CPSIA - Consumer Group Testimony at CPSC 100 ppm Lead Standard Hearing 2-16-11

I have prepared some clips from the CPSC hearing on 100 ppm Lead Standard on February 16, 2011. I have not prepared comprehensive clips on every presentation. For instance, I omitted the testimony of the testing companies from the second panel (here's a hint - guess what they are ready and willing to do?). If you want to see video that I have not delivered to you on a silver platter, check out the CPSC video of the Morning Session (consumer groups and testing companies) and Afternoon Session (industry representatives, including my testimony).

There is a lot of interesting testimony not in my clips, in particular in the afternoon. Although I think I am giving you a lot of relevant information in the clips I prepared, you are always welcome to check my work. I was quite impressed by the other presenters in the afternoon session, and the vigorous and interesting discussion that followed, but anticipated that you would not likely spend 4-5 hours watching the entire thing. If that floats your boat, please enjoy the links above.

In this post, I am embedding several clips from the morning session where the consumer groups stated their "case". I hesitate to characterize the testimony as "tall tales" but watch for yourself and see what you think. I have come to believe that the consumer groups will say ANYTHING to prop up their beloved CPSIA. [Consider the laughable "consumer poll" prepared by the Consumers Union promoted by Henry Waxman on the eve of the House Hearings on February 17, 2011. CU shamed themselves with this pathetic effort to "win" the debate with garbage polling data.] This may include the remarkable hyperbole in the clips below. We can speculate among ourselves whether Don Mays really shakes with fear at the thought of his daughter playing a brass instrument (he says he would be "very concerned").

Likewise, does Dr. Dana Best believe the nonsense statistics she flung around last week, like the one about ingesting an object with 300 ppm lead costing a child four IQ points? Please, dear G-d, that statistic is absurd on its face. The assertion that children are losing four IQ points from swallowing objects with trace levels of lead is irresponsible and misleading at a minimum, and something much worse if done with understanding or intent. The spectacle of Ms. Best's testimony included calculations of the "cost" of 1 million injured children DESPITE the inability of any consumer group to produce the case history of a single child injured from lead-in-substrate in children's product EVER. [I replied to Dana Best in my testimony.]

We must hold Dana Best responsible for the words that came from her mouth. Interestingly, Dr. Best was the only nominal author of the seminal testimony on lead in the CPSIA debacle. According to her colleague Cindy Pelligrini, Dr. Best didn't write her 2007 Congressional testimony (Pelligrini told me in a phone interview in 2008 that she wrote it for Dr. Best to deliver). Did Dr. Best write last week's testimony or was it another Cindy Pelligrini job? One can't help but wonder, given the shocking assertions based on misleading and garbled data. The AAP should be ashamed.

Dr. Dana Best (AAP) on losing IQ points and "millions" of victims:



Dr. Dana Best worries about children licking their bicycles . . .

My 17 year old daughter came along on this adventure and at breakfast the next morning, asked me why a child would like their sibling's bike rather than their parent's? After all, the adult bike is not regulated. I thought that was a good point, and added that if we posit that the child was going to lick something inappropriately, why would they lick a bike - why not the family car, which is coated with lead paint? Of course, I got it wrong. I was later corrected by someone who, after listening to this story, reminded me that the two year old wouldn't lick either bike or even the car - they would play in the pool of oil under the car. You can take it from there . . . .



Don Mays (Consumers Union) and Dana Best (AAP) on the frightening prospect of children playing in brass bands:

CPSIA - House Hearings Questions about Rock Labels

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

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

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

Rep. Butterfield on rocks:



Rep. Cassidy on rocks:

CPSIA - House Hearings Testimony of Richard Woldenberg 2-17-11

I have created some clips from the hearing on CPSIA and CPSC Resources held before the House Subcommittee on Commerce, Manufacturing and Trade on February 17, 2011 in Washington, D.C. I have not prepared every single clip from the hearing. If you want to see the entire thing, click here and enjoy! Otherwise, I am going to post numerous clips and you can pick and choose as you see fit.

My testimony at the House hearing:

CPSIA - Congressional Hearing Testimony

The hearing held yesterday by the Subcommittee on Commerce, Manufacturing and Trade can be watched at this link. I will be posting snippets from this video soon if you want to wait to watch highlights.

Testimony of the participants:

Panel 1
The Honorable Inez Tenenbaum
Chairman, Consumer Product Safety Commission

The Honorable Anne Northup
Commissioner, Consumer Product Safety Commission

Panel 2

Ms. Jolie Fay
Founder, Skipping Hippos; Secretary, Handmade Toy Alliance

Mr. Wayne Morris
Vice President, Division Services, Association of Home Appliance Manufacturers

Mr. Rick Woldenberg (oral testimony and written testimony)
Chairman, Learning Resources, Inc.

Ms. Nancy A. Cowles
Executive Director, Kids In Danger

CPSIA - My Appearance on Fox News "Fox & Friends"

795 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 15 days left until Election Day.

I appeared on Fox News' Fox & Friends show today discussing the CPSIA, testing costs and my political involvement to save our business. To watch the video, please click here.

CPSIA - Jobs, the CPSIA and me

I saw this video tonight and it really frustrated me.



Michelle Rena Jones, the unemployed person featured in the video is a victim of our economic downturn, and of Michigan's long dependence on the auto industry. She seems intelligent and highly employable. . . yet she is the part of the long term unemployed. She's not alone by a long shot.

We employ about 150 people in our educational toy business. We consider ourselves fortunate to be able to provide these jobs, given the terrible recession, awful State funding prospects, and most importantly, the overhang of the fatal CPSIA. When I thought about Ms. Jones, I asked myself why we aren't hiring right now.

Frankly, our business reflects the punk economy you hear about on TV. Right now, we lack the confidence that we can safely add people, or even more importantly, that we will see the sales volume to support new people. This closes most doors to new jobs at our shop.

Then there's our ole' pal, the CPSIA. What impact does the CPSIA have on our hiring mentality? Hey, I'm the guy who figured out that this government intends to jam me with a requirement to spend $15 million per annum on testing - how do you think it makes me feel? I assume smaller companies, including the crafters comprising the HTA, realize that despite the various promises and wiped-away tears at the CPSC, the new rules offer scant relief to the small fry. The rules mean business death - and that ain't a job program, kids. If we're toast, so are other small businesses. Actually, if we're toast, everyone's toast.

Right now, I cannot abide investing in our business. Expansion is a joke since the federal government has totally abandoned us. Trust has been obliterated, shredded, stomped on. Congress is completely deaf and the CPSC doesn't give a darn - which is why after two years of work and "dialogue", they produced the drivel we were to comment on last week. [For a candid assessment of those rules, please see my comment to Anne Northup's blogpost of August 11.]

Do you think any rational business manager would hire anyone while fearing that costs far exceeding his annual profits are about to be imposed? Forget it - business people suffering under the crushing burden of the wave of Obama hyper-regulation are thinking of how to survive. Bucking the rules won't work, either - don't forget that the agency has the power to press felony charges against anyone who knowingly breaks this law. 2011 is Tenenbaum's "year of enforcement".

Can't wait. . . .

Ms. Jones won't be likely getting a job from a children's product company anytime soon.

Apparently, some people still wonder why voters are angry and why the Dems are being blamed. If anyone seriously can't figure that one out, they're as deaf as the stone deaf members of Congress we will be voting out of office . . . soon.

Very soon.

CPSIA - Schakowsky's Opponent Has the Horses!

I recently saw this impressive video of Joel Pollak, the young man running as the Republican candidate for Illinois' 9th Congressional District currently occupied by Rep. Jan Schakowsky.



It is hard to get used to the idea that we could have someone this bright and clear-thinking in Congress. Of course, until the CPSIA passed and I began beating my head against a wall, I wasn't that cynical.

Let's hope the constituents of the 9th district give a fair hearing to Mr. Pollak and explore the advantages of making a change in leadership. Ms. Schakowsky has represented this district since 1999. Enough damage has been done.

CPSIA - Lowest Common Denominator Government

We saw a display of Mr. Obama's team in action this past week as McDonald's was cornered into a national recall of a safe product. How did it happen? Did our government rise to the occasion, or simply resume its descent into the abyss?

"Americans want to be safe. And they expect their federal government to protect them. So that is what I'm here to do." Chairman Inez Tenenbaum, NPR Report “Under Obama, Agencies Step Up Rule-Making”



Last week in a coordinated media extravaganza, an anonymous caller alerted Rep. Jackie Speier (D-CA) to the trace presence of cadmium in Shrek glasses being sold by McDonald's. In a rapid fire series of events, McDonald's announced a voluntary recall of the offending Made-in-America glasses “at the urging of the [CPSC] commission ”. The CPSC apparently pushed for the recall of the glasses by McDonald's after quickly testing the glasses.

[It turns out that there were two "anonymous tipsters", one of whom is Jennifer Taggart, a regular reader of this blog. Ms. Taggart has acknowledged that cadmium levels on the McDonald's glasses are well within California's Proposition 65 restrictions. Prop. 65 is easily the most restrictive and challenging of the myriad local safety regulations.]

Rep. Speier seized the election year opportunity to lecture McDonald's on safety: “’Our children’s health should not depend on the consciences of anonymous sources. Although McDonald’s did the right thing by recalling these products, we need stronger testing standards to ensure that all children’s products are proven safe before they hit the shelves,’ said Speier. ‘Cadmium is a toxic substance that is extremely dangerous to the developmental health of children. . . . Thanks to this anonymous tip received by my office, the proper agencies were alerted, necessary action was taken by McDonald’s, and the long-term health of millions of children is no longer at risk.’”

Jackie Speier is a Democrat representing the San Francisco area.

A media deluge followed the recall. Typical of the hyperbole is this article from NJ.com: "McDonald's announced the voluntary recall after small amounts of cadmium were found in the enamel with which character images were painted on the glasses . . . . Long-term exposure to low levels of cadmium from those glasses can cause various health problems, including cancer, bone softening and severe kidney problems. [NJ State Assemblyman Paul] Moriarty, in a news release, demanded an investigation . . . . 'It's stunning that in this day and age our children can still come into contact with toxic materials just by using a glass featuring a cartoon character,' Moriarty said in the release. . . . " [Emphasis added] AP could not resist the McDonald's cadmium frenzy that it helped to create: "A recall of 12 million cadmium-tainted ''Shrek'' drinking glasses sold by McDonald's raises questions about the safety of millions of similar cheap promotional products that have been sitting in Americans' kitchen cabinets for years."

It all boils down to trust, right? After all, it’s McDonald’s. McDonald’s is America, McDonald’s is children. If you can’t trust McDonald's, who can you trust?

I will attempt to answer that question.

First - Can you trust McDonald's?

Yes, absolutely, without reservation. McDonald's (not a customer of ours, never was) has the best reputation of any company in the toy industry (in my humble opinion) for safety, conscientiousness and attention to detail. McDonald's is HARDLY asleep at the wheel. Rep. Speier’s remarks are outrageous but for the fact that she is a California Democrat from San Francisco. Consider the source. I believe McDonald's ten times out of ten against Rep. Speier.

On the other hand, if McDonald's is so wonderful, why on Earth did they recall these glasses? Okay, you be the CEO of McDonald's for a moment – what would you do? Fight for the right to sell cadmium-laced glasses? Argue that the glasses are “safe”, that toxic cadmium isn't harmful? Please, McDonald's had no choice because it has to protect its brand. Listen to the Moms in the video above. If they don't trust McDonald's, they will walk across the street to Wendy’s. McDonald's has NO CHOICE but to “do the right thing”. The cost of the recall is a secondary concern. Burn, baby, burn.

Second - Can you trust an anonymous tipster?

Why be anonymous if you are acting “heroically”? Well, for one thing, being anonymous means you aren't accountable if you are wrong. The two tipsters were using XRF guns, acknowledged by the CPSC to be imperfect and best used to screen for possible faults. It might be embarrassing - or expensive - to start a public panic and then be proven wrong. This mess might be seen as your fault and somebody might want you to pay for the expenses. Hmmm.

What if the caller had reason to hide his/her identity? This is the very worrisome scenario. There are many people who might want to rat out a McDonald's. How about a competitor? Or a spurned supplier? A disgruntled employee or spouse of an employee? This is one of the primary objections I made to the public database - the potential for abuse is rampant. An anonymous tipster very well might be up to no good. McDonald’s loss could be the tipster’s gain – an ill-intentioned tipster in partnership with a self-promoting fear monger in election season (like Jackie Speier) could be a powder keg. [Ed. Note: It is worth noting for clarity's sake that Jennifer Taggart has identified herself so this discussion does not apply to her.]

This could happen to you, too. The CPSIA encourages this kind of rat-me-out frenzy. How many businesses will close or sell out because of this shameful law? Time will tell. In the meantime, the sport of trashing trademarks and company reputations will thrive at the hands of the "anonymous tipsters".

Third - Can you trust the CPSC?

We ought to be able to trust them. Have they earned this trust?

Here’s a June 4th tweet from Scott Wolfson, Director of Public Affairs: "Scott_Wolfson: Note to reporters: the recalled McDonald's glasses are not toxic." Interesting - the CPSC apparently pushed for the recall of safe products. Wolfson is also responsible for the press release detailing this recall: "The designs on the glasses contain cadmium. Long term exposure to cadmium can cause adverse health effects." Same guy. And Wolfson offered these calming words of reassurance to the AP: "Wolfson said the recalled glasses have 'far less cadmium' than the [recently] recalled jewelry. He would not say how much cadmium leached from the glasses in tests, only that it was 'slightly above the protective level currently being developed by the agency.'"

I believe Mr. Wolfson is the author of the CPSC's OnSafety blog - here's how he counseled consumers about the McDonald's glasses in a recent post: "If you bought these “Shrek Forever After 3D” glasses at McDonald’s – millions of you did – stop using them immediately. . . . The glasses contain low-levels of cadmium. . . . The company has stepped up to do the right thing [in issuing a recall]." [Emphasis added] He also justified the recall of non-toxic glasses in the New York Times as follows: "Both C.P.S.C. and McDonald’s are being highly protective of children in announcing this recall."

Scott has a way with words, doesn't he? Makes you wonder what his job is, exactly.

So the CPSC admits that the glasses were safe. Yet the "commission" urged McDonald's to recall the glasses. Why? Wolfson says implausibly that the CPSC was being "highly protective" in recalling non-toxic glasses. Actually, "Why" may not even be the right question.

Let's consider the question of "how". On what legal basis did the CPSC press McDonald's to take this step? The authority of the agency to demand a recall depends on the presence of a "substantial product hazard". There is no other basis for the agency to take action - it cannot act on whims or because it is always crabby on Mondays. I have addressed this issue previously in this space, and noted that the authority to initiate a recall is based on the existence of "a product defect which (because of the pattern of defect, the number of defective products distributed in commerce, the severity of the risk, or otherwise) creates a substantial risk of injury to the public."

If the CPSC's Director of Public Affairs notifies the press that the product is not toxic, it is incontestably certain that the glasses don't present a substantial product hazard in this case. For perspective, consider the views of the U.S. factory responsible for the glasses:

"[VP Ron] Biagi . . . added that [in addition to McDonald's] Durand Glass also does material safety tests. 'We will do nothing (different) because we don't need to,' Biagi added. 'You are always looking for the most healthful way to make a product. What we're producing today, it is safe.' Biagi said there are multiple suppliers, domestic and foreign, of the enamel used for the Shrek glasses. Other glass producers use the same product, he said. Late Friday, the company issued a short statement from its CEO for North American operations, Fred Dohn. 'All the products, whether decorated or undecorated, that Arc International is delivering on the markets meet the highest standards of quality and safety,' Dohn stated. 'Arc International is a professional manufacturer that stands behind all its products. We therefore see this as an internal decision by McDonald's and will be investigating the matter once we receive more information.'"

So what gives? By all appearances, the leadership of the agency substantially exceeded its legal authority in pressuring McDonald's to recall these glasses. Any problem with that?

I won't insult your intelligence with a rant about the trustworthiness of the Democrats who are running the shop these days. If you trust Jackie Speier and the like after this sorry tale, I can't help you.

In closing, let's recall the words of Ms. Tenenbaum: "Americans want to be safe. And they expect their federal government to protect them. So that is what I'm here to do." By all appearances, Ms. Tenenbaum was doing exactly what she promised - her agency is wrapping you in bubble wrap whether you need it or not. She says that's how you want it - no matter that it's outside her legal authority, well-beyond any notion of common sense and implemented with a complete disregard to economic consequences or the impact on other market participants. It's okay because the press eats it up . . . and it helps reelect members of Congress. Everybody's a winner as we sink into the abyss.

Lowest Common Denominator Government. Yes We Can.

CPSIA - Fear of Zippers

I have been tossing and turning about zippers ever since the April 29 House hearing. Perhaps you recall Steve Levy's demonstration of why thousands of pairs of pants and jeans were thrown away under the CPSIA to make you so much safer. As you know, you can't place a price tag on safety. Burn, baby, burn.

In response to questions by Ranking Member Whitfield, Steve Levy discussed lead in zippers at about the 47 minute mark in the testimony video. He noted that zippers are made of five to seven components, one of which has been found to have trace lead amounts in excess of current limits. The component in question is not accessible (it's sewn into the crotch of the pant) but since the CPSC can reach the component with a probe, it is considered violative. Fabric is not considered a "barrier" to access under CPSC rules. Bummer, that's thousands of pairs of pants into the garbage.

Self-appointed "Safety Czarina" Rachel Weintraub was quick to object to the horrors of Mr. Levy's jeans: "The problem is, unfortunately, that children mouth zippers all the time. You know I have three young children. My oldest child who is almost six, he mouths zippers as well. . . . The problem is that children interact with clothing in dynamic ways." This Rachel-speak is the version of "common sense" that imbues the CPSIA. Perhaps you recognized the valuable insights.

Whoa! Children are so "dynamic" with their clothes, this little zipper could be zapping IQ points every day. Wow. I am quite a worrier as you know, so I have been fretting about zippers almost non-stop for a month. After all, we clothed our children in pants with zippers since they were born (many years ago). I can't detect any missing IQ points in my kids, but of course, I am not nearly as smart as Rachel Weintraub or the other safety zealots perhaps as a result of my wearing jeans to this very day. Still, I could not ignore Rachel's serious warning but needed to better understand the danger.

So we asked a four-year-old volunteer to suck on his jeans zipper. Here's what happened. Don't worry, no IQ points were killed or harmed in the making of this video.

WARNING: The following video contains dramatic footage of a four-year-old attempting to suck on his jeans zipper. Such graphic footage may not be appropriate for everyone. Please think carefully about watching the video if you are a member of a consumer group.

CPSIA - Extra 60 Minutes Video Content on Phthalates

Watch CBS News Videos Online


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Watch CBS News Videos Online


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CPSIA - 60 Minutes 5-23-10 Segment Video "Phthalates: Are They Safe?"

Watch CBS News Videos Online

CPSIA - Video Blog - Understanding the CPSIA!

I get calls all the time from my readers - "what do I need to read to understand the CPSIA?" Well, you gotta read, read, read! Unfortunately, the CPSC has not provided a list of documents for you to read. To help out, I prepared a little document list for you, and explained it in this video blog:

CPSIA - Let the SUNSHINE In!

Play this video LOUD - maybe the CPSC Commission will hear it!

[Thank you, Jennifer.]

CPSIA - My Testimony at Public Consumer Product Safety Incident Database Hearing 11-10-09

I testified at the hearing about the new public product safety incident database at the CPSC yesterday (Nov. 10, 2009). The videos of my presentation are below for your convenience, in two parts.

Please note that this is the third time I have testified in front of the CPSC about the CPSIA (lead panel, tracking labels panel, database panel). I believe that out of the 30 presenters at these hearings, I was the only operating company that stood up and gave comments, besides a ladder company at this week's hearing and a software company shamelessly trying to sell tracking label software. I cannot do this alone. You will get out of this what you put into it.

There is a great chance to make a contribution at the upcoming IMPORTANT two-day workshop on the so-called 15 Month Rule at the CPSC on December 11/12. See the CPSC notice here. We need to have some bodies at this meeting. The CPSC wants feedback from the regulated community, from real people with pain points. If we want the CPSC to work with Congress to fix the law and to implement it in as sensible a way as possible, we need to provide direct feedback. Ask yourself whether it matters that no children's product company testified about the database besides Learning Resources after you watch my presentation. It's a pretty important subject, others should have been there to defend their interests. Get involved - we need your help.

Part I (5:19)



Part II (6:20)

CPSIA - Video Blog "Time is Running Out"

]Pardon the "weekend look".]

CPSIA Video Blog: Tracking Labels and "Reasonable Judgment"

In this video, I discuss the recent Tracking Labels guidance and its use of terms like "reasonable judgment" and "good faith efforts". No one is quite sure what these terms mean precisely, creating doubts in the marketplace on how to make those difficult "gray area" decisions. This ambiguity is "par for the course" with the CPSIA and has kindled a compliance competition among retailers, something I call Regulatory Compliance Exuberance. An example of this is TRU's announcement that it will be enforcing a 100 ppm lead substrate limit as of January 1, 2010, almost two years before the CPSC even has to consider such a limit. We have seen at least two retailers demanding tracking labels on merchandise made before August 14, too. Ouch. . . .

In addition, the CPSC left its enforcement authority open-ended by declining to define these terms. In other words, the rules seem to permit second guessing of manufacturers, likely in the context of a recall (a failure). Are they trying to incentivize a good decision-making process, or are they simply waiting to punish bad outcomes? Can you ever be on "safe ground" under the guidance?

CPSIA - Video Blog on Tracking Labels Guidance

In this video, I analyze the recent CPSC Tracking Labels Guidance to answer the following question: "If I don't label my products (as provided in the guidance) BUT must be able provide all the information specified in Section 103, how is it possible to do that without labels?" The guidance, deemed sensitive to the needs of small business, addresses this question. For my take on the new requirements, please watch below.