$20 Million TSCA/Lead-Based Paint Penalty: Expensive Reminder to Manage and Audit Contractors Joint Regulatory Liabilities – JD Supra

Renovation of homes built before 1978 frequently disturbs lead-based paint (LBP) and poses significant health risks, particularly for children. For this reason, companies that perform or subcontract renovation services are required to provide very specific, written LBP warnings and education materials to residents. Failure to comply with these obligations can result in significant penalties for non-compliance. The U.S. Environmental Protection Agency (EPA) enforces these rules on all companies that perform renovations for compensation. This means that retail sellers of renovation products (e.g., windows or woodwork) can face EPA enforcement for noncompliance even where they subcontract installation to third parties.

On Dec. 17, U.S. EPA and the Department of Justice (DOJ) announced a nationwide settlement with Home Depot related to home renovations that occurred between 2013 and 2019. The settlement resolves alleged violations of the EPAs Lead Renovation, Repair, and Painting (RRP) Rule involving renovations performed by Home Depots contractors across the country on homes built before 1978. EPA identified hundreds of instances in which Home Depot failed to contract renovations or repairs with certified contractors, as well as instances in which Home Depot failed to establish, retain, or provide the required documentation to demonstrate compliance with the RRP Rule.

EPAs proposed settlement with Home Depot includes a $20.75 million penaltythe largest such penalty to-date under the Toxic Substances Control Act (TSCA).

Compliance Lessons

Companies in the construction industry and beyond can learn several significant lessons from the Home Depot violations, including the importance of:

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$20 Million TSCA/Lead-Based Paint Penalty: Expensive Reminder to Manage and Audit Contractors Joint Regulatory Liabilities - JD Supra