatory compliance testing
• Voluntary testing

With the exception of voluntary testing, most compliance tests are not a choice. Failing to pass has a domino effect of consequences, including legal penalties, costly recalls, or being barred from entering the market altogether. In some cases, these compliance tests are also required to gain certifications to sell in specific markets.

Internal compliance testing

Internal compliance testing occurs throughout product development — from the design phase through final production — to ensure products meet specific quality and safety standards before being released.

Testing during the design phase helps brands catch flawed concepts or materials before they’re too far in the production process to pivot. As the product moves through development, additional rounds of testing can specify whether further adjustments are needed to meet the required standards.

Following this strategy, products will have undergone multiple checks by the time they hit the market, significantly lowering the chance of encountering unforeseen issues post-launch.

Externally or legally mandated compliance testing

Externally mandated compliance testing ensures products meet the legal and regulatory standards required by government agencies or industry bodies. These tests are conducted independently by accredited third-party laboratories to verify products meet safety, environmental, or performance regulations before brands enter regulated markets.

A key outcome of third-party testing is the ability to earn certification marks, such as the CE mark in Europe or the UL mark in the United States. These certifications aren’t just nice to have — they’re often necessary for legal sale in certain markets. They signal to both regulators and consumers that the product has passed proper testing and meets high standards of safety and quality.

Obligatory or mandatory compliance testing

Mandatory compliance testing is a legal requirement for product categories, including electronics and medical devices, to confirm whether products meet the minimum safety and performance standards set by regulatory authorities.

As the name suggests, these tests are not optional. Brands must pass to legally bring their products to market.

Voluntary compliance testing

Voluntary compliance testing goes beyond meeting basic regulatory requirements — it’s about pushing for higher quality and safety standards. Companies may choose to conduct these tests to differentiate themselves with additional eco-label certifications or safety endorsements to appeal to specific audiences.

How to perform compliance testing

Taking a systematic approach to compliance testing is key to meeting all necessary regulations and industry standards. The process involves several steps to swiftly identify, evaluate, and address compliance issues before a product hits the shelves.

Step 1: Hiring external auditors

Start by selecting accredited auditors with deep expertise in your industry early on. Experienced auditors guide your compliance efforts and bring a wealth of knowledge on specific regulations and standards, helping your product undergo the right tests from the jump and avoid costly mistakes later on.

When setting up the audit, define clear objectives. Determine the scope based on the relevant standards and regulations your product needs to meet.

Step 2: Run a compliance assessment

Compliance assessments give you a clear understanding of where your product is in relation to regulatory requirements.

Start by identifying all relevant regulations that apply to your product. This involves a thorough review of existing documentation and processes to determine how well they align with each regulation as is.

The next crucial step? Document your findings in a detailed report. This report should outline your current compliance status, highlight any areas of concern, and provide a foundation for effectively addressing these issues.

Step 3: Perform gap analysis

A gap analysis pinpoints where your product or processes fall short of meeting specific standards.

Begin by identifying specific compliance gaps that could pose risks. Then, analyze the root causes to understand why these issues exist and the key to fixing them. After identifying and analyzing these gaps, prioritize the fixes based on their potential impact on compliance and safety. Focusing on the most critical areas first helps minimize risks and ensures timely compliance.

Step 4: Execute risk assessments

Assess the potential impact of each gap in your product’s safety and marketability to create an action plan for what needs to be tested, testing timelines, and required resources. Prioritize the gaps based on their risk level, addressing the most significant ones first to meet all regulatory standards efficiently.

Step 5: Review your results

Once you’ve executed your action plan, review the results to determine whether your compliance goals have been met. If the product passes all tests, you can then seek the relevant certifications required for legal sale in certain markets.

Step 6: Implement improvement actions

Even after the initial compliance tests, further improvements may be needed to achieve full compliance. Address remaining issues by implementing necessary changes to your product or processes — this might involve updating manufacturing practices or making operational adjustments to prevent future non-compliance.

Our suggestion? Document all changes and improvements for future reference. It will come in handy in your ongoing compliance efforts.

Step 7: Continue to monitor compliance

Compliance doesn’t end once your product is on the market.

Continuous monitoring and reporting are essential to ongoing compliance, especially as regulations change, but regular assessments and updated documentation will help catch new compliance issues before they spiral beyond control. Stay informed about regulatory updates and adjust your products and processes as needed.

Real-world product compliance testing: Emulait

Emulait faced significant challenges as it prepared to launch its biomimetic baby bottles across multiple European markets. The complex web of compliance regulations in different countries was a major hurdle, compounded by language barriers and the detailed requirements of each market. Initially, Emulait managed compliance internally, but this approach quickly became overwhelming, risking potential delays and errors.

To overcome these challenges, Emulait partnered with Factored Quality (FQ) to manage lab communications, sample shipments, and follow-ups, significantly reducing the company’s administrative burden. FQ ensured Emulait’s products met all necessary regulatory standards without the usual headaches, saving both time and money.

As a result, Emulait avoided testing errors and saved tens of thousands of dollars in administrative expenses. FQ’s efficiency and expertise allowed Emulait the freedom to focus on developing new products and exploring additional markets.

Non-compliance impacts your business’s bottom line, but Factored Quality can help

Non-compliance with regulatory standards can lead to fines, product recalls, and loss of customer trust — like in the case of the Joy/JM-branded My Little Steamer®, which led to a $16 million penalty and significant reputational damage.

But compliance isn’t just a legal requirement, it’s an investment in your brand’s safety, trust, and longevity.

That’s where Factored Quality comes into play. With its comprehensive compliance solution, including access to experienced inspectors, streamlined operations, and tailored support, FQ protects your brand’s reputation and financial health by meeting all necessary standards.

Here’s a glimpse of what you get with Factored Quality:

• Global Quality Inspectors: Access FQ’s network of 2,000+ vetted product inspectors and auditors worldwide.
• Streamlined QC Operations: Centralize all inspection data, reports, and analytics on FQ’s platform for easy access and management.
• Expert Guidance: Benefit from FQ’s decades of experience in product quality and supply chain compliance for market expansion.

Want to know how Factored Quality makes product compliance easier for brands across industries? Book a time to speak with our experts today.