Posts Tagged ‘small business’

Food safety bill: the Big Business/Big Nanny alliance

Surprisingly or otherwise, some big business groups like the Grocery Manufacturers of America have allied with consistent Big Government advocacy groups like the Consumer Federation of America and Center for Science in the Public Interest to push S. 510, the food safety bill pending before the Senate (which might win consideration in the lame-duck session). In a post at Cato at Liberty recently, I cited writer Barry Estabrook, an ardent critic of the food industry (“Politics of the Plate“), writing at The Atlantic, who says the bill could “make things worse”:

You needn’t go along completely with Estabrook’s dim view of industrialized agriculture to realize he’s right in one of his central contentions: “the proposed rules would disproportionately impose costs upon” small producers, including traditional, low-tech and organic farmers and foodmakers selling to neighbors and local markets. Even those with flawless safety records or selling low-risk types of foodstuff could be capsized by new paperwork and regulatory burdens that larger operations will be able to absorb as a cost of doing business.

It’s true that S. 510 includes language not in earlier drafts that nods toward the idea of tiering regulatory burdens. But as the Farm and Ranch Freedom Alliance notes (background), most of the small-producer-friendly changes are left to FDA discretion, so it really depends on how much you trust that process. Note also these comments (background) by Peter Kennedy for the Farm-To-Consumer Legal Defense Fund, which focuses primarily on defending raw milk, and in particular Kennedy’s discussion (as things that may be particularly burdensome to small entities) of HARPC (“hazard analysis and risk-based preventive controls”), traceability, penalties, expansion of federal jurisdiction, and produce standards, as well as the terms of S. 3767, the “Food Safety Accountability Act of 2010,” a new measure introduced by Vermont Senator Patrick Leahy. On the “pro” side, here is an advocacy sheet (anonymous on its face, but attributed in some quarters to Senate staffers) defending the measure as fair to small farmers (& welcome Professor Bainbridge readers).

An ombudsman? For CPSIA?

Rick Woldenberg reacts to a peculiarly inutile suggestion, in a Baltimore Sun interview, from CPSC chair Inez Tenenbaum (“We think if we had a small-business ombudsman who was out there regularly educating small businesses, we could help them prevent problems in terms of compliance.”):

…The necessary implication is that we small businesses are just too stupid to understand their complicated rules – I guess she thinks only Mattel can read the English language. Of course, the pending testing frequency rule (which I believe will be implemented in the coming weeks, get ready for it) will cause our company to spend $15 million per annum on testing. This sum far exceeds our profits. Perhaps the ombudsman will help us terminate our people to pay for testing, or provide a shoulder to cry on.

CPSIA for soap?

PeacockBeautyPoster“The Safe Cosmetics Act of 2010 (SCA 2010), now before the House of Representatives, is an inappropriate and seriously flawed attempt to make cosmetics safer.” Disregarding considerations of dose and concentration, the bill would require label disclosure of every substance present in an ingredient “at levels above technically feasible detection limits.” Essential oils and herb extracts typically contain 100 or more such substances, some of which, in isolation and at much larger concentrations, would qualify as toxic. And there’s a CPSIA-like requirement that manufacturers test all ingredients before sale. “Most small personal care product businesses will not survive if SCA 2010 passes.” [fragrance specialist Robert Tisserand] The lead sponsors of the proposed Safe Cosmetics Act of 2010 (H.R. 5786) are Reps. Jan Schakowsky, D-Ill. of CPSIA fame, Ed Markey, D-Mass., and Tammy Baldwin, D-Wisc. [Drug Store News] More: Lela Barker, Cosmetics Design.

August 10 roundup

July 11 roundup

  • Update: Australian judge tells Men at Work to pay 5% of royalties to “Kookaburra” owner, far less than was demanded [Lowering the Bar, earlier here and here]
  • McDonald’s CEO pushes back vs. ogrish CSPI’s anti-Happy Meal campaign [Stoll, Mangu-Ward] “Milk, Coke and the Calorie Police” [Jason Kuznicki, Cato]
  • “Lawyer sues basketball star LeBron James, alleging he is his father” [CNN, BLT] Update: judge tosses suit.
  • Small business tort liability costs estimated at $133 billion [NERA study (PDF) for Chamber’s Institute for Legal Reform (press release) via PoL]
  • Crawlers, robots.txt and fear of litigation: “Some closure on my collision with Facebook” [Pete Warden]
  • Now what was Citizens United supposed to open the floodgates for, exactly? [Bainbridge]
  • DOJ “entered into undisclosed agreement with Amex to freeze out the employment of exec who ultimately was cleared of wrongdoing” [Podgor, Kirkendall via Steele]
  • Easter egg in financial regulation bill could result in new pressure for gender, ethnic quotas across wide sectors of economy [Diana Furchtgott-Roth, Real Clear Politics; Mark Perry with some figures on the degree of gender balance in Dodd’s and Frank’s committees]

“Pickle bills” exempt small foodmakers

Old and new provisions in some states’ food safety rules exempt some classes of producers, such as those with revenues below $5,000 a year, makers of relatively safe items like jams and pickles, or nonprofits. Some local regulators — and some more-established foodmakers who don’t like the unlicensed and unregulated competition — are crying foul. [AP/Google via Mangu-Ward]

Capsized by CPSIA

Dallas entrepreneur Phebe Phillips tells in this speech (PDF) why she had to get out of her successful plush animal business:

Then in 2008 and 2009 the U.S. economy tanked … retail dwindled and a new toy regulation was enacted in response to the poor quality and mass quantity oversights by some really big toy companies. BadMrsGinger4bThis new law raises the testing price for each product and in some cases, doubles or triples the costs. For some small companies, it can cost one year of total revenue just to meet the requirements of this law. The law is for any product marketed to a child age twelve and under and for any product made anywhere…even here. It has frozen many small and midsize companies leaving the companies that caused the problems in the first place as some of the only companies that can afford to stay in business. Financially, it caused me to temporarily halt my business…I changed!

Via Amend the CPSIA, which had this report on Phillips in December; earlier on CPSIA and stuffed animals here and here.

Consumer Product Safety Commission member Anne Northup has also been blogging about some of the law’s ongoing damaging effects on sellers of dolls, kids’ furniture and apparel imports.

PUBLIC DOMAIN IMAGE from Honor C. Appleton, The Bad Mrs. Ginger (Frederick A. Stokes Co., 1902), courtesy ChildrensLibrary.org.

Food safety bill: big vs. small business

From the WSJ last month (Division of Labour) on the big federal food-safety bill sailing through Congress:

:…small farmers worry the measure’s fees and inspection requirements would be ruinously expensive and are pushing for exemptions.

“I know people who have been small farmers for 25 to 30 years who are looking to get out of the business because food safety is becoming so alarmist,” said Mary Alionis, whose eight-acre Whistling Duck Farm in Grants Pass, Ore., sells produce to farmers markets and restaurants.

Big food companies generally support the bill, judging the added expenses it would bring to be small compared with the potential financial damage of a vast product recall.

It’s a pattern we’ve seen before.

April 20 roundup