CPSIA – Tracking Labels Answer Received Today

The CPSC answered my letter of September 18 regarding tracking labels today. In a nutshell, my question was about how small businesses are supposed to ascertain “cohort information” from fungible products if we are permitted to not use lot markings. The answer to that question was not clear (to me) from the Tracking Labels Guidance.

In today’s response, the CPSC seems to indicate more flexibility than I had read into the Guidance. Tony Cook of the Office of General Counsel states: “Your letter suggests that the manufacturer lacks flexibility regarding information that must be ‘ascertainable’. As with the ‘marking’ requirement, the manufacturer’s reasonable judgment and consideration of the manufacturer’s particular circumstances, are guiding issues.” He carries on helpfully: “Without such an approach, an absolute requirement to have ascertainable all required information would in effect swallow the Commission’s considered course with respect to marking.” This is the conflict that motivated my concern.

On the other hand, Mr. Cook states “. . . what can be marked and what can be ascertainable are separate questions”. This is the rub, of course. This means that even if you can’t mark the item, you might still have to be able to ascertain the cohort information. How do you do that? Well, you can’t.

It all boils down to what is considered “reasonable judgment”. In fact, I have never found this a challenging standard to meet in our business but that was before there were huge penalties and possibly jail time to consider.

In an environment where the regulators want us to exercise sound judgment, there needs to be some recognition that the incentive to take the risk of exercising judgment only makes sense when that judgment is PROTECTED. No one wants to risk huge fines for doing their job (or let their teammates incur this risk). Thus, I think the CPSC needs to look at the question about ascertainability again. The CPSC needs to say flat out that it will respect the judgment of manufacturers on how they determine which information, if any, can be ascertainable, as long as the decision on marking was deliberate, consistent and made on a good faith basis.

In the case of our business, tracking labels serve no particular purpose except to slow us down and waste our money. We have recalled 130 pieces since 1984 (out of an estimated one billion shipped, all units believed recovered) so the risk to consumers, at least thus far, seems controlled. I would like the authority to decide how much to spend on tracking labels and information retention/accessibility, based on my knowledge of our products, our market, our track record and our legal obligations. Then, if we exercise good faith and are reasonable and consistent in our approach to markings and cohort information, the CPSC should respect our decisions. thus, a failure to mark or ascertain would not be held against us unless our balancing of the equities is demonstrated to be unreasonable.

None of this would be necessary except for the ridiculous penalties and fines possible under the CPSIA. The indiscriminate manner of penalizing under the law makes minor issues (even inconsequential errors) into potentially serious problems. In addition, given that the CPSC recent practice of doling out penalties for long ago settled disputes, the long tail of 20-20 hindsight makes this dilemma particularly uncomfortable.

I appreciate the CPSC’s effort in replying to me, and look forward to working with them to bring more clarity to this very important point.

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CPSIA – Tracking Labels Answer Received Today

CPSIA – Washington Post Notes Zealous CPSC Enforcement Actions

In today’s Washington Post, Lyndsey Layton wrote an article entitled “A Vigorous Push From Federal Regulators” in which the current enforcement approach of the CPSC is given considerable space. The Post notes the decision by the CPSC to make rhinestones illegal as an example of “getting tough” on the law. [Btw, for those of you playing along at home, the CPSC has yet to deign to call me or answer my letter on rhinestones dated September 17. I shouldn't be surprised, after all they have thousands of similar unanswered questions on their desks - what's so special about me?!]

The Post sums up the problem as follows: “‘It’s “shoot first and ask who we shot later,”‘ said Gary L. Yingling, a lawyer and pharmacist who worked for a decade in the FDA general counsel’s office and now represents companies regulated by the agency. ‘My concern is whether they’ve dotted their i’s, crossed the t’s, understand the statutory regulations and understand what the agency did yesterday. That’s a real concern.’”

Ms. Tenenbaum, from the same article: “We are enforcing the law; that’s what we do.”

Of course, the obvious problem here is that these regulators refuse to exercise judgment. They tend to hide behind their claimed responsibility to enforce the law (implying that this process must proceed without an exercise of judgment) and fail to explain or justify their use of force on any grounds rationally related to safety. Perhaps they feel this cleanses them of responsibility for their actions, as they didn’t write the law. It’s a classic bureaucrat’s excuse – don’t talk to me, I am just following orders. There is historical precedent for fearing government officials with this attitude.

Perhaps he CPSC will go on its merry way and put us all out of business, hobble a great industry and harm millions of kids by depriving them of essential products necessary to their development or preservation of their standard of living – but only YOU can stop them. The agency (which used to brag about its broad “enforcement discretion” back in the olde days at the beginning of the year) will respond to its Congressional overlords. You need to carpetbomb them with emails, calls and letters expressing your concern. Make sure to let them know how you have been victimized by the law and how it is harming kids in your community. We need to raise a holy stink if we want any chance to stopping the vigorous enforcers.

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CPSIA – Washington Post Notes Zealous CPSC Enforcement Actions