CPSIA – Hey, Republicans, THANKS SO MUCH for that Pledge for America

Did anyone notice how the CPSIA Amendment (HR 2715) went to the House floor in the middle of the night on a Sunday after closed door horse trading out of the public eye, and was voted on early the next day designated as a “noncontroversial bill” (Monday, August 1).  The amendment didn’t go through a mark-up hearing and was only published a few hours before the vote.  The law includes some surprises, too, as one might expect on a bill emerging from a smoke-filled room.  Naturally, the Senate considered it and put it up for a voice vote in even less time.  How many Members of Congress bothered to read the bill before voting on it?  How many Members of the responsible House and Senate committees read it before voting on it?  Your guess is as good as mine. You may recall that the Republican Party published “A Pledge to America” in 2010 ahead of the Medterm elections, with the nifty subtitle “A new governing agenda built on the Priorities of Our Nation, the Principles We Stand for & America’s Founding Values”.  Impressive. The Pledge includes a section starting on page 33 called “A Plan to Reform Congress and Restore Trust”.  Restore trust – I am all for that!! On page 35 of this document , the Republicans make the following ”promise”: ” Read the Bill    We will ensure that bills are debated and discussed in the public square by publishing the text online for at least three days before coming up for a vote in the House of Representatives. No more hiding legislative language from the minority party, opponents, and the public. Legislation should be understood by all interested parties before it is voted on. ”   [Emphasis added] Correction:  They’ll do all that stuff unless they don’t.  And in the case of the CPSIA Amendment, well, come on, don’t be such a rule follower . . . .

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CPSIA – Hey, Republicans, THANKS SO MUCH for that Pledge for America

CPSIA – A Comment Not to be Missed

From Anonymous : “I have to say, as a lifelong Democrat, this whole CPSIA thing makes me feel incredibly powerful! You have to admit that to be able to, during a deep recession, force the American people to pay the immense administration costs of the CPSC due to the CPSIA, while burying business in mountains of red tape and testing expense, and to do so while EXPLICITLY STATING that they have no obligation to show efficacy and in the face of a huge body of evidence that the CPSIA will accomplish little in terms of real safety is…Powerful! As a registered Democrat I practically feel I am becoming one with the force. You Republicans can join the force too. All you have to do is close your mind, admit that evidence (when it contradicts your cherished gut feelings) is overrated, and join the Democratic Party. Then you too can blatantly screw the American people.”

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CPSIA – A Comment Not to be Missed

CPSIA – The House Answers with its Own (Bipartisan) Suspension Bill

The Republicans and Democrats on the House Energy and Commerce Committee have apparently suddenly agreed on a new 29-page draft CPSIA Amendment .  This is a modification of ECADA and is probably the best that the House Republicans could extract from the Dems.  It is also part of a game of chicken between the House and Senate on how to amend the CPSIA.   The bill is sponsored by Mary Bono-Mack and G.K. Butterfield, meaning that it is a bipartisan bill.  It will proceed to the House floor for a vote tomorrow, cannot be amended and will only  pass by 2/3 majority vote.  It could be a voice “consensus” vote and will likely pass without opposition given its bipartisan character. A quick review of this amendment: a.  100 ppm lead standard is made prospective. b.  Functional Purpose exception process remains part of the amendment.  [I have written extensively on how this provision is a sham .  I haven't changed my mind.] c.  ATV exception is included.  This is death knell for any hope of later CPSIA amendments. This signals the end of the road. d.  The terms of the bike stay are made into law.  They also get a really sweet deal – as far as I can tell, they don’t have to test metal components anymore.  That provision is buried on page 19 in the book exception section.  All the better to sneak it through.  Nice for them . . . but no word as to why we must test metal components.  Too bad for us, I guess. . . . e.  Resale goods exception is included. f.  Testing rules are now based on “representative” samples, not “random” samples.  The rest of the provision is based on the Eshoo amendment requiring further “inquiry” on reducing costs of third party testing.  The Eshoo model still requires “assuring compliance” with the lead standards.  This is the big dollar issue, as everyone knows, and is the one issue that touches everyone, all the ordinary businesses.  This provision is a punt and offers little prospect for future relief.  This provision is a huge time-waster and will never result in anything useful because the standard for relief is in the context of “assuring compliance”.  It also calls for more business “instruction” like that found in the current draft of the “15 Month Rule”.  [The status of the 15 Month Rule is not apparently addressed and may still emerge from the agency to bite us later this year.]  The authors of the 15 Month Rule draft rule know exactly zippo about the real world and if we are ever supposed to follow their sage dictates, the losses will mount . . . fast.  In any event, this Commission will never feel comfortable with anything less than prophylactic assurance, injury statistics be damned.  I hate this provision because I don’t trust the CPSC Commission under current leadership. Notably, this provision does not stay compliance with the testing rules due to go off stay at the end of the year pending resolution of the Eshoo inquiry.  Congress has not dictated that the stay be extended, and believe me, it won’t be.  The reasoning behind this provision escapes me. g.  Small batch manufacturers receive minimal relief (” reasonable methods to assure compliance “).  The real sham part of this is the tantalizing prospect that the CPSC will actually deliver on this demand for testing relief.  Call me a cynic, but they have received testimony out the wazoo for three years on this topic, and have yet to find a way to “help” the remaining micro-businesses in the market.  And the reason we should believe they will make a afety testing discovery in the future?  Your guess is as good as mine.  They won’t. Small batch manufacturers have to register before benefiting from this wonderful “relief”.  The registration requirement is deeply offensive to me and really shames Congress and the agency.  What did these little companies do to deserve this treatment?  What makes the House (Dems) think this is a good idea?  It smacks of 1984 and is utterly detached from any rational assessment of risk.  Do small batch manufacturers have an exceptionally bad safety track record meriting this kind of surveillance?  Of course not.  That they would accept or even support this treatment is shocking to me.  In any event, no relief is offered to any company with gross revenues in excess of $1,000,000, so it’s really just for the benefit of the really micro micro-businesses.  It won’t benefit me even for small unit volume items we currently sell – our top line makes us ineligible for any possible relief.  Happy registering, little guys! h.  Ordinary books and printed materials get a pass. i.  Durable Nursery Products standards provision (not reviewed). j.  Phthalates standard applied only to “plasticized” components and not to inaccessible components.  Guess that means no more testing of paper, wood and metal. k.  Authority to exclude items from tracking labels provision is given to the CPSC based on practicability.  This is promising although the Dem hanging judges on the Commission have yet to make a single decision that saved a business a dollar for any reason. Don’t hold your breath. l.   Database rules are tweaked in a meaningless way consistent with the Markey proposal on database.  NO relief offered. THERE IS NO RELIEF GIVEN TO EDUCATIONAL MATERIALS.  Thanks, Congress.  I am glad my kids are out of elementary school by now. That’s it, more or less.  Hope you like it, that’s all you’re going to get.

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CPSIA – The House Answers with its Own (Bipartisan) Suspension Bill

CPSIA – Don’t Faint . . . Senator Pryor Put Up CPSIA Amendment Today

Senator Pryor today introduced the so-called ” Consumer Product Safety Flexibility Act of 2011 ” to amend the CPSIA.  This four-pager is targeted at three problems: First , it makes the 100 ppm lead-in-substrate standard prospective. Second , it exempts ATVs and motocross (off-highway vehicles) from the lead standards of the CPSIA.  It also gives a year extension on the standards for all-terrain vehicles. Third , it codifies the holdings of the CPSC stay as it applies to bicycles (‘Notice of Stay of Enforcement Pertaining to Bicycles and Related Products’, published June 30, 2009 (74 Fed. Reg. 31254)), thus exempting bicycles from the 100 ppm standard. The bill to my knowledge is not up on any of the Congressional monitoring sites yet and does not have a bill number. This is a useful effort by Senator Pryor.  For one thing, the 100 ppm lead standard issue MUST be addressed before Congress goes on its August recess.  Hats off to Mr. Pryor for at least providing a means to address this issue.  Rumorville has it that the Senator wants to do more than is expressed by this bill.  Other Dem Senators are on the list as purportedly wanting to do more for us.  All I can say is . . . get in touch with your feelings, Senators.  We need help NOW and we would appreciate your help and leadership in particular. As for saving the ATV’rs and bikers, well, they never belonged under this law in the first place.  The devastation wrought by this law should have been addressed long ago.  That said, there is nothing more or less sympathetic about ATVs or bikes under this law than the rest of us losers under the act.  None of us were poisoning children or even injuring children with lead-in-substrate, much less phthalates.  The neuroses of the consumer groups is no more applicable to bikes and ATVs than to us.  [Please note my prior disclosures, dating back to January, that the AAP has long supported application of CPSIA lead provisions against the ATV industry to effect a tacit ban of youth model ATVs.  The AAP admits they want youth model ATVs off the road.  This duplicity exposes the sham nature of the CPSIA, how it has been misused for political reasons by the white-cloaked and self-righteous proponents of children's product safety.] Having spent literally countless hours on advocacy on this issue since 2007, I cannot say what more needs to be said or can be said to explain how misconceived the law is.  The ATVrs and bike industry should be let off the hook . . . but so should all the other innocents.  If ATVs deserve a pass, so do rhinestones, so do t-shirts and shoes, so do books, so do science kits.  Come on , guys, science kits?!  Do you REALLY want to send America’s science education back to the Stone Ages?  It’s time to loosen the noose on American industry. One can only hope that this bill moves quickly through the Senate, and that the House quickly regains its Mojo on ECADA, leading to a useful and hopefully productive Conference negotiation to produce the long-awaited CPSIA Amendment that we have long craved and which is so long overdue.

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CPSIA – Don’t Faint . . . Senator Pryor Put Up CPSIA Amendment Today

CPSIA – Northup Lashes Out at Majority for Disregarding Executive Order

Letters to the Editor Wall Street Journal July 26, 2011 CPSC Should Follow Obama’s Policy As one of the minority (Republican) commissioners on the Consumer Product Safety Commission who voted against finding that it was technologically feasible to lower the lead content in all children’s products from 99.97% lead free to 99.99% lead free, I appreciate your July 20 editorial ” Toying with Deregulation .” You accurately paint a grim picture of the commission’s disregard for President Obama’s appeal that regulatory agencies promote “economic growth, innovation, competitiveness and job creation.” But you omit the even more disturbing evidence that the commission majority twisted the language of the Consumer Product Safety Improvement Act and ignored the evidence before it in order to reach a predetermined outcome. As the majority proved with its 100 ppm vote, it will take much more than an executive order to stop an agency bent on imposing its radical agenda without regard for the economic consequences. See www.cpsc.gov/pr/northup07202011.pdf . Anne M. Northup Commissioner CPSC Washington

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CPSIA – Northup Lashes Out at Majority for Disregarding Executive Order

CPSIA – Amazon to Kids’ Hat Companies: Prove You’re Lead-free by August 7th

Hope your kids don’t need hats.  Perhaps you are aware that absent Congressional action, the new 100 ppm lead standard will be imposed retroactively by August 14th.  The five Commissioners have requested that this provision be applied prospectively (they made this request in January 2010) yet Congress has done nothing about it. As a matter of fact, now that you mention it, they haven’t done anything about any of the problems under the CPSIA.  I guess as Rachel Weintraub suggests, more “discussion” is needed. Anyhow, I received the below letter (excerpts are reproduced only) from a maker of children’s hats.  Anyone out there ever heard of lead poisoning from a hat?  Me, either. Nevertheless this company is subject to the stupid rules of the CPSIA for reasons best explained by Henry Waxman, and are now being required to prove up the “safety” of their hats. So how do you expect hat companies to respond to this kind of request?  Do you think they can afford the tests?  To employ the people to administer the tests, apply the tracking labels, maintain the records, deal with all the paper-pushing by their customers, pay for the lawyers, fill out the forms and so on?  I can think of several likely replies.  First, cut the product line.  Don’t waste money on testing so many hats.  Second, simplify the product line.  Remember cute hats with lots of colors?  Thing of the past.  Better snap ‘em up while you can.  Monochrome is the new rainbow.  Third, make hats for kids over 12 or for adults. Then you can sprinkle your little hats with lead to your heart’s content.  No one will care. Oh, I know, natural fibers and certain fabrics don’t need to be tested.  Yes, but my customers don’t care much for these niceties.  They want a piece of paper for the files.  If you think we test only when we have to, you are wrong.  That’s the bare minimum.  Most tests are repeated or substantially exceeded, even beyond the absurd levels required by law.  This hat company was pretty depressed by the news delivered by Amazon.  Get used to it. Or go pick up some hats right now.  If you have little kids, buy them in several sizes while you’re at it.  No time like the present. . . . Amazon Letter (excerpts): Dear Amazon Vendor: The Federal Government enacted the Consumer Product Safety Improvement Act of 2008 (the “Act”) that, in addition to other requirements, prescribes strict limits on the content of lead and phthalates in products intended for children. New stricter limits on lead in children’s products will go into effect on August 14, 2011. This message outlines the steps Amazon will require vendors to take to confirm that their products comply with the new stricter lead limits affecting children’s products. Vendors are responsible for thoroughly familiarizing themselves with all the requirements of the Act and for tracking and complying with any regulations issued by Consumer Product Safety Commission (CPSC). Additional information on the Act is available on the CPSC website at www.cpsc.gov. Specific provisions of the Act discussed in this letter are for ease of reference only. Actions Required: What you need to do By July 31, 2011, each vendor must confirm and report to Amazon.com that all of your children’s products (i) in Amazon.com’s inventory, as reported to you in Vendor Central, and (ii) in transit or shipped to Amazon.com, will comply with applicable limits set forth in Column I. Limit:  Lead 100 ppm Effective Date of Limit per the Act:  August 14, 2011 Products shipped to Amazon must comply by:  July 31, 2011 Noncompliant products are subject to return to Vendor:  August 7, 2011 Step 1: Verify that your products are compliant with the lead content requirements going into effect on August 14, 2011. Vendors are responsible for determining whether the products they sell on Amazon.com are compliant with the new lead requirements.

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CPSIA – Amazon to Kids’ Hat Companies: Prove You’re Lead-free by August 7th

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???

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

CPSIA – NAM Ad In The Hill Supporting Passage of ECADA

From The Hill Newspaper, dated July 21, 2011: The time left to Congress to act on amending the CPSIA before the 100 ppm lead standard boom crushes more businesses and jobs is only 24 days .  [ Html version of the ad ]  This includes the time to get through the Senate, then conference, then to the President for signature.  Not a lot of time . . . and par for the course for this government, I suppose.  Will they act in time?  I certainly hope so but with Henry Waxman doing his evil best to prevent any progress on this issue, I don’t have high expectations.  Let’s hope some Democrats still have a conscience.

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CPSIA – NAM Ad In The Hill Supporting Passage of ECADA

CPSIA – WSJ’s NINTH EDITORIAL Opposing the CPSIA

REVIEW & OUTLOOK JULY 20, 2011 Toying With Deregulation Another agency ignores Mr. Obama’s executive order. Here’s a question for White House regulatory czar Cass Sunstein: Do Presidential executive orders mean anything? Only last week President Obama asked independent agencies to examine existing rules and get rid of the duds, but nobody is listening. Within days of the executive order, the Consumer Product Safety Commission voted 3-2 that it is “technologically feasible” to impose a lower limit on lead content in children’s products, reducing the level to 100 parts per million from 300 parts per million. The new limit, which will go into effect August 14, will mean one more round of hair-pulling for small business owners who will have to change their manufacturing processes and junk existing products that don’t meet the new standard. The three votes in favor came from Mr. Obama’s chairwoman Inez Tenenbaum and two other Democratic commissioners. The Consumer Product Safety Improvement Act passed in 2008 in a frenzy of concern over lead content in toys from China, and it has since tormented anyone who makes or sells bicycles, books, children’s jewelry and so much more. Its strictures have imposed costs for testing, recalls and other inconveniences without any reasonable correlation to the risks to children. “No sweetheart, don’t eat that bicycle!” According to the CPSC, the plan to require that products be 99.99% lead free is reasonable because manufacturers would still be able to find materials and because some products already comply. While the additional safety gain will be negligible, the change will do damage in other ways, causing companies to avoid recycled metal and plastic, which may contain higher amounts of lead. It will also raise costs for metal parts, potentially driving some businesses to substitute plastic for metal, or stop producing children’s products. In the bicycle industry, a quarter of manufacturers have stopped making kids bikes. Instead of fixing its manifest flaws, Congressional Democrats who wrote the law have shrugged off small business complaints and opposed any changes. Energy and Commerce Chairman Fred Upton and Commerce, Manufacturing and Trade Subcommittee Chair Mary Bono Mack introduced reforms earlier this year that would revise the law and give the CPSC greater authority to make regulation decisions based on actual risk. The bill is waiting for a mark-up at full committee but any reprieve would likely come too late for businesses facing the mid-August deadline. Mr. Obama’s recent executive order is voluntary, but the President told agency heads that getting rid of red tape was an opportunity to “forge a 21st-century regulatory system that makes our economy stronger and more competitive.” Perhaps Mr. Sunstein will tell toy makers it’s the thought that counts.

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CPSIA – WSJ’s NINTH EDITORIAL Opposing the CPSIA

CPSIA – Alliance for Children’s Product Safety Reacts to 100 ppm Decision

The Alliance for Children’s Product Safety, a coalition of small business owners, manufacturers, crafters and entrepreneurs who are impacted by the Consumer Product Safety Improvement Act (CPSIA), issued the following statement regarding the CPSC’s passage of the 100 ppm for lead content rule today by a vote of 3-2. “Today, just three days after President Obama issued an Executive Order instructing the CPSC and other independent agencies to examine all rules for ineffective and unnecessary burdens and instructed the agency that decisions should be made only after consideration of the costs and benefits of new regulations, the CPSC enacted yet another costly rule that will do nothing to improve product safety but will cause further job losses in the children’s product market. The CPSC has already acknowledged that businesses will not be able to meet the 100 ppm lead standard without cost and disruption, and that consistent compliance with the new standard will be nearly impossible due to material and inter-lab variability and regulatory uncertainty. Most importantly, overwhelming costs imposed by the new standard will disproportionately affect smaller companies. On the other side of the ledger, the CPSC admits the health benefits of the new standard will be ‘minimal’. President Obama’s Executive Order states ‘Wise regulatory decisions depend on public participation and on careful analysis of the likely consequences of regulation. . . . To the extent permitted by law, such decisions should be made only after consideration of their costs and benefits (both quantitative and qualitative).’ The President’s order notes the duty of the CPSC to regulate for public health and safety ‘while promoting economic growth, innovation, competitiveness, and job creation.’ The new rule fails Mr. Obama’s test. It is disappointing that the majority of CPSC Commissioners ignored the explicit terms of the President’s order governing regulatory excess. The 100 ppm standard is a prime example of the economic self-destruction caused by the CPSIA: the imposition of costly and burdensome regulations that don’t improve product safety. It is now up to Congress to fix the numerous ‘unintended consequences’ of the CPSIA before more small businesses are forced to go out of businesses and more jobs are lost.” The Alliance for Children’s Product Safety, Chaired by Rick Woldenberg, is a coalition of small business owners, manufacturers, crafters and entrepreneurs who are impacted by the Consumer Product Safety Improvement Act (CPSIA). For additional information, please visit www.AmendTheCPSIA.com or contact Caitlin Andrews at 202-828-7637.

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CPSIA – Alliance for Children’s Product Safety Reacts to 100 ppm Decision

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