NAM Raises Concern about CPSC Overusing Unilateral Warnings

CPSC should have a hazard-determination procedure for issuing unilateral warnings, the National Association of Manufacturers (NAM) told the agency. That came in comments on CPSC's agenda and priorities. NAM suggested (bit.ly/4giUrJj) the agency is overusing the power to work around the need for evidence, writing:

"A unilateral press release is a powerful tool…previously reserved for cases where the company in question was not responsive to CPSC's initial inquiries. More recently, these press releases have often been used to pressure companies into recalls before the CPSC has undertaken technical work to support a formal hazard determination. Acting before completing this important safety work risks severely undermining the agency's credibility. Formal criteria that include a documented hazard assessment should be defined and used in cases where a company is actively engaging with the CPSC."

Unilateral product warnings – in lieu of recalls with companies' cooperation – long were so rare that three within six weeks in early 2020 (PSL, 2/17/20) merited discussion of a "trend" and drew comments by then-Acting Chairman Bob Adler to watch for more (PSL, 2/24/20). In recent years, however, most weeks have multiple unilaterals.

NAM's concern was part of its focus on data-supported oversight, especially for research and rulemaking:

"…NAM urges the CPSC to adopt a standardized process requiring prompt disclosure of all technical data supporting potential hazard findings. In cases where the CPSC’s investigative procedures withhold technical evidence from regulated entities, the result is slower product improvements and delays in meeting the shared goal of removing hazardous goods from the market. A standardized process would let manufacturers quickly assess and address product risks and would foster collaboration with the agency. Manufacturers recommend that the CPSC require staff to share the full preliminary hazard analyses with affected parties and provide opportunities for technical dialogue…

"…NAM urges the CPSC to prioritize transparency through clear documentation and disclosure of methodologies used to support regulatory decisions. Institutionalizing cross-departmental collaboration (technical, compliance, and legal staff) should prevent policy from being shaped by external pressure or incomplete information and ensure the CPSC is able to execute cohesive and evidence-based oversight that protects the regulatory framework."