Congress was listening. Your House Energy and Commerce Committee passed by voice vote today the Foreign Manufacturer Legal Liability Act of 2010 by voice vote. Now it proceeds to full committee or possibly to Ways and Means or possibly to the floor for a vote. I don't have the bill language yet.
Golly, I really appreciate all the hard work to protect me against . . . I'm not sure what. Protecting me against being able to earn a living?
Thanks, House Leaders!
Wednesday, June 30, 2010
CPSIA - More Analysis of Damaging Foreign Mfr Accountability Legislation
One additional point about the design of the extremely ill-conceived Foreign Manufacturers Legal Accountability Act of 2010: the "minimum amount" hurdle that triggers the requirement to register for service of process is NOT set by the law. The different agencies have to set it for the products they regulate.
The draft legislation provides the following mechanism for establishing this limit:
"(4) APPLICABILITY — (A) IN GENERAL.—Paragraph (1) applies only with respect to a foreign manufacturer or producer that exceeds minimum requirements established by the head of the applicable agency under this section. (B) FACTORS.—In determining the minimum requirements for application of paragraph (1) to a foreign manufacturer or producer, the head of the applicable agency shall, at a minimum, consider the following: (i) The value of all covered products imported from the manufacturer or producer in a calendar year. (ii) The quantity of all covered products imported from the manufacturer or producer in a calendar year. (iii) The frequency of importation from the manufacturer or producer in a calendar year."
So for those of us suffering under the CPSIA, this legislation tenders some discretion to the CPSC on how penal this provision will be. Interesting, isn't it, that Congress will allow the CPSC to set this threshold without oversight but won't let them assess the risk of pens, rhinestones, science kits or ATVs? Anyhow, given the current practice of the CPSC to apply strict liability standards to so many things, leading to recalls of (for instance) 40 inflatable toy baseball bats for violative phthalate levels (the one-and-only recall for phthalates in U.S. history) and the pending "15 Month Rule" which creates an unbearably expensive and risk-averse scheme of safety compliance, I presume that the CPSC will set these thresholds very low. After all, how else can American consumers sleep well at night???
And consider how this rule might be applied. To determine whether you are above or below the threshold, you must disclose your revenues and volumes to the government for their scrutiny and approval. This is remarkably invasive and is reason enough for many factories to concentrate on sales to South America, Europe, Asia and the Middle East. Who needs this nonsense?
[And if registration is unavoidable, the registration process itself is also tedious and requires the disgorgement of lots of detailed information - which not only will discourage participation but also sets up the foreign manufacturers for liability to the government for "false" statements if they make errors. We have 1500 catalog items, so I can identify with the problems that this kind of requirement might create. It's nothing more than a bureaucratic set-up for regulators to accumulate causes of action to use as they see fit.]
If you think I am delusional or just tend to see the world darkly, please ask yourself - would YOU disclose ANY of this information to the government of Germany? China? Slovakia? Venezuela? Do you trust foreign governments? The confidentiality of their records? The likelihood that this information will not come back to bite you? Do you expect to get a fair shake in a foreign jurisdiction, particularly in a dispute with a local company? Do you think your suppliers will serve you better if you ask them to do this? Are you important enough to influence your suppliers or would they simply throw you overboard? What will this mean to your business - even if foreign governments refrain from retaliation (unlikely)?
This is yet more evidence of the shamefully low quality work of this Congress and its absolute ignorance of the real world. Think of the pending Waxman Amendment which posits that alternative testing methods can be used by small (micro) businesses to avoid certain testing requirements under the CPSIA. Of course, no such testing methods exist but that's just a trivial detail, right? Or the fact that in order to qualify for this "relief" under that legislation, each of these tiny businesses must disclose their financial records to Mother Government to confirm their eligibility for relief. Sounds REALLY workable, right? It does, if you have never worked for a company and have been closeted in the federal government for long enough.
Another sad, sorry low point for the worst Congress in history. Well, it's nice to be distinguished in SOME way, right???
The draft legislation provides the following mechanism for establishing this limit:
"(4) APPLICABILITY — (A) IN GENERAL.—Paragraph (1) applies only with respect to a foreign manufacturer or producer that exceeds minimum requirements established by the head of the applicable agency under this section. (B) FACTORS.—In determining the minimum requirements for application of paragraph (1) to a foreign manufacturer or producer, the head of the applicable agency shall, at a minimum, consider the following: (i) The value of all covered products imported from the manufacturer or producer in a calendar year. (ii) The quantity of all covered products imported from the manufacturer or producer in a calendar year. (iii) The frequency of importation from the manufacturer or producer in a calendar year."
So for those of us suffering under the CPSIA, this legislation tenders some discretion to the CPSC on how penal this provision will be. Interesting, isn't it, that Congress will allow the CPSC to set this threshold without oversight but won't let them assess the risk of pens, rhinestones, science kits or ATVs? Anyhow, given the current practice of the CPSC to apply strict liability standards to so many things, leading to recalls of (for instance) 40 inflatable toy baseball bats for violative phthalate levels (the one-and-only recall for phthalates in U.S. history) and the pending "15 Month Rule" which creates an unbearably expensive and risk-averse scheme of safety compliance, I presume that the CPSC will set these thresholds very low. After all, how else can American consumers sleep well at night???
And consider how this rule might be applied. To determine whether you are above or below the threshold, you must disclose your revenues and volumes to the government for their scrutiny and approval. This is remarkably invasive and is reason enough for many factories to concentrate on sales to South America, Europe, Asia and the Middle East. Who needs this nonsense?
[And if registration is unavoidable, the registration process itself is also tedious and requires the disgorgement of lots of detailed information - which not only will discourage participation but also sets up the foreign manufacturers for liability to the government for "false" statements if they make errors. We have 1500 catalog items, so I can identify with the problems that this kind of requirement might create. It's nothing more than a bureaucratic set-up for regulators to accumulate causes of action to use as they see fit.]
If you think I am delusional or just tend to see the world darkly, please ask yourself - would YOU disclose ANY of this information to the government of Germany? China? Slovakia? Venezuela? Do you trust foreign governments? The confidentiality of their records? The likelihood that this information will not come back to bite you? Do you expect to get a fair shake in a foreign jurisdiction, particularly in a dispute with a local company? Do you think your suppliers will serve you better if you ask them to do this? Are you important enough to influence your suppliers or would they simply throw you overboard? What will this mean to your business - even if foreign governments refrain from retaliation (unlikely)?
This is yet more evidence of the shamefully low quality work of this Congress and its absolute ignorance of the real world. Think of the pending Waxman Amendment which posits that alternative testing methods can be used by small (micro) businesses to avoid certain testing requirements under the CPSIA. Of course, no such testing methods exist but that's just a trivial detail, right? Or the fact that in order to qualify for this "relief" under that legislation, each of these tiny businesses must disclose their financial records to Mother Government to confirm their eligibility for relief. Sounds REALLY workable, right? It does, if you have never worked for a company and have been closeted in the federal government for long enough.
Another sad, sorry low point for the worst Congress in history. Well, it's nice to be distinguished in SOME way, right???
Tuesday, June 29, 2010
CPSIA - Wolfson Fans Fear on Shrek Glasses (Was it a Slow Week at the CPSC?)
It seems that the feeding frenzy over the McDonald's Shrek glasses just won't die. No matter that there are zero reported injuries from cadmium in consumer products - EVER - or that the medical community is basically unaware of any material risk to children from cadmium in consumer products. Yet another news report on McDonald's perpetuated the myth that the presence of cadmium on the outside of the glasses is a danger.
Let's start with a basic FACT - CPSC spokesman Scott Wolfson put in WRITING that the Shrek glasses were NOT TOXIC. I have previously analyzed this remark and concluded that "not toxic" is the equivalent of "SAFE" (based on the plain English language meaning of the words). Wolfson has conceded in writing that the glasses are safe.
Now the Philadelphia Inquirer quotes Scott Wolfson raising doubts about McDonald's Shrek glasses:
"'CPSC is doing additional follow-up work in the aftermath of the recall,' Wolfson said. 'The case is not closed.'"
The CPSC is apparently investigating glasses that Wolfson himself called safe. Don't worry, Wolfson is just trying to keep everybody calm.
Apparently not content with this mess, Wolfson goes on to suggest that some parents (the really neurotic ones) may want to take special precautions with the safe glasses:
"Wolfson, the CPSC spokesman, said risk-conscious parents might want to consider using a souvenir glass simply as a souvenir. 'If a parent wanted to be as cautious as possible, they should consider not allowing their child to use it as a drinking glass — to keep it as a collectable or just allow it for adult use only,' Wolfson said."
The message here, of course, is that the glasses are NOT safe. But they are. So who are you to believe, Wolfson Number One or Wolfson Number Two? Or not believe any of the Wolfsons because they are playing some sort of game with us that none of us can understand?
The Shrek glasses manufacturer certainly seems puzzled. But he seems to be reliant on knowledge of the manufacturing process and perhaps even knows something about science, seemingly a liability these days when dealing with a know-nothing government:
"'There is nothing wrong with the manufacturing process,' Jose-Maria Aulotte, Arc’s senior vice president, said last week . . . . Aulotte said the cadmium-based pigments are made in Germany — not France, as a McDonald’s spokeswoman previously stated — and are legal 'in all countries we do business in.' He said the pigments are used in red and yellow enamels, and in combinations such as oranges and greens. Once decorated, the glasses are fired at 1,100 degrees Fahrenheit, in a process called vitrification that Aulotte said locks the enamels to the glassware. 'We’re confident all Arc International products are safe for use by children and adults, and are unaware of harmful exposure related to these pigments,' he said via email . . . . Aulotte said he was puzzled why the CPSC tests suggested that routine handling could lead to cadmium exposure. 'It depends on what you do with it. But if you just carry the glass, it should not come off,' Aulotte said."
Were the CPSC a logical place with regulators who are concerned about public safety, not public neuroses or headlines, this matter would be long dead. Why couldn't Wolfson tell the Philadelphia Inquirer that the matter is closed, that he has already informed it that the glasses were safe and that the recall was voluntary at the request of McDonald's to reassure the public about its cautious approach to safety? Well, of course, that's not entirely true, as it has been widely reported that the CPSC urged this recall of safe product. What SHOULD the CPSC say? Maybe that they screwed up?
I should live so long.
Let's start with a basic FACT - CPSC spokesman Scott Wolfson put in WRITING that the Shrek glasses were NOT TOXIC. I have previously analyzed this remark and concluded that "not toxic" is the equivalent of "SAFE" (based on the plain English language meaning of the words). Wolfson has conceded in writing that the glasses are safe.
Now the Philadelphia Inquirer quotes Scott Wolfson raising doubts about McDonald's Shrek glasses:
"'CPSC is doing additional follow-up work in the aftermath of the recall,' Wolfson said. 'The case is not closed.'"
The CPSC is apparently investigating glasses that Wolfson himself called safe. Don't worry, Wolfson is just trying to keep everybody calm.
Apparently not content with this mess, Wolfson goes on to suggest that some parents (the really neurotic ones) may want to take special precautions with the safe glasses:
"Wolfson, the CPSC spokesman, said risk-conscious parents might want to consider using a souvenir glass simply as a souvenir. 'If a parent wanted to be as cautious as possible, they should consider not allowing their child to use it as a drinking glass — to keep it as a collectable or just allow it for adult use only,' Wolfson said."
The message here, of course, is that the glasses are NOT safe. But they are. So who are you to believe, Wolfson Number One or Wolfson Number Two? Or not believe any of the Wolfsons because they are playing some sort of game with us that none of us can understand?
The Shrek glasses manufacturer certainly seems puzzled. But he seems to be reliant on knowledge of the manufacturing process and perhaps even knows something about science, seemingly a liability these days when dealing with a know-nothing government:
"'There is nothing wrong with the manufacturing process,' Jose-Maria Aulotte, Arc’s senior vice president, said last week . . . . Aulotte said the cadmium-based pigments are made in Germany — not France, as a McDonald’s spokeswoman previously stated — and are legal 'in all countries we do business in.' He said the pigments are used in red and yellow enamels, and in combinations such as oranges and greens. Once decorated, the glasses are fired at 1,100 degrees Fahrenheit, in a process called vitrification that Aulotte said locks the enamels to the glassware. 'We’re confident all Arc International products are safe for use by children and adults, and are unaware of harmful exposure related to these pigments,' he said via email . . . . Aulotte said he was puzzled why the CPSC tests suggested that routine handling could lead to cadmium exposure. 'It depends on what you do with it. But if you just carry the glass, it should not come off,' Aulotte said."
Were the CPSC a logical place with regulators who are concerned about public safety, not public neuroses or headlines, this matter would be long dead. Why couldn't Wolfson tell the Philadelphia Inquirer that the matter is closed, that he has already informed it that the glasses were safe and that the recall was voluntary at the request of McDonald's to reassure the public about its cautious approach to safety? Well, of course, that's not entirely true, as it has been widely reported that the CPSC urged this recall of safe product. What SHOULD the CPSC say? Maybe that they screwed up?
I should live so long.
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