Senate Passes the CPSC Reform Act of 2007

by Maria Raha

After a year rife with product recalls, the Senate passed the Consumer Product Safety Commission (CPSC) Reform Act of 2007 in early March with a vote of 79-13. The CPSC Reform Act of 2007 will provide the much-debated safety agency with an expanded budget and beefed-up investigation presence at high-traffic ports of entry. Also included in the bill is the requirement to make recall information easily accessible by database, as well as lower acceptable levels of lead in children’s toys, and requirements for third-party laboratory testing.

The CPSC garnered repeated media attention throughout 2007 for an increased number of recalls, the majority of which were imports from China. Many of the recalls impacting Chinese manufacturers contained dangerous levels of lead in children’s toys. According to the CPSC, 85 percent of toys are now manufactured in China, which is a 200 percent increase in nine years, the agency has noted. As a result of safety concerns involving imports, the CPSC has become more aggressive in its involvement in import inspections.

The CPSC’s Import Safety Initiative—a result of the agency’s expanded budget in 2008—was announced by the agency on March 6, 2008. It aims to affect inspection procedures for imports at up to 10 U.S. ports of entry. Full-time CPSC staff will now conduct product safety inspections with Customs officials. In order to minimize unsafe products being shipped to lesser-attended ports of entry, the CPSC declined to mention exactly where the initiative has been enacted, although it’s been reported that Long Beach, California, is included on its list.

“Our new Import Safety Initiative won’t necessarily change importing procedures— instead, it will enhance already existing procedures,” said Julie Vallese, CPSC Director of Information and Public Affairs, in written communication with SafeToys. “The CPSC will now have permanent staffing at some of the busiest ports in the country, working side by side with Customs and Border Protection to make sure products coming into the U.S. meet safety standards.” Vallese also stressed the agency is still in the planning stages, and confirmed that it is too soon to measure the effectiveness of changes at U.S. ports. “We’re still in the process of building the division,” she said.

The investment in the Import Safety Initiative is an estimated $3.2 million due to go into effect in 2009, according to Vallese, and the agency will continue to increase the staff involved in the Initiative. “The CPSC focuses on products and will continue to do so at the ports,” she continued. “The investigators will be focused on mandatory safety standards and will be looking to ensure that products coming into the country meet those standards.”

In testimony before the Subcommittee on Financial Services and General Government House Committee on Appropriations in March 2008, CPSC acting chairman Nancy Nord requested a budget equal to the 2008 budget increase for 2009. She also addressed the CPSC’s border presence. “Our new Import Surveillance Division is designed to be the front line of defense working to prevent dangerous toys and other hazardous products from entering the country,” she told the subcommittee. “These employees will be specialists trained specifically in import surveillance procedures and will work closely with other government agencies and with CPSC’s compliance officers, technical staff, attorneys, and laboratory personnel.”

While new import procedures will certainly impact manufacturers, the Toy Industry Association’s Director of International and Government Affairs, Rob Herriott, reacted positively to increased safety provisions. When asked about the reform’s economic impact on manufacturers, he commented, “The economics of toy manufacturers are only as good as the safety of their toys.” He also noted the Import Safety Initiative will benefit manufacturers by increasing the odds of uncovering brand knockoffs, the manufacturers of which often neglect safety standards.

Still, the Act as a whole has faced resistance. The Bush Administration has been critical of the Senate’s version of CPSC reform, and offered its own plan, known as the Action Plan for Import Safety, in 2007. The Office of Management and Budget released a public statement in March criticizing the Senate’s passage of the bill. “[W]hile the Administration believes that it should be illegal to sell a banned product, a recalled product, or one that violates a mandatory standard, it has serious concerns about legislation that does not include a standard of willfulness regarding such sales.” The statement also mentioned the financial burden of adding an easily searchable consumer safety database, as well as offering criticism of the Act’s protections for whistleblowers.

The National Association of Manufacturers (NAM) is also somewhat critical of the bill, according to a statement released by executive vice president Jay Timmons. The NAM has been critical of the act’s whistleblower protections, as well. When asked for comment, however, NAM Assistant Vice President of Corporate Affairs Jim O’Neill replied, “The NAM supports the important mission of the CPSC and has advocated for increasing its budget and resources. The marketplace needs to be free of unsafe consumer products that could pose a risk of injury to consumers, particularly to our most vulnerable population—our children.” Neither the Bush Administration, nor the NAM have criticized the Import Safety Initiative outright.

The CPSC Reform Act of 2007 also requires the CPSC to hire an additional 500 employees (formerly a major issue for the agency’s effectiveness), and to staff 50 employees at borders and overseas. The CPSC will also undergo technological overhauls to aid the effectiveness of the Import Safety Initiative and other new programs. Communications with countries with high import activity, such as China, have already been revamped, as well. “Summary provisions of nearly 300 U.S. mandatory and consensus consumer product safety standards are now available in Chinese,” testified Nord. “We are posting timely information briefs on our website in Chinese, and our plans include links to full Chinese texts and audio-visual products.”

With improved communications methods, border presence and increased budgets, the success and support of the CPSC’s overhaul will be measured as the changes go into effect.