Archive for April, 2009

“Sued for seeking a ZIPcode?”

Overlawyered readers may remember the problem of FACTA lawsuits when a poorly drafted federal law led to attorneys seeking $1000 for every occasion when a credit-card slip showed an expiration date.

Stroock & Stroock’s Daniel A. Rozansky and Scott M. Pearson have an op-ed in today’s San Francisco Chronicle discussing problems with a similar California law. California prohibits businesses from requesting or requiring “personal identification information” while accepting a credit-card payment; this includes address and phone number, but doesn’t specify what else. Entrepreneurial trial lawyers are asking courts to hold that it includes harmless information like ZIP codes: since the statute provides for $1000/violation damages in the absence of a showing of harm without a cap, extortionate lawsuits are easy to create–and a further drag on the already-suffering California economy.

H.R. 875, Food Safety Modernization Act of 2009

The panics over salmonella, E. Coli and unsafe foodstuffs from China have heightened the prospects that Congress will enact a measure known as H.R. 875, the “Food Safety Modernization Act of 2009”. radishseedShould the measure in its current form become law, “food establishments”, which to quote Patrick at Popehat “means anyone selling or storing food of any type for transmission to third parties via the act of commerce”*, will have to register with a new federal regulatory agency, submit to federal inspections, and, perhaps most significant, keep “copious records of sales and shipment by lot and label”. Penalties for infractions will be very, very steep.

What could possibly go wrong?

The answer, it seems, is “plenty”. Patrick, and the other writers linked just above, warn that the law may drive out of business local farmers and artisanal, small-scale producers of berries, herbs, cheese, and countless other wares, even when there is in fact nothing unsafe in their methods of production. Many informal makers of ethnically or culturally distinctive food items will go off-books or simply fall by the wayside, overwhelmed by the reporting and batch-tracking paperwork. Many foreign producers who ship in less-than-mass quantities will give up on the U.S. market rather than try to comply with challenging standards that differ drastically from those imposed by European markets or their own countries of origin, which in turn will mean that many interesting and safe specialty foods will simply no longer be available for purchase, at least legally.

The catch-phrase one keeps hearing is “CPSIA for food”.

So now an aggressive campaign of reassurance is underway: FSMA, it’s said, really should be seen as posing no particular threat to farmer’s markets or small producers — at least those that are not sloppy or cavalier about their customers’ safety. lettuceseedAt Treehugger, one finds language which with a word changed here or there is virtually identical to the reassuring language one recalls hearing from CPSIA backers:

I can’t imagine this resulting in anything more than a little paperwork and a brief headache for small farmers—they have no reason to worry about a seven figure fine. That amount is intended to account for corporate ne’er food-do-wells, and is therefore a pretty damn good incentive to keep factories and meat packing plants clean.

So even though home orchard proprietors and others operating at far less than a factory scale of production will in fact be exposed to stiff fines should they fall astray of the record-keeping obligations, this particular writer, Brian Merchant, “can’t imagine” stiff fines actually being imposed. You have to wonder whether Mr. Merchant was one of those who as recently as January couldn’t imagine CPSIA posing more than a “brief headache” for thrift stores or handmade toy crafters.

Among those prominent in this campaign of reassurance is the ubiquitous and media-friendly plaintiff’s lawyer Bill Marler, who’s carved out a thriving practice filing (and publicizing) food poisoning suits. Marler’s blog serves as a bit of a clearinghouse for articles vigorously disputing the idea that small producers have any reason, any good reason at least, to be afraid of H.R. 875.

The chief sponsor of FSMA’s Senate version is none other than Illinois Sen. Dick Durbin, and among the groups prominently backing the bill is none other than Consumers’ Union. We are now being asked to trust a legislative process in which Durbin and CU will count as insiders to ensure that the law’s provisions are shaped so as not to pose an undue or prohibitive burden on small producers far from the Washington scene. If there was ever a time when I would have trusted Sen. Durbin and Consumers’ Union with such a task, it was before the CPSIA debacle. Not only did the Durbins and CUs of the Washington scene help bring us that debacle, but — much less forgivably — they have continued blindly or mendaciously to deny that there is anything that needs fixing about that law at all, even as its damage has mounted month upon month. They do not deserve our trust on this matter.

Some other views: Slow Food, Ari LeVaux/AlterNet (noting that an alternative bill, HR 759, the “Food And Drug Administration Globalization Act,” may be more likely to pass and poses many of the same issues), Farm-to-Consumer Legal Defense Fund (oriented toward raw milk defense), Nicole Brodeur/Seattle Times (pooh-poohing concern over H.R. 875, but acknowledging the legitimacy of similar concerns that the animal-tracking program NAIS will render small animal-keeping operations uneconomic). Another source: Twitter hashtag #HR875.

More: & welcome Andrew Sullivan, Eve Tushnet, Hans Bader, Rob Wilson/Challenge and Fun, John Phipps/Incoming readers. And more from the “campaign of reassurance” camp: Hartford Courant (citing views of bill sponsor Rosa DeLauro, D-Ct.); Ryan Grim at Huffington Post (similar); Factcheck.org (criticizing untruths and hyperbole about the bill found in a widely circulated chain email, and seeming to guide readers to the Snopes-like conclusion that concern about the bill can therefore be dismissed). John Cole/Balloon Juice initially agrees in finding grounds for concern, then is convinced by commenters (who warn him against wicked, untrustworthy sites like this one) that it’s all “hysterical” and “nonsense”. More reactions: Patrick @ Popehat, Rod Dreher, Nick Gillespie @ Reason “Hit and Run”, Hans Bader and more, Vines and Cattle.

*Some reasssuring accounts of the law describe it as applying only to food in “interstate commerce”, which sounds as if it might not reach local and mom-and-pop operators at all; but the law’s definition of “interstate commerce,” as readers may remember, can include extremely localized doings, as in Wickard v. Filburn (farmer’s growing of wheat for his own consumption deemed “interstate commerce”). Section 406 of the bill reads as follows: “PRESUMPTION. In any action to enforce the requirements of the food safety law, the connection with interstate commerce required for jurisdiction shall be presumed to exist.”

Ezra Levant on Overlawyered

The high-profile Canadian free speech advocate (and target himself of the atrocious attentions of Canada’s speech tribunals) has this to say:

Overlawyered.com is a great U.S. website about the American affliction of too many lawsuits. Canada has a simple rule that America lacks, that has made us far less litigious: in Canadian civil courts, the loser has to pay a portion of the winner’s legal fees. That means nuisance suits are far less common.

Which is why human rights commissions are so bad — they remove that damper on frivolous suits, inviting the worst bullies and harassers to abuse the system….

Background:

April 7 roundup

  • Wisconsin lawyer pressing bill to allow punitive damages against home resellers over claimed defects [Wisconsin State Journal] More: Dad29.
  • Longer than her will? NY Times posts ten-page jury questionnaire in Brooke Astor inheritance case [“City Room”] “Supreme Court: No Constitutional Right to Peremptory Challenge” [Anne Reed]
  • Georgia’s sex offender law, like Illinois’s, covers persons who never committed a sex crime [Balko]
  • “The lawsuits over TVA’s coal ash spill have come from all over Roane County – except the spots closest to home.” [Knoxville News]
  • Bootleg soap: residents smuggle detergents after enactment of Spokane phosphate ban [AP/Yahoo]
  • UK: Elderly Hindu man in religious-accommodation bid for approval of open-air funeral pyre [Telegraph]
  • No DUI, no one hurt, but harsh consequences anyway when Connecticut 18 year old is caught buying six-pack of beer [Fountain]
  • Only one or two not covered previously at this site [“12 Most Ridiculous Lawsuits”, Oddee]

CPSIA: Things I learned at the rally

Last Wednesday’s CPSIA rally at the Capitol drew an overflow crowd of hundreds, with thousands more reportedly watching from around the world via webcast. Many speakers had powerful stories to tell, and cameras from CNN and ABC were on hand to record them; AP mentioned the event in covering the dirtbike-ban story. There is, as you might imagine, no way to upstage a six-year-old motocross champion who declares from the podium, “I promise I won’t eat my dirt bike”.

A few things I learned by attending:

  • Ordinary bikes (not the motorized kind) are clearly out of compliance with the law because of the leaded brass in certain components, and have been given no exemption. I’m still wondering why the CPSC directed the motorbike dealers to tarp over their inventory but did not do the same with the ordinary-bike dealers. Earlier here; much more (PDF) in this CPSC submission by Mayer Brown for the Bicycle Product Suppliers Association.
  • Until I saw their handout leaflet, it hadn’t sunk in that the non-profit and charitable giants in resale, including Goodwill, Salvation Army, Easter Seals, Volunteers of America, and St. Vincent de Paul, have banded together in a Donated Goods Coalition. Good for them, and I hope someone listens.
  • Held up for inspection

  • Even blogging the subject as much as I have, I’ve somehow said almost nothing about CPSIA’s requirements for batch numbering, labeling and tracking of kids’ products, due to hit later this year. It seems these requirements all by themselves will suffice to wipe out small producers in droves even if the crazy testing requirements can somehow be made sane.  A few write-ups touching on the subject: Handmade Toy Alliance (Word document), Kathleen Fasanella/Fashion Incubator, Publisher’s Weekly.
  • The rally happened because of the efforts of grass-roots business people around the country, above all Rick Woldenberg of Learning Resources. (The story of the Oregon delegation could stand for that of many others.) Motorbike people were much in evidence. Also present: people from trade associations from regular businesses not been much heard from in the CPSIA furor of recent months, including makers of shoes and footwear, cribs, and even household cleansers, all of whom turned out to have stories to tell. Who knew there was a whole association specializing in the little items you get when you put in the quarter in the vending machine and turn the crank?
  • Kids’-book author (and valued commenter) Carol Baicker-McKee was there and gave a superb talk, making effective use of a copy of Orwell’s 1984. Otherwise, however, among groups deeply affected by the legislation, the book and library trades were conspicuous by their absence. I wasn’t the only one who noticed this; so did Publisher’s Weekly.
  • I finally got to meet face to face many persons who have been favorably mentioned in these columns over the past three months. I was not surprised to find a whole lot of nice, dedicated people, the sort of people you’d want to be making products for your children to use. You, Reader, would have enjoyed meeting them too.
  • Many members of Congress spoke. All were Republican, and a few were pretty good. For better or worse (maybe some of each) there was a minimum of partisanship, with scant mention of the reports that the Democratic House leadership had ordered members not to attend. Several lawmakers minimized the institutional role in the debacle of Congress (which passed the law last year almost unanimously), instead seeking to throw the blame onto the CPSC’s management, which put them surprisingly close to the position of Henry Waxman himself. One GOP member said it was important to be nice to the Democrats and not alienate them, since they held all the power. Not observing the nicetiesThis may have been good advice, but I was still a little surprised.
  • Amid a great deal of talk about unintended consequences, very little was said about there being actual adversaries out there, who know quite well what the law is doing and support it anyway. If more than a word or two was breathed about the roles of Public Citizen, PIRG, or the various members of Congress who are actively hostile on the issue (and not just “needing to be educated”), I missed it. Which meant (it seemed to me) that some of the good people who’d taken the trouble to come to Washington were going to be surprised and perhaps unprepared when they discovered figures out there like, oh, just to pick randomly, Illinois Sen. Dick Durbin, whose positions are not so much unreflected-on as deeply hostile (and with mysteriously unsourced numbers too).

Speaking of which, Consumers Union, publisher of Consumers Reports, confirmed once again that it falls into the “hostile” and not merely “unreflective/ uninformed” category with this deplorable hatchet job, which provoked a slew of angry, substantive comments; see also blog posts including those of Carol Baicker-McKee and Sheeshamunga.

More rally coverage: Domestic Diva, Polka Dot Patch.
Public domain image: Yankee Mother Goose (1902), illustrator Ella S. Brison, courtesy ChildrensLibrary.org.

Site disruptions

I upgraded last night to the latest version of WordPress, and whether relatedly or not, a couple of strange things went wrong this morning with recent entries: in particular, the short post from over the weekend on the Phoenix police blogger disappeared and was replaced by a draft post on a different subject. I’m working to fix and restore things. If you notice other aspects of the site that aren’t behaving as they should, drop me a line. P.S. Post restored with its comments; most broken links should be back working.