CPSIA - ICPHSO Update on Strategic Plan Panel Discussion

Next up (after audio problems are "fixed") is the panel discussion on the Strategic Plan. The panel includes:

• Ken Hinson, Executive Director (moderator)
• Matt Howsare, Chief of Staff to Chairman Tenenbaum
• Cheryl Falvey, General Counsel, CPSC
• Jay Howell, Director, Hazard Identification and Reduction, CPSC
• Richard O'Brien, Director, International Programs and Intergovernmental Affairs, CPSC
• DeWayne Ray, Dep. Dir., Hazard Identification and Reductions, CPSC
• Marc Schoem, Dep. Dir., Office of Compliance and Field Operations, CPSC
• Neal Cohen, Small Business Ombudsman, CPSC
• Scott Wolfson, Dir., Information and Public Affairs, CPSC

Update on rulemaking (CF): Final rules issued in 2010 - crib rule, database rule (launching on March 11), "Children's Product" rule and the civil penalty rule. Also, the mandatory recall rule, infant walkers and bath seat rules.

Draft rules: bike standard, two 15(j) rules on substantial product hazard list (drawstrings and hair dryers), component rule, 15 Month Rule and bassinets.

Rules coming up: cadmium rule (deferred for six months), toddler beds, lead paint and HD-XRF test methods, bed rails, bunk beds, swings, bicycle rules, testing and certification rules, 15(j) rules, 100 ppm lead standard, and notice of proposed rules on play yards and another "safe sleep" initiative category.

[One thinks that after they regulate bunk beds swings, bikes and so on that all the fun will be gone from childhood, bringing to mind an effective cure for cancer (killing the patient). Well, at least kids can still play with rocks . . . . OMG, rocks have lead in them!]

JH: They intend to double the number of rules in place in 1990. [Nice! More rules, more safety!] Rule-making activity is "abating" but have a growing compliance and enforcement workload. The burden is "shifting" to the compliance team. Working with all stakeholders to make sure they are compliant. [Safety is not the word used but instead "compliant". The notion is that compliance is tantamount to safety. Anyone want to discuss this topic?]

Why did the agency take such a "collaborative" approach to the Strategic Plan? MH - The "comprehensiveness" of the collaborative process was incredible. Went through all sorts of "painstaking" efforts to interview so many people in this room. [Perhaps Matt is referring to Raachel Weintraub - who else needed to be consulted, after all?] The Strategic Plan reflects the "consensus" view of the agency's strategy. The "collaborative" process was designed to guarantee "buy-in". The Chairman's focus under the Strategic Plan is the preventative portion. Spoke of Neal Cohen's area as a focal point. [There's an insight - we small business people are the problem! Thank heavens Neal Cohen can educate up.]

MH also points to "boots on the ground" in China as another feature of the CPSC's efforts to prevent disaster. He did not say what kind of boots those might be. Jackboots?

Tell us about small business ombudsing, Neal! NC: Start by listening. There's a lot of confusion, and there are ways to use the work done by the CPSC "to your favor". [Hmmm, I'd like to know more about that.] NC: I'm not a policy maker at the agency. [RW - that's the rub, ain't it?] NC: I am spreading the word about the problems within the agency. NC has his own website (www.cpsc.gov/sbo). Putting out "plain English" documents to explain the law and the rules. Three tips on compliance: (a) know your product and your supply chain, (b) proactively educate your suppliers, and (c) don't "assume". [This is sound advice. It doesn't protect you from anything, however. Were you to follow Neal's advice, it would count for NOTHING if you get recalled. It should but it won't.]

All kidding aside, people have nice things to say about Neal. What he can achieve remains to be seen, however. I have yet to hear about him making problems go away. Most of the problems people are dealing with are nonsense, so if he could move heaven and earth, I think I would start to hear about him going to bat and getting something done for these beleaguered little companies.

International (RO'B): No sign of harmonization efforts in Mr. O'Brien's presentation. He is leading the effort to get other world regulators to join us in our safety mania.

Scott Wolfson's turn - "What about consumers and how do they fit into this?" SW: Pool Safely Initiative shows what we can do if we have money to get our messages out. [How have injury statistics changed, Scott? WS: Won't know for years. . . .] Concerned about "sustainability" ($$$). We're hitting the road to get the message out. Have built a network to get info out. Working on a new logo.

Scott did not update us on Aston Kutcher. Maybe during the Q&A . . . .

RW: This all sounds good as far as it goes. Of course, he does not discuss the impact of OTHER decisions his office makes, like communication of "hazards" like cords on baby monitors or recalls of Shrek glasses. It's all well and good that the CPSC has a couple billboards up about pool safety, but what about the mania on lead and their communication of those hazards?

Why does the CPSC need to train manufacturers? Why is it the agency's role? JH: There are various levels of sophistication out in the marketplace. To drive the prevention effort, need to make sure manufacturers understand the rules of the road. [RW - this is one of my original suggestions for the agency in my first speech on the CPSIA. Failures in outreach is one of the main causes of the storm behind the CPSIA.]

JH: We are focusing our efforts around priorities to increase impact and to avoid dilution.

Jay Howell usually sounds pretty sensible. It would be great if the agency sounded more reasonable more of the time. Perhaps Jay can be an agent in that process.

MS: Trying to reduce the time taken to negotiate recalls. [RW: Two-edged sword here, since the concept of due process is flying out the window with the justification that they are "saving lives".] MS: If you're right, you're right - just convince us. Also need to get information out to consumers quicker.

RW: This is agency policy talking, probably not Marc Schoem.

SW: We are going out on all platforms, like Twitter, news media, Facebook, blogs - multiple times. MSNBC is doing a monthly "round-up" of recalls.

There was time for only two questions from the audience. Filibuster! I got to ask one of them. Here's my question:

"I have testified five times at the CPSC, three times at your invitation. I have repeatedly told you that your policies and the CPSIA together are killing small businesses, killing products and killing markets. Last week, the bicycle industry testified that large bike manufacturers have reduced their product lines and small companies have left the market. Given this testimony, what do you think the agency's responsibility is to small business and how does the Strategic Plan relate to protecting the right of small business to sell children's products?"

KH: That's why we have had such a collaborative process in the Strategic Plan. We need to identify hose issues and figure out a solution. RW: But we're dying now. KH: We do what we do and violative products have to come off the market.

CPSIA - ICPHSO Presentation on CPSC Strategic Plan

You know they have a strategy . . . .

I am at ICPHSO for the next couple days, reporting from this safety convention "live" for the third year in a row.

As in the past, I am working "live" and off my notes, so take it for what it's worth. I may make some mistakes (which I regret), but heck, this is a blog. According to my critics, you shouldn't believe half of what I say anyhow . . . .

The Opening Session today featured Ken Hinson, the Executive Director of the CPSC. Ken is a relatively new addition to the senior staff of the agency.

Mr. Hinson argues that employment at the CPSC is directly correlated to safety. Reported incidents are skyrocketing, but investigations are declining. This statistic does not capture what the agency is DOING as a result of those investigations, notably.

The agency is "extremely excited" about the product database. One wonders what they are so "extremely excited" about, given the extensive testimony about the problems with the database. Wayne Morris of AHAM testified in Congress last week that when erroneous information is posted, as it certainly will be, there is NOTHING that can be done to remove it from the Internet. He compared the database to a "blog". A blog! I testified in the same Congressional hearing that the effect of the database will be to encourage consumers to NOT communicate directly with us about product issues but instead to post to the database, and since the CPSC restricts our access to this data, it is likely that the database will INCREASE safety risks.

Lots to be "extremely excited" about, indeed!

The CPSC Strategic Plan is now online. I requested to be interviewed as part of the process of developing the Strategic Plan, as I was invited to do, but somehow they failed to call. Hmmm.

Five goals:

1. Leadership in Safety
2. Commitment to Prevention
3. Rigorous Hazard Identification
4. Decisive Response
5. Raising Awareness

First goal: Will create annual plans to address the most pressing merging safety hazards. Supposedly will be working closely with stakeholders, you know, like readers of this blog. Okay, not us, but somebody. I bet consumer groups might be on that list . . . .

Second goal: They want us to "build safety into consumer products". Presumably the CSPC thinks this is a new idea because with an ex post facto approach to safety, any injury means the manufacturer screwed up. We're always wrong, thus inviting the government to get involved in what we do to make things "better". As Ronald Reagan said, the most frightening sentence in the English language is "We're the government and we're here to help!"

They're going to give us proactive education on how to design our products more safely and will create incentives to encourage us. I can imagine those "incentives" might be based on penalties imposed and threats made by the agency in recent years.

Third goal: This is the scary one - they will be looking deeply for hazards, like cords on baby monitors . . . . Presumably, when they find a "hazard", well, you know what happens next. They are working on increasing their ability to obtain, analyze and act on information of "hazards".

My problem with this is that the definition of what constitutes a "hazard" has been lost. Perhaps this is a picky point, but they don't have the legislative authority to do whatever they want. They are restricted to work on SUBSTANTIAL PRODUCT HAZARD. In fact, they are limited by the law. Someone should tell them about this.

Mr. Hinson: "This is all about speed." There's a confidence builder for me - hasty judgments are always better by definition.

Fourth goal: The CPSC plans to act fast and "hold manufacturers responsible". It's all about "speed". Again, agency policy seems to be to encourage hasty judgments. Based on industry chatter, this policy does not involve dithering or considering defenses or due process. The CPSC is judge and jury, legislature and executive branch. In fact, often it is a junior and inexperienceds staffer who is judge and jury. See how you like it when you are on the receiving end.

This will be SUPER until all products are finally killed off.

Raising awareness is critical to empowering consumers, so says Mr. Hinson. I question whether empowering them to panic or make judgments based on scant, erroneous or inappropriate data is a really good idea or good public policy. The "good news" is that they have set this plan in motion, so your opinions and mine don't matter.

Fifth goal: The raising awareness goal certainly incorporates the wonderful new database. Likewise, Neal Cohen and the small business liaison office is part of this plan.

Btw, raising awareness is a really good goal for the agency but if it doesn't know what a hazard is, or have good processes to encourage trust among manufacturers, they can do a lot of damage with their clean heart and good intentions. Sucking up to left wing politicians and consumer groups does not necessarily produce good public policy. The agency might consider taking more seriously criticism of its activities and actually taking on board suggestions by knowledgeable stakeholders, including ex-CPSC staff.

CPSIA - Booz Allen Baloney

Hey, how many of you have been contacted by Booz Allen Hamilton to participate in the CPSC Strategic Planning Initiative? On February 17, BAH consultants addressed ICPHSO and told us the following (quoted from my blogpost of February 17):

• Agency is committing to protecting consumers (that's the angle).
• The agency is committed to inclusiveness and transparency, so they will be asking for input from stakeholders throughout the process.
• Will have focus groups and seminars in the near future. Looking for input and to validate their thinking.
• Will keep you posted on progress and their ideas along the way. Can send in questions for clarification.
• They NEED our input. Transformation efforts need engagement of all stakeholders.

Yet I am now told that the BAH report is due anytime now. Although I requested to be included in this program and although the agency promsied publicly to allow stakeholders to participate in shaping the strategy . . . nothing. It appears to me that NONE of these promises were kept. Rumor has it, however, that the consumer groups were consulted. What-a-surprise!

I think this matters a LOT. After all, credibility and trust are destroyed by broken promises, even if by going quiet the agency is able to induce a sleepy state among stakeholders. That's not too hard, given the rotten state of the economy that keeps most business people focused on survival, rather than keeping a close eye on the latest twists and turns from the CPSC.

In her keynote speech to the Consumer Federation of America on March 11, 2010, Ms. Tenenbaum bragged about holding RC2, Fisher-Price, Mattel [Fisher-Price and Mattel are the same company, notably] and Target "accountable" for lead-in-paint violations that preceded her term in office. So, if it's right to hold them "accountable" for their failure to do as expected, who should be held accountable for the utter failure of the CPSC to keep its promises on Booz Allen? Or should we just get ready to applaud appreciatively for the strategic report when issued, as though everything's fine?

I am tired of getting the shaft in the new CPSIA world.

CPSIA - ICPHSO Update - Strategic Plan Process

Remarks of Booz Allen Hamilton, Inc., consultants responsible for the new Five Year Strategic Plan for the CPSC.

BAH says

• Agency is committing to protecting consumers (that's the angle).
• The agency is committed to inclusiveness and transparency, so they will be asking for input from stakeholders throughout the process.
• Will have focus groups and seminars in the near future. Looking for input and to validate their thinking.
• Will keep you posted on progress and their ideas along the way. Can send in questions for clarification.
• They NEED our input. Transformation efforts need engagement of all stakeholders.