U.S. Regs Extend to Foreign Manufacturers
10-09-2009
By Dave Schmeltzer
I’ve said it before in this space: regulators are justifiably putting a high priority on protecting American consumers from dangerous and defective products.
We are living in an era where there is a need for increased oversight and accountability, yet due to the difficulties with service of process and inability to gain jurisdiction, foreign manufacturers have so far been able to elude U.S. regulators due to myriad hurdles standing between them and U.S. law. As an example, Chinese drywall manufacturer Taishan Gypsum Co. recently failed to respond to a class action lawsuit regarding defective drywall sold in the U.S. which is potentially responsible for adverse health effects, let alone millions of dollars in property damage and lost property values.
Enter the Foreign Manufacturers Legal Accountability Act of 2009 (S. 1606).
The legislation – currently under review by the Senate – would require foreign manufacturers to have an agent located in at least one U.S. state where the company does business. The agent would accept service of process for any civil and regulatory claims. In addition, companies would be required to consent to state and federal jurisdiction holding foreign manufacturers accountable to those judicial standards.
U.S. manufacturers, importers and retailers are becoming better educated and better prepared regarding CPSIA, and consumers will reap the benefit. Bringing foreign manufacturers under the CPSC umbrella could be the next step for consumer safety.
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[...] new legislation in the Senate that would extend U.S. regulations to foreign manufacturers, the Summit of 2009 will [...]