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Head of CPSC Opposes Measure
CPSC Chairwoman Nancy Nord calls the bill "counterproductive."
(By Lauren Victoria Burke -- Associated Press)
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Manufacturers agree with Nord. "A huge barrier would be placed in the way of manufacturer and retailer cooperation with the commission," said Joseph McGuire, president of the Association of Home Appliance Manufacturers.
Manufacturers also fear that without proper vetting, the CPSC could release inaccurate or misleading information, said McGuire, who was appearing on behalf of the National Association of Manufacturers. He blamed delays in releasing information to the public on the agency's outdated technology. "If their processes aren't improved, the problem won't improve," he said.
Nord and McGuire also took issue with raising the civil-penalty cap to $100 million. The agency seeks to impose civil penalties when companies fail to report defects in a timely manner or when they violate safety standards.
Nord said setting the limit for civil penalties too high would prompt companies, "out of an abundance of caution," to "overwhelm" the agency with consumer complaints, straining staff resources.
Manufacturers objected to the cap for different reasons, arguing that with so much money at stake, companies would be more likely to assume a "defensive posture."
"The real penalty to companies that violate standards or make defective products is the cost of the recall and the damage to their reputation, not the penalties," McGuire said.
Witnesses from the Consumer Federation of America and the U.S. Public Interest Research Group endorsed the legislation and called the changes long overdue.
Pryor urged all sides to make their case. "Now is the time," he said.
