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10 Laws That Every Product Manager Should Know

Product managers play a critical role in developing and launching products that meet customer needs, generate revenue, and drive business growth. However, they must also navigate a complex legal landscape that includes a wide range of regulations and laws that impact product development, marketing, and sales. To succeed in their roles, product managers need to have a solid understanding of these laws and regulations, and how they affect their products and their companies. Although a product manager is not a lawyer, it is still beneficial for them to have a basic understanding of the relevant laws and regulations that affect their products. This knowledge can help the product manager identify potential legal issues and work more effectively with the company’s legal counsel to develop compliant products. That’s why we’ve put together 10 laws that every product manager should know.

In this article, we will discuss 10 laws that every product manager should know, including the Consumer Product Safety Act (CPSA), the Fair Packaging and Labeling Act (FPLA), the Federal Trade Commission (FTC) Act, the Children’s Online Privacy Protection Act (COPPA), the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), the Americans with Disabilities Act (ADA), the Patent Act, the Copyright Act, and the Lanham (Trademark) Act. By understanding these laws and regulations, product managers can protect their companies from legal liability, ensure product safety, and support business growth.

1. Children’s Online Privacy Protection Act (COPPA)

The Children’s Online Privacy Protection Act (COPPA) is one of the important laws that every product manager should know if their products collect personal information from children under the age of 13. This law regulates the online collection of personal information from children under the age of 13 and requires that websites and online services obtain verifiable parental consent before collecting personal information from children.

To illustrate how this act is applicable to product managers, imagine you’re a product manager overseeing the development of a new app that collects personal information from its users, including children under the age of 13. However, you’re not aware of the strict rules outlined in COPPA, which require obtaining parental consent before collecting this information. As a result, your company is investigated by the Federal Trade Commission for violating COPPA, and is slapped with hefty fines and penalties. You regret not taking the time to educate yourself about COPPA’s requirements, and realize that it could have saved your company from facing severe legal and financial consequences. We can help you avoid this scenario.

Key Aspects of the Children’s Online Privacy Protection Act for Product Managers

As a product manager, you’re in the best position to identify potential issues early on and connect with the right teams to ensure that the product is developed in compliance with COPPA. Here are some key aspects of COPPA that are relevant to product managers.

  • Notice and Consent Requirements: COPPA requires that websites and online services that collect personal information from children under the age of 13 obtain verifiable parental consent before collecting or using the information. Product managers should connect with the right teams to ensure that their products comply with the notice and consent requirements of COPPA.
  • Recordkeeping Requirements: COPPA requires that companies maintain records of their compliance with the law, including notices and consents received from parents.
  • Enforcement: COPPA is enforced by the Federal Trade Commission (FTC), which has the authority to investigate and bring enforcement actions against companies that violate the law.
  • Penalties for Non-Compliance: COPPA imposes significant penalties for non-compliance, including fines and injunctions.

2. Fair Packaging and Labeling Act (FPLA)

Of all the laws that every product manager should know, the Fair Packaging and Labeling Act is an important law to be familiar with. This law requires that all consumer products be labeled with accurate and informative labels, including the product name, manufacturer’s name and address, and net quantity of the contents.

To illustrate how this act is applicable to product managers, let’s say that you’re the product manager and you’re excited about launching a new food product. You’ve worked hard to ensure that it’s tasty, nutritious, and meets all the company’s standards. However, things start to take a turn for the worse when several customers with peanut allergies suffer severe allergic reactions after consuming the product. You’re perplexed because you had no idea that peanuts were an allergen, and you didn’t think to include it on the label. Unfortunately, you soon find out that your company has violated the FPLA’s labeling requirements, and now you’re worried about the fines and penalties that the company might face. If only you had known about the FPLA’s requirements for accurate and informative labeling, you could have prevented this disaster from happening.

Key Aspects of the Fair Packaging and Labeling Act for Product Managers

As a product manager, you’re in the best position to identify potential issues early on and connect with the right teams to ensure that the product is developed in compliance with the FPLA. Here are some key aspects of the FPLA that are relevant to product managers.

  • Labeling Requirements: The FPLA requires that all consumer products be labeled with accurate and informative labels, including the product name, manufacturer’s name and address, and net quantity of the contents. Product managers should connect with the right teams to ensure that their products comply with the FPLA labeling requirements.
  • Prohibition on Misleading Labeling: The FPLA prohibits the use of misleading labeling, such as false or misleading statements about the product’s contents or benefits.
  • Enforcement: The FPLA is enforced by the Food and Drug Administration (FDA) and the Federal Trade Commission (FTC), which has the authority to investigate and bring enforcement actions against companies that violate the FPLA.

3. Consumer Product Safety Act (CPSA)

The Consumer Product Safety Act (CPSA) is an important law that product managers should be familiar with, as it imposes a variety of requirements on manufacturers and importers of consumer products. This law requires manufacturers to report any potential safety hazards associated with their products to the Consumer Product Safety Commission (CPSC) and take corrective actions to address any identified hazards.

To illustrate how this act is applicable to product managers, let’s say that you’re the product manager responsible for overseeing the development of a new children’s toy. You’re thrilled because you know that this toy is going to bring joy to so many kids out there. But then, you hear the news that the toy contains lead paint, a hazardous substance that could be dangerous for children. You start to panic because you had no idea that there were safety requirements for testing and labeling, and you didn’t think to check for that. You’re devastated when you find out that several children have been injured or become ill after playing with the toy. To make matters worse, the company is being investigated by the Consumer Product Safety Commission (CPSC), and you’re worried sick about the fines and penalties that the company might face. If only you had known about the CPSA’s requirements for safety testing and labeling, you could have prevented this nightmare from happening.

Key Aspects of the Consumer Product Safety Act for Product Managers

As a product manager, you’re in the best position to identify potential issues early on and connect with the right teams to ensure that the product is developed in compliance with the CPSA. Here are some key aspects of the CPSA that are relevant to product managers.

  • Reporting Requirements: The CPSA requires manufacturers and importers of consumer products to report any potential safety hazards associated with their products to the Consumer Product Safety Commission (CPSC). Product managers should connect with the right teams to ensure that their companies comply with the reporting requirements and take corrective actions to address any identified hazards.
  • Prohibition on Sale: The CPSA prohibits the sale or distribution of products that are deemed to be hazardous or pose a risk to consumers.
  • Product Testing and Certification: The CPSA requires that certain products undergo testing and certification to ensure compliance with safety standards.
  • Recordkeeping Requirements: The CPSA requires manufacturers and importers to maintain records of testing, certification, and safety information for their products.
  • Penalties for Non-Compliance: The CPSA imposes significant penalties for non-compliance, including civil penalties, fines, and recalls.

4. Federal Trade Commission (FTC) Act

The Federal Trade Commission (FTC) Act is another one of the important laws that every product manager should know because it prohibits unfair or deceptive acts or practices in commerce. The unfair or deceptive acts or practices include false or misleading advertising.

Imagine you’re a product manager at a cosmetics company, and you’re thrilled about the new anti-aging cream that you’ve developed. You’re confident that it can help users look younger and more beautiful, and you’re excited to launch a marketing campaign to promote it. However, things start to take a turn for the worse when the FTC shows up at your company’s doorstep, investigating you for false or misleading advertising claims. You had no idea that the claims you made in your campaign about the cream eliminating wrinkles and making users look 10 years younger were unsupported by scientific studies or that the FDA hadn’t approved them. Now you’re worried about the fines, refunds, and product labeling modifications that your company might have to face. You feel embarrassed and frustrated because you could have avoided this if you had only known about the FTC’s requirements for advertising claims.

Key Aspects of the Federal Trade Commission Act for Product Managers

It is important for product managers to oversee products that comply with the FTC to avoid potential legal liability and protect their company’s reputation. Here are some key aspects of the FTC Act that are relevant to product managers.

  • Prohibition on Deceptive Advertising: The FTC Act prohibits false or misleading advertising, including claims that are not supported by scientific evidence or that misrepresent the benefits of the product. Product managers should connect with the right teams to ensure that their products’ advertising is truthful and not misleading.
  • Unfair Trade Practices: The FTC Act also prohibits unfair trade practices that harm consumers, such as charging hidden fees or engaging in deceptive billing practices.
  • Enforcement: The FTC has the authority to investigate and bring enforcement actions against companies that violate the FTC Act. Product managers must work closely with legal counsel to ensure compliance with the FTC Act to avoid potential legal liability.
  • Penalties for Non-Compliance: The FTC Act imposes significant penalties for non-compliance, including fines, injunctive relief, and consumer redress.

5. General Data Protection Regulation (GDPR)

The General Data Protection Regulation (GDPR) is another one of the important laws that every product manager should know if their products collect or process personal data of individuals in the European Union (EU). This law regulates the collection, use, and processing of personal data of individuals in the European Union (EU) and imposes significant fines for non-compliance.

Imagine you’re a product manager overseeing the development of a new mobile app that collects personal data from users in the European Union. However, you’re not aware of the General Data Protection Regulation (GDPR) requirements for obtaining user consent and processing data lawfully. You assume that because users willingly provide their information, it’s okay to use it as you see fit. But the data protection authorities don’t agree and launch an investigation into your company for violating the GDPR. Your company is fined a significant amount of money, and your reputation is damaged. You realize that if you had known about the GDPR’s requirements, you could have prevented this legal and financial nightmare.

Key Aspects of the General Data Protection Regulation for Product Managers

As a product manager, you’re in the best position to identify potential issues early on and connect with the right teams to ensure that the product is developed in compliance with the GDPR. Here are some key aspects of the GDPR that are relevant to product managers.

  • Lawful Basis for Processing: The GDPR requires that companies have a lawful basis for processing personal data, such as consent, legitimate interests, or contractual necessity. Product managers should connect with the right teams to ensure that their products have a lawful basis for processing personal data.
  • Data Subject Rights: The GDPR grants individuals certain rights with respect to their personal data, such as the right to access, rectify, and erase their data.
  • Data Protection Impact Assessments: The GDPR requires that companies conduct Data Protection Impact Assessments (DPIAs) for high-risk processing activities, such as processing sensitive personal data or monitoring individuals on a large scale.
  • Data Breach Notification: The GDPR requires that companies notify individuals and data protection authorities of data breaches that pose a risk to individuals’ rights and freedoms.
  • Data Protection Officer: The GDPR requires that companies appoint a Data Protection Officer (DPO) if they engage in certain types of processing activities. Product managers should work with the right teams to ensure that their companies have a DPO if required.
  • Penalties for Non-Compliance: The GDPR imposes significant penalties for non-compliance, including fines of a percentage of annual global revenue.

6. California Consumer Privacy Act (CCPA)

The California Consumer Privacy Act (CCPA) is another one of the important laws that every product manager should know if their products collect personal information from California residents. This law provides California residents with the right to know what personal information businesses collect about them and the right to have their personal information deleted upon request.

Imagine you’re a product manager overseeing the development of a new e-commerce platform that collects personal information from California residents. You’ve worked tirelessly to create a seamless user experience, but you’re not aware of the strict rules outlined in the CCPA. Your platform fails to provide notice to users about the personal information collected, how it is used, and the right to opt-out of the sale of their personal information. As a result, your company is investigated by the California Attorney General’s Office for violating the CCPA, and is slapped with hefty fines and penalties. You regret not taking the time to educate yourself about the CCPA’s requirements, and realize that it could have saved your company from facing severe legal and financial consequences. Let us help you avoid this.

Key Aspects of the California Consumer Privacy Act for Product Managers

As a product manager, you’re in the best position to identify potential issues early on and connect with the right teams to ensure that the product is developed in compliance with the CCPA. Here are some key aspects of the CCPA that are relevant to product managers.

  • Notice and Opt-Out Requirements: The CCPA requires that companies provide California residents with notice of the personal information they collect, how it is used, and the right to opt-out of the sale of their personal information. Product managers should connect with the right teams to ensure that their products comply with the notice and opt-out requirements of the CCPA.
  • Data Subject Rights: The CCPA grants California residents certain rights with respect to their personal information, such as the right to access, delete, and opt-out of the sale of their personal information.
  • Recordkeeping Requirements: The CCPA requires that companies maintain records of their compliance with the law, including notices and opt-out requests received from California residents.
  • Enforcement: The CCPA is enforced by the California Attorney General’s Office, which has the authority to investigate and bring enforcement actions against companies that violate the law.
  • Penalties for Non-Compliance: The CCPA imposes significant penalties for non-compliance, including fines and injunctions.

7. Americans with Disabilities Act (ADA)

The Americans with Disabilities Act (ADA) is another one of the important laws that every product manager should know if their products are intended for use by the public. This law requires that businesses make reasonable accommodations to ensure that their products and services are accessible to individuals with disabilities.

Imagine you’re a product manager overseeing the development of a new state-funded app that allows users to access their bank accounts. The app launches successfully but soon you start receiving complaints from customers who have visual impairments and are unable to use the app. You realize that the app is not accessible to individuals with disabilities, and you’re not aware of the ADA’s accessibility requirements. Your company is eventually investigated for violating the ADA and is hit with a hefty fine. Looking back, you regret not taking the time to educate yourself about the ADA’s requirements and realize that it could have saved your company from facing severe legal and financial consequences.

Key Aspects of the Americans with Disabilities Act for Product Managers

As a product manager, you’re in the best position to identify potential issues early on and connect with the right teams to ensure that the product is developed in compliance with the ADA. Here are some key aspects of the ADA that are relevant to product managers.

  • Accessibility Requirements: The ADA requires that public accommodations, including websites and mobile applications, be accessible to individuals with disabilities. Product managers should connect with the right teams to ensure that their products meet the accessibility requirements of the ADA, such as providing text equivalents for non-text content and using descriptive links.
  • Penalties for Non-Compliance: The ADA imposes significant penalties for non-compliance, including fines, injunctive relief, and damages to compensate individuals with disabilities for harm suffered as a result of non-compliance.

8. The Patent Act

The Patent Act of 1952 is another one of the important laws that every product manager should know if their company seeks to obtain, license, or enforce patents. This law provides legal protection for inventors and allows them to prevent others from making, using, or selling their invention without permission.

Imagine you are a product manager in charge of developing a new product that uses a patented technology, but you didn’t consult the legal team on time about obtaining the necessary licenses or permission from the patent holder. As a result, the patent holder sues your company for patent infringement, claiming that you’ve used their patented technology without their permission. Your company is found guilty of infringement and is required to pay significant damages to the patent holder, as well as cease production of the infringing product. You realize that if you had consulted with the legal team early on, they would have guided you on obtaining the necessary licenses or permission from the patent holder to avoid infringing their patent. This knowledge would have saved your company from significant legal and financial consequences.

Key Aspects of the Patent Act for Product Managers

As a product manager, you’re in the best position to identify potential issues early on and connect with the right teams to ensure that the product is developed in compliance with the Patent Act. Here are some key aspects of the Patent Act that are relevant to product managers.

  • Patent Licensing: The Patent Act allows patent holders to license their patents to others for a fee. Product managers should work with the right teams to ensure that their company has the necessary licenses to use patented technology in their products.
  • Patentable Subject Matter: The Patent Act sets forth the requirements for obtaining a patent, including the requirement that the invention be new, non-obvious, and useful.
  • Patent Infringement: The Patent Act provides remedies for patent infringement, including injunctive relief, damages, and attorney’s fees.

9. The Copyright Act

The Copyright Act of 1976 is another one of the important laws that every product manager should know if their products involve original works of authorship, such as software, graphics, and written materials. This law provides legal protection for original creative works, such as books, music, and software, and allows the owner of the copyright to prevent others from copying, distributing, or performing their work without permission.

Let’s say that you’re a product manager and you oversee the development of a new mobile application that uses copyrighted graphics and music, but you didn’t consult the legal team on time about obtaining proper licenses or permission from the owners. You’re not aware of the Copyright Act’s requirements for licensing and copyright infringement, and consequently don’t even know that you should contact the legal team. As a result, the owners sue your company for copyright infringement, and your company is found liable for infringement. The company is required to pay significant damages to the owners and cease production of the infringing product. If only you had known about the Copyright Act’s requirements, you could have prevented this from happening and saved the company from significant legal and financial consequences.

Key Aspects of the Copyright Act for Product Managers

As a product manager, you’re in the best position to identify potential issues early on and connect with the right teams to ensure that the product is developed in compliance with the Copyright Act. Here are some key aspects of the Copyright Act that are relevant to product managers.

  • Copyright Protection: The Copyright Act grants authors of original works of authorship exclusive rights to reproduce, distribute, and display their works, as well as to create derivative works based on their works. Product managers should connect with the right teams to ensure that their company respects the rights of copyright owners and does not infringe on existing copyrights.
  • Fair Use: The Copyright Act provides for a fair use exception, which allows limited use of copyrighted material without the permission of the copyright owner for certain purposes, such as criticism, comment, news reporting, teaching, scholarship, or research.
  • Copyright Infringement: The Copyright Act provides remedies for copyright infringement, including injunctive relief, damages, and attorney’s fees.
  • Digital Millennium Copyright Act (DMCA): The DMCA is an amendment to the Copyright Act that provides additional protections for copyright owners in the digital age, including a notice-and-takedown procedure for online service providers.
  • Registration: The Copyright Act allows copyright owners to register their works with the U.S. Copyright Office for additional legal protections.

10. The Lanham (Trademark) Act

Finally, the Lanham Act, also known as the Trademark Act of 1946, is another one of the important laws that every product manager should know if their products involve trademarks. This law provides legal protection for brand names, logos, and other identifying marks, and allows the owner of the trademark to prevent others from using their mark without permission.

Imagine you’re a product manager who oversees the development of a new line of health drinks that have a brand name that’s similar to a popular health drink brand. You didn’t know that using a similar name and logo could lead to confusion among consumers and violate the Lanham Act’s requirements for trademark infringement. You think it’s not a big deal until the popular health drink brand owner files a lawsuit against your company for trademark infringement. The court rules against your company, and you’re found liable for trademark infringement, resulting in significant damages and a court order to stop using the similar name and logo. Had you known about the Lanham Act’s requirements for trademark protection and infringement, you could have saved the company from facing such severe legal and financial consequences.

Key Aspects of the Lanham (Trademark) Act for Product Managers

As a product manager, you’re in the best position to identify potential issues early on and connect with the right teams to ensure that the product is developed in compliance with the Lanham Act. Here are some key aspects of the Lanham Act that are relevant to product managers.

  • Trademark Protection: The Lanham Act provides for the registration and protection of trademarks, which are words, phrases, symbols, or designs that identify and distinguish the source of goods or services. Product managers should connect with the right teams to ensure that their company does not infringe on trademarks.
  • Infringement: The Lanham Act provides remedies for trademark infringement, including injunctive relief, damages, and attorney’s fees.
  • Trademark Dilution: The Lanham Act also provides protection against trademark dilution, which is the unauthorized use of a famous trademark in a way that weakens its distinctiveness or reputation.

Conclusion

As a product manager, it is essential to have a solid understanding of the various laws and regulations that impact product development, marketing, and sales. The 10 laws that every product manager should know — the CPSA, FPLA, FTC Act, COPPA, GDPR, CCPA, ADA, Patent Act, Copyright Act, and Lanham Act — are just a few examples of the many legal requirements that product managers need to be aware of. By staying up-to-date with these laws and regulations, product managers can help their companies avoid legal and financial consequences, protect their customers, and build a better reputation in the market. So, don’t hesitate to consult with legal experts, educate yourself on relevant laws, and ensure that your products comply with all applicable legal requirements.

Have Legal Questions? Ask Justice

If you have questions about laws that affect product managers or laws that affect your personal life, you can ask us a question anonymously at our Ask Justice Column.