Foreign Manufacturers Fingered by Bill That Aimed To Ensure Safety of Imported Products

Searcy Denney Scarola Barnhart & Shipley
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Dangerous drugs, defective drywall, toxic toys – the pile of problematic products imported from foreign manufacturers threatens the safety of the youngest to the oldest Americans. The reason consumers end up with tangibles in their homes containing asbestos, cadmium, lead and other dangerous substances is because foreign manufacturers don’t have the same safety standards as U.S. manufacturers.

Further, if a baby at play or a senior taking medication is harmed by the product, and legal action is taken, finding out whom to sue can be a challenge. The reason why identifying defendants in other countries is difficult is because of jurisdictional hoops.

See related video here.

“While foreign manufacturers continue to export billions of dollars worth of merchandise to all 50 states, they avoid legal responsibility by claiming they are not subject to the U.S. legal process,” reads a blog on the American Association for Justice (AAJ) Web site. “There is something wrong with a system that allows these corporations to profit from American consumers, but escape accountability when their products cause harm.”

A bill that was pending in Congress two years ago aimed to change all that. The Foreign Manufacturers Legal Accountability Act of 2013 would have enabled injured Americans to enforce accountability on product-makers around the world by mandating the company have a registered representative in the United States. A summary of the bill, introduced by Democratic Pennsylvania Rep. Matt Cartwright and Republican Ohio Rep. Mike Turner, states it “expresses the sense of Congress with respect to jurisdiction of courts in the United States over foreign manufacturers that import products into the United States” and requires foreign manufacturers’ registered representatives “to accept service of process on their behalf for the purpose of any state or federal regulatory proceeding or civil action in state or federal court.” The bill ended up dying in Congress.

Imported products that fall under the auspices of the Consumer Product Safety Commission, Environmental Protection Agency and Food and Drug Administration are covered by the terms of the legislation. According to the CPSC, it already works with overseas businesses, governments and organizations to ensure imported consumer goods are safe.

“We pursue this goal by working with international partners to improve manufacturing and regulatory coordination and to encourage alignment of U.S. product safety requirements at a high level of safety,” the agency’s Web site states.

It was hoped the Foreign Manufacturers Legal Accountability Act would put an end to such questions as, “Are my children’s toys poisonous? or “Is my high-tech device going to overheat?” or “Will the fumes from my new-and-improved bathroom cleaner make me sick?”

“This bill will level the playing field between U.S. and foreign manufacturers by ensuring that all manufacturers that do business in the U.S. are held accountable for the safety standards mandated in our legal system,” according to AAJ. We are saddened to see that it did not pass into law.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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