Date: 1987-12-21
Speaker: D AMATO (republican)
Chamber: S

Mr. President.I rise this evening to comment on the U.S.. Consumer Product Safety Commission. I focus on the Commissions December 16 proposed settlement -of its Imminent hazard complaint against the manufacturers of alterrain vehicles known as ATVs. Mr. President. their proposal Is a Christmas present to the Japanesebased ATV industry.. butit is a disaster for the .American public. especially iour children rATVs have caused :about 900 deaths and 330.000 injuries nationwide since 1982. At least 559 deaths have occurred in my State. in the State of New York. Half of the inJuries and deaths are to children under the age of .16. ATV injuries and deaths cost the public more than $1 billion each year. Over a year ago. Mr. President. the Consumer Product Safety Commission voted to pursue an enforcement action against the industry. Chairman Scanion- dissented from -the vote. The matter was referred to the Department of Justice on February. 2. 1987 and on December 11. 1987 16he Department of Justice. In a longoverdue decision. formally agreed to file a -complaint in Federal district court seeking all the relief authorized by the Commission last December. including the refunds to consumers who purchased adultsized ATVs for children as well as consumer refunds for all threewheeled ATVs. The December 16 proposed settlement. Mr. President. falls far short of the complaint and does not even match what the only American manufacturer has .offered. Most .Importantly. because It (deletes ithe requirement for consumer refumds. the settlement provides no effective means for keeping children from riding adultsized ATVsmiillons of which are in our communities. This is rather outrageous when the only major American ATV manufacturer .has already agreed to refunds. We have an American manufacturer. Polaris of Minnesota.. who has agreed to take responsibleactions. while the Japanese companies. whose ATVs .constitute the great bulk of products In the United -States. are unwilling to -do this. :Mr..President. the proposed settlement appears to be a carefullycontrived attempt to limit manufacturers products liability exposure while settling the case as .cheaply. as possible. In other words. CPSC has done the bidding and the work of the ATV manufacturers. Let me tell you Why. The proposed settlement containsa socalled verification form that consumers must .sign at the jpoint of purchase and that manufacturers will Itry to use as a defense in products liabilitysuits. This would put the Federal Governmerits stamp of approval on what amounts. to a release or consent coverlng nearly every conceivable products liability scenario associated with ATV TES 15 95 accidents. For example. according to this settlement (consumers must agree in vriting to never drive at "excessivespeedswhatever they are. The verificationform doesnt explain what an ".excessive" speed is. Imagine that. Our (Government is -saying that .once the consumer signs this .consent. this waiver. that he promises that he will. never use his vehicle at "excessive" speeds and that he understands what "excessive" speeds -are. Unfortunately. a driver finds out what the"excessive" speed is only after he has lost .control and the vehicle has .crashed. Obviously. if an accident occurs. the manufacturer will try .to prove that the vehicle was going at an "excessive" speed as a defense. The consumer also promises never to lend an ATV to an untrained person. How do we establish who Is trained and who is untrained?The verification form also requires the consumer to promise at the time of pur.chase that he will never. perform "stunts" such as "wheelles." and that the consumer will never drive an ATV without wearing heavy trousers or a longsleeved.shirt. So what happens if your youngster leaves your home on a hot summer day without heavy trousers. or without a longsleeved shirt. and is then Injured? Could this then Tbe used to mitigate :any damages based -on the argu-. ment that -the manufacturer told you when you bought this vehicle that you have to wear longsleeved shirts and heavy trousers. What about the people who borrow a vehicle? What about the child who loans the vehicle to one of his friends? The ATV purchaser must also promise to upproach hills. turns. and .dbstacles with "extra care." What an incredible settlement] Mr. President. I think It is unconscionable for the Federal Government to attempt to aid the industry at the expense of .consumers by .extracting a promise not to engage in certain .broad. Illdefined conduct where the consumer has no meaningful .opportunity to understand and appreciate the risk involved. I :am informed that this p roposed settlement. this incredible plan. was negotiated after a secret December 7 meeting between the CPSC General Counsel James Lacy. Commission attorneys. and attorneys for -the Japanese -companies. The -Consumer Product Safety Commission Chairman Scanlon and his general -counsel then called a meetingof the .CPSC Commissloners to propose this settlement. This meeting was called on December V8 and a proposed .consent decree was approved .that very same .day at the insistence .of the chairman and his general .counsel. Interestingly. the Chair.mans igeneral counsel had this proposed conseni decree for more than a week .yet he never shared It with the other two Commissioners or with their staff members. The chairman and his general counsel kept it secret and .never showed the key documents to them. The general counsel got them into a room and said what a wonderful settlement. please sign on the line! What took place is absolutely incredible. I have expressed my concern on this matter to the Justice Department by way of a letter. I ask unanimous consent to have a copy of my letter to the Justice Department printed in the RECORD. . There being no objection. the letter was ordered to be printed in the RECORD. as follows: