The Consumer Product Safety Commission is scheduled to take its product safety complaint database online Friday, doing a real disservice to consumers who want accurate information and to companies that will have their reputations harmed by false, inaccurate and even malign reports about their products.
CPSC promotes its database
The National Association of Manufacturers this week filed a petition for reconsideration of the final rule implementing the database under the Consumer Product Safety Improvement Act (CPSIA). The NAM also requested an extension of the CPSC’s “soft launch” for three months to prevent the database from going “live” before fixing a number of administrative and policy challenges yet to be resolved. (NAM letter.)
We’ve seen many claims that the test phase of the database produced few of the false complaints that the manufacturers and others have been so concerned about. The advocates for the regulatory state at OMB Watch, for example, reported:
Manufacturers and business associations like the National Association of Manufacturers have targeted the database for fear that inaccurate data will be reported by consumers and, as a result, profits could be hurt. In CPSC’s testing of the site during the soft launch, however, “of the 900 complaints that were logged, four were determined to be inaccurate,” according to a March 3 BNA article (subscription required).
Curse you, business owners, for caring about profits!
This isn’t the full story, but even if it were, that’s four wrong complaints that could harm a company or product’s reputation. Multiply the number of complaints tens of thousands of times once the database starts operating, and the 0.44 percent inaccuracy rate starts to look seriously damaging. (We can also speculate about the trial lawyers and “consumer activists” holding back submissions during the trial run, waiting for the database to get up and running before salting it with inflammatory reports.)
Worse, NAM and its members have identified six serious problems with the database that would make it a font of bad information, the erratabase we write about. Consider this one:
Manufacturers, importers or private labelers have indicated that they have received reports of harm identifying an incident as involving their product that did not in fact involve their product, so were materially inaccurate, and advised CPSC of this fact. They have not received return affirmative confirmation that CPSC staff will not post such false claims in the database. CPSC staffers have indicated they may not possess the resources to adequately scrub the database to avoid posting upon such notification. This is contrary to the express direction of Congress that materially inaccurate information with the potential for irreparable reputational harm be vetted prior to posting.
Rep. Mike Pompeo (R-KS) won passage of an amendment in H.R. 1, the continuing resolution, to block funding for the database until Congress had conducted a thorough review. (See Shopfloor, “CPSC Erratabase and the Interests of Trial Lawyers.“) The amendment has brought Pompeo the expected obloquy from the left, and Sen. Jay Rockefeller (D-WV), chairman of the Senate Commerce Committee, issued a news release denouncing it. (continue reading…)