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Senate Hears of Gaps in Consumer Safety Net

Legislation introduced to strengthen inspection, recall process

By Joseph S. Enoch
ConsumerAffairs.com

September 12, 2007

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Twenty percent of children's jewelry being imported into the U.S. contains dangerous levels of lead, Consumer Product Safety Commission (CPSC) acting chair Nancy Nord told a Senate Appropriations Committee hearing today.

Nord said that that in an "unscientific" survey, the commission found that one in five trinkets contain dangerous levels of lead. Although an improvement from two years ago when the commission discovered 80 percent of toys contained dangerous levels, Nord said the numbers are still too high.

When Sen. Dick Durbin (D-Ill.) asked her what the agency is doing to keep these trinkets, which are predominantly imported from China, out of U.S. ports and store shelves, Nord said the agency is powerless to stop imports – that the agency can only remove dangerous products from the market by means of a recall.

"What you've just said is no conciliation to American families," Durbin said. "If that's the case either the law or the commission has to change."

Although the hearing's aim was to investigate toy safety, inevitably much of the questioning and opening remarks turned to the agency's many authoritative, monetary and legislative deficiencies.

The bipartisan committee displayed photos of the agency's testing facilities, which used to be a 1950s missile tracking site, and the lone tester charged with ensuring the millions of toys in the U.S. are safe.

Revival proposals

Nord and Democrat CPSC commissioner, Thomas Moore, both pushed their proposals to reauthorize the Consumer Product Safety Act, which many consumer advocates have lauded as good steps toward the agency's revival.

If Congress does go forward with reauthorization, as was suggested today, it's likely the Democrats, which control Congress, will more closely follow Moore's proposals, which generally include greater regulatory powers for the CPSC. Although reauthorization would boost the agency's authority, it is a lengthy process and will do nothing to reverse the Bush Administration's budget cuts.

Legislation introduced

To address that issue, Sen. Mark Pryor (D-Ark.) has introduced legislation that would not only boost the agency's powers, but also its bank account.

Pryor, who chairs the subcommittee that has CPSC jurisdiction, announced the CPSC Reform Act of 2007 at the start of this morning's hearing.

"This agency is in serious distress after years of budget cuts and staff reductions. That’s why companies can get by with selling Barbie accessories coated with lead paint. Or a fake eyeball toy filled with kerosene. Or magnets from a building block set that are squeezing children’s intestines shut when swallowed," Pryor said in a prepared statement. "The price is too high to let these toys slip into the marketplace. That’s why it’s critical we step up the CPSC’s budget, testing and oversight abilities."

Specifically, the legislation would:

• Authorize funding levels for 7 years starting at $80 million in 2009 and increasing at a rate of 10 percent per year through 2015. For 2008 and 2009, an additional $20 million would be authorized to upgrade CPSC’s laboratories and $1 million would be authorized to research the safety of nanotechnology in products;

• Increase civil fines up to $250,000 per violation with a cap at $100 million;

• Increase criminal penalties to 5 years in jail for those who knowingly and willingly violate product safety laws;

• Require independent, third party safety certification on every children’s product that enters the United States;

• Require manufacturers to label children’s products with tracking information useful to facilitate a recall;

• Ban the direct use of lead in all children’s products – from lunch boxes to toys;

• Restore the Commission to five members instead of three members to prevent future absences of quorum;

•Allow state Attorneys General to bring civil action on behalf of a state's residents to enforce product safety laws and obtain damages and restitution;

•Provide whistleblower protections for manufacturers’ and importers’ employees to shed light on any problems along the supply chain;

• Make it unlawful for retailers to sell a recalled product; and

• Streamline product safety rulemaking process to be timely and proactive.

"Very significant"

"I think a lot of these provisions would strengthen the CPSC in a very significant way," said Rachel Weintraub, director of product safety for the Consumer Federation of America, a nonprofit consumer advocacy group. "It will increase the commission's ability to protect consumers."

Spokespeople from industry lobbying groups, the Toy Industry Association and the National Association of Manufacturers did not return phone calls for comment.

Weintraub said that regardless of whether it be this bill or another piece of legislation, "there's going to be legislation that improves the CPSC. ... There will likely be a wholistic review."

"The writing is on the wall," she said.

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