As the parent of a five-year old boy, it was impossible to miss
the news. Within hours of the announcement that certain models of
Thomas toy trains were being recalled, our family began to get
calls and e-mails from other concerned parents. "Did you hear?"
"What are you going to do?" "Should we throw them all away?"
The Thomas recall - triggered when the manufacturer, RC2, found
during a routine test that the paint used by its Chinese
sub-contractor had excessive lead content, was one of many such
recalls this year of products (primarily from China) ranging from
toys to toothpaste.
The extent of the problem is unclear. While millions of products
have been recalled, there have been no reported consumer injuries.
Overall, injury rates from consumer products have been heading
down, not up. And cases of lead poisoning in children are at
all-time lows. Still, the recalls may be a sign of real problems in
manufacturing, especially (though not exclusively) in China.
But is increasing the power of regulators the answer? Easy
answers, such as increasing the number of federal inspectors, may
sound good but have little real effect, given the billions of
products sold each year. Others, such as empowering state attorney
generals to sue, could create a tort nightmare for U.S. companies,
raising prices for American goods, while not affecting foreign
manufacturers outside of legal reach. Still others, such as a
proposal to require manufacturer's to prove financial
responsibility, might simply discourage small businesses, while
benefiting only large corporations.
The best answer to the problems, in fact, may not lie with
Congress at all, but with consumers, including the network of
Thomas parents who sprang into action in my neighborhood. We didn't
throw our Thomas trains away, but many parents across the country
did, and many others will be buying far fewer of the little engines
and railcars in the future. This has an effect on the bottom line
-- RC2's market value is down about a third this year. And, while
consumers may not deal directly with factories in China and
elsewhere, the firms consumers buy from do. With their brand names
at risk, companies such as Mattel have already acted to strengthen
their oversight of off-shore manufacturers.
There is of course a role for regulation. But it is consumers
themselves, acting in the marketplace, that provide the strongest
and most effective protection against poor quality and unsafe
goods. As Thomas' fictional boss would put it, the marketplace is a
really useful little engine.
James L. Gattuso is
senior research fellow in regulatory policy at the Heritage
Foundation.