Thursday, July 21, 2011
CPSIA - The CPSC Finds a New Way to Scr*w You
Commissioner Nancy Nord points out that this decision was a compromise of a Hobson's Choice nature:
"I joined in the majority’s vote only because of a negotiated agreement that we would stay enforcement of the testing mandate through December 31, 2011. Had we not reached this compromise, the testing requirement would have landed in the market’s lap in mid-October, just as stores are making their final preparations for the holiday season and small toy manufacturers are at the peak of filling orders. While I am relieved that companies will now have some time to find their way through the maze we have created, I have major concerns about why we are rushing to impose testing requirements to a standard we know is about to change."
What was that last bit?
Ummm, well, the ASTM is actually updating the F963 standard right now. It will be done by year end. and as a result of the CPSC's wondrous action this week, it will be a mandatory rule to test to an obsolete standard on January 1, 2012 - and probably necessary to test to the new standard, too! Doesn't that sound great?! Now you can deliver TWO test reports when one might have sufficed. But think of how much safer kids will be if you produce two almost identical passing test reports rather than just one. Just think of it . . . .
Ms. Nord explains:
"When the stay of enforcement is lifted on January 1, 2012, most likely we will be requiring testing to an outdated standard. This puts manufacturers and retailers potentially in the situation of having to do redundant or perhaps irrelevant testing – testing mandated by the CPSC to the old standard and testing mandated by the marketplace to the new standard. Because we are taking the position that these testing requirements are rules and can only be changed (after August, 2011) by notice and comment rulemaking, there is virtually no way to get the new notice of requirements in place and labs accredited before the standard becomes effective. This puts toy manufacturers in an untenable position. Our response is that we will address these problems as they come up but, of course, in the real world, this is no response at all to the potential for confusion we are creating."
I no longer have a sense of humor, so you can rest assured that I am NOT making this up.
Why the heck was the Commission in such a big, hot hurry to get this done? Again, Ms. Nord explains:
"We are able to issue this NOR [notice of requirements] without following the Administrative Procedures Act (APA), with its notice and comment requirement, because the CPSIA allows avoiding the APA until August 14, 2011. After that, we must ask for and consider public input. Therefore, by putting out the NOR today, (1) we did not need to ask for and consider public comment, but (2) we did need to stay enforcement to prevent an unnecessary economic train wreck for the toy industry immediately prior to the holidays."
Does anyone remember that Bob Adler has said publicly at several Commission meetings and hearings that he hates stays and doesn't want to vote for any more stays? So this vote avoids a public hearing and public comment (takes time, increases scrutiny, can limited flexibility) and it also avoids another stay process to extend this misery. The Dems on the Commission almost always vote as a pack. Can you connect the dots?
Not surprisingly, Nancy Nord can connect dots:
"However, if we waited, as sound regulatory policy would direct, we would have had to seek comments from the public. Apparently this public input process is too much of a burden for the agency, so if we have the opportunity to skirt the requirement we are more than happy to do that. Like a teenager with dad’s car keys, we want to squeeze in as much joy-riding as we can before the curfew hits. Our hasty decision does not achieve a net safety benefit, but it unfortunately does make things much more difficult than they need to be for the companies that are trying to understand and follow the law. . . . With its vote today, the CPSC has once again opted for rash action over rational action, to the quick and easy over the thoughtful and transparent. We know how to do better rulemaking; unfortunately, the majority today decided to push the ‘quick’ button instead of the ‘pause and think’ button."
Another Commission decision, another shellacking of the poor fools left serving children's markets. After three years of this torture, I am just not surprised. When will our country wake up and notice this travesty?
Tuesday, February 1, 2011
CPSC - Nancy Nord Posts that Stay is Extended to December 31
CPSIA - Countdown to Crisis, Nine Days To Go
I am tempted to speculate on how this persistent state of indecision arose. After all, some of the Democrats on the Commission were adamant in the last go-round that this stay would not be extended. As I recall, Bob Adler expressed deep dislike for stays and promised that this was "it". One wonders if someone has blocked action on this issue. After all, the Commission is so collegial.
Inaction in the next nine days means that the stay will lift of its own accord.
I suggest that you go into crisis mode. With the law governing your business and your market possibly going to change unfairly and dramatically in the next few days despite the incomplete state of regulations governing mandatory testing, exposing you to possible jail time, you better get working. Or praying.
Hope you aren't in Chicago, like me - we are expecting the worst snow storm in 44 years today. I guess we'll begin our panic attack in a day or two.
When will the CPSC take action? Who knows. Take your time, guys! After all, they must really be under the gun. Who could have seen this coming? In December 2009, they gave themselves 14 months to resolve the component testing rule and the absurdly nicknamed "15 Month Rule", and couldn't get it done. They couldn't even respond to the comments they solicited on those shocking and uncomprehending rules. So busy! The last time the stay was about to expire, knowing that they couldn't or wouldn't get their work done, they at least had the decency to give ten weeks notice of the stay extension. Not this time.
Maybe they are punishing us because we've been bad. Maybe this is the way the CPSC sends us to our rooms. When can we come out of our rooms, CPSC Commission? We promise to be good!
The sick game that the Dems are playing is that the law is fine, and that there is just some sort of hang-up. A snafu. Darn those hang-ups! In fact, the law was misconceived from the start, was never workable, could not be "fixed" by regulatory action - and the Democrats on the Commission were appointed to never admit it. This is Henry Waxman's signature legislation - Dems are not allowed to criticize it. So today we continue to suffer at their hands. They don't care about you, your market or even the kids that your business serves. This is all politics - they are just looking up the line, and protecting their political overlords who insisted on this defective law.
Enjoy! As long as the Dems are in control in Bethesda, expect more of the same.
When's the next election, anyhow?
Friday, January 28, 2011
CPSIA - CPSC's Shameful Failure of Leadership
The CPSC explains that extension of the stay is only one of its options. It can do nothing, it can roll all the existing stays forward, or just some of them (to heck with the ATV'rs and the bike industry). Presumably, they will choose to roll all of it forward to September 14, 2011. We can all be screwed on the same day. I like the symmetry of that!
The CPSC has not lost sight of the issues. They know they haven't finished their work. They note that two years ago on February 9. 2009 when the Commission first extended the testing stay. it was because delaying implementation of the testing requirement by a year "give[s] us the time needed to develop sound rules and requirements as well as implement outreach efforts to explain these [new] requirements of the CPSIA and their applicability."
How time flies! That didn't happen, so the Commission again extended the stay by another year on December 8, 2010. Why? Chairman Tenenbaum: "I voted to extend the stay on lead content testing and certification until February 10, 2011, in order to allow component testing adequate time to develop and to give our stakeholders adequate notice of new requirements." Commissioner Robert Adler: "One of the primary rationales advanced for extending the stay is to await the effective date of the so-called 15-month rule."
Where does the time go?? None of that ever happened. Hey, CPSC, take all the time you need!
So now the Commission is poised to kick the can down the road until September 14, 2011. Why that date? The CPSC Staff report notes that this gives the Commission time to sort out the new, lower lead standard due to be imposed on August 10, 2011. The CPSC is holding a hearing on February 16 on the feasibility of the 100 ppm standard. As Staff notes, if the Commission doesn't determine that 100 ppm is feasible, then they will have to set a standard between 300 ppm and 100 ppm that is feasible. "Feasibility" was defined in the CPSIA, lest there should be any disagreement, to exclude ANY consideration of economics. In other words, if it's possible at any price or under any condition, it is considered "feasible" and thus mandated by the law. I can save the CPSC some time - under that definition, it's definitely feasible. Completely unreasonable and unnecessary but "feasible".
The idea promoted in the Staff memo is that we will time to get used to all this if the stay lifts a month after the implementation of the new lead standard. [The concept of "learning disability" floats through my head. Have we heard this song before?] "Staff recommends that the Commission extend the stay to allow time for the Commission to determine whether it is technologically feasible to lower the amount of lead in children's products to 100 ppm." I guess once the Commission makes up its collective mind, the CPSC will wave a magic wand and make your business, your supply chain and your sales channel comply with the new rules in a matter of days. The fact that the rules are hazy after almost three years is no concern of theirs. Is it a concern of yours?
I love magical rules and magical plans! It must be a job requirement for Commissioners to be wizards, too.
All concerns over the "15 Month Rule" seem to have evaporated. This is presumably Robert Adler's doing (see his statement above, which is a rant that the 15 Month Rule and the stay are separable issues). The Staff report intones: "While a Commission decision to extend the current stay of enforcement will give industry an opportunity to test and certify finished products and components according to the final rule and provide the Commission time to clarify any confusion regarding the new rule, it is not necessary for the testing rule to be complete to lift the stay as to the initial test for lead compliance." Can't see any problem there, can you???
The CPSC doesn't want you to worry, however. They have apparently promulgated several documents that set out their policy and whatnot on lead, namely "Statement of Commission Enforcement Policy on Section 101 Lead Limits" (February 6, 2009) (6 pages); "Children's Products Containing Lead: Interpretative Rule on Inaccessible Component Parts" (August 7, 2009)(32 pages); "Statement of Policy: Testing and Certification of Lead Content in Children's Products" (October 2009)(5 pages); and "Interim Enforcement Policy on Component Testing and Certification of Children's Products and Other Consumer Products to the August 14,2009 Lead Limits" (December 28, 2009) (4 pages). If these four documents totalling 47 pages don't clear up everything, the CPSC is ready for you. "Manufacturers of children's products can seek guidance for what the Commission considers reasonable and representative testing in these rules."
You may have to wait a few years for a reply, but darn it, they're going to answer your question. And that's because they really CARE. We're the government and we're here to help!
A few more cock-ups aren't deterring the agency. The phthalates standard is still undrafted, likewise the certification procedures for phthalate testing labs. Oopsie! Well, they've been busy . . . and the much fantasized-over component testing "market" has failed to materialize. Imagine that, businesses that inadvertently serve the children's market with components or which derive a small percentage of sales from children's products aren't volunteering to test their items and expose themselves to the ravages of a crazy and out-of-control federal agency. Shocking!
Those of you who live in the past may recall my mentioning this very issue on November 6, 2008 (yes, 2008) when I addressed the CPSC Lead Panel. [It's a safe assumption no one was listening at the agency - opportunities for stakeholder feedback is not for listening, it's for venting.] I talked about the futility of expecting our suppliers of aluminum foil (widely used in schools in science kits) to test their products. After all, they are allowed to sell it for use with food without testing, so why should they test for me? If I asked them for a test for compliance with the CPSIA, they would certainly refuse and then ask in outrage why I was selling aluminum foil to kids anyway. As I said, who could see this coming? No one . . . .
For all the outrages that this sick situation brings to mind, NOTHING is as shameful as the CPSC's refusal to admit that this is all administrative, bureaucratic nonsense (or use your own word for "nonsense") that has nothing to do with SAFETY. Oh yeah, safety - isn't that word in the name of this agency - the Consumer Product SAFETY Commission. What about safety, guys? Are you concerned about that anymore? This failure of leadership is the basic issue I have with the folks running the agency today. There's a reason that bureaucrats are called "soul-less".
The fact is that this administration at the CPSC (Democrats) will not stand up for what's right - they are prepared to go down with the ship. It's ironic that they remain so strident and so stubborn. Mr. Obama can smell change in the air and even he has called for reconsideration of the deluge of regulations. The Republicans in the House have declared war on over-regulations and the House Energy and Commerce Committee has made reform of the CPSIA the top priority of Mary Bono-Mack's subcommittee.
As I have said again and again - this is YOUR government at work. Their shameful acts which are harming your markets and your business are destroying jobs, discouraging innovation and hurting children by impairing the activities of businesses devoted to children's welfare. This intolerable situation will only be fixed when you MAKE it change. You can do it and you must. There is a new Congress in town and they need to hear from you. Don't let the Democrats keep on wrecking your industry. This isn't about safety and never was. This is politics, pure and simple.
Make them pay for their sins. Call your Congressman.
Wednesday, January 26, 2011
CPSIA - I Stand Corrected
Maybe Congress should make the CPSC hang on for something they want, like their budget. Talk of a 50% budget cut might get the message across to these administrators about the need the plan ahead.
This is your government at work. Remember, in the U.S., the government is by the People. If you don't like this treatment, make yourself heard. Call your Congressman or send them a fax (or ten). This outrage needs to be outed.
Tuesday, January 25, 2011
CPSIA - CPSC Kicks The Can Down The Road
You may decide for yourself whether congratulations are in order.
More later.
CPSIA - Feb 10th Approaches and the CSPC Sucks Its Thumb
Do you like it? Does it build confidence in that relationship?
We are experiencing this phenomenon once again with our trusted partner in safety, the CPSC. The expiration of the testing and certification stay is due to occur in about two weeks now on February 10th. The conditions precedent to lifting the stay, namely completion of the hilariously-named "15 Month Rule" (it was due to be completed on November 14, 2009) and the components testing rule, were not completed. These two rules were issued in draft form earlier in 2010 and after howls of protest . . . nothing. Did this affect the CPSC's plans? Apparently not. No action, no comment. Silence. [The Republican Commissioners have been talking about it but don't have the votes to force movement. Safety IS a partisan issue, it turns out.]
With mere days to go, the CPSC is letting thousands of businesses plan for unknown contingencies. What rules will apply? What will the world look like if the stay is lifted and these critical rules are not settled? Even worse, would the Commission jam through clearly defective rules just to "save face"?
It seems that the shabby treatment we get from the CPSC has hit rock bottom . . . and they have started to dig. O wonderful world.
The last time the Commission faced this question, they acted on December 9, 2009 to extend the stay for a year to February 10, 2011. In other words, they did not let the children's product market flap in the wind and gave ten weeks notice that disaster was not looming. Of course, their extension of the stay was designed to permit finalization of rules that, ummm, they never finished.
So now they prefer to jerk us around, rather than face the music and admit their own failures. This is politicians behaving badly, to save their own reputation at the expense of your business and your market. Better that you should suffer than that they should look bad. Or incompetent. Accountability is not part of the lexecon.
All is not lost, however. Rep. Darrell Issa is calling over oversight on over-regulation, and the CPSC is on that list. The House Energy and Commerce Committee has also named the CPSIA as the top priority of the Subcommittee on Commerce, Manufacturing and Trade Agenda. The government is listening. Is the CPSC?
What will happen? One thing's for sure, you will find out soon. If the Commission extends the stay, as they should, the wolf will move away from the door. Even if that happens, however, the CPSC should be shamed. They are now in the middle of the third year of implementation of a defective law and have yet to admit that it can't be done. That's their real crime - the sin of denial. The solution requires political bravery - standing up to Mr. Waxman and Mr. Pryor and telling them the TRUTH. The Democratic leadership at this agency failed that test and re-fail it every day as they persist in sustaining the illusion that the law makes sense or is workable.
Stay tuned!
Wednesday, January 12, 2011
CPSIA - Please Resend Your Letter to the CPSC
The link can be found here.
Tuesday, January 11, 2011
CPSIA - Tell the CPSC to Extend Testing Stay!
The AAFA letter draws from the NAM letter posted in this space yesterday.
PLEASE send this email and ask all your friends, associates, suppliers and customers to add their voice to this important plea.
Thank you!
Monday, January 10, 2011
CPSIA - NAM Demands Extension of Testing Stay
Thursday, September 16, 2010
CPSIA - Something's Cooking on "Children's Product" Definition
I have written in this space about the recent shocking release by the CPSC of the final rule on the interpretation of the term "Children's Product" under the CPSIA. The agency's official interpretation of this defined term will dictate the creeping scope of the awful CPSIA and likewise has the potential to trim its sails. Many people gave detailed comments on the agency's troubling initial draft of the interpretative rule, including me. I bashed the rule for its many problematic flaws.
The release of the final rule was stunning because, as I have noted again and again, the agency basically ignored or dismissed ALL comments on its draft rule and more or less installed the draft law as "final". I interpreted this move as signalling the end of the CPSC's rulemaking phase under the CPSIA. I assert that this came about as a result of a directive "from the top" to stop dithering and finalize the rules NOW, damn the consequences.
Why stop writing rules now? The CPSIA rulemaking process has left the agency and its Dem leadership exhausted and impatient. The Dems do not want to spend any more time writing rules - they want to start catching "crooks". The remarkably small number of consumer injuries by products regulated under the CPSIA is no deterrent to these people - the Dems were given their jobs to catch bad guys, and catch (and perhaps manufacture) bad guys they will. As Ms. Tenenbaum has promised time and again, 2011 will be the year of enforcement. This promise implies a couple things: CPSIA rules need to be finalized quickly AND the testing stay must be lifted in February 2011. Oh yeah, the testing stay, almost forgot about that little guy . . . . Thus, time is running out on rulemaking and hence the agency's need to ignore our comments - no matter that their rules are shamelessly fouled-up and defective.
Congress "wants" it this way, or at least Mr. Waxman and his staffers insist on it. The Dems on the Commission are there to play ball.
In case you doubt my "paranoid" theory, check out the CPSC website today. Anyone notice that something is missing? Where's the CPSIA banner today? The law is now listed below in small type. The CPSIA is over, it's so yesterday . . . .
And if you buy the foregoing, then the pending rulemakings on component testing and reasonable testing programs/testing frequency should have you fouling your pants. Those two "bad boys" have pushed me into politics. I am trying to stave off disaster - I believe the agency will turn those deadly draft rules into final rules simply to avoid extending the testing stay and further to avoid delivering a very unwelcome message to Mr. Waxman that his masterwork law is thoroughly defective. And if the Dems rush it, they can inflict all this damage before Republicans can save the day after retaking the House and Senate. Tea Partiers, please take note.
But wait . . . there's something up at the CPSC. The rule on Children's Product was originally scheduled for a rubber stamp vote on September 9th. Then it was rescheduled for September 15 and then pushed forward to September 22. What's up with this?
Normally, the delay of a rubber stamp action means there is a big disagreement behind closed doors and Commissioners are duking it out in private shuttle diplomacy between staffers. [Sunshine Act rules prohibit a meeting of more than two Commissioners without holding a public meeting that you can witness - so disputes are resolved using intermediaries. Just like in the Middle East, working through third parties is a great way to work out disputes . . . .] In other words, somebody on the Commission may actually know how shameless it is to ignore legitimate and fair comments in a public rulemaking process, even if those darned comments are so inconvenient. And, ouch!, if they must remodel the rule, they might have to release it subject to another comment period. Another comment period could pose BIG problems for the testing stay, creating a real dilemma for our Dem friends. If they push out the stay AGAIN, that more or less seals it - they clearly need infinite years to implement the CPSIA, which confirms that it is a thoroughly defective law.
And there is also the looming possibility of a Commission quorum problem. What?! Well, Commissioner Thomas Moore's term ends in late October and he can only serve until year end. Then things get very complicated. If he is not replaced promptly, OMG, it's a deadlocked Commission again! Tenenbaum and Adler won't be able to get their way anymore - AW SHUCKS! - they MIGHT actually have to listen to Nord and Northup at least until another Obama puppet is put in place. And if the Senate goes to the Republicans, it might be pretty hard to confirm the usual zealot. Hmmm.
See the reason for the urgency yet???
The whole situation makes me want to tear my hair out. I have a business to run - can you IMAGINE being held hostage by this kind of idiocy in your own government? Well, we ARE being held hostage by our own dysfunctional government.
Tea Partiers, and anyone with a reawakened sense of OUTRAGE, take note. Election day is November 2nd, in case you didn't hear. . . .
Tuesday, August 10, 2010
CPSIA - Am I a Tea Partier?
Is this a fair criticism?
My POV is that this criticism fails to take into account my experiences in this business tragedy and does not consider that my views and my anger did not come from the sky - they were built, block by block, by Congressional Democrats and by the leadership at the CPSC.
I won't defend my being perpetually angry at the agency or Congress for their defiant stance of indifference. [Some Dems cloak their indifference in words of sympathy, never matched by actions consistent with their purported tears. I follow actions, not words, and prefer to ignore insincere blubberings unless something concrete is offered. It never is.] I have been working on this project for three years now, and actively working to get the CPSIA fixed for almost two years. That's a punishing death march, guys, particularly since almost everything I have written or pushed for has been disregarded or completely ignored. It seems improbable that I have been wrong about everything without exception for two long years - even a blind squirrel finds the occasional acorn. Hence the anger and the mounting frustration.
Of course, there are other sources of anger and frustration. The process of implementing this flawed law by the CPSC has destroyed so much good in the process. What we have left is much less protective of public health or well-being. The constant media pandering and the relentless positioning of businesses and business people as evil societal elements that must be controlled is, frankly, embittering. Under the pressure of this relentless drumbeat, it is hard to not feel unprotected and in great danger. We have no defenders and are on notice that we are prime suspects.
No defense, but please someone, tell me, what am I supposed to do now? Grin and bear it? Give in and pretend everything's okay? If you think either option is realistic, you really don't understand my situation or my motivation. These aren't realistic options. I am fighting off doomsday - grin-and-bear-it doesn't work when the Grim Reaper is coming your way. And there are no days off.
So if I can't go along to get along and if the CPSC and Congress have proven beyond a shadow of a doubt that they have made up their mind and have no interest in me or my problems, what options are left to me? The process of advocacy that I have been practicing and that I have been financing hasn't produced enough results - we are still in the soup. If I can't give up and if what I am doing just doesn't work - logic suggests I need to do something else.
So what I have been doing is telling the truth - it's the Dems who have done all this and it's the Dems who refuse to fix it. It's the Dems who won't listen and it's the Dems that refuse to acknowledge their errors. If everyone in Congress voted to save their job by supporting passage of the CPSIA in August 2008 rather than face reelection attack ads, that was then and this is now. The Dem leadership has chosen to ignore the OBVIOUS and continue to deny that anything can or should be done in this matter. There's nothing wrong or politically-incorrect about speaking the truth - and that's the truth. We are where we are because of the Dems. They own it.
If the politicians who are busily engaged in snuffing out our business enterprises won't listen and cannot be influenced, then what's left to me? I must enter the political arena to specifically target them for removal. And that's what I am doing. It's only fair - they act like they want my business dead. So we need to put different people in their place. And we need to do it right away.
If this makes me a Tea Partier or a Right Wing nutjob, so be it. My head is not bowed. My customers, my suppliers and my working associates and partners know where I stand. I am fighting for our business life and will not rest until the people responsible for this mess are brought to justice.
Tuesday, May 18, 2010
CPSIA - The CPSC Sweats Out A Stay
Well, that didn't work, so on December 17, 2009, the Commission again pushed out the testing and certification effectiveness date to February 10, 2011. This early action was done in recognition of industry's need for to plan for changes in requirements. Nonetheless, Dems on the Commission bemoaned the need to extend the stay:
Robert Adler: "While I had originally hoped the Commission and the marketplace would both be prepared for the lifting of this stay of enforcement, after thorough consultation with CPSC staff and stakeholders in both industry and the public health community, I believe an extension of another six months is necessary to permit market adjustments, especially with respect to the testing and certification by the suppliers of components. I respectfully disagree, however, with my colleagues who have chosen to extend the stay beyond August 10, 2010. While there will be some disruption in the marketplace no matter which date is chosen, no hard evidence has been brought to my attention that would require an even longer extension of this stay than two years from the passage of this landmark legislation. I recognize that others feel differently."
Perhaps Mr. Adler has uncovered some "hard evidence" by now. Scroll forward six months and things aren't going the CPSC's way. While the Commission may have thought it reserved enough time for everyone to "adjust" to the testing requirements, in fact things are getting worse. Rules are piling higher and higher, and are still being issued and changed. Many people don't feel the rules are survivable. Dan Marshall of the HTA testified at the April 29th hearing that his organization sees the CPSEA (the Waxman Amendment) as their only chance to survive the lifting of the testing stay. [My opinion - the Waxman Amendment won't help the HTA at all.]
More recently, the HTA sent a letter to the House Energy and Commerce Committee stating: "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. . . . You hold the livelihoods of hundreds of small businesses in your hands."
Ouch.
Not surprisingly, there is mounting background pressure on the CPSC to push out the testing stay for another year. Nevertheless, I surmise that Dems on the Commission would rather eat dirt (40 ppm lead) than take this step. They invested a lot of political capital in the last stay extension, and despite the promulgation of (literally) reams of regulations, still haven't put in place a workable regulatory scheme yet. Retailers are telling the CPSC privately that without prompt relief from the CPSC or Congress, they are going to have to start turning the screws on their suppliers as though the stay won't be lifted. Hmmm.
The pressure is building, building. It doesn't help that Waxman and his supporters won't budge an inch on their proposed CPSIA amendment. By moving in a pack led by Waxman, the Dems are collectively taking full ownership of the awful consequences of the law.
And what if the Commission capitulates and extends the stay? That's good for the industry and the HTA, certainly, but it's political suicide for the Dems. They face a real Hobson's Choice. If the stay is extended, it will be taken as an admission that the CPSIA simply cannot be implemented. That would really stick it to Mr. Waxman, patron of the Dems on the Commission. After all, if the law isn't "ready" for full implementation for FOUR YEARS, it's logical to conclude the CPSIA won't ever work, that it was fundamentally flawed from the beginning. [Where have I heard that before???] If the Commission declines to extend the stay, manufacturers and retailers will light the world afire over the pain and losses being foisted needlessly on them. HTA members and other small businesses will start to close down. Ugly. The choice is lose-lose.
The stakes are even higher for the Dems, if you take into account Mr. Waxman's REAL baby, TSCA reform. The Dems have a big target in mind, the "reform" of chemical regulation in this country. Put simply, they want to roll out CPSIA-style regulation to all things chemical, including plastics and all mixtures of chemicals. This scares a lot of people, given the permi-chaos dogging CPSIA precautionary regulation of only two substances (lead and phthalates). Arguably, the CPSIA was just a trial balloon for TSCA reform. Ramp up the CPSIA by 30,000 times and you have TSCA reform. If the Dems give an inch on the CPSIA, they fear their hopes for TSCA reform will go down the drain. The children's product industry is caught in the middle of a historic fight over how we Americans regulate ourselves.
If you are frustrated by the stalemate over the Waxman Amendment, I think you need to keep an eye on the testing stay. Every day that passes, the pressure mounts on the Waxmanis and the Commission. What's the right thing to do? They sweat and they sweat . . . while we roast.
Monday, December 21, 2009
CPSIA - How Important is Testing After All?
In 2007/8, a large number of toy recalls and jewelry recalls dominated the newspaper headlines. A closer examination of these recalls shows that they were largely restricted to lead-in-paint and lead-in-jewelry, but few people bothered with the details - hysteria was a lot easier. Sold on a rationale that it is "impossible" to know if something's safe without testing it, Congress wrote up legislation to require prophylactic testing of all children's products, a mind-boggling array of products ranging from pens to t-shirts to science kits to ATVs to shoes.
Being entirely unable to anticipate any problems with this brilliant construct, Congress was shocked to find that the CPSC couldn't implement these requirements without crushing small businesses (among others). A finger-pointing contest broke out, where Congress insisted that the CPSC had the power to implement the new law with "common sense" (read, make up law to make the whiners go away) and the CPSC pushed back that it lacked regulatory flexibility under the CPSIA and legally was forbidden to assess risk. Standoff!
Of late, a weary and perhaps more sensitive CPSC is now taking a more conciliatory stance, expressing an interest, in the words of Ms. Tenenbaum, "to get it right". Aside from soliciting feedback from stakeholders, the agency is clearly trying to draft rules permitting small companies to reduce their compliance costs. The net effect: testing is ebbing away. Now with component testing, it is possible for companies to get out of testing altogether for many of their products. Other rules, like flexible rules on rules on sampling and testing frequency, among other rules being crafted, are further reducing the testing burden. [I strongly support this movement by the CPSC, let there be no doubt.]
But I am confused now. Rachel Weintraub of the Consumer Federation of America famously taught us that "Businesses’ assertion that they’re having to test products they know are safe is absurd. You only know if a product is safe if it’s been tested." [Emphasis added.] Yet the CPSC seems to be pulling away from Ms. Weintraub and her wisdom on testing. Is testing critical or not? Is safety achievable in other ways (perhaps various elements in combination)? If testing isn't so essential after all, what's really going on here?
I have a theory to share on this question: The recent movement by the CPSC on testing is tacit acknowledgement of our argument that there is more to safety administration than testing. Furthermore, the ebbing of testing requirements is a further acknowledgement that we are not facing a massive public health crisis in children's products - and never were. Yes, that means poison zippers, brass bushings, ATVs, pens and bikes really is a joke, as you thought. So why the big fuss, why isn't everyone linking arms and singing Kumbaya, if there is acceptance that a lesser standard will be sufficient to ensure safety?
It's simple - the issues go beyond this law, and that's why the Dems in Congress will budge. In fact, we are pawns in a bigger game, namely the battle to establish the precautionary principle in the Toxic Substances Control Act (TSCA). This is Mr. Waxman's dream legislation, his effort to rein in the chemical industry. The folks behind the TSCA reform legislation are deeply suspicious of chemicals in our lives and want to regulate them on a precautionary basis, not entirely unlike the way we approve drugs. It's the "fear of everything" all over again but BIGGER.
How does this tie back to the CPSIA? We are the test case, kids. The CPSIA was the first skirmish in the TSCA war. The two substances regulated on a precautionary basis under the CPSIA, lead and phthalates, either make or break the case on TSCA. If the Dems give in to our demands and acknowledge that their precautionary scheme didn't work, that it ate up the regulatory agency (now nicknamed the Children's Product Safety Commission), then how can they win approval of TSCA?
This is why the Dems are so resistant to rational change of this ridiculous law. This is why they won't listen to reason or consider facts. The facts are contrary to their larger goals, so they need to ignore them or deny them. In this context, it is better to send us down the river than deal with our issues. Although their tough testing scheme is being unraveled, they won't admit that it means that the crisis never was; without a crisis to fix, the entire logic of the CPSIA and their precautionary trial balloon fizzles. The Dems must insist that the crisis is still severe and that there is only one solution, the precautionary principle. Otherwise, they don't get TSCA.
[Side note: There was a "telltale" in the Waxman amendment to the CPSIA last week on TSCA. A big issue in TSCA reform legislation is the possible use of "junk science" to justify removing valuable chemicals from use in our country. With all the self-appointed consumer representatives clamoring for a chemical-free world, there is good reason to fear manipulative use of science under TSCA to disrupt the chemical industry. It's no different than the misuse of lead toxicity and antimony health effects by consumer groups to attack toys and other children's products under the CPSIA. Some people have been insisting on a "peer-review" standard for these scientific challenges to chemical use - which Mr. Waxman fear may hobble his precautionary principle law. This term is used in Section 101 (b) in the CPSIA to make it more difficult to get exemptions - but was stripped out of the law in Mr. Waxman's unilateral amendment. See my first blogpost on his amendment. His "generous act" in removing this ridiculous stumbling block wasn't a signal of increasing sympathy with our problems. No, in fact, it was simply aimed at resolving one of his problems with TSCA.]
I have no easy answers for how this ends. If you feel your anger welling up, you're not alone. Actually, I think the regulators are sick of it, too. The CPSIA has truly consumed the CPSC and made the daily affairs of that agency some kind of purgatory for the staff there. I can't imagine it's much fun being a Commissioner either. Frankly, the biggest shame of all is that by Congress (the Dems, really) insisting on an unworkable scheme for reasons unrelated to children's product safety, the agency has been rendered ineffective, bureaucratic and stuck in gridlock. The CPSC's essential role has been mooted. That's bad for everybody - in a perfect world, the agency is free to do its job and look for real safety problems to solve. Instead, it has to spend its time figuring out whether water slides are primarily intended for children and the like. What a tragic waste.
In the wake of last week's demise of the Waxman amendment and the extension of the lead content Stay, we must retain our focus and continue to push hard for a change in the law. The facts are piling up and the excuses for inaction are fading. It's time for action - for the good of consumers, for the good of industry and for the good of the CPSC.
Thursday, December 17, 2009
CPSIA - The Votes Are In . . . (The Stay Was Extended)
- Adopted the interim enforcement policy allowing the use of component tests (5-0)
- Lifted the stay on testing for bike helmets, dive sticks, bunk beds, and rattles (5-0)
- Extended the stay on testing for lead content to February 10, 2011 "date certain" (4-1, Adler dissenting)
These votes reflect a considerable effort by the Commission to pull together. Other than Mr. Adler's principled decision to opt out of the endorsement of a longer extension of the stay on lead content, the Commission managed to find common ground. The unification of the Commission, if it sticks, would be a positive development. I hope this is a sign of recognition that safety is not inherently political and therefore Democrats and Republicans can work cooperatively and productively together.
The extended stay ("Stay") will be of value to manufacturers without endangering consumers. This is helpful . . . but is not a complete solution. It's a compromise and may have to be revisited again. I believe the Commission was not able to agree on Ms. Northup's formulation of the extension (six months after the issuance of the so-called "15 Month Rule") because Mr. Adler's objected to it as too open-ended and expressed a concern that it might be pushed out indefinitely. So now we have a stay expiring on a "date certain" and an agency with another artificial deadline to meet. The 15 Month Rule was not made an explicit condition of the decision, which means that more market chaos is probable.
Let's step back at this point and think about the issues that this vote raises:
A. The notion that another year will be enough to tidy up the details on lead content is probably a pipe dream. A few points of reference:
- Today is the one year anniversary of my first comment letter on civil penalty factors. When they finally came out in September, I sent in a second comment letter. To date, the new penalty factors have not been announced. We are in our second year of waiting.
- The phthalate test standards are also in limbo. The agency has had two cracks at that one. The first one allowed testing of the entire product as a single part (based on statutory interpretation) and after a storm of protest from among others the CA AG, the CPSC reversed course and reissued the test standard requiring that each component, even internal inaccessible ones, be individually tested. No doubt this pleased Jerry Brown, candidate for governor of California, but it created (brace for it . . . ) another storm of protest. Yet more comment letters were submitted. And . . . nothing. Please NOTE that the phthalate ban was SO urgent that the CPSC allowed it to become effective RETROACTIVELY with exactly TWO BUSINESS DAYS NOTICE. Obviously, phthalates must be a serious problem right??? Well, the CPSC has twice investigated phthalates and given them a pass both times. A third CHAP is currently grinding away. You get the picture. Hurry up and wait - just like the Army.
- On January 30, Nancy Nord issued her statement in support of the original stay. In that letter, she called for the issuance of the component testing rule. Have you seen it yet? The interim enforcement policy is the closest thing we have to a component testing rule. The birthday party for Ms. Nord's call to action is about a month away. Get the cake ready.
I am skeptical that the "15 Month Rule" will come out anytime soon. As Ms. Northup notes, it is going to be wickedly complicated. EVERY such rule when issued has been a major speed bump in the implementation process. See above . . . . The CPSC is also not without its other challenges or little projects. There is, of course, the day-to-day business of the agency like hunting for shoes with lead-infused insoles. There are also unexpected emergencies like Chinese drywall. And then there's that endless time sink, the CPSIA, with its many unfolding requirements. Why just today, the CPSC announced yet another two-day workshop on the public database. Didn't we just have a hearing on this? Perhaps I should buy a condo in Washington . . . . Anyhow, these other obligations will get in the way of the master plan here. That's a certainty.
The consequences of these artificial deadlines for businesses are pretty severe. Our problems are largely with the "regulatory compliance exuberance" of our larger and more risk-averse dealers/retailers. This risk-aversion is principally driven by the excessive liability of the new law and the apparent predilection of the CPSC to hand out whopping fines. It is also related to speculation that it is only a matter of time before the agency or one of the State AGs decides to give the felony provisions a road test. Who will be first in line? Our larger customers have no interest in finding out. This may be why we have one customer who insists on testing EVERY item for lead-in-paint . . . even if it has no paint on it. And another customer who wants us to test EVERY item for flammability, even if the products are exempt (like paper-based items).
How do you think these customers will react to a "hard" deadline on testing? With little sympathy and a great deal of advanced planning. They will not want to speculate on whether we will get relief if the CPSC runs late on something important. Likewise, they will not want to stop and start. Some companies are ALREADY incorporating the August 2011 100 ppm lead standard into their requirements NOW - even though the CPSC has made NO determination that it will impose that (ridiculous) standard yet. A one year extension of the Stay means that the testing requirements will take form for us much sooner than February 10, 2011, and once started, will be hard to stop.
B. Some of the remarks of Commissioners at the hearing and in their statements seem detached from market realities. This is worrisome. The denial by certain Commissioners of information they have been provided (Adler: "While there will be some disruption in the marketplace no matter which date is chosen, no hard evidence has been brought to my attention that would require an even longer extension of this stay than two years from the passage of this landmark legislation") and the misconstruction of the impact of their decisions (Adler: "I know of no company that has indicated that it will withhold production until the 15-month rule becomes effective.") erodes confidence.
It's time to abandon pretense and role-playing. The decisions being made have very serious consequences for many people (perhaps this is why I am still up at 1 AM writing this blog) and must be handled with the utmost sensitivity. If the Commissioners seem to be stuck in a tunnel with no end, believe me, so are manufacturers. Let's not make the situation worse - particularly since there is NO crisis to resolve right now.
C. Of particular concern to me is that the agency seems to have lost its ability to determine what is safe and what is not. Today's recall of Timberland scuffproof boots is just an illustration of our broken compass. The CPSIA's famous "precautionary principle" holds that we cannot trust anything until it is proven safe upfront. Thus, the CPSIA subjects every product and every component in every children's industry to new regulation, and requires the CPSC to carve out exceptions. This MAXIMIZES workload, chaos and confusion because it requires in-depth inquiries into EVERYTHING. This approach multiplies complexity as regulations devolve from common sense guidelines into endless lists of exceptions. Look around you - this entire mess, the last 18 months of misery and the coming months of new misery, is the inevitable outcome of this defective way to regulate our markets.
The mounting exceptions are only part of the mess. Then there are the interpretations. There is simply no way to catalog all of these decisions. Every nuance needs a regulator's okay. Ms. Northup highlights the determination that a children's water slide is NOT a "children's product" because it must be designed to withstand the weight of an adult. Very good, quite a helpful decision, but HOW are manufacturers supposed to replicate that reasoning without taking undue liability risk? Isn't it obvious that such determinations are quirky and hard to apply? The trend to greater opacity is unstoppable under this regime.
As long as we ignore this fundamental problem, we will face a worsening environment at the CPSC. The cohesiveness of this Commission today will degenerate quickly. The morale of CPSC staff will decline further. The rules and interpretations will pile high into the sky and manufacturers will start to ignore them - or just leave the marketplace for sunnier climes. Ridiculous demands of retailers for testing will drive more companies from the market or just cripple the ability of U.S. companies to compete internationally. The flaws in the CPSIA will also likely spark a consolidation trend toward bigger and bigger companies as this kind of environment is deadly to small businesses and entrepreneurs.
Not a pretty picture. Thanks Congress!
So with this stay decision, I conclude that little has been accomplished to address the basic problems. We kicked the can down the road, which is fine, but the fundamental issues remain and will pop up again in short order. Until we put them to rest, the fighting will intensify, the agency will descend into gridlock and personal reputations and legacies will be harmed.
There is no need to stand idly by and let this carnage happen. As has been pointed out by many in recent days, the CPSC needs to tell Congress honestly what needs to be done to fix the law. Mr. Waxman has conceded a fix is necessary. We need now must tell Congress where they went wrong. I disagree with Ms. Northup that the CPSIA's flaws were mysterious in July 2008 - but whether or not that's true, they are pretty obvious now.
I wish the Commissioners and all my readers a restful holiday season, but after you have had a nice nap and a chance to catch up with the relatives, it's back to work. We need to put together the list of fixes and march over to the Hill.
Wednesday, December 16, 2009
CPSIA - The Eyes Glaze Over . . . .
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.
CPSIA - Commission Delays Vote on Lead Content Stay for One Day
Frankly, the demise of the Waxman CPSIA amendment throws a HUGE curve ball at the Commission. Now that Waxman's fractious process derailed his attempt to "fix" the CPSIA, however ham-handed that attempt may have been, it seems that change is in the air. Will the Commission plunge on ahead with its big decision as though nothing has changed? Your guess is as good as mine. Unfortunately, things are happening so fast that events are literally overlapping - the news about the dead amendment came as the CPSC was completing its morning hearing. It seems to me that the Commission must now take even more time to carefully consider its next steps - this historic opportunity to force common sense change should not be squandered.
It seems equally important that the Commission reject partisanship and pull together, even if it takes more time and more debating (off-line and in the public eye). The poisoned partisan atmosphere of Waxman's House Energy and Commerce Committee sadly seems to have migrated to the CPSC Commission. In today's hearing, Commissioner Northup called for more effort by the Commission to reach 5-0 votes. What a timely call THAT was! The failure of the Waxman amendment can be interpreted as Congressional rejection of partisan control of safety by the Democrats alone. Over the course of the past year, partisan hubris led to extremism, culminating in a small number of Democrats co-opting the law as self-appointed defenders of the "will of Congress". Safety belongs to everyone - it's not political. The call to action now is for the Commission to act as one. Whatever damage the Waxman fiasco caused to working relationships needs to be rapidly repaired through the individual leadership of the Chairman and the other Commissioners.
The Commission has balloted Anne Northup's motion to delay lifting the Stay on lead content until six months after the issuance of the so-called "15 Month Rule". This proposal, acknowledged by Inez Tenenbaum to be based on "common sense", is not likely to be adopted without a gentle shove. Ms. Tenenbaum herself stated that manufacturers had asked for a "date certain" when the Stay would be lifted. [One can only hope that she was confusing a reasonable request for certainty, as in knowing what the rules are and when they will be imposed, with a request for a deadline. I cannot imagine who would demand a compliance deadline from the CPSC without knowing what the rules actually are, and if such a (neurotic) person exists, I would like to speak to him/her to better understand WHY they think this would be helpful.]
Even more worrisome, Commissioner Bob Adler contended that "Congress" wanted to be sure that everyone is in compliance with the law. [This personification of Congress is very troubling, especially since the Waxman fiasco makes clear that the original CPSIA votes no longer reflect the will of Congress today - or else how was an amendment by the powerful Henry Waxman stopped? This kind of thinking needs to be revisited.] Mr. Adler further asserted that based on feedback from small manufacturers, the most serious concern today is component testing which will be addressed by the CPSC's new interim enforcement policy. Adler was rather dismissive of the market impact of the 15 Month Rule beyond component testing and he even asserted that the VAST MAJORITY of manufacturers would be "just fine" with lifting the Stay today if they got effective protection for component testing. I question Mr. Adler's research on this point.
The lines are drawn for tomorrow's fight. Mr. Adler has stated a preference for a date certain of August 14, 2010 for full implementation of the testing and certification rules. Ms. Tenenbaum says she would vote to extend the Stay again if the 15 Month Rule is not completed by August 14, thereby signalling her approval of Mr. Adler's formulation. [Market chaos be damned?] Mr. Moore generally follows the party line so you can count him in, too. If the Dems don't move off these positions by tomorrow, we are looking at a date certain of August 14 for lifting the Stay on lead content. This would sadly be more of the same. [Makes you wonder why we all took two days out of our lives to go to the CPSC to give comments at last week's 15 Month Rule workshop, or even more bizarre, why the CPSC called for comment letters on the 15 Month Rule by January 11 - if the Commission is seriously thinking of voting tomorrow to lift the Stay without considering ANY of this input. So - which process is a sham, the workshops and the comment letters, tomorrow's vote, neither . . . or both?]
The problem with the August 14 "date certain" proposal is that the following matters have not been resolved:
- Testing frequency
- Component testing
- Re-testing requirements
- Sampling requirements
- ASTM F963
- Lab certifications
It was noted in today's hearing that only EIGHT certified laboratories have been approved for lead content in children's non-metal products, three on the West Coast and the rest overseas. Here's the list:
- Bureau Veritas (three China lab locations)
- CTC Group
- Intertek (two China lab locations)
- Istituto Italiano Sicurezza Dei Giocattoli S.r.l.
- MSR Laboratories, LLC
- SGS (one China lab, one U.S. lab, one India lab location)
- Specialized Technology Resources Ltd. (one China lab location)
- Union Technology Research & Service Center
For perspective, consider these long lists of locations for three leading labs: SGS (worldwide), Intertek (China list only) and Bureau Veritas (China list only). That's just the tip of the iceberg of the testing market (admittedly not all of these labs focus on or serve the children's product industry). One lab we use, not on the above list, reportedly can't seem to get someone from the CPSC to visit them to certify them for lead content testing. It's understandable - the effort to process all these (pointless) certifications is taking a lot of the agency's resources and time. The CPSC is just not ready to manage this enormous bureaucracy even 16 months after passage of the law. Eight labs to serve the worldwide children's product industry for access to the U.S. market by August 14 - that's a BAAAD joke.
With the Waxman amendment behind us, the Commission has a great chance here to focus its efforts in the right direction. The recent Omnibus Appropriations Bill (H.R. 3288) contains these instructions: "The CPSC is directed to assess enforcement efforts of [CPSIA] section 101(a), including difficulties encountered, as well as recommendations for improvement to the statute, and to report to the House and Senate Appropriations Committees, as well as the House Energy and Commerce Committee and the Senate Commerce, Science, and Transportation Committee, no later than January 15, 2010." This report should be the focus for the Commission at this time. The Stay is secondary to this historic opportunity, and as such the Commission should not get caught up in the moment. MANY legitimate concerns have been raised by manufacturers relating to the lead content aspects of the Stay. We are not all guilty until proven innocent - why can't these valid doubts justify taking the time to "do this right" (as Ms. Tenenbaum called for in a November hearing)?
With change in the air, the Commission needs to seize the moment and lead us out of the wilderness by calling for a technical amendment to the law. The January 15 information request is the golden opportunity. The agency should not simply respond with something designed to please Henry Waxman - that would fumble the ball. Instead, the agency must offer up suggestions designed to meet the will of Congress expressed this week - namely, a proposal to fix the flaws in the CPSIA while providing reasonable protection to children.
It's time to do the hard work. I am ready to help - are you?
Tuesday, December 15, 2009
CPSIA - Hearing on Stay to be Webcast Tomorrow
Commission Briefing/Meeting
Wednesday, December 16, 2009
9:00 a.m.-12:00 noon (EST)
Hearing Room 420
Open to the Public
Matters to be Discussed
1) Pending Decisional Matters: (a) Interim Enforcement Policy on Component Testing and Certification (of Lead Paint and Content); (b) Commission Action on Existing Stay of Testing and Certification; (c) Final Rule Registration Cards
2) Lead in Electronic Devices
3) Mandatory Recall Notice Final Rule
A live webcast of the Meeting can be viewed at this link.
CPSIA - The Latest Gossip
2. The Waxman amendment has not been circulated to the House Rules Committee yet. This delay is supposedly related to last minute maneuvering among the Democrats and possible wording changes. Speculation is that Mr. Waxman may offer a few words, but no new concepts. Republicans remain on the outside involuntarily. In fact, even Senate Democrats are claiming to be marginalized by a process in which they were supposedly presented with a take-it-or-leave-it amendment on an hour's notice by the Waxmanites. Apparently, Senate Democrats represent too much of a risk for Mr. Waxman and his "no discussion" motif for legislation. It's all about control, not safety. I imagine Mr. Waxman was NO FUN in the sandbox as a kid . . . .
3. There is an interesting procedural sidelight to this amendment. The House has a rule prohibiting authorizing legislation on an appropriations bill. This rule can be waived, of course. The House Rules Committee apparently waives it (as a point of order) before the appropriations bill hits the floor for debate. [If you are asking yourself what the purpose of the rule is if it is waived as a matter of course, PLEASE try to maintain decorum out there. Mumbling to yourself is unbecoming!] The Senate has different procedural rules - it's a bit more of a free-for-all. Rumorville has it that one miffed Senator is threatening to invoke a point of order against this appropriations amendment for being legislation. Will it happen? Perhaps. It also may be some form of negotiating ploy for different language. Will risk assessment rise from the dead? Don't bank on it (you fat cat bankers!).
4. The Stay will be voted on by the Commission as early as tomorrow. What will they decide to do? Silence . . . . Again, rumors circulate that they will lift the Stay for certain products and certain rules,and continue it for others. The dimensions of what they will do is just not known. Your letters and emails have been read - but do they care? I guess we'll see . . . soon.
Thursday, December 10, 2009
CPSIA - UPDATE FROM CPSC WORKSHOP
For those you watching at home, have you placed an ad for an in-house statistician yet? How many do you think you will need for your safety team?
