CPSIA – Double-Speak Patrol

760 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 51 days left until Election Day.

Consider the following two events:

a. August 2, 2010: The CPSC Commission voted to authorize yet more Mattel firewalled labs (2) and a lab operated by Hanesbrands, a $2.3 billion market cap maker of underwear. [Oooo, lead in underwear! Is this a sick joke or does the CPSC really think kids are chewing on their dirty underwear? Ew!] I believe, without checking, that Mattel now has nine approved firewalled labs, enabling it to save lots of money which is well beyond the practical reach of any small business. The only parties who have thusfar achieved this relief are mass market companies.

b. August 15, 2010: CPSC Chairman Inez Tenenbaum gave an interview with the Baltimore Sun featuring the following exchange:

“Q: How do you respond to some critics of the Consumer Product Safety Improvement Act who say the law puts heavy testing burdens on manufacturers, especially smaller producers?

A: We have to have high standards to protect the consumer. So regardless if you’re a large business or a small business, we can’t let you put lead in children’s products, or cadmium. Or overlook flammability laws or use other toxic chemicals. We look at what the danger is. We think if we had a small-business ombudsman who was out there regularly educating small businesses, we could help them prevent problems in terms of compliance. Large corporations have a whole office full of lawyers and engineers and chemists and toxicologists. Small businesses do not. And we don’t want to put anyone out of business. We want to help them learn how to comply and sell safe products.” [Emphasis added]

Put side-by-side, these two events separated by only a few days, make clear the utter insensitivity of our government to our plight. The dismissive condescension of Tenenbaum in daring to suggest that an ombudsman would make the problems disappear for small businesses is infuriating. The necessary implication is that we small businesses are just too stupid to understand their complicated rules – I guess she thinks only Mattel can read the English language. Of course, the pending testing frequency rule (which I believe will be implemented in the coming weeks, get ready for it) will cause our company to spend $15 million per annum on testing. This sum far exceeds our profits. Perhaps the ombudsman will help us terminate our people to pay for testing, or provide a shoulder to cry on. And we’ll be crying alright.

At the same time, Tenenbaum is actively feathering the nest of the VERY Big Business that caused the CPSIA, Mattel. How ironic, isn’t it? The fact that she is tilting the children’s market fatally in favor of Big Business doesn’t seem to be a source of guilt for Ms. Tenenbaum. Empty words are the solution.

Please keep this in mind the next time you suffer through the dark intonations of our Fearless Leader laying the blame for the economic problems of the small business community at the feet of the Republicans. The problems in our market won’t be solved with yet another handout – the Dems should try loosening the garrote they are busily tightening around our air passages. Tax relief won’t provide much help when the new regulations makes profit impossible.

Let’s stipulate that the Dems in Congress and at the CPSC are fully aware of the inequities and other problems embedded in the CPSIA. In the face of a continuous and vigorous public debate for two years+, this seems beyond dispute. I am also aware that this blog is widely and loyally read by these people. Ignorance is not a possible explanation. Stubbornness, self-preservation, zealotry, a lack of political will, exhaustion – any of those make more sense to me as an explanation.

I have no outlet for my anger over this. I just hope you are not a sucker for the Dems’ baloney and spinning. Our ONLY hope is a Republican-led Congress that will act to make these people accountable for the damage they are inflicting. The Dems have proven their stripes – to hope they will come to their senses is simply wishful thinking without any basis in reality or fact.

Can you take two more years of this? I cannot and I will not. I need your help, however – you need to vote the scoundrels out of office on November 2. Here is a list of Democrats on the House Energy and Commerce Committee:

Henry A. Waxman, CA
John D. Dingell, MI
Edward J. Markey, MA
Rick Boucher, VA
Frank Pallone, Jr., NJ
Bart Gordon, TN
Bobby L. Rush, IL
Anna G. Eshoo, CA
Bart Stupak, MI
Eliot L. Engel, NY
Gene Green, TX
Diana DeGette, CO
Lois Capps, CA
Mike Doyle, PA
Jane Harman, CA
Jan Schakowsky, IL
Charles A. Gonzalez, TX
Jay Inslee, WA
Tammy Baldwin, WI
Mike Ross, AR
Anthony D. Weiner, NY
Jim Matheson, UT
G. K. Butterfield, NC
Charlie Melancon, LA
John Barrow, GA
Baron P. Hill, IN
Doris O. Matsui, CA
Donna M. Christensen, VI
Kathy Castor, FL
John P. Sarbanes, MD
Christopher S. Murphy, CT
Zachary T. Space, OH
Jerry McNerney CA
Betty Sutton, OH
Bruce L. Braley, IA
Peter Welch, VT

Please help their opponents with cash and labor, and votes. My guy is Joel Pollak, running against Jan Schakowsky. Can you imagine Congress without her? Oh, to dream. . . . His website is www.pollakforcongress.com – please consider supporting his candidacy generously.

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CPSIA – Double-Speak Patrol

CPSIA – Extinct Toys, Thanks Congress!

In the latest effort to make the deaf hear and perhaps even to raise the dead, a member of the HTA has reconfigured its website to highlight “Endangered Toys” and “Extinct Toys”, all courtesy of your Federal Government. Thanks, Congress!

There are seemingly buckets of Endangered Toys (currently in stock but can’t be reordered) and Extinct Toys (out of inventory and can’t be reordered) on this website. Ooooh, they’re so dangerous, like “Grandfather Lorenzo” from darkest Germany (endangered) or the “Post Express Van” also from the rogue state of Germany (extinct). Can’t allow children to play with toys from Germany, that’s for sure. . . .

Oddly, there’s no sign that anyone anywhere was ever injured by these toys. They’re just gone now because of the “unintended consequences” of the CPSIA. [Btw that expression, "unintended consequences", makes me want to throw up. Unintended, my ear. This is exactly what was intended, and Dem staffers have repeatedly admitted it.]

The zealots who brought this plague on you have practically grown callouses patting themselves on the back for making your businesses so darned safe. Niggling details like testing costs, loss of valued products, layoffs are all sloughed off as a “necessary” expense in making everyone safer. This flawed assertion is based on the self-evident conclusion that their law made us safer. Obvious, so obvious. I understand their point since I know they can’t comprehend numbers or data. That’s why they’re politicians, after all. WERE they able to tote up a number or two, they might not be so quick to assert that we actually are safer, given that a few tedious hours of analysis would reveal that there are only THREE known (asserted) lead injuries in the last 11 years in this country, and only ONE documented death. That’s it, barely a day’s worth of death and maiming from pools. Hard to reduce injuries from nothing to less than nothing.

It hardly matters, because they cast the die for us, and have no intention to listen to our little problems. This explains why they blandly put out a rule for comment last week which states that our business will have to pay $15 million a year in testing costs. Gotta be safe, ergo if we don’t test the way they say we should, our customers won’t be safe.

In fact, if we DO test as they want us to, I GUARANTEE everyone will be safer than ever. That’s because we will be out of business and they won’t be able to buy any of our products.

Try not to forget to say “thank you” on November 2 to all those people who have stood between the CPSIA and its repair. You should have plenty of time to figure out how to thank the people who are committed to putting you out of business. You sure won’t be selling toys.

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CPSIA – Extinct Toys, Thanks Congress!

GUEST BLOG – BOSTON GLOBE WRITER TAKES NOTICE OF ALL THOSE CPSC RECALLS

Rick has blogged in this space about how the onslaught of recalls by the CPSC is numbing to consumers. Boston Globe writer Sylvia Pagán Westphal has taken notice in a column over the weekend:

Boston Globe

The safety scare
Separate dangerous products from those that pose little risk
By Sylvia Pagán Westphal | July 7, 2010

IF YOU’RE the parent of a young child and want to be very scared, don’t waste time looking for horror movies on TV. Just go to the US Consumer Product Safety Commission’s website for child product recalls. You won’t be able to sleep for days.

The site features an interminable selection of common children’s products that have been recalled. Some of the depictions are downright gruesome: in cases of defective cribs, for example, there are pictures of baby dolls with necks pinned down between rails, or of their little faces pressed against a mattress, as if suffocating. The intent is, to be sure — for I see no other reason to scare the wits out of an unsuspecting, Internet-roaming mother — to jolt parents into action if they own one of the products.

One recent afternoon, I was clicking through the recalls page when I realized, to my dismay, that during my 9-year stint as a parent I have owned several of the featured items. My colorful rainforest-themed baby swing was there, and so was one of my cribs. The baby sling I used with my son was recalled after three babies suffocated in 2009. The kinds of bath seats I used (and loved) with my daughter aren’t sold anymore, following various recalls.

I never found out about these announcements. Had I taken the time to register each product I might have heard from the manufacturers, but I didn’t do it, and neither do most of the parents I know. Some pediatricians’ offices and stores post selected recall sheets, and there is an e-mail list from Consumer Product Safety Commission one can opt into, but with over 100 of these announcements per year it’s hard to keep track of the information.

Part of the problem is that recall announcements don’t explicitly distinguish between problems with products that are truly dangerous and defective versus products with sub-optimal design that, when used properly, pose little risk. For example, the commission recently recalled a bed because one child got his head stuck in its storage compartment. Not to take away from that kid’s pain, but I have numerous compartments in my home where my children’s heads would fit if they tried hard enough.

In a way, some of the announcements appear to be directed at shielding us from our own parental incompetence. Millions of baby bath seats and walkers are no longer sold due to drownings and falls suffered by babies who were basically left unsupervised. The recent high-profile recalls of drop-side cribs were prompted by deaths that, in some cases, were caused by cribs that were incorrectly put together or were subjected to shoddy home repairs.

Don’t get me wrong: to the extent that these recalls remove poorly designed products from the market the efforts should be praised. If motels and hotels are forced to carry safer cribs, that’s a good thing. But the Consumer Product Safety Commission and other safety advocacy groups should be mindful of putting each recall into perspective, so as not to unnecessarily scare the public. For example, the multiple recalls (and likely national ban) on drop-side cribs comes after 32 documented deaths over the last 10 years and millions of cribs sold. That’s surely 32 deaths too many, but more children die each year choking on food.

There is a real downside to a system that feeds into our nation’s growing safety paranoia, which isn’t healthy either. Many of my overseas friends have a hard time understanding our obsession with safety — we put locks on our toilet seats, cover the corners of tables with rubber guards, and use hand sanitizer with ever-intensifying zeal. Taking that baby walker away, just like covering the table corners, is a bit like avoiding air travel for fear of crashing, while still driving a car every day. The world is a very dangerous place to raise a child. Leave the house and there are hard edges, pointy rocks, and steep inclines everywhere. As much as we’d like to, we just can’t childproof those too.

Sylvia Pagán Westphal is a regular contributor to the Globe opinion pages.

Posted to Rick’s Blog by Alliance for Children’s Product Safety Staff

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GUEST BLOG – BOSTON GLOBE WRITER TAKES NOTICE OF ALL THOSE CPSC RECALLS

CPSIA – What?! Too Many Recalls – That CAN’T Be!

The Washington Post stated the obvious this week in an article Friday entitled “Officials Worry about Consumers Lost Among the Recalls“. Apparently, the surge in recalls has caused consumers to increasingly ignore them. Apparently, many consumers choose to continue to use recalled items or even to eat recalled food. Among the issues, the swelling number of recalls encourages consumers to assume that they are not serious. In addition, the onslaught of recalls is numbing to consumers. Prominent recalls that appear to be based on junk science or Regulatory Multiple Personality Disorder (RMPD), like my personal favorite McDonald’s Shrek glasses which were recalled despite the CPSC’s admissin that they were perfectly safe, only amplifiwa the sense of a system is out of control.

Among the useless advice offered in the article is the recommendation that all merchants should do as Costco does, which is to call every customer who has ever bought a recalled item in its stores. What Costco does is admirable, but it is entirely dependent on being a multi-billion dollar, high tech mass market retailer. I think it would be great if I could hit my nine iron 205 yards like Tiger Woods, but then again, it ain’t happenin’. It’s about as realistic to advise (or require) me to match Mr. Woods distance and accuracy with his golf clubs as it is to require all U.S. merchants to match the achievements of ONE of them, namely Costco in this case. Unfortunately, the article’s suggestion is utterly out of touch with reality. Bad news – the world’s imperfect. . . .

Whatever we do, we certainly shouldn’t address the standards for how recalls are determined, staged or publicized. We may disagree about many things, but we all have to acknowledge that our government COULDN’T be at fault. Certainly not, their every choice and execution is perfection by definition. It’s obviously the fault of industry.

Editor’s Note: In case you were wondering, I was being sarcastic in the paragraph above.

The Post article also clucks about the implementation of registration cards for durable infant products like cribs and bassinets. I have consistently pointed out that durable infant products are in a different category because they are useful for a long time (hence the word “durable”) and tend to be handed down from one generation to another, often being used over decades. On this basis, having a way to reach consumers is a good idea. BUT we need to acknowledge an important consequence of this idealistic solution – the new rules tend to make it very difficult or even illegal as a practical matter to START a business catering to these markets. For those companies crazy enough to remain in the durable infant products market, the new rules on registration cards and data retention is a Gift from Above. The infrastructure and overhead burden of this requirement will be unbearable for any except the most well-capitalized companies.

I am glad I don’t need a crib now. Considering how many companies have been crushed by recalls, the penal attitude of the agency (with huge penalties possible LONG after recalls are announced), tough new standards and regulations on the product class, and the new registration cards, I cannot imagine many companies remaining in this market for much longer. The ensuing lack of competition will likely mean fewer products, much higher prices, less innovation, fewer available imports. The CPSIA is a protectionist regime for those few companies not already bankrupt at the hands of the government.

I am not in this business and my kids are older – for once, this is someone else’s problem. I think the government’s approach to fixing this problem is completely wrong. They seem to be taking their instructions from a very small and insular group of consumer advocates whose judgment on these matters is largely unchallenged by industry or an inquisitive media. [Media is only inquisitive these days if they can portray a crisis, it seems to me.] Having bought into these harsh concepts at the hands of consumer groups, the government today is busy patting itself on the back for a job well-done. We’ll see . . . .

In the meantime, with the CPSC announcing micro-recalls like Daiso’s latest (190 pieces recalled – total, including inventory on the shelf – of five items selling for $1.50 at retail), the consumer is left wondering if anything is safe or everything is safe (and the government has lost its mind). I can’t tell you but my guess is closer to the latter. And the Washington Post says you are all checking out. Good job, regulators!

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CPSIA – What?! Too Many Recalls – That CAN’T Be!

CPSIA – New York Times Highlights Big Government at CPSC

The New York Times today highlighted the explosion in regulations under President Obama, particularly noting the CPSC and the controversy over the CPSIA. Here’s what Inez Tenenbaum had to say about our problems:

“‘I don’t want to put anyone out of business,’ said Inez Tenenbaum, chairwoman of the Consumer Product Safety Commission, who was appointed by Mr. Obama. ‘But if anything will help the marketplace, it is to make sure that people have confidence in the products that they buy.’” [Emphasis added]

Let’s be clear about something – this is pure opinion. It may sound like fact, but there’s nothing factual about that self-justifying remark. I am not aware of ANY data to support this point of view. I believe the tenor of Ms. Tenenbaum’s remark is that she knows what’s best for our markets, namely a lot more regulation. I thought her job was to make people safe . . . . She apparently contends that the market for children’s products was sinking under the weight of declining consumer confidence and the CPSIA was some sort of stimulus bill intended to save our market with lots of confidence-restoring regulations.

That is a pretty rosy reconstruction of the CPSIA, don’t you think? I love a good work of fiction!

I have a message for our overlords in Washington – thanks for all your help but frankly, I would prefer to run my business without your assistance. We know our customers, our suppliers, our products and most definitely, our markets – and you do NOT. You say our market needs a boost of consumer confidence. I say that if it does, we’ll take care of it ourselves. You have no right to enter our market and tell us how to run our businesses more successfully. That’s the ultimate in regulatory arrogance and is completely contrary to the capitalist system prevailing in this country. We are the efficient capital allocators, not YOU.

This is all Washington “spin”. The noxious regulations choking our businesses are indefensible for their safety impact so now our regulators are telling us the new rules have been designed to be GOOD for our markets. Pass me a barf bag.

I would like to close by quoting the May 12 HTA letter on the Waxman Amendment:

“Finally, we hope to settle any confusion regarding our intent in endorsing the CPSEA. We endorsed it as our only available alternative. We truly believe that many of our members will be forced out of business after February 10, 2011 without meaningful, clear reform provided by your committee.“

Thanks, Congress and CPSC, for boosting our markets so well with all your new regulations. It’s a brave new world for all of us. Yippee.

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CPSIA – New York Times Highlights Big Government at CPSC

CPSIA – Good News Finally, Two Toy Companies are Doing Okay

Don’t despair, everyone – there are at least two toy companies who have found a way to weather the CPSIA storm. Yes, both tiny Mattel and minuscule Hasbro were able to eek out a nice profit jump this quarter. Mattel reported earnings of $24.8 million in the first quarter, instead of a $51 million loss last year, and Hasbro had to make due with earnings of $58.9 million this quarter, up over winnings of $19.7 million in the same quarter last year.

The CPSIA is obviously crushing these companies. They are so brave!

Don’t worry though – Waxman has a few morsels for us small fry, too. To ease the burden on us, his new amendment authorizes the CPSC to make special testing rules for us, provided (it’s complicated) our revenue is under $500,000 per year. Oh goodie! Unfortunately, if we happen to be bigger than that, we face the exact same rules as Mattel (revenue of $880.1 million in the last QUARTER) and Hasbro (sales of $672.4 million in the last quarter).

That seems fair to me. Really fair . . . .

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CPSIA – Good News Finally, Two Toy Companies are Doing Okay

CPSIA – CPSIA Casualty of the Week for April 9

The Alliance for Children’s Product Safety’s “CPSIA Casualty of the Week” highlights how the Consumer Product Safety Improvement Act (CPSIA) is disrupting the U.S. marketplace in order to draw attention to the problems faced by small businesses, public institutions, consumers and others trying to comply with senseless and often contradictory provisions of the law. These provisions do nothing to improve product safety, but are driving small businesses out of the market.

Congress and the CPSC need to address the problems with CPSIA implementation to help small businesses by restoring “common sense” to our nation’s product safety laws.

CPSIA Casualty of the Week for April 9, 2010

CPSIA EXPELS EDUCATIONAL PRODUCTS FROM SCHOOL

The approximately 1,500 businesses that comprise the National School Supply and Equipment Association (NSSEA) are dedicated to providing educational supplies, equipment and instructional materials to schools, parents, and teachers. This small industry serves a vitally important market – American schools – providing specialized products that form the backbone of the American educational system. Without the support of this small business-dominated industry, the needs of many American children would be left unmet, including children with disabilities and special learning needs.

The Consumer Product Safety Improvement Act (CPSIA) has had a negative effect on nearly every NSSEA member company, says a recent NSSEA survey of manufacturers/suppliers and dealers.

According to the findings, 64% of surveyed NSSEA suppliers, and almost half of the dealers (46%), have been negatively affected by CPSIA regulations. About 47% of dealers surveyed have removed items from inventory, and 40% of manufacturers have either removed items or discontinued production. Almost 80% have incurred additional testing costs. Unfortunately, all this expense and disruption has served no purpose – the CPSIA has imposed economic turmoil on an industry that has a great safety record. Recalled educational products have been responsible for a total of three reported injuries in the last ten years, one from an overheating battery compartment and two relating to a defective hinge on a changing table.

A NSSEA manufacturer wrote, “We have been forced to discontinue safe products because the testing costs have not justified keeping them in the line. This has had a very negative impact on our bottom line by destroying very good and safe product. Teachers who have been using these products for decades will not have access to them anymore. Going forward, we will not be able to develop niche products that are specific to education because the testing costs will not justify anything with low sales.”

“From delayed orders to confusion regarding the requirements, members have been left with eroding margin, increased labeling and testing expenses, and a decrease of education products available to the marketplace,” wrote NSSEA Vice President Adrienne Dayton in a recent association newsletter.

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CPSIA – CPSIA Casualty of the Week for April 9

CPSIA – CPSIA Casualty of the Week for January 25

The Alliance for Children’s Product Safety’s “CPSIA Casualty of the Week” highlights how the Consumer Product Safety Improvement Act (CPSIA) is disrupting the U.S. marketplace in order to draw attention to the problems faced by small businesses, public institutions, consumers and others trying to comply with senseless and often contradictory provisions of the law. These provisions do nothing to improve product safety, but are driving small businesses out of the market.

Congress and the CPSC need to address the problems with CPSIA implementation to help small businesses by restoring “common sense” to our nation’s product safety laws.

CPSIA Casualty of the Week for January 25, 2010

CPSIA Means No Bling for Baby

When Elementary School teacher Marcy Cohen had her first baby girl, she and her sister Lori Rockoff, a social worker, started making tiny accessories for the newest addition to the family. With only a few strands of hair to adorn, the sister team developed “no slip” clips and bows. Soon, their sparkling rhinestone creations were catching the eye of friends and strangers, prompting them to launch Pea Soup Accessories for Kids, which quickly became a leading manufacturer of hand-made children’s products. Their trendy product line includes a wide variety of accessories from embellished headbands to ornate socks.

Yet, while the sisters behind Pea Soup were busy supplying hundreds of high-end boutiques, Congress was working on the Consumer Product Safety Improvement Act (CPSIA) to devise new testing standards of the metal and crystal embellishments that give Pea Soup accessories their unique flair. While none of Pea Soup’s products ever had any safety or lead problems, the confusing nature of the CPSIA forced the sisters to make substantial changes to much of their line.

“We did not want to take any chances with violating the new law,” says Marcy. “In order to avoid any risks, we scrapped many of the products in our line and had to manufacture new ones with different and compliant materials.”

As a result of the law and the cost of the required testing, Pea Soup was forced to significantly change their product line, eliminating much of the creative embellishments that made their accessories distinctive and leaving them with thousands of dollars worth of perfectly safe (and adorable) unsalable inventory.

For more information about Pea Soup visit, http://www.peasoupaccessories.com/about_us/

For additional information on the Alliance for Children’s Product Safety and CPSIA, and to view previous “Casualties of the Week, visit http://www.AmendTheCPSIA.com/

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CPSIA – CPSIA Casualty of the Week for January 25

CPSIA – Recommended Non-Legislative Changes

As promised, I wanted to provide my list of non-legislative changes to accompany my list of CPSIA changes. I have repeatedly called for effective process and resource allocation to bring about results. I do not share the view that draconian penalties and super-low standards are the answer – something else, something more “human” is needed to get better outcomes. So I conclude that changes to the law alone won’t work. The agency needs to rethink its priorities and its way of interacting with the market to reduce injuries in the long term.

As a preface, it’s important to note the following:

a. My suggestions for legislative and non-legislative changes will have NO material negative impact on safety. It is my fervent hope and intention that these changes will improve results for the agency.

b. It is critical that the agency be well-functioning after amendment of the law. In my legislative changes, I have placed a priority on cleaning up purposeless complexity and tasks that are not critical to the mission of supervising safety. It is essential the CPSC have a set of ordered priorities – because if everything is important, nothing is important. In my non-legislative changes, I propose prioritized resource allocations to improve focus on real drivers of behavior.

c. I believe the agency must reestablish a basic sense of what is safe and what is not safe. Judging from recent decisions of the Commission and recent recalls, I think the line between “safe” and “unsafe” has become blurred. Being careful about safety does NOT imply a fear of “everything”. I have tailored my legislative recommendations to focus in on REAL safety risks – only. In my non-legislative recommendations, I have focused on resource allocation, outreach/education and better communication with the regulated community, striving for constructive dialogue rather than behind-the-curve reactivity.

My list of non-legislative changes:

• Liaison office to manage Q&A with regulated companies. “No name” inquiries should be permitted. This office should be staffed adequately to ensure timely replies.
• Amnesty program – if a regulated entity turns itself in before it is notified that it is being investigated, the regulated party may NOT be penalized.
• Industry Outreach/Education – as a TOP priority, the CPSC must create an educational outreach program to sensitize industry to safety issues and to educate regulated companies on their legal obligations and on good safety practices. This office should operate independently of enforcement staff or activities. On-site training should be offered for free.
• The CPSC website should be reworked to meet best standards for access to information. The current website is quirky and difficult to navigate.
• The agency should reexamine its allocation of resources according to severity of threat, and then reorganize its assets in line with threat priorities. Threat level teams should be separately staffed and tasked, with timeliness of processing a top priority. If resources are allocated properly, the concept of a “queue” can be abandoned in favor of objective expectations on how threats are processed by the agency. The teams should be resourced independently, as though they were separate agencies (e.g., the “high threat” team would have different lab resources than the “medium threat” team).
• Industry self-regulation should again become the principal strategy of the agency to manage markets.

I recommend that all of my legislative and non-legislative changes be implemented to reduce the administrative burden of regulating the affected markets and to improve the effectiveness of the agency’s activities. The overly broad and unrealistic demands of the CPSIA made inevitable the observed diminishing impact of the CPSC. By eliminating many unnecessary standards, bureaucracy and supervisory activities (totally eliminating vast amount of work for both agency and regulated community), focus may be restored to the task of keeping kids safe. This will result in GREATER safety, certainly not increased injuries.

The task of properly allocating resources within the agency to bring about good results in the marketplace is far more important than having draconian rules on the books. With the scheme I recommend above, the CPSC would be in the optimal position to focus on real threats and to buttress safety against evolving threats. A revitalized agency focusing on high impact activities and structured to respond quickly and insightfully against emerging threats will make the CPSC a model agency within the Federal government.

It can be done . . . with some courage, some vision and a sense of conviction. The time is NOW.

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CPSIA – Recommended Non-Legislative Changes

CPSIA – The Eyes Glaze Over . . . .

Sometimes I wonder if they have completely lost it at the CPSC. This evening we received the CPSC Federal Register notice on the Stay decision (actually entitled “Consumer Product Safety Act: Notice of Commission Action on the Stay of Enforcement of Testing and Certification Requirements”). I seriously wonder if anyone read it over in Bethesda. I have NEVER seen anything this dense and unintelligible come out of that office.

As the Commission tucks itself into bed before an exciting day tomorrow in which it can either decently provide enough time for an orderly implementation of this mess of a law or send small businesses down the river, I hope somebody is thinking about the complexity of what they have wrought. Of course, rules always seem more complex when they apply to you than when they apply to someone else. Still, perhaps a quick scan of this document might enlighten the Democrat Commissioners who seem particularly dense on the subject of why businesses want more clarity before the rules go “hard”.

I uncovered this while on a mission from a reader of this space. I had been alerted to the possibility that this document said that the lead content stay was LIFTED. This could not be true, since a ballot vote is definitely docketed for tomorrow on this subject. Even at a Waxman-dominated CPSC, it would be rather ballsy to issue a notice announcing a decision before the vote was tallied. With three Democrats “highly sympathetic” and “seriously considering” the opposing views but by all appearances having irretrievably made up their minds, it is not hard to imagine that skipping a step might have a certain appeal. Why bother waiting for the Republicans to lose (again)???

Well, incredibly, my reader was RIGHT – the document states that the date for the lead content rules to become effective is August 10, 2010, a “date certain”:

“With regard to lead content, the Commission has determined that testing of children’s products for lead content by a third party conformity assessment body and certification based upon that testing should begin on products manufactured after August 10, 2010 to allow component testing to form the basis for certifications for lead content and permit the staff to complete an interpretative rule on the meaning of the term ‘children’s product.’ An interpretative rule on the meaning of the term ‘children’s product’ would provide firms with additional guidance on when testing for lead content will be required by the Commission.”

Apparently, no one updated this FR notice for this morning’s motion to docket this decision for ballot vote tomorrow. Oops!

Remember the part in the hearing today where they discussed market disruptions and the need for businesses to have time to absorb and adjust to the new rules? Does anyone wonder why we have confusion in the market after you read this document? Please be honest. Myself, I experience shortness of breath when I read dense prose like this. I think the works of David Hume seem more accessible than this kind of thing – so why does the Commission delude itself that anyone undersands the mountains of rules and rulings it spews out? Market confusion is all but certain when implementation is handled this insensitively.

One reason is that some Commissioners hear what they want to hear, and ignore the rest. This is called “selective hearing”; I know all about this topic, as there is at least one person who lives in my house who has been regularly accused of this malady. [No names, please.] For instance, yours truly pointed out serious errors in the presentations by CPSC professional staff during last week’s workshop as well as in the preceding December 2 hearing to a Commission staffer. I don’t blame the CPSC staff nor do I consider these errors to mean much . . . other than the fact that the CPSC staff is supposed to know these rules better than anyone else, and if they make errors (understandable), what do they honestly expect of the regulated community??? If we make these errors, we get whacked with high fines or possibly, if the CPSC is riled up enough, go to the pokey. Isn’t the occurrence of serious errors by CPSC staff an indication of over-complexity? This was all known to the Commission before today’s hearing. Get this – the Emperor has no clothes.

Still not convinced? Try this passage on for size, and then TRY to imagine running a normal business catering to children and in your spare time attempting to comply with this law. Imagine trying to master this law as implemented by the CPSC, given that you are not a lawyer, can’t afford a lawyer or a legal department, and don’t have a few unoccupied months to study the mountains of paper the CPSC emits. It’s something you have to do in between everything else you do in your job. And the CPSC says:

“In the months after the Commission issued the stay of enforcement, the regulatory environment has changed significantly [No problemo!], and both the CPSC and interested parties have increased their understanding of the CPSIA and its requirements. [Yes, bring it, baby!] For example, between February 9, 2009 and the date of publication of this notice, the Commission issued more than 20 FEDERAL REGISTER notices, statements of policy, guidance documents, proposed rules, interim final rules, and final rules pertaining to the CPSIA, and most of these documents pertained to testing and certification issues. [This is not a joke. I didn't write this part, either.] These FEDERAL REGISTER documents include:

• “Third Party Testing for Certain Children’s Products; Notice of Requirements for the Accreditation of Third Party Conformity Assessment Bodies to Assess Conformity with the Limits on Total Lead in Children’s Products,” 74 FR 55820 (October 29, 2009);
• “Notice of Availability of a Statement of Policy: Testing and Certification of Lead Content in Children’s Products,” 74 FR 55820 (October 29, 2009);
• Proposed Rule on “Safety Standard for Infant Walkers,” 74 FR 45704 (September 3, 2009);
• Proposed Rule on “Safety Standard for Bath Seats,” 74 FR 45719 (September 3, 2009);
• “Third Party Testing for Certain Children’s Products; Notice of Requirements for Accreditation of Third Party Conformity Assessment Bodies to Assess Conformity with Parts 1203,1510,1512, and/or 1513 and Section 1500.86(a)(7) and/or (a)(8) of Title 16, Code of Federal Regulations,” 74 FR 45428 (September 2,2009);
• Final Rule on “Children’s Products Containing Lead; Determinations Regarding Lead Content Limits on Certain Materials or Products,” 74 FR 43031 (Aug. 26, 2009);
• “Notice of Availability of a Statement of Policy: Testing of Component Parts With Respect to Section 108 of the Consumer Product Safety Improvement Act,” 74 FR 41400 (August 17,2009);
• Final Rule on “Children’s Products Containing Lead; Interpretative Rule on Inaccessible Component Parts,” 74 FR 39535 (August 7, 2009);
• Proposed Rule on Requirements for Consumer Registration of Durable Infant or Toddler Products, 74 FR 30983 (June 29, 2009);
• Final Rule on “Children’s Products Containing Lead; Final Rule; Procedures and Requirements for a Commission Determination of Exclusion,” 74 FR 10475 (Mar. 11,2009);
• Notice of Availability of Draft Guidance Regarding Which Children’s Products are Subject to the Requirements of CPSIA Section 108; Request for Comments and Information, 74 FR 8058 (Feb. 23, 2009); and
• Interim Final Rule on “Children’s Products Containing Lead; Exemptions for Certain Electronic Devices; Interim Final Rule,” 74 FR 6990 (Feb. 12, 2009).

Additionally, the Commission has met with numerous parties to discuss various aspects of the CPSIA or educate interested parties about the CPSIA’s requirements, and, on December 10, and 11, 2009, it held a two-day workshop to discuss issues relating to the testing, certification, and labeling of certain consumer products pursuant to section 14 of the CPSA (see 74 FR 58611 (November 13, 2009). [You know, the one last Thursday and Friday with simultaneous panels going on all day on both days. There has been no time to review or consider the data gathered at the workshop, or the written comments which will continue to come in for the next 25 days.] Given the issuance of many rules and other FEDERAL REGISTER documents, statements of policy, and guidance documents [OMG, there were other documents besides these?!], as well as increased understanding of the CPSIA’s requirements, the Commission believes it is appropriate to phase in the testing and certification requirements as described in more detail below.” [This passage is followed by pages of details of stays lifted, extended, partially extended, whathaveyou. It also includes the errant language on the lead content stay.]

I find myself scratching my head in wonder. What is going on here? Is this being staged for effect, or are they SERIOUSLY trying to regulate this way? Is ANYONE accountable over at the CPSC? Can they get away with anything and everything?

It is sickening that a discussion is even necessary for the extension of the stay on lead content. The Commission should hang its head in shame for foisting this mess off on an innocent manufacturing community. What on earth did we do to deserve this treatment? I am tired of this Commission bowing down to Henry Waxman and a howling pack of fear mongering consumer groups. Those people have never worked for actual operating companies and know nothing about the realities of the marketplace or manufacturing itself. It’s time to stop sticking it to the manufacturing community.

The WSJ noted tonight that Congress and Mr. Obama have hit new lows in popularity. I particularly found interesting that 81% of the participants in the new poll considered this “a period of division where the parties held fast to their positions and showed little willingness to compromise” in Congress. Do we really want this export at the CPSC? As a member of the regulated community, I vote no!

Tomorrow’s vote is going to tell us all a lot about this Commission and its leadership. Watch this space for news.

Read more here:
CPSIA – The Eyes Glaze Over . . . .

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