Urgent Action Alert
PRODUCTS LIABILITY BILL THREATENS CONSUMERS RIGHTS
July 6, 1998

THE PROBLEM: Early the week of July 6th, the Senate is expected to vote on a regressive Products Liability bill which negates much of the important consumer protection legislation passed over the last few decades. The bill, S. 2236, was negotiated by President Clinton with business and industry representatives and the Congressional leadership, without much input by consumer groups. The legislation gives special breaks to certain businesses and industries, while severely limiting the legal rights of people injured by defective or dangerous products. Gun manufacturers are given special protection. S. 2236 is a very bad bill and should be opposed. Your immediate assistance is requested.

Significant problems of the Products Liability bill include:
 

  • The bill does not deter companies from manufacturing defective products.

    • It establishes a punitive damages cap of $250,000 for small businesses -- whose products such as children's clothing and toys have, in the past, presented clear threats to public health and safety. The legal rights of consumers to hold corporations fully accountable for manufacturing defective or dangerous products will be seriously limited if this legislation passes.
     

  • The bill makes it more difficult to prove the need for punitive damages.

    • Under the proposed law, the plaintiff would be required to show by clear and convincing evidence (a higher burden of proof) that the harm was the result of the defendant's conscious, flagrant indifference to the safety of others. Such a high standard could prevent a jury from penalizing a company even in cases where the company acted recklessly or knew its products could cause harm -- thereby making it very hard for injured parties to win money damages high enough to make reckless companies think twice.
     

  • The bill threatens all consumers and will be especially harmful to women.

    • Incredibly, S. 2236 undermines state laws that provide above-average protection against defective products. The federal bill provides special protections to certain industries. For instance, the bill excludes some breast implant manufacturers from liability limits but covers others. "Biomedical" suppliers, in effect, would be given immunity when producing raw materials and components used in medical implants, such as pacemakers, even if there are deadly consequences.

    In what is the most outrageous aspect of the Products Liability bill, gun manufacturers are protected by the bill's liability limits and will benefit from the tougher standards imposed on plaintiffs seeking punitive damages. In addition, many gun manufacturers fall within the definition of "small business" and would be protected from punitive damages over $250,000 for injuries and death caused by their products. Gun dealers and wholesalers who engage in negligent conduct (e.g., sales to felons, convicted domestic violence abusers, or minors) also would be given unwarranted protection.

    WHAT YOU CAN DO TO HELP: The Republican leadership needs 60 votes in order to force this bill through without any amendments that could strengthen consumer rights. Please call or fax or e-mail your Senators and ask them to oppose a cloture vote (a vote to cut off debate) on the Products Liability bill and urge them to to support "pro-consumer" amendments. Make it clear that you expect Congress to protect consumers from the dangers of defective products. The first vote may happen as soon as Tuesday, July 7th, followed by debate and other votes through Thursday, so quick action is required.

    The main number for Congress is (202) 224-3121, the operator will connect you with your U.S. Senator's Washington, D.C. office or check with directory assistance in your area for the Senators' state offices. Connect to http://www.visi.com/juan/congress for fax, phone, and e-mail address information for all members of Congress.

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