What do you do when you’re ready to phase out a manufacturer?
At some point, you may decide you no longer wish to use a manufacturer. When this happens, there are certain steps to take to assure the states that you are doing your due diligence in shutting down.
When you stop using that manufacturer, you are discontinuing the URN. All products labeled with that URN will no longer be licensed in the states you let lapse. Even products that were previously registered and licensed will no longer be considered valid. So, should a product your company sells still be on the shelves of a store when you cancel the URN, there is a chance you could receive a violation for not being registered.
Violations can range up to $720.00. We advise you keep certain states that are stricter in violations for a year, as well as the base license. This will help avoid hefty fines.
In addition, when using a service like ours, you’ll need to let the states know that you’re giving us permission to cancel the plant. You should supply a signed Letter of Non-Renewal from the manufacturer that they no longer wish to use the URN. Legal Label provides these letters to clients who need them when closing out. If not, states will expect the license is still in use and request renewals for the manufacturer. In some cases, it can lead to confusion with other registrations.
For information on what states you should keep licensed, contact us.