On November 6, 2024, the U.S. Consumer Product Safety Commission (CPSC) approved an Operating Plan for Fiscal Year 2025, which outlines the agency’s strategic priorities and resource allocations for the year ahead. The plan comes at a time when the agency is grappling with significant budgetary constraints and staff shortages, and CPSC operating with nine percent fewer staff than the previous year. Resource limitations have made it increasingly difficult for the CPSC to address both well-known and emerging consumer safety threats.
In the wake of the Operating Plan’s approval, CPSC Chair Alexander Hoehn-Saric and CPSC Commissioners Peter Feldman and Douglas Dziak released statements reflecting support for the agency’s mission. The statements underscore the challenges posed by the rapid expansion of e-commerce, as well as an ongoing conversation about how best to address those challenges.
CFA has been calling attention to the product safety risks associated with the dramatic increase of e-commerce. E-commerce is now central to how many American consumers interact with consumer products. For this reason, the CPSC’s eSAFE Team screened more than 3 million listings on websites and requested nearly 60,000 Internet site takedowns, resulting in removal of more than 57,000 listings for recalled or violative products during Fiscal Year 2023. Further, purchases valued under $800 can be imported into the U.S. and sent directly to consumers with very little information for authorities to interdict dangerous or violative products. CPSC has stretched its budget for traditional port surveillance to expand inspections, and there are notable examples of this imperative work at our ports.
This blog post explores the broader implications of CPSC’s Operating Plan for product safety, particularly within the context of online marketplaces and the agency’s limited resources.
The CPSC’s FY 2025 Operating Plan: A Strategic Roadmap
The Fiscal Year 2025 Operating Plan is intended to guide the agency’s work across a broad range of products—from toys and household appliances to electronics and hazardous chemicals. Central to the plan are efforts to address emerging safety risks, improve public awareness, and continue modernizing the CPSC’s processes to keep pace with a rapidly evolving consumer goods landscape.
One of the key challenges facing the CSPC is managing the increasing volume of products sold through e-commerce platforms, a trend that has radically transformed how American consumers purchase goods. As online marketplaces have expanded, so too have the risks associated with unregulated or unsafe products sold directly to consumers, often with limited oversight.
Commissioners Peter Feldman and Douglas Dziak’s Response: E-Commerce, Enforcement, and State Partnerships
On November 6, 2024, CPSC Commissioners Peter Feldman and Douglas Dziak issued their joint statement on the FY 2025 Operating Plan. Importantly, Commissioners Feldman and Dziak highlight the concerns regarding direct-to-consumer online platforms and strongly support consistent enforcement in an ever-changing e-commerce marketplace.
The statement also focuses on strengthening state partnerships with the creation of a formal liaison to coordinate with state attorneys general. The increased collaboration with state stakeholders can improve the efficiency of the agency’s operations and protect consumers in a meaningful way.
Moreover, Commissioners Feldman and Dziak support increased transparency when firms violate U.S. safety laws. The Commissioners state that, for too long, the agency has accepted representations from a non-complaint business regarding its financial solvency or insolvency without verification. Now, the CPSC will require evidence of the financial condition when a business attempts to assert an inability-to-pay defense against civil penalty assessments.
Chairman Alexander Hoehn-Saric’s Statement: International Programs at Risk
On November 8, 2024, CPSC Chair Alexander Hoehn-Saric issued his own statement, highlighting the significant budgetary challenges facing the agency. Further, the Chair expresses disappointment that a majority of colleagues approved an amendment that drastically cuts the CPSC’s International Programs budget by 61%. This amendment follows earlier staff proposals that already reduced the funding for these programs.
The International Programs play a critical role in training foreign governments and businesses on U.S. safety standards. By undermining efforts to educate foreign manufacturers, the cuts will severely impair the CPSC’s ability to prevent hazardous products from entering the U.S. As an example, thousands of foreign companies participated in CPSC training programs last year, helping to prevent dangerous products from reaching American consumers. The cuts, along with constraints on staff participation in voluntary standards activities, will undermine efforts to ensure dangerous products are stopped at the source before entering the U.S. marketplace.
The CPSC is already under enormous strain to identify, address, and intercept dangerous products, especially those sold through e-commerce channels. The reduction in international outreach, combined with limited voluntary standards development participation, will only increase the pressure on the agency to adequately detect and address unsafe products entering the U.S. from abroad. The continuation of these vital international programs and voluntary standards development is necessary to protect consumers from hazardous products.
Looking Ahead: Navigating Product Safety in an E-Commerce World
The CPSC’s Fiscal Year 2025 Operating Plan and the subsequent Commissioner statements underscore the agency’s difficult position in a dramatically changing product safety landscape. As e-commerce continues to expand, so too does the challenge of ensuring products sold online meet U.S. safety standards and don’t pose a risk to consumers. The CPSC faces a critical task ahead in safeguarding consumer health and safety in an increasingly interconnected world.
Stay tuned for further updates on the CPSC’s activities and ongoing discussions about how best to serve the public in a rapidly changing online marketplace.