July 1, 2009

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By Product Safety Letter staff

CPSC Chairman Inez Tenenbaum June 30 at the agency’s annual fireworks safety event touched on a recent common theme: product safety risks related to a bad economy. The most obvious such dangers involve the increased allure of used products, and the agency is addressing those risks in its work on cribs and second-hand sellers, among other areas. But Tenenbaum’s point had to do with something beyond the sale of damaged, worn and previously-recalled items. She warned:

"We know that many communities across the country are struggling financially and some have decided this year to cancel their local fireworks shows. For those who experience fireworks from the backyard instead of the local fairground or school, our message is clear: never, ever allow children to play with or be around them unsupervised and adults should also use caution when setting them off."

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Others also have touched on this idea that the poor economy could result in consumers interacting with new products that risk their safety.

EU Consumer Commissioner Meglena Kuneva earlier this year warned:

“The biggest challenge for 2009 is to make sure that product safety is not set aside during this period of economic crisis, that business continues to re­spect their duties toward consumers and that Member States allocate suf­ficient re­sources to enforcement. Safety is not a luxury. This report sets out clearly the significant challenges we face and sends a clear signal that there is no place for cost cutting or cutting corners when it comes to safety. On the contrary, in times of economic crisis when price becomes a very promi­nent factor in consumer spending, we need to step up our efforts and keep our vigilance especially high.”

Meanwhile, UL representatives visiting CPSC a few months ago said the group is watching whether the downturn will affect companies’ safety efforts. They said there may be a need for extra scrutiny as budget tightening could lead to cuts re­lated to QA departments and training as well as problems with suppliers. The UL staff also noted a related concern about low-end retailers, which consumers are increasingly more likely to use to save money. They said that there are certain retailers that are regular sources of items with counterfeit UL marks. Counterfeits are safety concerns due to the likely lack of testing.

As for counterfeits, CPSC previously has identified electrical products as the most worrisome under its jurisdiction. In the May 2009 edition of its ezine, the Safety Review, CPSC explained:

"Tough economic times may send consumers scouring for inexpensive goods, but consumers may unknowingly be buying counterfeit products. We may be familiar with counterfeit handbags and watches, but there’s a category of counterfeits that can have dire consequences – electrical products. They may look like the real thing on the outside, but the reality is many of these products are made with inferior materials, poor quality construction, and/or missing safety features. Counterfeit circuit breakers, power strips, extension cords, batteries and holiday lights can cause fires, explosions, shocks and electrocutions. Unlike other counterfeit products, counterfeit electrical goods can be extremely difficult to detect."

These concerns also played a role in a Product Safety Forum feature from last month: PLP: Even More Important in Tough Economic Times by Kenneth Ross of Bowman and Brooke.

Portions of this article appeared in the April 27, 2009, April 13, 2009 and September 1, 2008 editions of our premium sister service, Product Safety Letter. Subscription information is here