February 17, 2010 Product Safety Issues Challenging Congress in a Changing World

1. International Consumer Health and Safety Organization (ICPHSO)2010 Annual Meeting and Training Symposium February 17, 2010 Product Safety Issues Challenging Congress in a Changing World

2. Product Safety Issues Challenging Congress in a Changing World • Consumer product safety issues are consistently before both Houses of Congress. Wrestling with legislative solutions to consumer product safety issues is a focus of Congressional staff, consumer advocates, industry lobbyists and the CPSC.  These significant issues include – • Is the CPSC’s jurisdiction sufficient to deal with the onslaught of defective foreign products? • Should the Congress take specific action to provide CPSC with the statutory authority to deal with emerging dangers such as substituting of heavy metals for lead in children’s products? 

3. Product Safety Issues Challenging Congress in a Changing World • How should CPSC deal with the potentially harmful impacts of nanotechnology in consumer products?   • CPSC is in the midst of implementing the CPSIA, how does this impact Congressional activity? • Is legislation necessary to strengthen CPSC’s ability to regulate defective cribs?

4. Product Safety Issues Challenging Congress in a Changing World • Christopher Day, Director, Office of Congressional Relations, CPSC • Christian Fjeld, Counsel, Senate Commerce Committee • Timothy Robinson, Counsel, House Commerce, Trade and Consumer Protection Subcommittee • Ami Gadhia, Policy Counsel, Product, Food, and Auto Safety Washington, D.C. Office, Consumers Union • Edward Krenik, Senior Principal, Bracewell & Giuliani LLP

5. Product Safety Issues Challenging Congress in a Changing World • Before passage of the CPSIA, the CPSC was a beleaguered agency with diminished staff and resources and a critical mission to protect consumers from unsafe products. Consumers didn’t have faith that the current system was protecting them from unsafe products and Congress saw a need to strengthen the agency. • I would like the panel to discuss their views on how the CPSIA has effectively strengthenedthe CPSC and improved product safety?

6. Product Safety Issues Challenging Congress in a Changing World • CPSIA restored the Commission to 5 Commissioners, and the agency is actively engaged in implementing various aspects of the CPSIA. However, the business community is telling the U.S. Congress that legislative modifications are necessary. • Could each of the panelists spend a few moments to explain whether Congress should amend the CPSIA, and, if so, what changes make sense?

7. Significant Consumer Product IssuesHeavy Metals • The substitution of certain heavy metals for lead in children’s products has become a serious concern for CPSC, as evidenced by the recent recall of children’s jewelry containing Cadmium. • Some on Capitol Hill are concerned that CPSC lacks statutory authority to regulate these heavy metals and have introduced legislation to list these heavy metals as banned hazardous substances. • Does the panel believe CPSC have sufficient authority or is legislation necessary?

8. Significant Consumer Product IssuesJurisdiction over Foreign Firms • The CPSIA directed the GAO to assess the effectiveness of CPSC’s authorities over imported products. • The GAO said the agency could prevent the entry of unsafe products into the U.S., by fully implementing key provisions of CPSIA, including establishing the substantial product hazard list and implementing testing and certification requirements.

9. Significant Consumer Product IssuesJurisdiction over Foreign Firms • Still, a problem of legal jurisdiction over foreign manufactures continues to exist. Legislation has been introduced in the Senate to require foreign manufacturers that import products into the U.S. to establish registered agents in this country. • Does the panel believe Congress should approve legislation to give CPSC the legal tools to give CPSC greater jurisdiction to deal with foreign companies that export defective products to the U.S.

10. Significant Consumer Product IssuesNanotechnology • In its FY2011 budget, CPSC requested $2 million to support the Federal National Nanotechnology Initiative. • Today the NNI consists of the individual and cooperative Nanotechnology-related activities of 25 Federal agencies. Thirteen of the participating agencies have R&D budgets that relate to Nanotechnology. • Is CPSC taking an active enough role with Nanotechnology, and should Congress be adding to this initiative?

11. Significant Consumer Product IssuesInter-agency Jurisdiction • CPSC shares jurisdiction over consumer products with other Federal agencies. • Some notable examples are child car seats and carriers with the National Highway Safety and Traffic Administration (NHTSA), cosmetics products, ceramic dinnerware, and chocolate imbedded with small toys with the Food and Drug Administration.

12. Significant Consumer Product IssuesInter-agency Jurisdiction • Do these blurred lines cause consumer or agency confusion? • Should Congress deal with these multiple jurisdictional issues through legislation? • Should the agencies work these issues out?

13. Significant Consumer Product IssuesCrib Safety • In November of 2009, the CPSC announced the recall of more than 2 million drop-side cribs, the largest crib recall in U.S. history, and last month, the CPSC announced yet another voluntary recall involving 635,000 drop-side and fixed-rail cribs, and there was another recall of 500,000 drop side cribs on February 9. • The CPSIA instructed the CPSC to revisit its safety standards for cribs, and CPSC says it is prepared to meet that obligation.

14. Significant Consumer Product IssuesCrib Safety • On January 21, the House Energy and Commerce Oversight Subcommittee held a hearing on crib safety and raised the issue of whether current crib standards are, in fact, sufficient to keep consumers safe. • The question for the panel is whether legislation is necessary to strengthen crib standards or does CPSC have the requisite statutory authority to do the job?

15. Significant Consumer Product IssuesCPSC Funding • The CPSC received funding of $118.2 million in Fiscal Year 2010, which should greatly assist in the implementation of the CPSIA and other functions of the agency. • Considering the current and future priorities of the agency, could the panelists please comment on what you believe should be the CPSC’s priorities for budgeting the increased funding.

16. Product Safety Issues Challenging Congress in a Changing World Thank you! Questions?

17. Product Safety Issues Challenging Congress in a Changing World Walt A. Sanders Vice President Law & Government Affairs Van Fleet Associates, Inc. 1800 Diagonal Road, Suite 490 Alexandria, VA 22314 (703)836-6403