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Washington — 112th Congress Returns to Begin Second Session
The U.S. House of Representatives reconvened January 17 to begin its second session for the 112th Congress. The U.S. Senate returns today, Monday, January 23, a day before President Obama is scheduled to deliver his next State of the Union address. The 2012 legislative season begins with Washington split by deep partisan divisions in advance of next November's elections. Work continues almost immediately on issues pending from 2011, including a possible deal to extend tax breaks and measures to address the government debt and the public debt limit. As an added challenge, recent polls show that Congress remains very unpopular. An ABC News/Washington Post poll shows that just 13% approve of how Congress is handling its job. 84% disapprove. A CNN/ORC poll, shows that just 11% of Americans approve of Congress while 86% disapprove. Although President Obama's ratings are better, most polls peg his approval at less than 50%.
Product Safety — CPSIA Stay on Testing and Certification Lifted — Third-Party Testing and Certification Now Required
he Consumer Product Safety Commission (CPSC) has lifted its stay of enforcement on the requirement under the Consumer Product Safety Improvement Act (CPSIA) that most children's products be third-party tested and certified for compliance with lead, phthalates and/or ASTM F 963 toy safety standards. As of January 1, all companies are required to obtain certificates, whether general conformity certificates (GCCs) or certificates for children's products based on third-party testing that their products are compliant with the Phthalate Standard, Lead Standard and F963. Compliance with these regulations has always been mandatory but, as of January 1, companies are now required to prove compliance with the standards through CPSC accredited 3rd party certification.
Product Safety — 18 New California Proposition 65 Notices Issued
Professional California Proposition 65 litigants Anthony Held, John Moore, and the Center for Environmental Health (CEH) have issued
18 new "60-day" notices in the last month, alleging that brands and
retailers sold day packs (Notice 1), costumes (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6), footwear (Notice 1, Notice 2, Notice 3, Notice 4), vinyl clothing (Notice 1), belts (Notice 1), fashion accessories (Notice 1) jewelry (Notice 1, Notice 2), gloves (Notice 1), and key chains (Notice 1) in
California containing phthalates, lead, and cadmium in violation of California Proposition 65 (Prop 65). The notices serve as intent to bring a lawsuit against the recipients alleging that the products sold in California contain certain chemicals in violation of a California law known as Proposition 65 (Prop 65). Proposition 65 is a California law that requires "warning labels" on ALL products (not just children's products) sold in California that contain lead, phthalates, cadmium and any one of 850 other chemicals that the
State of California believes could cause cancer or reproductive toxicity. Prop 65 allows so-called "citizen enforcers" to enforce the law. NGOs, other groups and even private Californian citizens can sue in California courts and collect part of the fines. You may find these notices along with every fashion-related notice for the past 3 years in the FASA Prop 65 "60-Day
Notice" running list. FASA will continue to update this list on a regular basis to help catalog the effects of this damaging proposition on the fashion accessories industry.
Product Safety — CPSC Continues to Intercept Dangerous Products at U.S. Ports
The U.S. Consumer Product Safety Commission (CPSC) on January 9 released a news brief detailing their continued seizure of dangerous and unsafe consumer products at U.S. ports before the products are able to be distributed to the general public. CPSC and U.S. Customs and Border Protection (CBP) have been screening products at the nation's borders. The creation of the CPSC's import surveillance and inspection team in 2008, in addition to the placement of full time investigators at key points of port entry since the lead in paint recalls in 2007, has allowed for a more efficient effort in stopping importation of products violating federal safety standards. Working together, the CPSC and the CBP seized 6.5 million units of 1,700 different children's products at U.S. ports in 2010 and 2011. Outside of these children's products, other products seized included bike helmets, mattresses, art materials, household chemicals, lighters, fireworks, and all-terrain vehicles.
Product Safety — CPSC Issues Loungewear Flammability Letter At Same Time it Announces Recalls of Children's Pajamas and Fleece Robes Due to Violation of Flammability Standard
The U.S. Consumer Product Safety Commission (CPSC) announced December 23 the voluntary recall of 1,750 Petit Lem Children's Pajamas and 1,000 Hanna Andersson Children's Fleece Robes. Both the pajamas and robes were manufactured in China. The pajamas were sold through specialty websites, while the robes were sold at Hanna Andersson's retail stores and website. The items were recalled due to failure to meet the federal flammability standards for children's sleepwear. No incidents or injuries were reported. The recalls come on the heels of the CPSC issuing a December 22 letter to manufacturers, distributors, importers, and retailers reminding them of the CPSC policies on children's sleepwear and loungewear. These same policies were previously expressed to the industry in 1996 and 2008. Highlights of the letter include a listing of the new obligations under the Consumer Product Safety Improvement Act (CPSIA), and the restatement of the CPSC's view on children's "loungewear" as needing to comply with children's sleepwear standards. The latter is explained as due to the CPSC's belief that "loungewear" garments are worn primarily for sleep-related activities. The new obligations under the CPSIA include (for all children's products) the need for manufacturers to issue a children's product certificate (CPC) stating compliance with requirements based on third party testing, the need for tracking labels, and compliance with lead content, surface coatings, and phthalates requirements. FASA maintains a list of all fashion related recalls since 1975.
Product Safety — CPSC Recalls Women's Dress Shoes & Childrens' Travel Cases
The U.S. Consumer Product Safety Commission (CPSC) and Health Canada announced December 20 the voluntary recall of 6,100 pairs of Naturalizer "Dare" women's dress shoes and on December 22 the CPSC announced a recall of 139,000 units of Circo childrens' travel cases. The dress shoes were manufactured in China and sold by Naturalizer retail stores and were recalled due to heels of the shoes leaning to either side, posing a fall hazard.. The childrens' travel cases were manufactured in China and sold by Target. The cases were recalled due to a violation of the lead paint standard. FASA maintains a list of all fashion related recalls since 1975.
Social Compliance — New California Human Trafficking Disclosure Law Went into Effect January 1
The California Transparency in Supply Chains Act of 2010 (S.B. 657) went into effect January 1. The law requires any company selling product in the State of California to post a public disclosure on its website stating what, if anything, the company does to prevent human trafficking and slavery in its supply chain. Even though the new law went into effect January 1, the California State Attorney General has refused to provide any guidance to companies on how to comply with the law. In the absence of any such guidance, FASA, working with other groups can provide detailed guidance to FASA members on how to comply with the new law. Many in the NGO community have also provided guidance on how to comply with the new law.
Intellectual Property — Customs Releases 2011 IPR Seizure Statistics
U.S. Customs and Border Protection (CBP) released on January 9 its annual IPR Seizure Statistics for 2011. While both footwear and apparel remain in the top five most counterfeited items (by value) over the last year, the total value has decreased for both items. Footwear, for example, has been replaced by consumer electronics for the top spot and now sits at the second most counterfeited item at 14% of total seizures (by value down from 24% in 2010). The value of apparel seizures also dropped from 10% to 8%. Finally, counterfeit fashion accessories, which represented 8% of seizures, have been swept totally off the chart and into the "other" category. While these numbers represent great work by CBP as the value dropped $10 million since 2010 and almost $100 million since 2008, CBP reported 10,000 more seizures in total between 2008 and 2011. CBP accounted for this increase due to the seizure of more low-value shipments found in the use of express and direct mail through rogue Web sites, which are able to ship counterfeit goods direct to the consumer.
Intellectual Property — Rogue Websites Legislation Faces Roadblocks
Congressional leaders pushing to move legislation aimed at shutting down rogue Web sites have encountered significant opposition, which may postpone or alter their plans to move the bill in the coming weeks as currently planned. In response to growing and coordinated opposition from grassroots and technology community advocates, the Obama Administration on January 14 released a statement expressing concerns about provisions that would require Internet service providers (ISPs) to break the link between consumers and rogue sites. The Administration's statement comes as Senate Majority Leader Harry Reid (D-NV)has scheduled a January 24 cloture vote on the Senate version of legislation, the PROTECT IP Act, which, if successful, would bring the bill to the Senate floor for a final vote. While the Administration's concerns are still fresh, the timing of this Senate vote is now in further jeopardy as a small group of Republican cosponsors of the bill, led by Senate Judiciary Committee Ranking Member Charles Grassley (R-IA), sent a letter January 13 to Senate Majority Leader Reid asking him to postpone a cloture vote until concerns, some of which were previously identified, are addressed. In the meantime, House Judiciary Committee Chairman Lamar Smith (R-TX) plans to reconvene the mark-up on his version of rogue Web sites legislation, the Stop Online Piracy Act (SOPA), which was postponed at the end of 2011 when the House adjourned for the holiday recess. Smith has indicated he may change key provisions of the legislation to accommodate concerns that have been raised in recent weeks.
Ports — FASA Opposes So-Called "Clean Ports" Legislation — Legislation Unnecessary to End Pollution at Ports
FASA joined other organizations in sending a January 10 letter to the U.S. Senate opposing the Clean Ports Act of 2011 (S. 2011). In addition to giving ports the authority to regulate truck prices, routes, and service, the bill requires all truck drivers operating within ports to be employees of companies. This move is harmful to all business, including the fashion accessories industry, as it would close the drayage market to many hard working small businesses — so-called trucker owner/operators — that move the nation's international commerce. Furthermore, the bill is unnecessary as Clean Truck Programs at several ports around the country have proven tremendously successful without implementing such employment requirements for truckers. Similar efforts were attempted by the Port of Los Angeles last year and overruled by a federal cour t decision.
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