We’ve previously covered the Senate’s boon to trial lawyers at the expense of consumers and shareholders, the Consumer Product Safety Commission Act, S. 2663: Feb. 20; Feb. 25; Mar. 5. (The bill was amended somewhat since we complained but Democrats, on a party line vote, tabled critical amendments to prohibit the use of contingent-fee attorneys and permit prevailing parties to recover attorneys’ fees.) The House passed a somewhat more sensible version of the bill unanimously, but Pelosi, for some reason, is trying to bypass her chamber’s proponents in constructing the “conference committee” that will work out the differences between the bills in favor of those of trial lawyers. Today’s Washington Examiner has the unholy details.

Andrew M. Grossman and James L. Gattuso analyze the CPSC Reform Act, S. 2663 (the update to S. 2045). We discussed Feb. 20 and Feb. 25, as well as briefly Jan. 1. Update: After the jump, Senator DeMint’s office provides the “Top Ten Reasons to Oppose the CPSC “Reform” Act (S. 2663)”

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ACSH’s Jeff Stier in today’s New York Post:

CONGRESS is poised to pass a massive giveaway to the ambulance-chasing trial attorneys - under the guise of protecting consumers.

The proposed law [the CPSC Reform Act] would give the 50 state attorneys general new powers to sue the makers of allegedly unsafe products - and even to demand help in their suits from the federal Consumer Product Safety Commission.

Headline-hungry AGs will even be able to sue over products the CPSC has already found to be safe. In other words, national standards will effectively go out the window, as politically ambitious AGs compete to bash business so as to win popularity for future elections.

The legislation - which the House has already passed and the Senate’s likely to pass - would hamper CPSC’s mission by creating multiple unscientific “safety” standards. Each AG’s vision of what the latest scientific studies imply about purported dangers would prevail in a given state, rather than the CPSC’s own (far more expert) findings.

All this would mean a bonanza to trial lawyers - who’d stand to make hundreds of millions from relentless lawsuits within just a few years, since each state would become a new roulette-wheel of potential jury verdicts against manufacturers. …

Further encouraging bogus complaints, the bill would grant unprecedented “whistle-blower” protection to any employee who alleges a fear of product danger - an easy way to secure your job until your case is adjudicated.

The Consumerist blog is supposed to be a pro-consumer blog, but it’s amazing how often their political agenda is really a trial-lawyer agenda that hurts consumers. Many of the 2007 bills Carey Greenberg highlights as consumer-friendly are quite the opposite:

• H.R. 3010: Arbitration Fairness Act of 2007
  What It Does: Raises costs to and reduces choices for consumers and lowers employee wages by forcing consumers and employees to pass up the benefits of mandatory arbitration, whether they wish to or not. More at Overlawyered, and on SSRN.
  Status: Hearings held in both the House and Senate. Likely to be vetoed if passed.

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