Consumer Product Safety

Consumer Product Safety

Consumer product safety became an animating political force on the national level during the 1960s. In 1972, the Consumer Product Safety Commission (CPSC) was created to regulate and, if necessary, recall and ban products deemed unsafe for the public. Many consumables are not covered by this agency, because other federal agencies already have jurisdiction over such dangerous products as cars, alcohol, guns, and pesticides. One of the CPSC’s major accomplishments was the ban on lead paint in 1977.

Commentary

The History of Consumer Protection Scares

September 09, 2009

By Tim Fernholz. The American Prospect. September 9, 2009.

The Chamber of Commerce and other business interests tried to kill the proposed Consumer Financial Protection Agency with 'death panel' tactics -- exaggerating the affects of the legislation and making it seem as though it would harm ordinary Americans. But these kinds of moves aren't unusual. In the 1970s, there was momentum toward creating a Consumer Protection Agency that would act, essentially, as a kind of clearinghouse for consumer complaints, rather than an actual regulator with enforcement powers. Its opponents also reacted with outrageous rhetoric.

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Cry Wolf Quotes

Class actions constitute a grave economic hazard to business—and the magnitude of the threat is likely to be in inverse relationship to the size of the business. Indeed, the effects on small businesses would be particularly catastrophic if not fatal.

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William B. Norris, Chamber of Commerce, Testimony, Consumer Subcommittee of the Senate Commerce Committee,” Chamber of Commerce Public Presentations.
03/18/1970 | Full Details | Law(s): Class Action Jurisdiction Act

To the extent that [this legislation] seeks to make varying warranties fit into identical standards, it discourages competitive diversity from coming into play, and to that extent fails to serve the interests of either consumers or business.

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A.S. Yohalem, Chamber of Commerce Presentations to Congress
01/22/1970 | Full Details | Law(s): Magnuson-Moss Warranty Act

[L]egal costs alone of defending against class actions will impact disproportionately on small enterprises which rarely have the resources to employ the staff counsel uniformly found among larger companies.

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William B. Norris, Chamber of Commerce, Testimony, Consumer Subcommittee of the Senate Commerce Committee,” Chamber of Commerce Public Presentations.
03/18/1970 | Full Details | Law(s): Class Action Jurisdiction Act

The truly attractive targets would be the overwhelming majority of businesses which are honest, ethical, and legitimate—large companies because of their assets and small merchants because of their vulnerabilities.

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William B. Norris, Chamber of Commerce, Testimony, Consumer Subcommittee of the Senate Commerce Committee,” Chamber of Commerce Public Presentations.
03/18/1970 | Full Details | Law(s): Class Action Jurisdiction Act
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Related Laws and Rules

Backgrounders & Briefs

Good Rules: Ten Stories Of Successful Regulation

Demos looks at ten laws and rules that we take for granted.

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Resources

Consumer Federation of America defends the consumer interest in fields ranging from housing and financial services to food safety. 

The U.S. Food and Drug Administration

(FDA) is the federal agency responsible for the testing and regulation of food, drugs, cosmetics, and medical devices.

National Highway Traffic Safety Administration is the agency that oversees auto and highway safety regulations, auto recalls, and CAFE standards.

Advocates for Highway and Auto Safety is an alliance of consumer, health and safety groups and insurance companies and agents working together to make America's roads safer.

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