CPSIA – I am Appearing on Fox Business Today

I am going to be interviewed by Fox Business today from our offices several times.  The anticipated times (CST) are 11:50 AM, 12:15 PM (viewable on live.foxnews.com), 12:47 PM (teaser), 12:53 PM and 3:55 PM-ish.  As noted, times are subject to change.  The 12:15 PM interview can be seen online.

See original article:
CPSIA – I am Appearing on Fox Business Today

CPSIA – Personal Injury Lawyers Say CPSIA Database is a "Success" – Any Questions?

News Flash :  Personal Injury Law Firm Beasley Allen P.A. announced the revelation that the CPSIA Database is a success but is still under attack.  Hmmm. For those of you unfamiliar with this authoritative news source, Beasley Allen is a Montgomery, Alabama tort law firm that boasts on its website of a “$150,000,000 verdict in a personal injury case”.  No doubt they are impartial in their views on the database.  Their web address is http://www.southerninjurylawyer.com/ .  To bolster their case in favor of the database, they trot out the informative results of Henry Waxman’s “analysis” of the database released on July 7th .  [Mr. Waxman did not make his data available so his analysis has gone unchallenged.  The only way to review it is to recreate it.  Take it for what it's worth.]  Beasley Allen also cites the musings of Don Mays at Consumer Reports (he is the one who cautioned against his fourth grade daughter playing a brass instrument – don’t worry, she plays the violin!), completing the rogues gallery. Among the asserted benefits of the database, aside from website visits by other personal injury lawyers trolling for tort cases to file, Beasley Allen contends that “[s]ome manufacturers had even found the database helpful to them in identifying potential hazards in their products and addressing them as needed.”  Aha. There is an evil side to this controversy, naturally:  “Still, a powerful anti-consumer lobby wants the database shut down , and it is using politics to achieve that. While the database costs the CPSC $3 million to maintain – a bargain price considering its usefulness and its power to help make consumer products safer – it is on the chopping block again in current budget and debt-ceiling negotiations.” [Emphasis added] Oh, yes, the well-known and powerful “ANTI-CONSUMER LOBBY”!  Have you ever met someone who was not a consumer?  Are the people who never consume anything or don’t have relatives or family members?  Or are they people who don’t want consumers to buy their products?  Oh them!  Or perhaps they are people on who oppose personal injury lawyers.  Just a thought. . . . The Southern Injury Lawyers conclude:  “Opponents of the new database said that the database could be easily abused and filled with false information. However, analyses have found no signs of malicious activity on the database and Consumer Reports says it has not seen any evidence that the database has been harmful to businesses.” So says the lawyers with the $150 million dollar tort lawsuit.  Seems definitive to me. What could the problem possibly be???

View article:
CPSIA – Personal Injury Lawyers Say CPSIA Database is a "Success" – Any Questions?

CPSIA – Hypocrisy on Display

CPSC Chairman Inez Tenenbaum was home in South Carolina last week and made an appearance to commemorate a new State ATV safety law known as ” Chandler’s Law “.  This law is supported, even encouraged, by the ATV industry.  Notes Paul Vitrano of the SVIA, “Chandler’s Law is a major step in the right direction. It’s something to be celebrated and we extend sincere thanks to everyone involved in its enactment. But there’s much more work to be done in South Carolina and all over America. ATVs are safe when used properly, but they are not toys. No responsible parent would hand the keys to the family car over to their child and send them on their way.” [Emphasis added] ATVs are not toys.  But ATVs are regulated by the CPSIA as though they are toys.  Notably, as a consequence of the CPSIA, access to youth-model ATVs has been all but eliminated .  Incredibly, there is still NOT ONE test lab certified by the CPSC to test ATVs for compliance either.  Testimony to this effect was given at the February 16th CPSC hearing at which I appeared.  Jay Howell of the CPSC acknowledged that the expense of testing ATVs cannot apparently be recovered by labs because there are so few youth model ATVs left on the market.  No lab wants to invest for testing at a loss.  The market speaks?  The absence of youth model ATVs from the market also means that they are not being rented out.  Rental and sales are the same thing under the CPSIA.  They’re gone. Interestingly, Chandler’s Law prohibits children under 16 from riding adult-sized ATVs.   If you can connect even two dots, you will realize that this is a tacit ban on children riding ATVs.  Period.  This is the secret agenda of the consumer group zealots like the former AAP majordomo Cindy Pelligrini as she admitted at a meeting of stakeholders with the House Energy and Commerce Committee staff on January 6, 2011.   So in other words, the consumer groups have a political agenda that they cannot accomplish via direct legislation – taking away ATVs from your kids, even using youth model ATVs developed at the request of the CPSC.  ATV riding is too popular regionally for a ban to ever pass Congress - so the consumer groups obtained their objective under the cover of darkness with the CPSIA and sympathetic Dem plants on the CPSC Commission.  And here’s the hypocrisy of Ms. Tenenbaum on public display.   Appearing to herald the restrictions on youth access to adult-sized ATVs, Ms. Tenenbaum does not mention that she is ALSO responsible for the removal of youth-model ATVs from the market and that Chandler’s Law essentially implements a ban on ATV use by children under 16 years of age in South Carolina.  Had she admitted it, the publicity storm would have been bad for South Carolina legislators and Dems all over the country.  She’ll never breathe a word. Not unlike the rest of the CPSIA mess, the reality is kept beneath a cloak, out of sight.  You will only notice, if you ever do, when you go to the store and try to buy something wonderful that you have used safely in the past . . . and it’s gone.  Where did it go?  The self-appointed ” fun suckers ” have been there first.  Youth model ATVs – they’re against them.  Trampolines, backyard pools, fireworks, rhinestones, brass instruments  - all too “dangerous” for you to be allowed to use.  They know what’s best, and you should be thankful. It’s our country but they’re running it.  When are you going to do something about it?  After three years, you don’t have much time left to figure it out.

See the article here:
CPSIA – Hypocrisy on Display

CPSIA – Oversight Hearing Set for July 6th

The House Energy and Commerce Committee is holding an oversight hearing on July 6th entitled ” The Views of the Independent Agencies on Regulatory Reform ” featuring CPSC Commissioners Bob Adler and Anne Northup.  Other agencies will also be questioned (FCC, FERC and FTC).  Break out the popcorn!

Read More:
CPSIA – Oversight Hearing Set for July 6th

CPSIA – Lies and the Lying Liars Who Tell Them

We live in interesting times.  There has been no action by Congress to deal with the CPSIA since its controversial passage in August 2008 despite consistent and loud hue and cry.  Right now, Dems are blocking progress.  Apparently, they think the biggest threat to America is ANY change to the CPSIA. Our markets, our jobs, our livelihoods will be a necessary sacrifice to . . . what?  Reelection. During this crisis of thousands of businesses catering to children, a Democrat on the House Committee on Energy and Commerce, the committee charged with managing the CPSIA mess, has been emailing photos of his you-know-what to women and girls all over America.  One of Anthony Weiner’s email correspondents was reportedly voted ” Most likely to be involved in a tabloid scandal ” by her high school class (she’s only 21, it wasn’t long ago).  I think you get the (sordid) picture.  Mr. Weiner has been of no use on the CPSIA, riding the high horse “protecting children” with his Dem brethren, at the VERY SAME TIME he was using the Internet for interactions that are, at a minimum, pretty creepy.  So Weiner is against letting even a notch out on the CPSIA belt around our necks, too unsafe . . . but he thinks it’s okay to creep around on the Internet, shooting pics of himself in the Congressional locker room and sending them out to his female Internet pals ( one of whom was a porn star ).  Hypocrisy?  How can that be, the Dems are cloaked in white, right??? Mr. Weiner remains perplexingly in office.  As Chairman of the Republican National Committee Reince Priebus noted on Meet the Press : ” What we called for is for Nancy Pelosi and the Democratic leaders in this country to do what every American knew had to be done immediately and call for his resignation. Now, it seemed to me that for the first 10 days in this circus that the only job [in America] that Nancy Pelosi was interested in saving was Anthony Weiner’s . We’ve got crushing unemployment in this country, we’ve got a president that’s, that’s whistling past the graveyard, we’ve got families that are struggling, and instead we’ve got leadership in a Democratic Party that are defending a guy that deserves no defense .”  [Emphasis added] And back at the ranch, the CPSIA Amendment (ECADA) is stalled.  Why?  Consider the May 25th words of Rep. Henry Waxman, Ranking Member on the Energy and Commerce Committee and principal roadblock to relief: ” But instead of refining a good law, the Republican bill goes after the law with a wrecking ball . The result is an assault on children’s safety.  The Republicans call their bill the ‘Enhancing CPSC Authority and Discretion Act.’ A better name is the ‘Unsafe Toy Act.’ “  [Emphasis added] That’s right – the Dem leader is calling the work of the Republican majority the “Unsafe Toy Act”.  Hmmm.  Please NOTE that the General Counsel of this committee (Gib Mullen) is the former General Counsel of the CPSC and its former Director of Compliance.  Is the implication that this former Kirkland & Ellis partner is a “hack”, lacking principle and integrity and is simply doing as he is told by Republican overlords who don’t care about children’s safety?  Please, if you believe that, I have a bridge to sell you. The label “Unsafe Toy Act” is an insult and a lie in so many ways.  First of all, it isn’t true.  As I have discussed extensively in this space, ECADA is a surgical revision to the CPSIA, designed to fine tune the law without restructuring it.  Reporters have called me to ask what the big deal is.  Good question but the answer is obvious.  No rational person subject to the laws of the United States or residing here would want to make toys, or any children’s product, “unsafe”.  If you insist that they would, Mr. Waxman, PROVE IT.  Oh yeah, you don’t do that, do you? Second, Mr. Waxman impugns the dignity and integrity of anyone who would dare support ECADA.  That includes me since for more than 20 years my career has been devoted to making educational products (with perhaps the best safety record in the entire children’s product industry).  Mr. Waxman’s label plainly announces to the general public that I favor poisoning kids to make more money.  That is rather offensive, to say the least.  Members of the House of Representatives are permitted to speak their minds, through and including libelous remarks, while on the House floor.  They literally can say ANYTHING with impunity – I can’t sue them for this slander.  As such, there is no recourse for this slander. This unfortunate label is at the heart of what the Dems are after – political advantage.  Those of you who periodically pepper me with defenses of good Democrats fail to recognize the consistent pattern of obstruction and failure to act reasonably among the small group (cabal) of Dems and associated consumer groups behind this roadblock.  The pattern of lies is all for political effect.  Can you imagine the reelection commercials?  Good for the Dems, bad for anyone who disagrees with them.   The threat even applies to Dems who might have a conscience and be willing to stand up to the demagogues – the consumer groups are ready to attack them, too.  Everyone knows it, no one wants to say it. Mr. Waxman trots out the usual lies and misstatements, relying on the trick of portraying this law as a “toy law”: ” The Unsafe Toy Act triples the amount of lead allowed in most children’s toys. For some children’s products, the bill would allow lead levels to increase 100 times or more.  The bill eviscerates the requirement that toys imported from China be independently tested for safety. . . . Just listen to what the experts are saying about this bill. The Consumer Federation of America says that the bill creates ‘huge loopholes.’ Consumers Union says it will ‘lower standards and roll back safeguards for children and infants.’  The American Academy of Pediatrics and 100 other experts in children’s health wrote to express their ‘deep concern’ over the bill because it ‘would have the effect of permitting more lead in toys.’  Chairman Inez Tenenbaum of the Consumer Product Safety Commission and a majority of the Commission wrote that the bill ‘would effectively revoke key protections … and fails to adequately protect the health and safety of American children.’ ” I have rebutted the consumer group ”arguments” numerous times in this space already. I am not going to repeat myself here.  Mr. Waxman’s reference to “triple” lead levels refers to a new limitation on the excessive and useless 100 ppm lead standard that, btw, has never been deemed technologically feasible by the CPSC.  The “change” to lead levels of 100 times or more than existing standards refers to the rule exempting metal alloys (like brass) complying with the stay authorized by the CPSC Commission.  OMG, you mean we can still use brass in children’s products like pens and trumpets?  The HORROR! Neither the consumer groups nor Mr. Waxman and his Dem brethren have answered my question – Where are the victims?   This question was asked several times in the April 7th hearing by members of the committee.  To date, no one has supplied even one case history. No one calls Mr. Waxman to account for his lies and innuendos, so he persists in trashing those who can’t defend themselves.  This is not unlike his unjustified attacks on Toyota that were later proven FALSE .  Mr. Waxman did something similar at the April 7th hearing first discussing the CPSIA Amendment.  In his opening statement , Mr. Waxman laid it on thick:  ” But your discussion draft, which is the subject of today’s hearing, takes a wrecking ball to the law and would endanger young children. . . . Your discussion draft is a very different document. Democrats, consumer groups, and health experts were not consulted. The result is a one-sided proposal that provides relief to industry, but sacrifices children’s health and safety. . . . I have learned over the last few months that there seems to be no limit to the ability of the new Republican majority to pass bad legislation in this Committee and on the House floor. I have no doubt that if you want to do so, you could do so again with your draft bill.  But there is no chance that a bill this extreme could ever become law. It would not survive in the Senate and if it did, it would be vetoed by the President . ” [Emphasis added] It’s always nice to end with a threat. The title of this post refers to a lampoon written by now Senator Al Franken (D-MN).  In this book , he contends that Republicans are liars.  Well, well, well, how times change, huh?  Mr. Franken???  Any comment? I didn’t think so.

Read More:
CPSIA – Lies and the Lying Liars Who Tell Them

CPSIA – ECADA Manager’s Amendment

Here is the Manager’s amendment to the CPSIA Amendment (ECADA).  [Essentially changes offered by Mary Bono Mack.] The changes apparently include changes in lead in jewelry (age limits), removal of testing requirement for inaccessible components for phthalates, removing toys from outdoor recreational products and adding “class of products” to functional purpose exclusion process.

Read More:
CPSIA – ECADA Manager’s Amendment

CPSIA – Treatment of Resale Shops and Garage Sales under CPSIA Amendment

A comment was posted recemtly here questioning whether ECADA (CPSIA amendment) truly liberates the resale industry from the CPSIA. In my opinion, it does. I have also conferred with the authors of ECADA for their intentions, and they confirm that resale shops are intended to be exempted under the new language. The authors point to this language: “obtained by the seller, either directly or indirectly, from a person who obtained such children’s product for use and not for the purpose of resale”. This language should give true resale activities, whether in a shop, in your garage, even on eBay, an exemption from all the requirements of CPSIA. What they didn’t exempt is sales by liquidators. In other words, they did not intend to open a loophole in the protections (purported protections) offered to consumers under the CPSIA allowing mass liquidation of potentially violative products Otherwise, real resale activities are exempt. There are some limited exceptions in ECADA to the resale exemption notably. Thanks for posting this question. I hope this helps clear up any infusion.

See the article here:
CPSIA – Treatment of Resale Shops and Garage Sales under CPSIA Amendment

CPSIA – Status of CPSIA Amendment

On Thursday this past week, the pending CPSIA amendment, known by its acronym ECADA, passed out of House subcommittee by voice vote. The Democrats did not offer substantive amendments at this time. There were two technical amendments adopted (see here and here ). i will post the comformed amendment as soon as I get a link for you. The debate over the amendment was lively and rancorous, I am told. As usual, there were hyperbolic accusations by desperate consumer groups whho will do just about anything to prevent rationality from interposing itself in this debate. Their Congressional allies, like Schakowsky and Waaxman, were right in there duking it out. That notwithstanding, Mr. Waxman admitted the law needed to be changed, and pledged to work with the majority party to fix the CPSIA. The significance of the voice vote is that he has not gone on record on the amendment. A poker game is underway. The next step is a mark-up by the full committee in ten days or so. The goal of the Republicans is to produce a bill that can pass through the Senate. There are at least two Senators who stand by for the consumer groups, Rockefeller (D-WV) and Pryor (D-AR) who are standing in the way. If, nowever, Mr. Waxman gets on board, it is anticipated that the bill has a chance to go forward into law. Time will tell. If you live in West Virginia or Arkansas, you know what you have to do. Call your Senator!

Continue Reading:
CPSIA – Status of CPSIA Amendment

CPSIA – New York Times Pleads for the Database

Leftist newspaper The New York Times published a passionate call for implementation of the database today. Perhaps they just have the same malady that my wife accuses me of, namely “selective hearing”. Selective hearing is a scourge!

Says the NYT: “The new Republican-led House seems determined to roll back those protections. As part of their slash-and-burn continuing resolution, they cut all the financing — some $3 million this year — for a core provision of the safety bill: a database where consumers could report product hazards and the public could check products before buying them.”

They carry on to sniff: “Arguments against all of these provisions are part of a standard antiregulation litany. Businesses warn that the hazard database would open the door to bogus charges and lawsuits. They claim that third-party testing of children’s products is proving to be too costly and that some should not be tested at all for things like lead because children are unlikely to eat them. The concern about frivolous lawsuits is a predictable canard.”

It’s a “canard”, guys. How dare you!

Wouldn’t it be great if the Times actually listened. Instead, they are just a mouthpiece for the neurotics: “And there is a lot of lead out there. Since the new law has passed, the Consumer Product Safety Commission has issued 26 recalls because of lead paint in toys . . . . The recall in 2007 of millions of hazardous children’s products imported from China proved that a gutted safety commission couldn’t do its job. Why would anyone want to make that same mistake again?”

Throwing us a bone, the Times allows that it might be okay to change the law . . . a little bit: “Some provisions of the safety law could be tweaked. For instance, there may be ways to help the smallest of toy makers gain access to low-cost lead testing. There might be a way to exempt products from testing if they very clearly do not pose a lead-related hazard.”

This kind of reporting or opining from the Times makes it clear that the “war” is not nearly over. There are still substantial pockets of misinformation, and sadly, the politicized atmosphere surrounding the issue of “safety” remains profound. For a shrinking industry like newspapers, there is little choice but to find or create issues that sell papers. I don’t think the Times feels its franchise will be served by noting that things are better or assuring people that the manufacturers are making legitimate criticisms pf this cherished law. Who needs a paper to tell us we’re okay?

The beat goes on.

Read more here:
CPSIA – New York Times Pleads for the Database

CPSIA – Unpublished Article Highlights CPSIA Benefits Felt by Testing Companies

Intertek Presses Toy Rules as U.S. Scrutiny Aids Testing Firms

2011-02-02 05:00:02.1 GMT

By Mark Drajem

Feb. 2 (Bloomberg) — When the U.S. Consumer Product Safety Commission last May proposed rules on how toymakers must test their products, Toys R Us Inc., Lego A/S and retail groups urged
the regulators to ease off.

One company took a different tack.

London-based Intertek Group Plc, the world’s largest consumer-goods testing company, argued that the rules should be expanded to require manufacturers to submit to further “engineering, chemical and biological analysis,” to ensure that the design of any toy is safe.

The filing demonstrates one consequence of increased government scrutiny of product safety: For Intertek and other testing companies such as Bureau Veritas SA and SGS SA the very rules that manufacturers and retailers say burden them with undue costs and paperwork mean more business.

“It’s just another opportunity to test,” said Larry Lynn, compliance manager at Learning Resources Inc., a Vernon Hills, Illinois-based maker of educational toys such as the Zoomy handheld microscope. The company estimates its testing costs jumped 10-fold since 2006.

“All the labs have seen a significant increase in the business because of the requirements of the CPSC,” said Rick Locker, a lawyer for the Toy Industry Association in New York. In the first months after a previous law went into effect in 2009, testing costs tripled, he said. While the expenses and
delays have receded, pending new requirements mean “you could see that issue come back again,” he said in an interview.

Back to Edison

Intertek, which traces its corporate heritage to Thomas Edison’s Lamp Testing Bureau, has more than 1,000 labs in 100 countries. In addition to analyzing consumer products such as apparel and toys, it tests or certifies chemicals, foods and minerals. It earned 103.7 million pounds ($167.3 million) on revenue of 652.6 million pounds in the first half of 2010, its most recent published results.

The U.S. testing requirements followed a rash of recalls in 2007 of Chinese-made toys, sold by companies such as Mattel Inc., which were found to contain lead paint. In response, Congress passed legislation in 2008 mandating that all toymakers curb lead and other harmful materials in their products and redouble testing.

While the rules apply to toys sold in the U.S., much of the testing takes place in China and Hong Kong, where many U.S. toys are made. The U.S. imported $25 billion in toys from China in 2009, making it the third-largest category of imports from the country, behind computers and household goods such as clocks.

European Testers

The largest consumer-testing companies are based in Europe. Among the bigger ones in the U.S. are Northbrook, Illinois-based Underwriters Laboratories Inc. and Consumer Testing Laboratories
Inc. in Bentonville, Arkansas. Both are closely held.

Intertek, Bureau Veritas and SGS, the world’s three largest testing companies, all say their revenue jumped after the new toy requirements began in January 2009. Intertek’s revenue from consumer-goods testing in the first six months of that year climbed more than 20 percent, almost double the overall company revenue growth, to 162.5 million pounds.

Its profit margin in consumer products was 33 percent, double that of the company as a whole. Intertek has more than doubled in London trading since the U.S. law took effect, and has risen 45 percent in the past 12 months.

Both Bureau Veritas, based in Neuilly-sur-Seine near Paris, and Geneva-based SGS are bigger than Intertek in revenue from all testing. Bureau Veritas shares have increased 54 percent in the last year. SGS, the world’s biggest overall product inspector, is up 15 percent.

Growth Ahead

While Intertek’s consumer-testing revenue fell 0.4 percent to 161.9 million pounds in the first half of 2010, the company predicts a U.S. requirement that a government-certified, outside testing company examine each children’s product will boost profits again over the next two years.

The new U.S. rule, as well as a European Union initiative in toy safety, “present further opportunities for growth in 2011 and 2012,” the company said in a presentation to investors in August. The Consumer Product Safety Commission voted yesterday to delay the next round of testing requirements until 2012 from later this year as initially planned.

Anticipating an increased need for testing, Intertek has introduced computer software for sale to manufacturers so they can meet the analytical and paperwork requirements the consumer-safety agency is scheduled to implement.

Intertek also is making sure its voice is heard in Washington. It hired former CPSC chief of staff Joseph Mohorovic as a vice president, and paid the firm of former CPSC chairman Hal Stratton $240,000 last year to lobby on its behalf, according to government records.

No Regrets

Gene Rider, president of Oak Brook, Illinois-based Intertek Consumer Goods in North America, said a combination of increased consumer awareness and growing global outsourcing is sparking
demand for Intertek’s testing services.

“One of the misconceptions is that regulation drives our revenues,” Rider said in an interview. “All the rules are asking manufacturers to do is to demonstrate good manufacturing practice.”

As for its petition to the CPSC, Rider said he has no regrets. Most recalls are caused by design flaws, not faulty materials such as lead paint, and those won’t be found without new government requirements, he said.

“It’s all about designing the product to avoid injuries or fatalities,” Rider said.

To contact the reporters on this story: Mark Drajem in Washington at +1-202-624-1964 or mdrajem@bloomberg.net.

Read more here:
CPSIA – Unpublished Article Highlights CPSIA Benefits Felt by Testing Companies

Next Page »