Overlawyered: Chronicling The High Cost Of Our Legal System

Posts Tagged ‘CPSIA and minibikes’

CPSIA and motorsports: jamming the spokes

Losses are mounting and anger rising in the world of youth minibikes and powersports, where CPSIA has kept an entire industry shut down for more than a month now, as dealers sit on $100-million-plus inventories now rendered unlawful to sell. Polaris logoOn Sunday the Minneapolis Star-Tribune ran a substantial piece on the CPSIA debacle which focused on motorsports (while also mentioning in passing such disaster areas as thrift stores and kids’ books). The rising outcry is putting Minnesota Democratic Sen. Amy Klobuchar on the hot seat: after taking a prominent role as co-sponsor of the law, she now blames the Consumer Product Safety Commission for the way it’s working out in practice. Aside from the general popularity of kids’ motorsports in Minnesota, ATV manufacturer Polaris, whose Outlaw 50 model was suddenly banned, is headquartered in that state.

On Wednesday the CPSC confirmed that (per its lawyers’ advice) it was turning down an exemption for youth power vehicles, in that it could not certify what the law requires it to certify, namely that keeping them legal would not result in “any” absorption of lead by a person under 12, ever, or any other risk to public safety or health. Cycle News delves into the details here (with a funny picture) and here. Ryan Leyba at ESPN/FMX also surveys the situation in Congress — where they’re refusing to do anything and, like Klobuchar, blaming the CPSC’s lawyers — and quotes one dealer:

“Business was already slow, and now we’re just dead,” says Gus Saba, general manager of Corona Motorsports in Corona, California. “A lot of people want to get back into the sport [ATVs or dirtbikes] with their kids, and if they can’t buy a bike for their kid, they might not buy one for themselves, either. It’s a mess. We can’t order parts, we can’t service anything. We don’t know what’s going to happen; no one can put a timetable on it.”

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Missouri is another state where the minibike community has been hard at work organizing, and the Associated Press, which in general has been a poor place to turn for news on CPSIA, covered the resulting rally in Jefferson City, in an article that got good national pickup. The Missouri House of Representatives has passed a resolution of support. And 2WheelTuesday offers “Stories of a Motocross Generation“: first-person responses to the ban.

Some miscellaneous CPSIA reading: Rick Woldenberg is introducing “our fabulous new Future World Collection of exciting educational materials for the post-CPSIA world. Our products will be lead-free and phthalates-free and in the case of most products, entirely play value-free.” The tongue-in-cheek “catalogue” can be seen here (PDF). At Politico, conservative columnist Hugh Hewitt blasts Congress for its inaction. The Hill covers the Washington wrangling. Punditry by the Pint says “it’s time to repeal this law.” And Scott Greenfield writes, “The Real Risk is the Loss of Childhood Happiness“.

P.S. CPSC has made available videos of its meetings with industry on bicycles and ATVs.

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CPSIA chronicles, March 2

Reading from the weekend:

  • At the American Spectator, Quin Hillyer says his co-thinkers “need to really get up newcriterionin arms about” changing the law, and has kind words for a certain website that is “the single best place to track all its devastation”. At The New Criterion, Roger Kimball finds that the threat to vintage children’s books provides a good instance of the dangers of “safety”. And commentator Hugh Hewitt is back with another column, “The Congress Should Fix CPSIA Now“.
  • Numerous disparaging things have been said of the “mommy bloggers” who’ve done so much to raise alarms about this law. Because, as one of Deputy Headmistress’s commenters points out, it’s already been decided that this law is needed to “protect the children”, and it’s not as if mere mothers might have anything special to contribute about that.
  • Plenty of continuing coverage out there on the minibike/ATV debacle, including Brian O’Neill, Pittsburgh Post-Gazette (office of local Congressman Mike Doyle, D-Pa., says most members think, dubiously, that ban “can be fixed without new legislation”); Lebanon, Pa. (“Ridiculous… It’s closed an entire market for us”), Waterbury, Ct. (“The velocipedesadgovernment does stupid things sometimes without thinking”), and, slightly less recent, Atlantic City, N.J. (“I would’ve had three sales this weekend, so they stomped us”). Some background: Off-Road (agency guidance in mid-February told dealers to get youth models “off their showfloors and back into holding areas”); Motorcycle USA (“With right-size models being unavailable to families, we may see more kids out on adult ATVs and we know that this leads to crashes”). To which illustrator Meredith Dillman on Twitter adds: “Just wait until someone gets hurt riding a broken bike they couldn’t get replacement parts for.”
  • One result of CPSIA is that a much wider range of goods are apt to be subject to recalls, but not to worry, because the CPSC recall process is so easy and straightforward.

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CPSIA chronicles, February 26

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  • UPDATE 5:45 p.m. Eastern: Well, that was quick. A source reports that Congressional staffers hastily announced that they’re canceling the hearing next week and that the idea is “not likely to ever be brought back”. Someone must have realized that letting people from around the country get in front of a microphone and talk about the effects of this law would not exactly do wonders for the image of Henry Waxman, Public Citizen, PIRG, or Consumer Federation of America. More: Rick Woldenberg confirms cancellation/disinvitation.
  • A prime objective for critics of the Consumer Product Safety Improvement Act in recent weeks has been to obtain a hearing on Capitol Hill that might focus lawmaker and press attention on the law’s many unexpected and harmful effects. Now it looks as if that might be happening. Rick Woldenberg:

    I have been invited to testify before the Subcommittee on Regulations and Healthcare of the House Committee on Small Business next Thursday. The purpose of this hearing is to explore Small Business issues related to the CPSIA. The Subcommittee is still looking for small businesses to testify. … If you are motivated to testify, you may want to reach out to the Subcommittee staff to volunteer, or if you have a Congressman on the Subcommittee, contact their Washington office urgently. …

  • Relatedly, Whimsical Walney, whose time seems to have been in part freed up for blogging by the CPSIA-induced shutdown of her Bay-Area-based children’s line, offers some advice here and here on how to talk with lawmakers about the act.
  • If you still haven’t taken a look at it, Daniel Kalder’s excellent BooksBlog entry in The Guardian (U.K.) on CPSIA and older books, which quotes from my City Journal article, is here. It’s drawn attention around the world, including places like France, Italy, and Romania.

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  • Speaking of books, America’s libraries appear to have dodged catastrophe for now with the help of the American Library Association’s (understandable under the circs) last-minute embrace of the position that unless someone announces otherwise, it’s going to assume the law doesn’t apply to library stacks or circulation (earlier; commentary on the shift, Deputy Headmistress and Rick Woldenberg). Thus: Cincinnati Enquirer (“We’re hopeful saner heads will prevail and they’ll exempt us,” says Emily Sheketoff of the ALA), Middletown (Ohio) Journal, Brown County, Ohio, News-Democrat.

    So it seems to be mostly the librarians who are the most literal-minded and obedient about following guidance from high government authorities, or who are most legally risk-averse, or something, who are taking drastic steps like tarping over their pre-1985 stacks or planning to discard the volumes entirely or excluding older kids’ books from their used-book sales (in which case they’ll wind up….where?). Esther at Reading Loft/Design Loft has been picturing how libraries will look if they can’t make an exemption stick. And I didn’t notice it when it ran last month, but Annoyed Librarian had a funny rant at Library Journal about the law. Perish the thought, of course, that any library might ever want to acquire a pre-1985 book for kids’ use.
  • Popular conservative talk host Hugh Hewitt has continued his coverage of the law. Per one transcript, he discussed it with star columnist Mark Steyn who knew about the youth motorsports debacle:

    In my little corner of New Hampshire, every 12-year old boy loves taking an ATV, loves riding it around up in the hills. And the idea that the lead in it is going to cause that kid to keel over, is preposterous. This is government by insanity…

    On the other hand, Mark Riffey passes along word that popular talker Glenn Beck doesn’t plan to cover the issue because “there’s no public outcry” (a paraphrase second-hand of what might be a staffer’s view, or his, it’s not clear). What? Does he restrict his reading diet to the New York Times?

  • Wacky Hermit at Organic Baby Farm is angry: “When you have to consult a lawyer before you hold a church benefit sale, you are not in America.” (some rude language).
  • In the first-linked item above, Woldenberg also reports on an announcement by the Consumer Product Safety Commission’s chief of enforcement, Gib Mullan, that the commission intends to shift its enforcement methods in a more punitive direction, handing out many more penalties than previously in order to achieve more deterrent effects on businesses of all sizes. This is well in line with the clear guidance the commission has been given by Henry Waxman and colleagues in Congress. Next Thursday, if those planning the hearing do their jobs right, many in Congress might for the first time hear some voices that no one thought to consult when the law hurtled toward passage last summer. [REPEATING THE UPDATE: Hearing reportedly canceled.]

Public domain images: Grandma’s Graphics, Mabel Betsy Hill and Elson’s Basic Readers.

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CPSIA: Powersports, crystals, and stranded inventories

With large inventories of kid-sized motorbikes, mini-ATVs, and similar products rendered worthless and unsalable under tarps or in back storage rooms, the Motorcycle Industry Council now estimates that the economic damage from the Consumer Product Safety Improvement Act in its sector of the economy alone could reach $1 billion in 2009 if Congress does not act to restore the products’ legality. Joe Delmont at DealerNews has more information on how that figure was arrived at. Two weeks ago we cited an estimate that the frozen inventory alone exceeds $100 million in value; the larger figure adds in the cost of payroll and insurance at dealerships while they wait for the ban to be lifted, lost service and accessory sales, and so forth. It apparently does not count harms to tourism and recreation sectors in parts of the country that draw a family vacation trade based on use of the vehicles (see, e.g., ShareTrails.org, Americans for Responsible Recreational Access). Since the vehicles are intended for outdoor use, the weeks leading up to and including spring — in other words, now — are ordinarily their prime selling season. Some recent coverage previously unlinked: Chico, Calif., Enterprise-Record, WDAY Fargo, N.D., Orlando, Fla. Local6, WCTV Tallahassee, Fla., Gloversville, N.Y. Leader-Herald, Kingsport, Tenn. Times-News. Forums: cpsia-central, VitalMX, Motorcycle Addicts, and many more.

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The minibikes fall into a category of products for which the drafters of CPSIA made it particularly hard to obtain exemptions, namely products that concededly do contain a more than infinitesimal quantity of lead in a normal and accessible component. Yesterday, the CPSC published (PDF) its proposed rule on the subject. In it, the commission staff explain the stringent legal requirements governing such waivers, and why they often do not allow the commission to grant “common sense” waivers even where risks of harm are very low and costs of regulation are very high (pp. 7 et seq of the document, which fall on pp. 9 et seq of the PDF). In other words, the minibike dealers are out of luck unless they can convince (or persuade Congress to take the issue away from) the implacable Henry Waxman, who in turn tends to take his cue on these matters from Public Citizen and that group’s allies.

The powersports dealers aren’t the only ones stranded. At The Smart Mama, lawyer/lead testing consultant Jennifer Taggart ponders what might amount to “the end of bling” in kids’ wear. Genuine crystals by definition include lead, as do many rhinestones, although cheaper plastic imitations will more often be free of it. Trade groups have petitioned for an exemption, but given the law’s stringency (calling for the submission of peer-reviewed data, for example) it is far from clear that the commission can grant their requests. It will be easy in some quarters to dismiss the whole matter with a wave: who cares about mere embellishments, anyway?
irishdancedress
It’s not so easy to be dismissive if you’re, say, a teacher of Irish step dancing, with a stock of performance dresses in youth sizes (quite possibly with crystals, rhinestones or sequins, since nothing picks up stage lights the way they do). That stock of costumes, which might even be your most costly asset, by law at least may now occupy the same frozen contraband category as those tarped-over new youth minibikes at the sports dealer’s. As message-boarder “GailV” put it, “The dresses are worn for about 15 minutes at a time, the possibly lead-containing parts never touch the child, but it’s still illegal.” For more on the dismay CPSIA has struck into the Irish dance apparel community, see Irish Dance Moms, Fashion Incubator Forums, and Voy Forums comments here, here, and here (“Heidi”: “Most of us would like to be successful and running legitimate (law abiding) businesses. I want to grow my business, not hide in the shadows looking for ways to circumvent the law. Besides, the jealous world of Irish dance is full of potential whistle blowers.”)

More: In comments, Jennifer Taggart reports more distress in the bling sector.

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CPSIA chronicles, February 19

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New York Times on CPSIA: “needless fears that the law could injure smaller enterprises”

blowingbubblesatus
Clueless. Disgraceful. Grossly ill-informed. And cruelly hard-hearted toward families and businesses across the country that are facing economic ruin.

Yes, after months of silence, the editorialists of the New York Times have finally weighed in with their view of how CPSIA is going. How bad did you expect their editorial to be? It’s that bad, and worse.

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In a six-paragraph editorial about toy safety, exactly one paragraph is spent informing readers that anything about the law might have aroused any public criticism. And here is that paragraph:

Unfortunately, the commission has yet to implement important aspects of the new law. The delay has caused confusion and allowed opponents to foment needless fears that the law could injure smaller enterprises like libraries, resale shops and handmade toy businesses.

Got that? “Confusion” about the law, and “delay” in implementing it, are the real problems. Fears that small business will be hurt are “needless” and are being “fomented” by presumably sinister opponents.

Or, put differently: anyone who imagines this law might be impractical for libraries, resale shops, handmade toy businesses, or other small businesses is just imagining things — fooled, perhaps, by misinformation spread by the law’s opponents.

Libraries are just imagining things if they listen to people like Emily Sheketoff, associate executive director of the American Library Association, who spoke to the press last month about the choices facing libraries if some sort of exemption could not be found. (“Either they take all the children’s books off the shelves,” she said, “or they ban children from the library.”) Or people like Chip Gibson, president and publisher of Random House Children’s Books, who spoke to Publisher’s Weekly about the prospective effects of the law: “This is a potential calamity like nothing I’ve ever seen. The implications are quite literally unimaginable. …It has to be stopped.” It’s true that the CPSC’s last-minute stay of enforcement did save the new-children’s-book trade from calamity — but remember, to the Times, “delay” has been one of the problems in implementing the law, not something that has (so far) spared us its worst effects.

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Thrift stores are just imagining things if they listen to people like Adele Meyer, executive director of the National Association of Resale and Thrift Shops, who said, “The reality is that all this stuff will be dumped in the landfill.” They should ignore all the reports, no matter how numerous and from how many sources, of local Goodwill operations and other thrift stores’ closing children’s departments or sweeping more than half their contents off the shelves, and of kids’ resellers and consignment shops taking massive financial hits or closing down entirely. All of these episodes are either imaginary or, if conceded as real, an instance of overreaction to the needless fears those moustache-twirling opponents have “fomented”. (Some more thrift-store coverage not previously linked: North Carolina, Nebraska, Minnesota with Goodwill pic, upstate New York (“We can’t be sure of the risk unless we take everything off the shelf”), South Dakota, Colorado). They should also stop predicting that the pursuit of their charitable missions will suffer a major blow from the loss of children’s resale revenue, because that sort of thing just undermines morale.

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Handmade toy businesses are just imagining things if they listen to anyone like the Handmade Toy Alliance. It’s not as if anyone like them is on its list of members.

The Times editorialists warn against “needless fears” that the law “could injure” smaller enterprises. Got that? Not only will they not be driven out of business, they won’t even be “injured”. So small enterprises from coast to coast are just imagining things if they plead desperately for places like the Times to notice that they have already closed down, or will have to do so in the foreseeable future, or have lost thousands of dollars in unsalable inventories. Motorbike dealerships around the country are just imagining things if they think they’re staring at massive losses from the inability to sell their products, even though news-side talent at the New York Times has in fact covered their story well — coverage which the editorial studiously ignores.

For as long as anyone can remember, the New York Times has unthinkingly taken its line on supposed consumer-safety issues from organized groups like Public Citizen and Consumers Union. In this case, the result of such reliance has been to render the nation’s leading newspaper a laughingstock.
Public domain image: Grandma’s Graphics, Ruth Mary Hallock.

(& welcome Virginia Postrel, Christopher Fountain, Patrick @ Popehat, Carter Wood/ShopFloor, Mike Cernovich, Katherine Mangu-Ward/Reason “Hit and Run”, Jonathan Adler @ Volokh Conspiracy, Memeorandum, Above the Law, Tim Sandefur, Mark Thompson/Donklephant, Alison Morris/Publisher’s Weekly Shelftalker blog, Jacob Grier, Amy Alkon/Advice Goddess, Joe Weisenthal/ClusterStock, Valerie Jacobsen/Bookroom Blog readers. And: Deputy Headmistress at Common Room, Faith in Truth, Amy Ridenour/National Center and NewsBusters, Charles Kuffler/Off the Kuff.)

And more: Forbes.com liked this piece and has now reprinted it in slightly altered form. And I’m particularly grateful to Robert Ambrogi/Legal Blog Watch for his generous coverage.

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CPSIA: “Black Tuesday” for youth motorbikes

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We blogged earlier about Honda’s and Kawasaki’s having pulled out of the U.S. market and ordered a halt to sales of their youth motorbikes. A similar Jan. 26 letter from third big maker Yamaha is reprinted here, and smaller makers are rumored to have taken the same step.

Thiel’s Wheels of Ohio: “We cannot sell you replacement parts for the ones you already own. This is not our decision; it is being made for us.” DealerNews (“The Voice of PowerSports Retailers”): “The value of inventories that now cannot be sold is unknown, but it probably exceeds $100 million, by our estimate. Just take 7,500 franchised dealers, many of whom carry $25,000 worth of inventory at wholesale cost.” Activism/protest ideas there and at Dirt Rider.

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More on CPSIA and the dangers of eating youth motorcycles

Honda has informed dealers that their inventories of new and used youth motorcycles and ATVs will become worthless and legally unsalable on Feb. 10:

Even more concerning is that the Consumer Product Safety Commission (CPSC), the agency charged with enforcing the Act, recently ruled that Congress intended the lead content regulations to be retroactive. This means that, regardless of its date of manufacture or the fact that it complied with all applicable laws and regulations at the date of manufacture, any children’s product manufactured with even a single component part containing lead in excess of the limits will no longer be legal for sale as of February 10, 2009.

Earlier here. Friday’s CPSC stay of enforcement on some testing/certification rules in no way provides an exemption from the law for items that do contain significant quantities of lead, which Honda says are unavoidable as a part of the alloys used in the products. More: Hell for Leather.

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CPSIA and youth motorcycles

Yet another casualty of this destructive law: Honda has sent a letter to dealers announcing that it will withdraw youth motorcycles and ATVs from the U.S. market. It says lead figures as an intrinsic part of the alloys used in building the vehicles.

The irony, of course, is that of all the imaginable safety hazards posed by the existence of youth motorcycles and ATVs, the danger that kids will eat the darn things must rank at the very bottom.

Some other likely casualties here (Flickr group).

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