CPSIA – Other People Have Bigger Problems Than We Do

I think it is important to keep the CPSIA crisis in perspective. While I remain incensed about the CPSIA and the resulting treatment of our company and its various stakeholders, I realize that the world does not revolve around this issue. This is a perfect week to count our blessings, if only because real problems are on horrifying display in Japan.

It is hard to read about Japan and not feel true despair and compassion. The mounting drama of their nuclear meltdown is heartbreaking. The death toll, which appears greatly understated, is truly heartbreaking. The devastation of a proud country and a real friend to our country is shattering. They need help – and they need it NOW!

I urge you to stand with the people of Japan and share generously with them at this terrible time of need. There are many organizations mobilized to provide relief. The American Red Cross is a popular choice.

Please dig deep. They are our neighbors and our friends – this is the time to stand up and be counted.

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CPSIA – Other People Have Bigger Problems Than We Do

CPSIA – Sean Oberle Notes the Risk in the Database

Sean Oberle of the Product Safety Letter noted in an Op-Ed entitled “Andre Maginot and the CPSIA Database” that while the database has the ability to do good, it also presents the risk of causing serious harm. He’s right, of course. He goes on to note that proponents may be held to account if disaster results. We can only hope. . . .

I think this is helpful and appreciate that Sean made this point. I want to highlight one short section in his essay:

“The metaphor also helps to belie the dismissive reassurances of a few (by no means all) proponents. The issue is not that industry is failing to acknowledge the protections Congress and CPSC put in place. Rather, industry is concerned whether the protections are proper and sufficient. The irony is not lost on me that with the CPSIA database, we’re dealing with a product that has a lot of potential to do harm. The problem is that when you produce a potentially dangerous product – be it a database or a toy – there is only so much that you can do to reassure people before putting it ‘out there.’ At some point, people simply are going to have to trust you.”

There are two important issues here. First, Sean mentions “trust” – and seems to imply that we should give the agency a chance to prove itself. Well, they have already had a chance to prove themselves, and used the opportunity to prove that they don’t deserve to be trusted. The risk that we should bear while we wait to see if the CPSC can be “trusted” could literally be fatal to our businesses. Where does it say that markets are to be administered this way? How can this be defended as “sensible” or a worthy risk to take?

The second issue which Sean brushes up against but doesn’t discuss is how the database erodes corporate due process rights so significantly. We have essentially had our rights stripped, arguably illegally and illicitly. The government is now in the business of publishing slander and we have no way to stop it. Trust is impossible when due process rights have been removed. Appeal is pointless (as our company’s recent experience illustrates), but some semblance of process creates the illusion of individual rights. It’s a joke, of course. Maybe we need to call the Small Business Ombudsman. Yeah, that’s the ticket!

At some point, the zealots will push too far. The damage they wrought won’t be fixable – the dead companies won’t rise again. The cost will be borne by our society, but the perpetrators will just move on to another government job . . . .

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CPSIA – Sean Oberle Notes the Risk in the Database

CPSIA – Listening but Disagreeing – or Not Listening At All?

We know that the CPSC plunged ahead with the database on Friday despite the outcry of many industry stakeholders. Among the protesters was the National Association of Manufacturers, not exactly a lightweight organization. Industry protests fell on deaf ears. It goes without saying that the resistance of the two Republican Commissioners (who drafted their own database rule) aligned with industry objections. None of this apparently mattered.

As if to make the point that the CPSIA database will be misunderstood, misused and dangerous, the New York Times announced the arrival of the database in an article entitled “Consumer Agency to Post a Database of Unsafe Products“. Nice work, New York Times! The information in the database is unverified and in many cases will NOT be true. There is simply no way to conclude that the products referenced in the database are “unsafe”. Good luck convincing anyone of that now.

It is embittering and frustrating to be so flagrantly disregarded. There seems to be so much at stake, and the fix was seemingly so simple. No one asked to kill the database, just protect innocent businesses from damaging inaccurate postings on a website enjoying the prestige of a federal safety agency. Even the Pompeo Amendment was promoted as “hitting the pause button”. It is hard to fathom why dialogue was so impossible to start. Actually, after a few years of this war, it is not hard to fathom at all.

I know we were rejected – it is hard not to conclude we were ignored completely from the beginning.

My involvement in this issue began when I was asked to testify before the Commission on the issues relating to a searchable database of product incidents. Actually, I had been on record of objecting to the database even before the CPSIA became law (you can see excerpts of letters I sent in my response to Slate). I was called by Matt Howsare, then counsel to Inez Tenenbaum (now her Chief of Staff) who asked me to fly to Washington to testify. He told me that they “needed” me. Wanting to be helpful and to pitch in when asked by the agency (I was charmingly naive at that time), I agreed. I posted video of my testimony in this space, and as you will see, I was cut off by Ms. Tenenbaum. Get it? I was asked by her staff to present because they needed industry testimony, and when I gave my remarks, they cut me off – one suspects they had heard enough . . . .

This experience left me disgusted in a way that, frankly, hasn’t worn off.

Later, the agency called for a two-day workshop on the database. Owing to the discourtesy of my treatment at the hearing and because of their apparent utter disinterest in my views, I declined the opportunity to continue banging my head against the wall by attending their database confab. Later, as we know, the Democrats released a 248-page rule that greatly expanded the database rule from Congressional intent. Written as though edited by Consumer Federation of America, the rule produced howls of protest, but as has been the case thusfar in this CPSIA saga, it mattered not. The three Dems voted as they would have in the absence of any protests and the defective rule was adopted.

I continue to believe that the criticisms of the rule were (and remain) legitimate. That is, they were rational and reasonable, and lent themselves to reasonable and understandable resolution. The Dems did not make any effort to address these reasonable concerns, rejecting them out of hand.

This pattern of ignoring stakeholders while calling for comments and participation has been a hallmark of the Tenenbaum era. I am trying not to take it personally but wonder how we can be so consistently “wrong”. The Dems barely pause to discuss industry objections other than to simply reiterate that their policy objectives are more pressing. Are we so obviously wrong that our objections don’t merit an answer?

I have trouble reaching that conclusion. I have made the same points consistently over and over, yet I cannot put my finger on a single response to my objections other than outright rejection. There is a question of good faith here. The rejection of my company’s PROOF of a material error in the one filing made against one of our products in the soft launch of the database seems to call into question whether the agency can ever be trusted under this group of administrators. The response by SENIOR STAFF at the agency that the consumer in question had stated a “risk of harm” when his/her accusation was PLAINLY WRONG means that even the English language is being corrupted in service of the database. How can trust exist in an environment like this?

Ask around among industry stakeholders. Trust is GONE. No one trusts the CPSC these days.

Looking back on the database saga, it makes me all the more certain that I am doing the right thing pushing back against these people. They are not operating in good faith and have no apparent concern for the well-being of our company, our employees or the countless companies, schools, families and children who depend on us. This cancer on our markets must be stopped. We have another election coming up and I will be working hard to put more Democrats OUT OF WORK. They have no one to blame but themselves. They won’t listen . . . .

So we need to get rid of them.

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CPSIA – Listening but Disagreeing – or Not Listening At All?

CPSIA – Perhaps Mark Pryor is Detrimental to the American Public

I have resolved to “out” the politicians who stand between federal law and rationality when it comes to the CPSIA. We endured two years of torture at the hands of Henry Waxman in the House, who spent 18 months denying that anything was wrong with the CPSIA – and then tried to put through an amendment to his liking in the dead of night. I exposed that deceptive effort, but it didn’t change much in Mr. Waxman’s approach.

Now, post-2010 midterm elections, the winds have shifted and there is much more recognition that the CPSIA is deeply flawed. The House is controlled by Republicans who have long recognized and admitted that the law needed to be changed in important ways to save jobs (without sacrificing “safety”). Unfortunately, certain members of the Senate remains wedded to the Waxman script and seem committed to fall on the sword to protect each precious word of that defective and fundamentally flawed law. As they rise up to stand in the way of progress and rationality, I commit to YOU that I will out them in this space.

One person who is already raising his profile to protect this law is Senator Mark Pryor of Arkansas. I am told he has a copy of the signed CPSIA framed in his office (I haven’t seen it personally, I admit) so presumably he is very proud of “his” law. It’s a shame he hasn’t been listening since he cast his vote in 2008. In today’s USAToday, Mr. Pryor opines that de-funding the CPSIA database would be “detrimental to the American public“.

Why does Mr. Pryor think this? “Private consumer complaint websites tend to focus more on performance issues, which is why ‘one central place where consumers can go to find accurate information’ about safety is needed, says Sen. Mark Pryor, D-Ark., who is pushing to keep the funding in place for the database.” [Emphasis added]

Perhaps a place with accurate information about consumer product incidents is “needed” but is the CPSIA database such a thing? Why, precisely, does Mr. Pryor thinks the database information will be “accurate”? After all, we know that Inez Tenenbaum admitted in Congressional testimony that the agency will likely post inaccurate or misleading information. Remember, “that’s what the rub is”. We also know that the General Counsel of the CPSC says that the database will not be trustworthy, featuring “complaints” without shedding light on “causation”. Remember, the General Counsel touts the disclaimers all over the website, which she is considering AMPLIFYING. In other words, she admits/acknowledges/trumpets that the information may not be true and can’t be relied upon. In other words, it’s not accurate.

Senator Pryor, are you listening?

I am sure the answer is “no”. Expect more of this from Mr. Pryor. According to Wikipedia, he is quoted in the movie “Religulous” saying “You don’t need to pass an IQ test to be in the senate“.

No argument here.

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CPSIA – Perhaps Mark Pryor is Detrimental to the American Public

CPSIA – Senate Dems Try to Line up Against Pompeo Amendment

Senator Jay Rockefeller issued a press release today to slam the Pompeo Amendment de-funding the CPSIA database. Mr. Rockefeller apparently feels that the legitimate concerns of American manufacturers and retailers pale against the need for consumers to make product judgments based on unfiltered hearsay, lies and nonsense:

“’This database will provide important safety information to American consumers,’ Chairman Rockefeller added. ‘A mother will be able to check the CPSC database to see if there are complaints about a crib model. A young couple will be able to see if a certain microwave has a history of safety complaints or if there are complaints about a coffee maker shorting and causing fires. I will fight this ill-informed proposal to undermine such an important consumer protection tool. It’s a bad idea and a bum deal for American consumers.’” [Emphasis added]

Consumers will also be able to decide to stop driving Toyotas because of accusations borne of driver error, or drop DryMax diapers over discredited claims of diaper rash.

True story – last year, stopped at a stop light, my car was gently rear-ended by an elderly lady driving a Toyota. As I approached her car after inspecting the minimal damage, she expressed “shock” at the accident and informed me that it was “sudden acceleration” just like in the newspapers. Who could see such a calamity coming? I noticed a little dog on her lap, jumping up and down, trying to get out of the window to sniff me. Let’s just say that I didn’t immediately side with her “explanation” of the accident. Nice doggy! That incident could have been reported under the current terms of the new database (were it a consumer product). Who would pay the price for that kind of baloney assertion? The manufacturer – with no defenses whatsoever.

Nothing surprises me anymore BUT Senator Rockefeller’s denials fly in the face of House testimony given on February 17th, not to mention the outpouring of testimony, data and legitimate procedural complaints by industry. In the hearing on the 17th, Inez Tenenbaum ADMITTED that the agency will be posting information that may be inaccurate or false. To quote Ms. Tenenbaum, “that’s what the rub is”.

I cannot overstate how frustrating it is (remains) to see Democrats stick to the script notwithstanding data and testimony that directly undercuts their position (and their credibility). Either they think we are morons, or else they must believe the government is something SEPARATE AND ABOVE the people. President Lincoln took a different view, stating in the Gettysburg Address:

“It is rather for us to be here dedicated to the great task remaining before us — that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion — that we here highly resolve that these dead shall not have died in vain — that this nation, under God, shall have a new birth of freedom — and that government of the people, by the people, for the people, shall not perish from the earth.”

It is hard for me to believe Mr. Rockefeller believes what Mr. Lincoln instructed on that day. The testimony on the database is not a farce, and our concerns are legitimate. If the concerns for consumers are actually so urgent, why not hit the “pause button” to fix the issues affecting those of us stubbornly trying to provide jobs in this country? Talk to the Pompeo staff – they want to FIX the database, not kill it. Is it really necessary to trash the economy out of pure stubbornness?

The time to genuflect to the holy CPSIA and its misguided almost-unanimous passage through Congress is OVER. Senator Rockefeller, please pay attention to the legitimate needs of those who provide JOBS to your constituents and de-fund the CPSIA database until it can be fixed. You represent the many millions of people who are still working in this country, too. It’s time to remember EVERYBODY’S interest in this matter, not just the left edge of the left wing.

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CPSIA – Senate Dems Try to Line up Against Pompeo Amendment

CPSIA – New HTS Import Tariff Schedules Due to CPSIA

Please note the following alert from the TIA on new harmonized tariff schedules (HTS) for toys. This change was requested by the CSPC and believe me, it’s because of the CPSIA and their fixation to zap you at the port. You will also note that this goes beyond toys, including jewelry and festive articles. For all I know, it goes well beyond the TIA’s list. You should consult with your import specialist or your lawyer. The age grading sets up the agency to police the ports with ever greater care and scrutiny.

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CPSIA – New HTS Import Tariff Schedules Due to CPSIA

CPSIA – Write the Senate to Stop the Database!

The AAFA has created an easy way to send emails to your Senators to encourage them to support the House’s effort to de-fund the CPSIA database until it is fixed. Please click on this link and let your voice be heard in Washington!

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CPSIA – Write the Senate to Stop the Database!

CPSIA – House Hearings Questions about Rock Labels

Rep Butterfield questioned me about whether we REALLY needed to place labels on our rock kits indicating that our rocks might contain lead. As you may recall, I wrote about this last week and provided the clear explanation that the CPSIA bans the sale of any children’s product which has components that may contain lead. That includes rocks in rock kits. Oops. I have embedded the clip of his query below, followed by a clip where Rep. Cassidy (a medical doctor) attempts to clarify the situation further.

I think it is important to note that Mr. Butterfield was making a point he believed in. He was gracious to me and my children before the hearing and I don’t wish to question his intelligence here. I mean no insult or disrespect. Actually, the implication of his question is significant. He had days to study up on this question (he had a copy of my remarks in advance) and relied on Democratic counsel to the committee to analyze this legal point. He and his lawyers got it plainly wrong. As you will see below, Nancy Cowles also fumbled this same ball. The law CLEARLY requires this label of me, and it’s THEIR law (the CPSIA). So what do I conclude? The Dems and the safety zealots don’t understand the workings of the law they so vigorously defend. I believe this speaks directly to the challenge operating businesses face. If the authors don’t get it, how are we supposed to? The answer is self-evident.

The question of WHY they continue to push so hard for a law they don’t understand remains open. I don’t think we can assert that they are bad people or dumb. If that’s the case, and it is, what are they up to? I will chip away at this point in coming days.

Rep. Butterfield on rocks:

Rep. Cassidy on rocks:

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CPSIA – House Hearings Questions about Rock Labels

CPSIA – NAM Demands Extension of Testing Stay

The National Association of Manufacturers sent this letter to the CPSC today demanding that the testing and certification stay be extended. This controversial stay is due to expire one month from today. Numerous organizations signed the letter, including the Alliance for Children’s Product Safety.

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CPSIA – NAM Demands Extension of Testing Stay

CPSIA – Fred Upton Wins Republican Nod on Energy and Commerce Committee

Rep. Fred Upton has apparently won steering committee endorsement as Chairman of the House Committee on Energy and Commerce. This means he will in all likelihood be appointed as Chairman tomorrow, succeeding Henry Waxman in the next Congress. While Upton’s ascendancy comes in a victory over Rep. Joe Barton, a longtime and ardent critic of the CPSIA, it is not thought to reflect any reduction of support among Republicans for a significant CPSIA amendment.

Hope springs eternal. Help may finally be on the way!

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CPSIA – Fred Upton Wins Republican Nod on Energy and Commerce Committee

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