CPSIA - Final CPSIA Amendment (HR 2715) Moves to President's Desk for Signature

Here is the final form of the CPSIA Amendment  (HR 2715) that should become law sometime this week.

I want to quote from another blog (thank you, Steven Hansen) on this amendment's path to the President's desk:

"This bill and the path it has taken is an example of why people are very frustrated with Congress and getting legislation passed in general. These 'legislative' fixes have been getting passed around in backrooms for months and when they finally did come to a 'vote' the 'fix' was already in and they sailed thru in minutes or seconds on votes that were purely formalities. There was really no warning that this would be passed when it did or in this fashion. If you did not get what you wanted in here well that's too bad because you are not likely to see any further relief for some time. Apparently Congress is going to be in recess until after Labor day as they had to work so hard to pass the debt ceiling bill."

Mr. Hansen is completely correct.  We know that even Republican members found out about this amendment when it was docketed for a House floor vote.  Mark-up, schmark-up.  The Senate also made the decision (if that is even possible, since the Senate is an inanimate organization without a mind) to shift to HR 2715 without debate, and passed it with a voice vote.  These decisions were literally made in minutes behind closed doors and Members of Congress had no time to read (and perhaps no interest to read) the "noncontroversial" bill.  After three years of intense bickering, a small group of individuals made the decision for all of us that this bill is good enough to "fix" the CPSIA.  There won't be another "fix" to this law again, perhaps EVER.  You know the bill sucks if Henry Waxman is clucking about it.  In fact, most of the text of the bill was his handiwork almost entirely (functional purpose, testing "relief" (Eshoo), database (Markey), small batch "relief").

And what did we get for all our good government dollars?  I have previously given my quick assessment of this law and have no interest in repeating the exercise at this point.  I would like, however, to highlight low lights of the bill:

Winners:   ATVs, Bicycles, Resale Goods, Books, Libraries

Losers:  See above list, and if you're not on it . . . you.

Technical Fixes of Past Congressional Screw-ups: 

• 100 ppm lead standard is prospective now.  And WHY wasn't Congress able to do this for 300 ppm or 600 ppm?  Good question.  The five CPSC Commissioners called for this particular change back in January 2010.  What's the hurry now???
• Changes to testing requirement to "representative" rather than "random" samples.  And we just hired our third statistician, too!
• Restricts the phthalates ban to accessible plasticized components.  i guess Congress isn't worried about kids with serpent tongues any longer.
• Makes FUTURE crib standards prospective.  And who said the $32 million in recently discarded good fixed-sided crib inventory died in vain?!

Shame, Shame, Shame:

Small batch manufacturers, the most micro of businesses (under $1 million in total turnover) must register prior to utilizing any of the nifty cost-saving testing innovations now being cooked up by the very open-minded CPSC.  This is the CPSC's version of the sex offender registry.  Is there ANY basis for singling these people out for special attention?  Why doesn't Mattel have to register, too?  Oh, come on, you know we must have different rules for Mattel!  They need their own firewalled labs and so on for their efficiency.  [Here's a good example of their efficiency.]  It's only fair, the real safety worry is the crafters . . . .

The only good news is that none of the small batch manufacturers will ever have to suffer this indignity. The clever gnomes of Congress have figured out how to appear to give something to those heart-rending  little nobodies without doing squat.  How do they do that?  The only "relief" that the CPSC may implement must meet this standard:  "Any such alternative requirements shall provide for reasonable methods to assure compliance with any applicable consumer product safety rule, ban, standard, or regulation." [Emphasis added]  This CPSIA term has already been interpreted by this Commission multiple times.  The word "assure" ensures that no relief will ever be given since nothing can "assure" compliance other than prophylaxis.  Notably, the Commission has purportedly looked for this "out" for three years and came up with nada.  And Bob Adler has been "agonizing" over it for that entire time.  [I feel AWFUL for him, he suffers for each of us.] How will another year or two of agonizing produce a different result?

Suckers are welcome to wait longingly for this promised "relief" but they will be disappointed again and again.  Protest is futile.

Disgusting, Repellent Hypocrisy:

Consider the amazing gimme provided to bicycle manufacturers:

"(B) METAL COMPONENT PARTS OF BICYCLES.—The third party testing requirements established under subsection (a) shall not apply to metal component parts of bicycles with respect to compliance with the lead content limits in place pursuant to section 101(b)(6) of the [CPSIA]."

They don't have to test their metal components at all.  AT ALL, EVER.  Bicycle manufacturers are different than you and me.

Let me be clear - I think testing metal components on bikes is a stupid and pointless waste of time and money.  The bike industry testified in the CPSC 100 ppm hearing that when they tested a single part in ten places, they got ten different results.  Whoa!  They proved they had an unsolvable problem and apparently Congress listened.  How heartwarming!

I gave similar testimony and submitted similar data about our products at the same hearing in the same panel sitting at the same table.  Congress must have gone deaf by that time.  Oddly, the CPSC staff included this data and my testimony in their 100 ppm report.  So perhaps Congress isn't just deaf, they may be blind, too.  Or perhaps they just don't bother with the details.

Inquiring minds want to know about this particular term benefiting bicycle manufacturers:

1.   The AAP testified that there is a real risk that kids might lick their bicycles.  Problem?  Apparently not, but the testimony was taken morbidly seriously at the time.  I wonder why Congress wants to protect bike lickers now.

2.   Perhaps you recall that the CPSC rejected the request of Learning Curve to exempt its brass bushings on toy car wheels.  This decision was a "major victory" for safety because, get ready for it, there was lead in the brass bushings although Bob Adler noted there was no danger even to a child at the "tipping point" in lead exposure.  [Adler voted to reject LC's petition nevertheless. He "had" to, the law left him no choice.]  Later the Consumers Union warned against playing brass instruments in a band because of the dreaded lead in brass.   [Degchi (Curry cookware) is one of many traditional Indian cooking utensils and pots made of brass.  Where are all the Indian victims from generations of eating off brass?]  The CPSC also held the line against bikes, pens and ATVs over the purported lead content of their metal components because the Dems asserted that there is no safe level of lead.  Is Congress signalling that metal components are uniquely safe in bicycles?  How did Congress figure this out?  Is there something in the Congressional record on this point?

The term about testing metal bicycle components first appeared in this bill when it went to the House floor on suspension.  Bills on suspension cannot be amended.  Hmmm.

3.   I recall Rachel Weintraub intoning during testimony at the CPSC and in Congress that consumers expect their products to be tested before sale.  [Former Commissioner David Pittle told the same tale at a CPSC hearing.]  Bicycles won't be tested before sale now.  How will consumers be able to sleep peacefully?  How will they know which items are not tested (ATVs, books, bikes, resale goods of all types) and which are tested?  Won't they have the same uncertainty again?  I can feel the fabric of our society tearing a little bit . . . .

4.   Bicycle manufacturers have indicated that tests of metal components vary depending on where you test the component.  There is unpredictable variability in their test results because . . . metal components are not precisely homogeneous.  Metals are used in components in many children's products, not just bikes.  It follows that all metal components pose the same issue.  It also follows that metals pose an equal risk of lead poisoning regardless of the product they are used in.  So why must we test our grommets and staples when bikes can tool around untested?

5.   Is there a reason why OTHER components on a bicycle (presumably made of plastic and vinyl) must be tested?  Is there a known health hazard there that bike companies must protect against?  Will those tests achieve anything for anyone?  And why must every other product category still subject to the CPSIA test every component, whether metal or plastic?

6.   The CPSC has held that it is "technologically feasible" to make every component of every children's product compliant to the 100 ppm standard.  There were no exceptions to their conclusion.  Why did Congress in its infinite wisdom decide that bicycles alone could be forgiven the need to meet this standard and alone to not have to test its metal components?  [The other problem child under this provision, ATVs and motocross, was written out ENTIRELY.]  Why weren't bikes made to comply with the astute judgment of the CPSC and shift over to new materials to meet the "toughest lead standard in the world"?  After all, that only costs money, and Bob Adler assured us that the cost would be minor and worth it.  Can't be too safe and, of course, we all know that safety delayed is safety denied.  Isn't this action of our all-knowing Congress denying safety?

As I have noted, this law picks winners and losers.  Applying reason and rationality to this arbitrary allocation of spoils is a pathetic waste of time at this point.  Congress has decided what's best for all of us, and with the Tenenbaum gang in charge at the CPSC, you shouldn't spend much time hoping things are going to change in the future. Henry Waxman and Rachel Weintraub won.

CPSIA - The Futility of Protesting the CPSIA

With Congress about to sign-off on a CPSIA Amendment which seals the fate of the regulated community, for better or worse depending on who you are, the question of what remains is quite relevant.  With rights allocated and responsibilities delegated to a Dem-controlled CPSC Commission, what kind of justice can we expect in the future???

As if to answer this question, last week CPSC Chairman Inez Tenenbaum published a troubling Op-Ed dated July 28th ("CPSC Chief to Detractors: ‘Safety Delayed is Safety Denied’").  In her article, Ms. Tenenbaum asserted that Democrats on the CPSC Commission are responsible for many "major victories" over the resistance of the minority party Republicans:

"We have made great progress at CPSC, and at times, our achievements have come with support from the two Commissioners in the minority party. Though, consumers should know that vigorous resistance is the rule, rather than the exception, with these two Commissioners. Through a coordinated campaign, these Commissioners have sought to delay and distort our actions in an attempt to circumvent the will of American families and Congress. Their tactics have been unsuccessful, as demonstrated by the strength of the new safety measures we have established."

Democrats good, Republicans evil. . . .  She continues, openly accusing minority Commissioners of almost venally favoring pocketbook issues over safety:

"We faced another example of this obstructionism in our effort to make sure cribs are safe. From November 2007 to April 2010, there were 36 deaths associated with crib structural defects. To address this critical issue, the Commission voted unanimously last December to establish new crib safety rules. Sadly, two of my colleagues in the minority party then attempted to delay the rules from going into effect last month. They were for it, and then they were against it, all in an effort to put the interests of a few retailers over the interests of hundreds of thousands of parents and very young children."

Perhaps granting me an honorable mention as an irritant, Ms. T. goes on to lay claim to the higher moral ground.  As you know, this is all about the tug of war between good-and-evil . . . .

"It is ironic that the minority party Commissioners and certain cynical special interests continue to gesture wildly, alleging a failure to take the concerns of businesses into account, while many safety-conscious companies have been manufacturing, testing, and selling children’s products for nearly three years that meet and exceed the requirements set by Congress. The minority party’s approach does not solve problems and does not serve the public interest. The Consumer Product Safety Commission under my stewardship will not succumb to efforts to undermine this law. Like justice, safety delayed is safety denied." [Emphasis added]

[I can't let Ms. T get away with the "safety delayed is safety denied" baloney.  To accept her rationale, one must conclude that safety was at stake in the cited decisions.  Among her claims of "major victories" is the determination that 100 ppm is technologically feasible.  Her own staff indicated that this decision will have "minimal" impact on safety.  And the safety achieved by the decision?  No reply.  She also points to the new phthalates standard.  Her own agency has TWICE considered these same chemicals for safety risks and TWICE given them a clean bill of health.  Isn't it a stretch to call her new standards a "major victory" for consumers or to contend that safety was ever at stake?  Not if data is irrelevant to you.  As is to ensure her own blissful ignorance (and to avoid learning anything inconsistent with her political agenda), Ms. Tenenbaum has never asked for injury statistics to evaluate evidence of the utility of the new rules she KNOWS will choke business.  Why not?  Who wants to spoil a good thing?  Safety delayed is safety denied . . . .  "Safety" perhaps defined in terms of job security.]

Commissioners Nord and Northup replied to Tenenbaum's Op-Ed snarkiness, and you should read their replies. However, I think the real issue is how this Commission will handle its responsibilities once Congress bows out.  Congress is about to let the Commission take it from here.  Now what?

The Tenenbaum article raises a question in my mind.  Does Commission voting records give any insight into the Dems' willingness to listen or their interest in listening to contrary viewpoints?  Is it all so open-and-shut?  Do we even have a fighting chance with these people, given their moral self-justifications?  Commission voting statistics have never been analyzed publicly to my knowledge, so I put them together this afternoon. Please feel free to check my work - here are the Tenenbaum era CPSIA votes.

My tabulation excludes procedural votes and votes related to cribs and infant care, the phthalates CHAP and Pool safety. In other words, it is only those votes which relate to my advocacy on the core issues under the CPSIA. Notably, I am unable to access confidential votes - the spreadsheet only applies to votes cast in open sessions of the Commission.

There have been 46 votes since her confirmation, and 37 since she began to chair the meetings. Each and every decision of the Commission has been controlled by the Democrats. Each and every vote won by Democrats had all Dem Commissions in tow with two exceptions - the two stays objected to by Adler, an avowed stay-hater.  Every 3-2 vote was three Dems to two Republicans.  No doubt each vote was configured for Ms. Tenenbaum's consent - she has never voted against a proposed rule or ruling.

Think about that - all the Dems voted together on everything, except two dissents by one Commissioner on the same issue, the extension of a stay, and in those cases he wanted to be even less forgiving of reasonable business interests. For perspective on this, consider that this is the Commissioner who claims to "agonize" over every vote but always votes against even the mildest form of relief for business. He is also the one who stated that he wouldn't allow cost-benefit analysis to be performed "over my dead body".  He only veered away from his fellow Dems on two votes on stays.  What does that tell you?

After three years of advocacy and the considerable expenditure of cash, time and other resources by so many people affected by this law, it seems apparent from the voting data that nothing we ever said or any data we ever presented were in any way persuasive to the Dems. They were gracious in their expressions of gratitude for our participation in their processes, but given the outcomes, one must conclude that we simply enabled them to give the appearance of justice. After all, we got our day in court, or so they would have you believe. However, if anyone who comes before a particular judge is sentenced to death, one begins to wonder about justice after awhile.

The Dems have used slogans to justify their actions:

- "There's no safe level of lead."
- "Safety delayed is safety denied."
- "Over my dead body . . . ."

Is there a pattern in these slogans?

They are sanctimonious. They wreak of moral superiority, while at the same time pinning their work on other people. Ms. T. tells us that they were just carrying out the will of Congress.  Nevertheless, she would have you believe that their work is necessary and a triumph for you.

They are self-righteous. There's something smug about their contentions. They will block cost-benefit analysis with their dead bodies. They portray themselves as courageous heroes, opposing devious foes. Taking a page out of the estimable Jan Schakowsky's playbook, Tenenbaum labels those who oppose her as "certain cynical special interests". Conspiracy theories bulk up her slender reed of self-justification.

The slogans play to emotions and ignore legal precedent and data. Bob Adler's "How do you measure the life of a little baby?" is a great example. Bob Adler is a lawyer and knows full well that the law provides a solid and respected answer to this question. As one practitioner told me, this kind of assessment is done every day in our courts and by other agencies. Adler knows that brains short out when he mentions "little babies" and who can argue that anything is worth more than the life of a "little baby".  By invoking images of "little babies", Adler and Co. divert attention from incoherent rationales underlying their decisions.

[To save a "little baby", is it okay to eliminate one job? Ten jobs? 100 jobs? 1,000 jobs? 10,000 jobs? 100,000 jobs? 1,000,000 jobs? Where do we draw the line? The implication, if you listen to Mr. Adler (not that he ever listens to me), is that the value of a baby's life is infinite so no economic sacrifice is too great. He won't allow a cost-benefit analysis to be done, despite the fact that it is mandated by an Executive Order and is good law to boot, so the question will never answered.  But isn't it clear - the line must be drawn somewhere. We can't function as a society if it isn't.  Don't expect this kind of thinking as kong as Adler and Tenenbaum hold down the fort at the CPSC, however.]

The slogans are cynical, too. Tenenbaum's repeated request (four times by my count) in the hearing on 100 ppm that businesses are welcome, even encouraged, to file for exemptions from the technological feasibility decision is despicable and cynical. Cynical in a sincere voice and with a smile on your face is cynical all the same. The CPSC staff wrote up a 59-page analysis stating that EVERYTHING is technologically feasible.  She knows this.  Her encouragement can't and won't lead to exceptions - The CPSC staff have already "tied her hands".    Still, she persists.  Consider Ms. Tenenbaum's advice in her statement on the 100 ppm standard:

"Although the Commission already has voted on this issue today, if a manufacturer were to discover that it is not technologically feasible to manufacture a children’s product or category of children’s products, the agency always will consider a request for a technological feasibility determination through our normal petitioning process. During my tenure, the Commission has docketed and either has resolved or is considering several petitions requesting action on various issues. The criteria for any petition on the technological feasibility of achieving the .01 percent lead limit are laid out clearly by the statute and further explained in the staff briefing package. The process for writing a petition also is clearly set forth in the agency’s regulations. I encourage any business that discovers it manufactures a children’s product or category of children’s products for which it is not technologically feasible to meet the .01 percent limit to come to us with enough specific data to enable our staff to recommend that the Commission make a finding concerning technological feasibility under section 101(d) of the CPSIA. Our door always will be open to considering future requests. As always, for small businesses that may require additional guidance, our small business ombudsman stands ready to work to work with you on any of your concerns. I realize that this process has presented a challenge for manufacturers, and I commend those in industry who have worked so diligently to bring the lead levels in their products below .01 percent." [Emphasis added]

Makes me want to vomit. This is your government talking.  Or perhaps lying?

So as Congress closes the door on helping us, doling out relief to favored groups like ATVs and books, they left the rest of us to fend for ourselves. The issue of how any of this related to safety was never considered in the pending amendments. Congress also chose not to address the abuses of the panel of hanging judges at the helm of the CPSC. The result is painful and a reminder that fighting City Hall is pointless. In this case, the Dems in charge have proven they are beyond reach and will not listen. Further resistance seems futile.

CPSIA - Hey Republicans, You Aren't Allowed to Think!

During the July 7th House Energy and Commerce Committee's Oversight Subcommittee hearing on regulatory reform among independent agencies (a hearing which presumably prompted Obama's Executive Order two business days later), Ranking Member Diana DeGette (D-CO) trotted out one of the most common arguments against change:

"I want to talk . . . about the recent proposals on the other side of the aisle that would undermine the Consumer Product Safety Commission and some of the other good work that they've done.  Three years ago, this Committee and this Congress worked hard in a significantly bipartisan manner to put meaningful reforms for consumers into the [CPSIA].  This has yielded unbelievable benefits. . . . So I think it's important to know this, that these reforms were worked out by this Committee in one of the last great efforts that was completely bipartisan.  We should embrace that."

This is a familiar argument by Dems.  The law passed almost unanimously, guys, so it's wrong to try to change the law now. 

What logical point is DeGette making here?  How is this argument supposed to persuade us?

At first, I thought the Dems were simply arguing the infallibility of Congress.  Congress never errs, so how can we doubt something every Congressman voted for?  Congress is all-knowing and cannot pass a bill without doing the right thing.  [And as Obamacare indicates, Congress apparently doesn't even need to read the bills to get them right.]

To argue that this law is a product of infallible judgment is quite a leap.  Even the unanimity of the law hardly explains the mental state of Congress at the time.  Congress was ANGRY.  Have you ever said or done anything in anger you later regretted?  'Nuf said.

No, an infallible Congress cannot be what Ms. DeGette is pushing.  Actually, I think it's far simpler.  She is saying that the Dems were right and are still right and have no need or interest in changing their position.  She points out that the two parties agreed on the law's text in 2008 and passed it almost unanimously.  Now the Republicans want to make serious changes.  She says the Republicans should return to their bipartisan brothers, the Dems, and support the work they did three years ago.  She essentially calls into question the motivation of the Republicans in opposing the Dems now, suggesting that this is a by-product of a broken Washington, where partisan posturing is all we can expect from these people.

At the heart of her reasoning is the fact that the Dems are holding their course behind the law, and the Republicans have moved, and now she wants the Republicans to be more "bipartisan" by returning dutifully to agreement with the unwavering Dems.  Or is it the intransigent Dems?  A matter of perspective, I suppose.  Come back to the fold with the Dems!  DeGette's argument relieves the Dems of any obligation to reconsider ANYTHING.  How convenient.  How Waxman-like.

Here's something the Dems won't tell you - the law was jammed down the throats of the Republicans in both Houses of Congress.  Congress was controlled by Nancy Pelosi at the time (she of San Francisco, of course).  The CPSIA was purpose-built for getting Democrats elected and was not negotiated with the Republicans in any sense you would recognize.  On the national stage, the Obama wave was cresting at that time, too, so what do you think the political calculation was in the Bush White House and in the Minority ranks in either House on the CPSIA?  The Republicans knew that any opposition to any aspect of this law, regardless of how awful, would mean attack TV commercials on support for children's safety at a time of great electoral vulnerability. Bush agreed to sign the bill to protect his party, not to protect kids.  At least it neutralized a possibly existential political threat.  Each Republican Congressman or Senator had to make a similar political calculation.  Only four people (Ron Paul and three Senators) were politically courageous enough to stand up against this excessive bill.  It is certain that far more than four members of Congress found fault with the CPSIA at the time. 

The 2008 "great bipartisan effort" that DeGette romanticizes is an urban legend, a fiction, a fairy tale, a story.  She wants to cow the Republicans into losing their political nerve at this critical juncture when some kind of momentum behind our position may actually be growing.  She wants them to think ballot box.

And for those of you who pepper me with defense of Dems or reminders of past Republican "sins", all I can say is this:  the Republicans have nothing to gain politically from their three-year effort to right this wrong.  They are taking electoral risks to help us, and have been unwavering in their support of our mission. I can only believe that this is because they actually are trying to do the right thing.  This has never been about policy or safety. The Republicans know that this issue has been played for political gain by the Dems with no remorse over the devastation they have wrought to your businesses, your markets or job creation.  For them, it's just too juicy an opportunity to get reelected.  And if that's so, it must be the reverse for the Republicans. The Republicans are taking this risk on your behalf, for your benefit.

I hope there's a nice occasion to say "thank you".  In the meantime, the likes of Diana DeGette must be vanquished.

CPSIA - Fait Accompli

Tomorrow the stage is set for the ultimate triumph of the Waxmanis:  the predicted approval of the 100 ppm lead standard by 3-2 party line vote.  The three Democrats will express regret, saying that Congress forced them to do it, and calling on Congress to let them make this standard prospective only.  They will no doubt also assert that this is good for all of us, given that "there is no safe level of lead", that old chestnut unsupported by any injury data. No doubt the 100 ppm lead limit will fix all of these imaginary problems.  The Republicans will note the pointlessness of it all, and remind us of the cost of the provision.  Jobs will be lost.  The Republicans will be right, but the Dems have a political agenda to implement, and you will be sacrificed.  Mr. Obama's Executive Order will not give the Dems pause.

After three years, I am numb to this behavior.  The Dem Commissioners are and have always been beyond reach, unimpressed by reason or data.  That comes from a strong conviction of the correctness of their position with no need to reconsider.  As Bob Adler's testimony at the Oversight hearing on July 7th indicates, the Dems are ever ready to defend the CPSIA faith.  [Check out the testimony given in questioning by the estimable Jan Schakowsky.]  Data, schmata.

For those of you who have expended energy, or committed resources, to providing information to the CPSC after three years on this provision (comment letters, testimony, etc.), please note that it was all a set-up.  The decision facing the Commission is whether the 100 ppm lead level is "technologically feasible". The legislative definition of this term of art does NOT take into consideration cost, perhaps because every life is precious and of infinite value.  It does not matter what it costs to comply, only whether it is somehow possible.  CPSC Staff confirms that everything can be made without lead using this definition however absurd.  So the Dems have no reason to vote against the new standard.  
No reason . . . .   Consider the views of the American Apparel and Footwear Association in a letter dated July 11, 2011 on this topic:

"We strongly urge the Commission to declare that it is not technologically feasible to meet the 100ppm standard for the simple reasons that:  (a) it is impossible to meet a standard retroactively; (b) compliance cannot be assured because of continued issues with material variability, especially with metals; (c) compliance is complicated by the regulatory uncertainty generated by the technological unfeasibility issue as well as the ongoing delay in the so-called “15-month rule”; (d) the new standard will impose significant costs on manufacturers, costs which disproportionately affect smaller companies; and (e) inter-lab variability, especially at the lower limits, make consistent compliance impossible."

Details, details - the Dems DON'T CARE.  Tomorrow the Commission will enact an egregiously out-of-whack rule from a cost-benefit standpoint a mere two days after Obama ordered the CSPC by name to review all rules for being overly burdensome.  Yawn.  After three years of this, what else would you expect?

CPSIA - The Cost of Government Regulation Examined

I recommend that you check out Wayne Crews' article in Forbes dated July 6 entitled "The Cost of Government Regulation". This article predates the recent House Oversight hearing or the Obama Executive Order on Independent Agencies and Regulatory Reform.

Mr. Crews cites regulatory costs in excess of $1 trillion for this excess ($1.4 trillion for the self-destructive overreaction to Enron, Sarbanes-Oxley alone). Costs of this magnitude makes cost-benefit analysis something of joke. He notes:

"Agencies think within their squares and have conflicts of interest in assessing their own benefits. Regulators can ignore the opportunity costs and moral hazard they create. Even now they are in the process of distorting entire industry structures via limiting access to energy, antitrust regulatory abuse and “net neutrality” rules in telecommunications and government “stimulus” with regulatory strings attached."

Enough already!!!

CPSIA - The Axis of Misinformation

CPSC Spokesman Scott Wolfson wants you to read an article:

Scott_Wolfson: If #opengov #gov20 are important to u, pls read this LATimes column: http://t.co/MrrgGwO #SaferProducts.gov #cpsc  [From Scott Wolfson's Twitter feed]

Wolfson refers you to a hatchet job by David Lazarus of the LA Times on the CPSIA Product Database. I have taken issue with the blather emitted from Lazarus' PC in the past.  In his latest example of irresponsible journalism, endorsed by the CPSC, Lazarus displays his studied ignorance of the issues relating to the database. His lack of research certainly didn't prevent him from making declarative statements. Wolfson wanted to be sure you didn't miss it.

Lazarus ponders what the issues could possibly be with the controversial database:  "You've got to wonder why businesses are fighting so hard to keep this resource away from consumers. Is it because their fears are justified that we'll misuse this tool (all evidence to the contrary notwithstanding)? Or is it because the last thing they want is a consuming public armed with the latest and most thorough information on the safety of their goods? And if it's the latter, you might now ask, what are they trying to hide?"

I cannot think of any objections to the database other than self-interest, can you?  It's all a conspiracy, as anyone on the Left can tell you.  Businesses have so much to hide!  And did you know that evil billionaires are against the database?  Lazarus sorts it all out:  "Koch Industries — run by billionaires Charles and David Koch, who are active in conservative causes — also reported spending more than $200,000 lobbying against creation of the database."  Lazarus asserts that it is significant that Members of Congress aligned against the database also received campaign contributions from businesses.  [Can you find a single member of Congress who has NOT taken contributions from businesses or business people?  Just curious.]  Lazarus notes that both Reps. Emerson and Pompeo received contributions from business people who are ALSO against the database.  It's all making sense now . . . .

Perhaps it was an oversight, but Lazarus fails to mention that the folks on the Left who so vigorously defend the database as implemented have been richly financed by TRIAL LAWYERS.  Rep. Henry Waxman raised more than $165,000 in 2010 from lawyers (11% of his total raise).  In fact, his top PAC contributor was the American Association for Justice, a group of plaintiff's attorneys actively opposing tort reform.  He also received individual contributions from AAJ lobbyists.  Rep. Jan Schakowsky raised a mere $224,000 from lawyers in 2010 (about 15% of her raise).  Ditto for AAJ support.  Poke around on OpenSecrets.org to check out your other favorites in Congress.  It goes without saying that the support Waxman, Schakowsky and their ilk lavish on the database has NOTHING to do with campaign contributions by trial lawyers.   It all comes from the heart, cloaked in white.  Any idea who pays the bill for all the litigation initiated by the AAJ and its members?  Hint:  it's not Waxmn or Schakowsky.

No Lazarus article would be complete without the quotes of Rachel Weintraub of the Consumer Federation of America.  The strangely influential Weintraub is the Left's favorite mouthpiece on the CPSIA.  Here she tries a new angle to preserve the database, the "sunk cost" argument:  "The thing that's so insidious is that the database is already up and running,  This would basically waste all the money and resources that have gone into creating the database."  Insidious! That thrifty Rachel, she literally weeps over government waste.  Of course, the database is not controversial simply because it exists; the principal reason the issue lingers on is that Lefties like Weintraub and Bob Adler insisted on unfair administrative procedures that create unreasonable risks for manufacturers unrelated to actual product hazards, like brand slander, misidentified products, lack of accountability by complaint filers, manipulation of civil disputes and unbalanced data creating misleading commercial impressions. These problems are well-documented but have apparently escaped Lazarus' beady-eyed (in)attention.

The Axis of Misinformation is at work here.  You have the ignorant journalist (perhaps intentionally so or at a minimum, biased against manufacturers and disinterested in their POV), the shrill consumer "advocate" and the self-serving agency spokesman whose job is to manipulate how we feel about the CPSC (irrespective of reality or the "truth").  CPSC as PR agency is offensive to me.  That's not its function and besides, I think it's dangerous to me as a consumer.  As a practitioner noted this week in private correspondence:  "CPSC stacks the deck by creating alarming recall notices that do not really put hazards in perspective for readers, nor does the agency give consumers enough information to determine whether the amounts that they wind up indirectly paying for the costs of recalls are justified, especially when those costs are spread out to affect products that have not been recalled and present no risk. Hazards and risks are generally overstated, and you will never see any mention of costs to the public even though, as we all know, there is, after all, no free lunch."

It is worth noting that I hear complaints from the CPSC through various channels when they object to the portrayals in this space.  It's so unfair that we have freedom of speech in this country.  No doubt that makes the job of regulating all of us idiots so much more difficult.  Still, if I get to exercise my freedom of speech, so does Wolfson.  Go ahead and read Lazarus.  It is informative in a way.  It will take you less than 30 seconds to recognize the shoddy journalism and the slanted, biased presentation of a one-sided story.  Consider the source of this lead - Scott Wolfson and the CPSC.  As I said, it's informative.

CPSIA - Fools in Charge

So happy to be so safe . . . and so unemployed!

Today's initial jobless claims report is yet ANOTHER report card on the dense and unthinking approach to economics implemented by Mr. Obama, Mr. Waxman and their Dem minions since the 2008 election.  A full three years after the economic cataclysm, and with a diminishing ability to blame this misfortune on someone else, the Dems stubbornly stick to their over-regulation agenda dooming Americans to safe, safe unemployment.  Can't be too careful, you know.

The CPSIA is the poster child for the Nanny State.  Mr. Obama told David Letterman on September 21, 2009 that the national problem he had to fix was that we had "too little government, too little regulation". Our industry has become a classic example of the cure being worse than the disease.  The story has been told again and again.  For instance, the CPSC heard (and promptly ignored) at its February 16th hearing from a representative of the bicycle industry, all the small bicycle manufacturers have left the children's market and the big makes of bikes have sharply cut their product lines.  They also informed the CPSC that if the 100 ppm lead standard comes into force, the rest of the bikes will disappear from the market.  Quite a stimulus plan - you can imagine all the jobs this useful plan has created.  Other consequences is a general reduction in choice and availability in child-size bikes, which not only punishes families but also retailers.

Do any of the numskulls running our safety apparatus have evidence that any child has EVER been poisoned by lead-in-substrate from a bike?  No, they don't - because there is no evidence that any child was ever injured by lead-in-substrate anywhere using any product at any time.  Did you realize that one of the big problems in making a bike comply with this moronic law is that bikes use recycled steel for the frames - and the law provides that paint does not constitute a "barrier" over the steel.  The lead content of recycled steel is hard or impossible to consistently control at the levels dictated by the law.  The industry representative submitted testimony and evidence to the CPSC (consistent with evidence I have also supplied) showing that tests on the SAME PART in ten places yields ten different lead contents. 

This law is killing jobs, products, companies and markets.  The evidence and data is right there for any thinking individual to read and consider.  The true believers stand in the way of rationality.

Please send Mr. Waxman and Mr. Obama a thank you note for the weak, sinking economy.  They have CHOSEN this path of Nanny Statism to keep you "safe" although they really can't demonstrate you were ever unsafe or that you needed this further protection.  If you are one of the unlucky 9.1% who can't find a job, perhaps you will take some comfort in knowing that your Dem-led government made this choice for you.  Safe but unemployed - that's what you need, what you want, what you got.  The best government money can buy . . . .

The solution to fools in charge is to amend the CPSIA and restore sanity in safety administration.  PASS ECADA AND END THE CPSIA CHARADE!

CPSIA - Consumers Union is Hazardous to Your Health

Lies, innuendos, misstatements, twists - which is it this time?

Today Ami Gadhia, one of the Consumers Union CPSIA hacks (a.k.a. "Policy Counsel") weighed in with her usual bunk about the lurking "dangers" in children's products.  In particular, today's tripe is a protest against modifying the CPSIA.  Her writings and utterances are invariably infuriating for their lack of perspective, tall tales and general fear mongering.  In her article "Turning Back the Clock on Child Safety Protections", Ms. Gadhia continues her fine tradition of twisting and obfuscating the facts.  Considering her background in the subject matter and her law degree, one must assume ill-intent.  This can't be accidental.

Let me debunk her junk one-by-one:

a.  "Turning Back the Clock on Child Safety Protections":  The Op-Ed's title is absurd in light of the actual bill's wording.  The CPSIA Amendment (ECADA) is a mild and surgical bill intended to offer minimal but effective relief from over-regulation while preserving the structure of the CPSIA.  Killing the CPSIA is politically impossible, it appears, so this is the best that can be offered at this time.  Ms. Gadhia must be asserting that ANY change in the CPSIA is a setback.  This argument is always left unproven - but no one ever holds her accountable so why not tell the tall tale?  The consumer groups rely on the appeal of the "zero sum" argument which also goes unchallenged.  It goes like this:  ANY change in the CPSIA which might benefit a business is THEREFORE a setback for children's safety.  If the Cubs lose 15-5, they are somehow better off if they instead lose 13-5.  Right. . . .

b.  Ms. Gadhia, like her fellow manipulators in the consumer "advocacy" field, relies on an emotional appeal to kick off her crock - the story of a child who swallowed magnets, leading to gory injury.  A few notes on this line of reasoning:

• The CPSIA is NOT a toy law.  Despite Ms. Gadhia's relentlessly repetitive references to toy safety, the law applies equally to ALL children's products, from shoes and t-shirts to pens to rhinestones to ATVs and bikes to books to educational products to carpet to what-have-you.  By focusing on toy gore, Ms. Gadhia lulls her reader into overlooking the awesome overreach of this bill.  We don't want kids injured by magnets . . . ergo, we should ban all hazards in all things.  Huh?
• The magnet hazard she refers to had never been seen by the agency previously.  It was a classic latent hazard, unregulated specifically because it was unrecognized.  You can see Gib Mullan, the current General Counsel of the House Energy and Commerce Committee and former General Counsel and Director of Compliance at the CPSC say ON VIDEOTAPE (at the CPSC Tracking Labels hearing) that the agency first thought the problem was a small parts issue, not a strong magnets issue.  No law can effectively regulate UNKNOWN hazards.  Claiming that the CPSIA "solves" this safety issue is pure baloney.
• The magnet hazard was addressed promptly and effectively by the agency without the need for changes implemented by the CPSIA. The agency had this power under its 1972 enabling legislation and following laws.
• Sometimes bad things happen to good people.

c.  Ms. Gadhia intones ominously about banned phthalates and their links to "a variety of health risks".  As has been well-documented here, that provision was placed in the law at the last minute by Diane Feinstein, true to her San Francisco roots.  This is the same place that worked for years to ban circumcision.  Yes, they are really scientific in that community.  For a discussion of phthalates, please watch the 60 Minutes segment in which I appeared.

d.  Ms. Gadhia trots out yet another misleading but longstanding justification for not changing the CPSIA - namely that it passed by an overwhelming majority of Congress.  I fail to grasp the intellectual power of this "infallibility of Congress" argument, and further note that dozens of members of Congress have been trying to change the law ever since.  There has been more than a dozen bills floated to amend this "perfect" law since August 2008.  In addition, the timing of passage of this law (three months ahead of the 2008 Presidential poll electing Mr. Obama) made it very dangerous politically to vote against this terrible law if you wanted to keep your job in Congress.  Even Mr. Bush had to sign it for political reasons.  The political and media frenzy in 2008 made rationality impossible, and minds were made up.  Have you ever made a bad call when you were furious?  'Nuf said . . . by everyone except the dangerous Ms. Gadhia.

e.  The Consumers Union storyteller informs us that ECADA "would poke some serious holes in the product safety net".  What a dream if Ms. Gadhia were actually right that this amendment would actually dent the CPSIA that I hate.  It doesn't, regrettably.  To "prove" her points, she lists four lies:

• "The bill undermines safety testing for children's products".  The bill eliminates MANDATORY testing as required by the CPSIA.  It does not ban testing, nor does it discourage or remove the incentive to test.  Excessive testing is one of the original problems cited in the bill, and has cost our company well in excess of $1 million since the passage of the bill - all without making even one product in our product range safer, even a little bit.  This term is the brainchild of the consumer groups (Rachel Weintraub?), reasoning that if the government didn't require mandatory testing, no testing would be done.  This misconception overlooks the enforcement of the new standards.  It is IMPOSSIBLE to assess whether you comply with the standard without testing.  Enforcement of the standard, as is anticipated, means that everyone WILL test.  What is being eliminated is the role of Mother Government "helping" us by telling us how to run our businesses.  If the standard is enforced, people will HAVE TO test.  If they don't enforce the standard, they won't enforce mandatory testing either. What's the big deal here?  Just the opportunity for Ms. Gadhia to mindlessly bang her drum.
• "The bill undermines lead protections".   Ms. Gadhia informs us that consumer confidence would "erode" if the current one-size-fits-all standard is replaced with "a variety of standards that will be different depending on when the product was manufactured, the age of the child for whom the product is designed, whether it contains small parts, and other factors."  OMG - standards that are reasonably tailored to the individual hazard and individual product!  NO - please tell me we still live in a world where books, t-shirts, diamonds and rubies, ATVs, bicycles, appliances, pens, carpets, DVDs and toys are ALL subject to exactly the same rules. What is the world coming to???  I presume Ms. Gadhia thinks we are idiots, or else this is all she has, which ain't much.  Anyone surprised?
• "The bill undermines the effectiveness of the new crib safety standard".  I have previously addressed this issue - the three Dem Commissioners made this same baseless accusation a few days ago.  See my reply in this space.
• "The bill undermines the new public database for people to report and read about product safety problems".  Ms. Gadhia warns "the provisions in this legislation would place onerous burdens on the person making the complaint, thereby discouraging parties with valuable safety information from reporting."  Whoa - you mean we won't get to see stuff like this, this and this again???

Ms. Gadhia needs to get one last jab in:  "The Leisy family's experience shouldn't happen to another child."  Okay, I don't want to see any child injured ever again for any reason . . . but does Ms. Gadhia even make a coherent argument here?  Does one thing have ANYTHING to do with another?

It's time to turn back the clock on irrationality and lowest common denominator government.  Who should set the tone for us - the Anthony Weiners of the world (did you hear that his wife is pregnant?) or people that are interested in children's safety AND the viability of American businesses that provide jobs to your neighbors and valued products to your kids?  I think it's time that our representatives in Congress, especially those in Congress calling themselves Democrats, to stand up for WHAT'S RIGHT rather than what's easy or what's safe (for their job security).  We pay them to lead, not to cower.  PASS ECADA AND END THE CPSIA CHARADE!

CPSIA - Tell me What You Think

With the CPSIA Amendment (ECADA) stalled for the moment, it's a good time to reflect on where we are. I want to know what you think.

As I see it, this is a case of the unstoppable force colliding with the immovable object. Guess where we are located? At the point of collision. On one side, you have the Republicans. They have always decently listened to our issues and tried to help. Only after the 2010 Midterm elections were they in a position to get things done. With the power of the House majority behind them today, they have taken the political risk and shown the political will to craft a reasonable, measured and, frankly, surgical amendment of the acknowledged defective CPSIA.

Interesting sidelight: The legislative dynamic in Congress in 2008 seems long-forgotten. At that time, the Dems controlled both Houses and the dominant player was San Francisco's own Nancy Pelosi. The CPSIA was negotiated during a time when she and her minions ran the show. True, there was a Republican President BUT owing to the media frenzy at the time, no one was willing to take the political risk of asking any questions. Congressional hearings were controlled by the Dems in both Houses and stage-managed them to achieve the right "tone". Behind the scenes, the legislative negotiations between the parties at that time are best described as stiff-arms. The Republicans were jammed on many of the worst anti-business terms in the CPSIA and the sting never went away. This may be why they are so sympathetic to our cause today.

Please keep this in mind when the consumer groups and the Dems cluck about the 2008 super-majority, bipartisan vote on the original bill. In fact, the Repbulicans would tell you that they had no choice. Sounds convenient, perhaps, but if you talk to them, you will quickly see that they really mean it.

On the other side of this collision are the unscrupulous consumer groups and the Dems. This cabal works together for political advantage. The Dems, led by Henry Waxamn, see that they can use ECADA to score political points. They know that the Republicans don't want consumer groups to send out letters to their constituents saying that the incumbent voted to endanger children with lead in toys. I know it's sick, but that's reality in Washington. This may give you some perspective on why people say Washington is "broken". It is.

The Dems want to score points against the Republicans, and the fact that we are being squished in the process is a cost they are willing to bear. Get it, your demise is a cost they are willing to bear, all for the "greater good" of politically endangering the Republicans. Remember, Members of the House are continually running for office. It takes true courage to do the right thing when you are exposed to Machievellian forces like Mr. Waxman and his merry band of manipulators.

For this reason, I am fairly pessimistic about the prospects of this law. You get the same sinking feeling watching the talking heads on CNBC discuss the deficit and war over the national debt limit and hearing our national leaders talk blandly about the consequences of default on U.S. Treasuries. No big deal . . . . The politicians are playing with our lives, but act as though it is some of kabuki theater, Model UN gone mad. Do you think they are looking for a good grade, rather than doing the right thing for America?

I rule out that the Dems are totally ignorant of science. I rule out that they don't understand the data on injuries or what it means for their law. I think they simply don't care about these things. Their profession is politics, and all that matters is the taste left the mouths of voters. A bill easing up on businesses over lead in children's products has political weaknesses that the Dems prefer to exploit. The needs of our community are a secondary consideration. A distant second, too.

So . . . what do you think? What do you recommend in this hot stove league? Can we do anything about this tragi-comedy, can we save products, companies, markets and jobs before the consequences of inaction suffocates them all out of existence?

Let me know. Thanks.

CPSIA - What's Missing from the CPSIA Amendment?

I have summarized my comments on the pending CPSIA amendment in my two prior blogposts.  In this post, I explain what's MISSING from the amendment:

a.  Preemption:  The United States needs ONE law on safety for children's products - not 51.  The CPSIA amendment should include strong preemption language to stop rogue state laws and to streamline compliance costs for the entire industry. Industry wastes huge resources dealing with competing and inconsistent regulatory schemes across the country that add little to safety but disrupt commerce.  It goes without saying that small businesses can't keep up with it (which is especially perplexing in California).  Is it fair to burden small business with a hopeless compliance chore?  Is it good public policy?  I think Mattel has enough of an advantage already. . . .

This preemption should also apply to consumer "right to know" laws as they relate to lead and phthalates.  In other words, the Illinois lead labelling law and California's Proposition 65 should be preempted explicitly by federal statute.  These laws were developed to avoid federal preemption.  Lawyers and mercenary consumer groups don't need the handout anymore - the right-to-know "tax" should be lifted from the marketplace.

b.  Testing Frequency.  The amendment addresses part of the mess surrounding the so-called "15 Month Rule" but does not touch the subject of testing frequency.  The CPSC's budding efforts to regulate testing frequency (and sampling for testing) have the potential to wreak new havoc as the government pushes its way into decisions long made by private businesses.  What's the justification for this intrusion?  I guess Congress thinks they can run our businesses better than we can.  Unfortunately, there's no evidence to suggest that they know better than we do, and furthermore, there is no data to suggest that the decisions made by manufacturers on testing frequency have ANYTHING to do with injuries.  The pursuit of a perfect suite of paperwork is not the same as keeping kids safe. 

The amendment should steer the CPSC away from meddling in the internal affairs of manufacturers and instead refocus it on substantial product hazards.  That's why we have a CPSC, the only reason.
c.  Penalties.  When the CPSIA was originally passed, one of the provisions trumpeted by the agency was its fancy new right to impose huge penalties.  And it didn't take long for the agency to try out its new rights.  Unfortunately, as documented in this space, the penalties rarely reflected reason, just emotion.  Penalties tended to vary by the level of anger at the CPSC, not the magnitude of the "crime" or any sense of proportionality.  Chairman Inez Tenenbaum actually bragged publicly about effectively putting Japanese retailer Daiso out of business  in the U.S. in her 2010 ICPHSO keynote speech.   Daiso recalled a few thousand dollars of cheap toys (about one pallet's worth) in five recalls with no injuries reported byt eh CPSC.  Not exactly a crime against humanity, in my view.  Nevertheless, Daiso was hit with penalties in excess of $2 million.  The Daiso fiasco looks very much like vindictiveness or headline-seeking.  

The threat of such disproportionate punishment may look entirely theoretical . . . until it's your turn.

Call me a starry-eyed idealist, but I believe in due process and reasonable recourse to the courts.  If the agency is going to go hog wild with penalties, Congress should impose reasonable restraints on the process.  Unfettered government power is un-American.  Procedural limits providing basic due process rights and restraining the coercive tactics of the agency would be an appropriate addition to the amendment.  This problem is no secret - ICPHSO sponsored a presentation on this problem at the 2011 February meeting by three distinguished CPSC bar practitioners.  If the agency can't control its animal instincts, then the law should be changed to limit its powers.  I also recommend that penalties be limited to egregious conduct, reckless endangerment or conduct resulting in serious injury. 

d.  Restore Risk Assessment.  The basic problem underlying the CPSIA, as is apparent again and again in my comments, is termination of the CPSC's obligation to assess risk.  In fact, they are not allowed to assess risk anymore under the CPSIA, just follow the rules written by staffers in the 110th Congress.  Of course, this renders the standard of substantial risk hazard moot.  Even more problematic, the CPSC shows signs of losing sight of its mission.  Is the mission proper testing . . . or safety?  The recent hearings on pool drains illustrates this problem.  The hearing was all about the definition of proper pool drain testing.  The CPSC wasn't investigating actual injuries, because there weren't any, but instead questioning test results.  That's what passes for safety administration nowadays.

We need a CPSC focused on risks and injuries.  A phobic safety agency adds costs to our economy with little to show for the extra investment.  We need to get our compass working again.  Congress must mandate that the CPSC base all its decisions on the substantial product hazard standard and risk assessment.

e.  Allow resellers to rely on representations of manufacturers,  Fear of liability has caused many layers of the supply chain to repetitively test and retest the same product, all in the pursuit of the perfect suite of test reports.  These costs are harming manufacturers and raising prices to consumers.  Injury statistics do not support the thesis that anyone is safer, however.  The solution is for Congress to set a legal standard that permits retailers to rely on the representations of their suppliers (manufacturers).  This bright line rule should help end the atmosphere of distrust between retailers and their suppliers.  Don't worry, there will still be plenty of testing to make everyone happy (including the always deserving testing labs).

f.  End whistleblower provision.  The whistleblower provision was added in the same fever of vindictiveness that infused the "throw in the kitchen sink" CPSIA in 2008.  The problem is that there is no evidence that there were any "evil" companies at work in the children's market.  Incompetent organizations or failed operators, perhaps, but criminals and bad guys, no.  "Bad guys" are rare in the children's market, frankly.  The whistleblower provision has the potential to be a disruptor, a manipulator mainly useful to pad the income of tort lawyers. 

Additional attention by the CPSC to outreach and education of manufacturers is much more likely to produce results.  Without evidence that true venality is an actual risk in this market, there is no justification for retaining the whistleblower provision.

g.  Remove phthalates ban!  There are no known victims of phthalates.  The CPSC has been operating under this total ban for now almost three years - and has only ONE recall of 40 little inflatable toy baseball bats (our friend Daiso) to show for it.  That's it, my friends.  How much money, how many planeloads of dollar bills have been torched testing and retesting product for the presence of these chemicals in the meantime?  The CPSC hasn't even bothered to finish up testing standards or certify even ONE lab to perform the tests.  They don't appear to think this is a public health emergency.

Ket's end the charade.  When Diane Feinstein isn't looking, drop the phthalates ban!

CPSIA - Pool Drain Hearing - Assessing Risk or Doling out Political Favors?

The CPSC has announced hearings on April 5th on the adequacy of TESTING of pool drains under the Virginia Graeme Baker Pool and Spa Safety Act (VGB). This follows on the heels of the recent meeting between CPSC Chairman Inez Tenenbaum and Senators Dick Durbin and Amy Klobuchar. Mr. Durbin requested this meeting urgently in the wake of the disclosure by the Chicago Tribune questioning the adequacy of TESTING of certain VGB drains. No allegations of actual injury have been made yet, to my knowledge. Ms. Klobuchar tagged along, having previously expressed concern about the VGB drain covers. The pending CSPC hearing has been reported by the estimable AboutLawsuits.com blog, an outlet for ambulance chasers.

Ms. Klobuchar is up for reelection in this cycle. Mr. Durbin's term extends to 2014.

The Chicago Tribune apparently was late to the drain game. I have uncovered a much earlier and more detailed investigation by ABC News that presumably spawned the CPSC investigation of this matter last Fall. ABC asserts that variability in flow data suggests less water flow with certain models than expected. The report was not uncontroversial, however. Flow was not zero, and the manufacturers note that flow depends on the pump used in the test and also the test installation method. An ANSI standard governs pool drains and three specific labs have been cleared to test pursuant to those standards: the National Sanitation Foundation (NSF), Underwriters Laboratories (UL), and the International Association of Plumbing and Mechanical Officials (IAPMO). Not exactly a rogue's gallery of shady operators. The alternative testing cited by the Tribune was NOT performed by any of the three authorized labs.

[Remember how darned critical it was to use "CPSC-certified" labs under the CPSIA? It's absolutely essential . . . unless media or regulators want to do something else. Industry can't be trusted to use any old lab, however.]

The CPSC issued subpoenas to these three labs and received back a tidy sum of 17,000 pages of documents. Hey, that's even more pages than toy safety rules, wow! Anyhow, they have scheduled a show trial to investigate the purportedly nefarious goings-on with these drains.

Perhaps you remember also that the Tribune article was apparently spurred by Paul Pennington, chairman of the "non-profit Pool Safety Council". According to the Tribune article, "Paul Pennington . . . said he has sent 73 e-mails to CPSC and standards officials, pleading with them to do something about unsafe drain covers since the new law took effect in December 2008." What a guy that Pennington is, a public-minded private citizen only interested in pool safety. . . . and maybe also (just a little bit) his company, Vac-Alert Industries, which owns patented technology that could supplement or replace the drains at enormous expense to pool owners.

Pennington previously succeeded in inducing a bevvy of left wingers in Congress (all Dems) to stand up for his technology, including Ms. Klobuchar and notably, Rep. Debbie Wasserman Schultz (D-FL20):

"Once it is considered unblockable, a single main drain no longer is required to have a backup device, such as a safety vacuum release system. The [Congressional] letter writers believe the new definition for unblockable drains leaves pool users vulnerable. 'A dangerous drain outlet is not safe just because an ‘unblockable’ drain cover is installed,' Congress member Wasserman Schultz said through her spokesman, Jonathan Beeton. 'Drain covers can and do come off, or they can be improperly installed. ... The VGB Act is very clear that multiple layers of protection are needed.' The House letter also revisits what has been a hot-button issue throughout the formulation and interpretation of the legislation — whether backup devices should be required on all pools, even those with multiple drains. 'Backup protection should be installed for every pool or spa, regardless of the number of drain outlets, unless there is no drain, or the drain itself is an unblockable drain,' Wasserman Schultz said." [Emphasis added]

Paul Pennington (a California resident, but a Florida company owner) contributed to Ms. Wasserman-Schultz's reelection campaigns in 2008, 2006 and 2004.

Hmmm.

The company making the allegedly dangerous pool drain covers noted to the Tribune that you would have to weigh 500 pounds to block its drain. Very few children weigh 500 pounds . . . . In case you are dense, Pennington clarified his message to the Tribune: "Some child is going to die."

Get it? Ms. Wasserman-Schultz certainly did.

So the big question here is - is this a real safety issue? In the post-CPSIA era, it "looks" like a safety issue. Why? Because the TESTS have been questioned. It's not about actual risk or incidents that reveal a risk, it's all about a controversy over a precautionary step in the product cycle, namely testing (the paperwork). The certified lab test by the certified lab is now in question and a publicity event is being staged to "reassure the public". No injuries have been reported which suggests that the public has little reason to actually be alarmed, but then again, the papers are not in order.

Welcome to the Third World . . . .

The CPSC had to do something, since a leading Democrat Senator demanded ACTION, accompanied to the photo opp by another Democrat Senator up for reelection in a state leaning right after voting left for some time. After all, who put the Dems in charge of this CPSC? Appointments to the Commission come from where? The (Democrat-controlled) Senate. One wonders what the political calculations might have been. What can the Democrats running the CPSC do to help out??? Why not let Ms. Klobuchar save some portion of the populace? If there were a hearing, the Minnesota Senator could take credit and use that on the stump to help retain the seat. The next election will be essential and the Minnesota Senatorial race might affect both the balance of power in Congress as well as Mr. Obama and his chances to retain the Presidency. Gotta stick together. . . .

Does anyone care that no one has been injured by these drains? Does anyone care that the person apparently driving this controversy has a vested interest in stirring up the mud? Of course not. This is not about making pools safe, this is about manufacturing of political headlines.

The politicization of safety under this CPSC should be of great concern to every stakeholder. It is a great distortion of the rules of the safety game and of our legal and regulatory system. Random and excessive cost will punish industry. Worse still, no one will be made any safer. The news cycle will help feed a rapacious media and reward the political power elite, as well.

The only one guaranteed to be a loser is industry. Consumers won't win, industry is sure to lose and the politicians will win. Whose country is this anyway?

Like I don't know . . . .

CPSIA - In My Fantasies, the CPSC is Just Like Homeland Security

On Monday, March 15, the Department of Homeland Security did something we probably will never see from this CPSC:

"[Docket No. DHS–2011–0015]

Reducing Regulatory Burden; Retrospective Review Under Executive
Order 13563

AGENCY: Office of the General Counsel, DHS.
ACTION: Notice and request for comments.

SUMMARY: Pursuant to Executive Order 13563, ‘‘Improving Regulation and Regulatory Review,’’ issued by the President on January 18, 2011, the Department of Homeland Security (Department or DHS) must develop a preliminary plan to facilitate the review of existing DHS significant regulations through the use of retrospective analyses. The preliminary plan will include criteria for identifying existing DHS significant rules that might be modified, streamlined, expanded, or repealed, so as to make DHS’s regulatory program more effective or less burdensome in achieving its regulatory objectives. The Department is soliciting views from the public on how best to develop its preliminary plan. The Department is also seeking views from the public on specific existing significant DHS rules that the Department should consider as candidates for modification, streamlining, expansion, or repeal. These efforts will help DHS ensure that its regulations contain necessary, properly tailored, and up-to-date requirements that effectively achieve regulatory objectives without imposing unwarranted costs." [Emphasis added]

Imagine that, an agency that wants to streamline and to avoid imposing unwarranted costs!

Of course, Homeland Security is not facing anything as dreaded as LEAD - have I mentioned that there is NO safe level of lead? - and can probably cut a few corners without any untoward effects. Homeland Security doesn't seem too busy, just checking a few boarding passes, looking serious and so on. I guess when you have an unimportant, almost trivial responsibility in the government, you can afford to review your rules for fat, waste and stupidity. But when CHILDREN'S SAFETY is concerned, and bicycle licking is possibly at stake, well then, you can't take ANY chances.

Damn the cost, man, we have to be SAFE!!!

CPSIA - Good News and Bad News

Here's the scoop: there is no safe level for lead but apparently there ARE safe levels for radiation.

According to reports today, the radiation from nuclear material drifting over from Japan is "harmless". No one should worry one little bit even though the Japanese radioactive material is now on the EAST Coast of the U.S.: "Since last week, the officials have tracked the radioactive plume as it has drifted eastward on prevailing winds from Japan — first to the West Coast and now over the East Coast and the Atlantic, moving toward Europe. . . . On Monday, European officials said the plume had reached the East Coast after drifting over North America. One station that detected the fresh radioactivity is in Charlottesville, Va., officials said."

This is not a problem, believe me. For one thing, it's not lead, for heavens sake - it's only iodine-131, iodine-132, tellurium-132 and cesium 137. You probably put that stuff on your cereal, tough guy!

The radiation levels are so low that the experts won't release them. They probably don't want to bother us, the levels are so low. "The global network of the Comprehensive Test Ban Treaty Organization, an arm of the United Nations in Vienna, has detected the movements of the plume. The organization’s mandate is to monitor the global ban on the testing of nuclear arms, and it has more than 60 stations that sniff the air for radiation spikes. The group has declined to make the recent findings public, but it shares its information with 120 member states, some of which have divulged the status of the plume’s movements."

Experts point out that radioactivity is everywhere, what's the problem with a little more???



The federal government apparently agrees with this guy: "While the news of these radioactive substances being detected may startle some residents, the EPA has emphasized that the normal daily dose of radiation is 100,000 times higher than the radiation found at these monitoring stations. Every day, people are exposed to radiation unknowingly. Radiation is present in food, air, water, and even our homes, all of which are natural sources of it. Increased exposure to radiation can come from medical procedures and industrial occupations as well." [Emphasis added]

This is in interesting contrast to lead which as everyone knows is dangerous down to one lone, little atom. I know this because pseudo-scientists like American Academy of Pediatrics (fearful of bicycle licking!) and Consumers Union (terrified about 4th graders playing brass instruments!) have repeated over and over that there is NO safe level for lead. NO safe level, kids! They're experts so they must know, right??? At least they say they're experts . . . .

These folks pushed Congressional patsies to impose an outright ban on ANY children's product that might emit ANY lead into the human body. [Section 101(b) of the CPSIA] The CPSC Commission (really, the Democrats on the Commission) helpfully interpreted Section 101(b) to refer to ANY lead, meaning one atom. Nothing ON EARTH can be exempted on this basis, so nothing has been given a pass under the lame-o exemption provision of the act. Had trouble finding choices in new children's bikes this year? Want to buy a youth model ATV? Remember the days when you could buy rhinestones to embellish your children's shoes or pants or in the form of cheap jewelry without resorting to the black market? You can thank Section 101(b) for this absurd situation. L&K to the AAP and CU (and let's not forget the Queen Bee of the zealots, Rachel Weintraub of the CFA) for all this safety!

Thank heavens that AAP, CU and CFA aren't worried about radioactivity. That means there MUST BE safe levels of radioactivity . . . . I see, Fukushima prefecture spinach or milk isn't really dangerous - but it will give you a healthy glow!

CPSIA - My Testimony at the CPSC Hearing on 100 ppm Lead Standard 2-16-11

Here are clips from my testimony at the CPSC Hearing on 100 ppm Lead Standard on February 16, 2011. As noted in previous blogposts, there's much more to see and hear in this panel discussion. The clips focus on me and my testimony. I admire the testimony of the other panelists and especially the quality of the dialogue after the testimony under questioning by the Commission. If you want to see it unedited, check out the full video at the CPSC website.

I have already published the links from the morning session. Viewing those clips before watching these clips may help you understand the flow of the argument better.

My full testimony:

[Notably, Ms. Tenenbaum cut me a break and let me go over my 10 minute allotment. I appreciate that courtesy.]



Commissioner Bob Adler questions me on the future of small business under the CPSIA and the need for the Commission to "follow the law" and implement the new standard despite the known consequences. This may be the most interesting interchange on the troubling issues under the CPSIA that I have participated in over the past four years. Check it out!



Commissioner Anne Northup asks about the ability of small business to obtain exemptions from the lead standard:



Commissioner Nancy Nord questions me about recycled materials, the cost implications of the new standards and injuries:



My call for a Five Year Stay on the new lead standard to allow for development of real injury statistics:

CPSIA - Pompeo Amendment Passes!

The Pompeo Amendment to the Continuing Resolution was introduced last night and debated by Waxman, Butterfield and Market (against) and Pompeo, Emerson and Barton (in favor), and passed by a vote of 234-187. Thank you, midterm elections! [The current balance of power in the House is 241 Republicans and 193 Democrats.] Notably, Henry Waxman and Jan Schakowsky circulated a "Dear Colleague" letter against de-funding the database (trying to get a copy) but their power base is diminished now and it didn't stop the amendment.

Once again, I want to thank Rep. Pompeo and his Chief of Staff Mark Chenoweth for their political conviction and political bravery. We are never going to get out of this mess without some help from courageous members of Congress willing to stick their neck out for us. Thank you!

You have to laugh at the Democrats' call for bipartisan work on safety during Thursday's CPSIA hearing (including Mr. Waxman in his opening statement). This amendment is a good measure of how committed they are to bipartisan cooperation. One has to wonder if their concept is that bipartisan work on safety will be possible when the Republicans "wake up" and see things Mr. Waxman's way.

Please don't breathe any sighs of relief yet. The Senate is a big stumbling block to progress on the Pompeo Amendment. There's plenty of politics yet to come. I will try to keep you posted!

CPSIA - News Round-up Ahead of Hearing

There's a lot happening! Here are a few highlights:

a. Fox News is reporting that today's hearing is the beginning of an effort by House Republicans to restore common sense to the CPSIA. Be still my heart! Of course, readers of this space knew that the cavalry was coming. Lots of good people are pulling for change right now but the path forward will not be easy. On the one side, we have Republicans: "'There are parts of (the children’s product safety law) that need to be peeled back and thrown into the trash,' said one Republican source close to the process." And on the other side, you have the fear mongers: "'When the first children get sick from using a product with lead, it will point out the folly of their ‘common sense,’ said Nancy Cowles, executive director of Chicago-based Kids in Danger, who is testifying at Thursday’s hearing. 'It’s common sense to most people not to have lead in their products.'”

b. Rep. Mike Pompeo (R-KS) is introducing (or introduced, not sure) an amendment to the Continuing Resolution currently on the floor of the House to DE-FUND THE DATABASE! Hurray for Mike Pompeo. This move is garnering strong public support from other Republican leaders in the House. Cross your fingers. Again, there's a long road ahead. Here is the amendment:

AMENDMENT TO H.R. 1

OFFERED BY MR. POMPEO OF KANSAS

At the end of the bill (before the short title), insert the following:

SEC. __. None of the funds made available by this Act may be used to carry out any of the activities described in section 6A of the Consumer Product Safety Act (15 U.S.C. 2055a).

c. The Democrats are going away meekly on the CPSIA. Yesterday, Henry Waxman together with Subcommittee Ranking Member G.K. Butterfield put out a press release entitled "New Poll Shows “Very Strong” Support for Federal Consumer Product Safety Efforts". Bringing to mind popularity polls released by Idi Amin back in the waning days of his Emperorship, the poll commissioned by Consumer Reports indicates that 98% of consumers "agreed strongly or somewhat that the federal government should play a prominent role in improving product safety". If they included my vote . . . . The Waxman/Butterfield press release references three Pompeo amendments but it is my understanding that only the database amendment above will be introduced.

The Pompeo amendment and this absurd push poll are related events. You can examine how "out of touch with reality" we apparently are by checking out the amazing poll details at this link.
d. Inez Tenenbaum has also been commissioned to push back on Pompeo. Yesterday, she posted a joint blogpost with U.S. PIRG on the topic of the database. As Carter Wood of NAM's Shopfloor blog pithily tweeted: "Hard to imagine #CPSC Commissioners Nord or Northup ever co-blogging with NAM or Rick Woldenberg the day before a cmte hearing." Carter makes an interesting point. I am not hurt, by the way . . . . He also notes: "Tenenbaum’s co-blogging at the site of a leading left-leaning activist group immediately before the hearing almost looks like a conscious poke in the eye to committee members."

Should be another interesting day today!

CPSIA - Let's Take a Break and Think About Illinois Taxes

Hey, every once in a while it's worth taking a breather and considering other truly amazing political stories from the big city. Consider this story entitled "Billion Dollar Baby: A Cautionary Tale" published today by Andy Shaw, formerly a local Chicago ABC-TV correspondent and now President of the Better Government Association (good luck there, Andy!).

In this tale, Mr. Shaw recounts how Illinois' 67% tax increase was passed by a single vote Tuesday evening during a short, one-week lame duck session. You see, the Dems who run this State with an iron fist were facing the loss of several seats to the Republicans when the new legislature was sworn into office on Wednesday, hence the need to pass the tax increase Tuesday in the middle of the night. How to do it, how to do it???

Mr. Shaw:

"She is somebody somebody sent.

In the best—or maybe it’s the worst—tradition of local politics. And she was pressured into voting for a multi-billion dollar hike in the state income tax in the wee hours of Wednesday morning. By her Democratic Party allies in Springfield.

Some of her friends and neighbors may be unhappy with the tax vote but she won’t be facing any political consequences or voter backlash. And here’s why: She stepped down as an Illinois State Representative at noon on Wednesday. After one week on the job. That’s right—one week. She was, in simple terms, the lamest lame duck in a feckless Springfield flock. A billion-dollar baby.

“She” is Kathy Moore, a Lincoln Park friend and former public school teacher who was put in that unenviable position by the stark reality of political hide-and-seek. Or, in this case, seek-and-hide. Her reliably Democratic 11th District, which includes Lincoln Park and Lakeview, elected a brand new state representative, Ann Williams, in November, to replace John Fritchey, a popular long-time rep who won election to a seat on the Cook County Board. Fritchey began his new job in December, so Williams could have been sworn in as a state rep a month ago to represent the district in the lame-duck session going on in Springfield this past week. That was her initial plan.

But there were questions about how she would vote if a tax plan was on the lame-duck agenda. Williams claims that local Democratic leaders, including Fritchey and Senate President John Cullerton, wanted her commitment to support the tax hike before arranging for her to be sworn in. They say she got cold feet and decided not to start early—choosing instead to wait until Wednesday, when the rest of the freshman legislative class was sworn in.

(That, parenthetically, will save the taxpayers a few bucks because Williams won’t qualify for a more generous legislative pension than the one awaiting the new class in Springfield, thanks to a modest pension reform bill that took effect on Jan. 1. But her decision will cost the 11th District politically because, instead of moving to the top of the seniority list of new legislators by starting in December, she will be near the bottom since she’s entering with all of the other newbies, and her last name begins with “W,” a letter near the end of the alphabet. Oh well.)

Meanwhile, back at the raunch—yes, I said raunch and not ranch—Williams’s decision not to be seated early meant the political bosses in the district—Fritchey, Cullerton and the other ward committeemen—had to find someone else to fill the seat for the one-week lame-duck session. So they recruited Kathy Moore, the wife of Tom Moore, a well-known Lincoln Park zoning lawyer—because Kathy had the time and the willingness to “serve.” And down I-55 she went. Admitting sheepishly at a party last week that “they tell me what (voting) button to push and I push it.” Democracy in action.

So when the tax bill passed, without a single vote to spare, our lawmaker-for-a-week was a major reason. She says she’s not happy about voting for a gargantuan tax increase but she doesn’t think that she, or the state, had any other choice. Even though, as of Sunday, she hadn’t seen a bill. Or a press release. Or a fact sheet. Or a list of cuts, accountability measures and streamlining to go along with the increase.

“I hope it works,” she said wistfully in a text message on Wednesday morning. Williams says, for the record, that she would’ve had a hard time supporting the tax bill in its present form.

In any event, Kathy Moore was back home in Chicago by Wednesday night after morphing into a regular resident following her week as a political pumpkin. Kind of like “Cinderella” in reverse. And she may not be the life of the cocktail parties in the neighborhood for awhile, at least among the well-healed wine-and-cheese folks who will have several-thousand fewer dollars in their pockets for each of the next four years.

As for Ann Williams, the newly elected House member, she assumed her duties as the new representative of the 11th district at noon on Wednesday. And my spies at her Springfield welcoming parties report there was no evidence of any dust, dirt or snow from the rock she’s been hiding under.

Don’t you just love the Illinois Way? And can’t you see why we love being civic watchdogs?"

CPSIA - My Remarks at House Working Session on CPSIA

STATEMENT OF RICHARD WOLDENBERG
Subcommittee on Commerce, Trade, and Consumer Protection
Committee on Energy and Commerce
United States House of Representatives
January 6, 2011

Thank you for the opportunity to present my views today. My name is Richard Woldenberg. I am Chairman of Learning Resources, Inc., a Vernon Hills, Illinois-based manufacturer of educational materials.

Despite its lofty goals, the CPSIA has had little impact on safety while severely disrupting markets and sharply raising operating costs. I have previously testified that our testing costs rose 8 times between 2006 and 2009 and are expected to multiply again. We have also cut back on our marketing and sales expenses to pay for the increase in our QC department from one to five.

This so-called “toy law” was designed to solve a problem that frankly didn’t exist. In 2007/8, there were some notorious toy recalls for lead-in-paint violations – yet there were almost no injuries. The CPSIA was an almost hysterical over-reaction to a simple compliance issue concerning a small number of companies.

Ironically, the CPSIA has already “cured” the compliance problem in the toy industry despite the glacial pace of implementation. Today, 30 months after passage of the law, lead-in-substrate testing is still not mandatory – yet toy recalls have fallen dramatically. How did it happen? I believe publicity, industry outreach and the commitment of new resources by industry improved compliance. Revised lead standards had NOTHING to do with it.

The CPSIA is causing a lasting trauma in our market. Small businesses left the market in droves. For instance, we decided not to enter the toddler market with new educational products. While foregone business opportunities don’t produce a pile of bodies, the economic damage is still severe. In an efficient marketplace, capital is redeployed and products and companies just move elsewhere. We need to fix this problem pronto.

The solution to the CPSIA problem lies in fixing the four horsemen of this apocalypse: (a) cost, (b) complexity, (c) risk and (d) government intrusion.

The worst CPSIA cost impact relates to needless and repetitive testing. Mandatory testing for everything but lead-in-paint should be dropped. An amended CPSIA should apply ONLY to those products specifically identified as presenting a substantial risk of injury or death from lead or lead-in-paint at the specified mandatory standards. This will sensibly knock out the vast majority of products subject to this law. The CPSC Commission should be mandated by law to rigorously apply this rule – the agency should bear the burden of proof.

The excesses of the current “precautionary principle” era cannot be allowed to continue. Lax application of the “substantial product hazard” law has created real doubt about the meaning of our safety laws. Strict adherence to this rule should be mandated by Congress to eliminate the many artificial crises spawned by the CPSIA. Discretion to set age limits, the applicability of the phthalates ban, tracking labels and the reduction of the lead standards should be subject to the same rigorous rule.

To preserve the competitiveness of American schools, special exemptions must be made for educational products (particularly science and special needs items).

The phthalates ban should be limited to products for children three and under to sharply reduce CPSIA compliance costs. This is a reasonable compromise pending resolution of any remaining doubts over the safety of these specific chemicals.

Complexity must be sharply reduced. The old rules were a manageable 100 pages or so but now top 3000 pages and growing. We need to return to a “keep it simple” set of rules with limited reporting requirements. Congress or the CPSC must choose top priorities, and promulgate limited and focused rules. I can assure you that no one understands the moving target of CPSC rules anymore. This MUST be remedied in any amendment of the CPSIA.

Needless bureaucracy should be eliminated, such as CPSC certification of labs, including in-house labs. Fraud and/or incompetence in testing have always been rare. Customs involvement in the CPSC supply chain should be shaped by a cost-benefit basis. Dealing with product safety like the prevention of terrorism is absurdly disproportionate to the risk and far too costly.

Implementation of the public database should be delayed until reasonable protections of due process rights of manufacturers are in place. Congress never intended to create an indistinguishable mixed bag of truths, half-truths and falsehoods – that’s what we have the Internet for. The adopted “anything goes” rules went way too far, and will accelerate market exits.

Government intrusion and excessive government power casts a pall over the children’s product market now. Open-ended penalty provisions allow for emotional and disproportionate punishments. The Commission has also asserted unprecedented powers to retroactively ban products and to mandate their replacement. Clearly, strict procedural controls and protections are missing. The era of “death penalties” without oversight must end.

Some CPSIA fixes are not legislative. Among other things, the CPSC needs to embrace industry as its partner in safety. As the past two years demonstrates, engaging industry is the key to long term improvements in safety.

Notwithstanding the media’s misrepresentation of our industry, we have an enviable record of safety. This is not a case of bad people, venal companies or lazy regulators. The problem is one of misapplied resources and ineffective regulatory strategy. The solution doesn’t require more money or more chest thumping. A well-designed law, combined with good education and industry outreach practices, will create the safer market that everyone wants.

Thank you for considering my views today. I would be happy to answer any questions you may have.