DOCSLIB.ORG

About Twilight

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
About Twilight GLOBAL TRENDS IN THE OMEGA-3 INDUSTRY Three The questions • How are consumers spending their money? • Is the ingredient market market growing? • Where is the growth? The market Consumers spend $31 billion on products with added EPA and DHA. The US is the largest single market, but Asia as a region is larger and growing faster, so attention has shifted. Source: GOED Proprietary Research The market Asia has become the leading market of interest. The Asian market is both sizeable and growing quickly, while other high growth markets are smaller. The United States has become the slowest growing market in the world Source: GOED Proprietary Research The market The East and Southeast Asian omega- 3 market is expected to develop very quickly very soon. It’s very likely that per capita spending for the relevant reasons will develop accordingly. Source: GOED Proprietary Research The market Potential Consumer Omega-3 Spending Increase in Developing Countries $30.1 Billion What if spending in $18.8 Billion developing countries reached European levels? The global omega-3 market will be fine simply due to the pace of economic development in the world. Developing countries alone $7.5 could triple the size of the market if Billion per capita spending reaches $3.2 European levels Billion $1.3 $0.7 Billion Billion Rest of APAC Mexico China South Rest of Asia Rest of World America Current Spending European Spending Scenario Source: GOED Proprietary Research The market Global EPA/DHA Ingredient Volumes (Metric Tons) 91,321 87,370 86,294 87,925 The global market is growing again. Even though volumes are growing slightly, ingredient prices have been under pressure due to overcapacity. 2013 2014 2015E 2016P 4-yr CAGR: +1% Source: GOED Proprietary Analysis The market 2016 Projected Omega-3 Ingredient Growth by Region Rest of Asia 14.0% Rest of APAC 9.5% China 9.2% The East and Southeast Asian omega- Other 8.4% 3 market is already developing very Mexico quickly. It is likely that this growth will 8.1% continue in the coming years and South America 6.4% market attention will remain in these regions. Japan 5.8% Canada 3.7% Australia 2.9% US 1.8% Europe -0.6% -5% 0% 5% 10% 15% Source: GOED Proprietary Analysis The market 2016 Projected Global Omega-3 Ingredient Volume Increase by Geography Asia accounted for two- thirds of global growth in omega-3s last year. While other countries contributed less, only Europe actually declined in 2016, primarily due to declines in 18/12-type dietary supplements. Source: GOED Proprietary Research Two Questions • Is demand for crude oil growing? Supply of • Which factors determine Omega-3 growth? Supply of Omega-3 Global Omega-3 Crude Oil Demand (Metric Tons) 194,530 177,903 184,193 Demand for crude oil is stronger than omega-3s. Lower yield omega-3 products like concentrates have been growing in volume, which has increased demand for crude oil despite tight supplies. 2014 2015E 2016P CAGR: +5% Source: GOED Proprietary Analysis Supply of Omega-3 Share by Primary Source of EPA/DHA 2016 Projected Crude Oil Demand by Species Anchoveta is still the All Others 49,134 dominant source of oil for omega-3s. However, due to issues in the fishery in recent years, many omega-3 companies have set up alternate supply chains with similar species in Africa, Europe and Asia. In total, demand increased 12,200 tons for Anchovy and these oils from 2014-2016. similar species 145,396 Source: GOED Proprietary Research Supply of Omega-3 13 Heatmap of 2014-2016 Omega-3 Crude Oil Demand Growth Rates Higher rates of growth have been seen in unique sources and higher concentrations. However, unique sources also contribute much lower volumes, and thus receive fewer economies of scale Source: GOED Proprietary Research One Significant question barriers • Can omega-3 ingredient companies make money in to growth today’s environment? Barriers to growth | MARGINS 15 Masked Revenues and Income of Leading Omega-3 Refiners and Concentrators, 2014-2015 These 15 companies $140 represent 1/3 of global $120 omega-3 sales and collectively account for a $100 net loss of $11 million. $80 $60 $40 US$ millions $20 $0 -$20 Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8 Company 9 Company Company 10 Company 11 Company 12 Company 13 Company 14 Company 15 Company -$40 Revenue Net Income Source: Company Filings Barriers to growth | MARGINS 16 Change in Gross Margin for Leading Omega-3 Refiners and Concentrators, 2012-2015 70% 60% 50% Gross margins for refiners 40% and concentrators are 30% declining. 20% Increased raw material prices have offset gains in operating efficiencies, so the only 10% way for companies to generate sufficient margin to cover their overhead is to increase 0% sales...but that leads to other issues. 2012 2015 -10% -20% -30% Source: Company Filings Barriers to growth | OXIDATION Barriers to growth | OXIDATION Retail products are oxidized Oxidation reduces Five general complaints EPA/DHA levels have been raised about oxidized omega-3s. Harmful compounds Omega-3 Oxidation are created in Complaints Most lipid scientists and analytical chemists oxidation GOED has consulted believe there is not a significant oxidation problem, but there may be specific issues where more research needs to be Oxidized lipids are conducted. unsafe Oxidized fish oil is specifically harmful Barriers to growth | OXIDATION OXIDATION STUDIES OF OMEGA-3 PRODUCTS TO DATE Assessing the quality Regulatory GOED pAV Compliance Study Compliance Rate Compliance Rate Unflavored Oils Quality Study Country n (PV < 10) (PV > 5) and data in studies is GOED, 2017 New Zealand 47 98% 72% 86% 8 Nichols et al, 2017 Australia 10 100% 100% 88% 7 important Jackowski et al, 2015 Canada 171 >95% 83% Not assessed 6 Albert et al, 2015 New Zealand 36 72% 17% Not assessed 6 Fierens, 2007 Belgium 16 75% 69% 100% 6 We believe there are nine important Fantoni, 1996 Brazil 16 69% 63% Not assessed 6 TGA, 2016 Australia 15 100% 100% 100% 6 criteria in product quality studies. You Turner et al, 2006 New Zealand 6 100% 67% 100% 6 must ask, was the study: Labdoor, 2017 United States 53 98% 91% 100% 5 Labdoor, 2015 United States 51 98% 90% 100% 5 Consumerlab.com, 2016 United States 44 100% 100% 100% 5 1. Peer-reviewed? Kolanowski, 2010 Poland 19 100% 95% Not assessed 5 Ritter 2012 United States 16 88% 69% Not assessed 5 2. Conducted at an accredited lab? Mason & Sherratt, 2017 United States 3 0% 0% 33% 5 3. Utilizing analytical chemists? IFOS, through 2015 North America 1933 100% 99% 100% 4 Consumerlab.com, 2012 United States 63 100% 98% 100% 4 4. Using an accepted method? Consumerlab.com, 2008 United States 50 100% 100% Not assessed 4 5. Confirmed by another lab? Consumerlab.com, 2014 United States 46 100% 100% 100% 4 Consumerlab.com, 2004 United States 41 100% 98% Not assessed 4 6. Blinded from the chemists? Consumerlab.com, 2010 United States 39 100% 100% Not assessed 4 Halvorsen, 2011 Norway 33 97% 88% Not assessed 4 7. Independent from industry? Consumer Reports, 2012 United States 15 100% 100% 100% 4 8. Assessing products against the correct Killeen et al, 2017 New Zealand 11 100% Unknown Not assessed 4 Thorkildsen, 2010 Norway 56 50% 7% 96% 4 limits? Opperman & Benade, 2013 South Africa 57 84% 68% Not assessed 3 9. Testing products that were Consumerlab.com, 2001 United States 20 100% 100% Not assessed 3 AVERAGE 89% 79% 93% independently selected? Barriers to growth | OXIDATION New data comparing 20 oxidation in omega-3 oils to vegetable oils shows they are about the same. 1. 14% of fish oils exceeded GOED’s Monograph limit, which is in line with previous GOED tests and other well- designed studies 2. Only 2.2% of fish oils had PVs exceeding 10meq/kg, the common regulatory limit for edible oils 3. 97% of olive oils had PVs exceeding 10meq/kg 4. If peroxide exposure is a concern, North Americans consume 11,926 thousand tons of vegetable oils annually versus 88 ktons of omega-3 oils Source: GOED/Nutrasource Barriers to growth | OXIDATION REASONS CITED FOR CEASING USAGE OF OMEGA-3s IN U.S. FISHY BURP 12% is the top reason consumers stop taking an omega-3 10% product, and is an oxidation issue that is very clearly 8% within industry’s ability to manage. 6% Encapsulators can add 4% significant value to their 2% customers by helping them avoid the fishy burp. 0% Source: GOED Proprietary Surveys Barriers to growth | OXIDATION 1-YR PEROXIDATION CHANGE IN 41 ENCAPSULATED FISH OILS -1 0 1 2 3 4 Once encapsulated, fish oils oxidize an average of 1 meq/kg per year (CI: 0.2 – 2.1). Encapsulators can help plan for this trajectory. Source: GOED Proprietary Product Testing ONE FACTOR • One significant growth trend is having an impact CONTRIBUTORS globally and is accelerating, the drive by consumers to TO GROWTH higher value products. CONTRIBUTORS to growth CONVENIENCE Many consumers are simply looking for a more convenient way to consumer US Retail Market Share of Convenience Forms of Omega-3s their omega-3s because they find it too difficult to prepare seafood and/or take large pills. This trend started in the US, but is now increasing globally. Emulsions Gummies Small Pills Liquids Source: AC Nielsen CONTRIBUTORS to growth POTENCY Many consumers are simply looking for a more Global Market Share of High EPA/DHA Oils Vs. Low EPA/DHA Oils convenient way to 72% 45% 70% consumer their omega-3s 70% 40% because they find it too 68% 40% 68% 35% difficult to prepare seafood 36% and/or take large pills.
Load more

Recommended publications
  • USCA Case #20-1145 Document #1881108 Filed: 01/21/2021 Page 1 of 43
    USCA Case #20-1145 Document #1881108 Filed: 01/21/2021 Page 1 of 43 ORAL ARGUMENT NOT YET SCHEDULED UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT COMPETITIVE ENTERPRISE INSTITUTE, et al., Petitioners, v. No. 20-1145 (consolidated with NATIONAL HIGHWAY TRAFFIC Nos. 20-1167, 20-1168, 20-1169, SAFETY ADMINISTRATION, et al., 20-1173, 20-1174, 20-1176, 20- 1177, 20-1230) Respondents, ALLIANCE FOR AUTOMOTIVE INNOVATION, et al. Intervenors for Respondents. BRIEF OF AMICUS CURIAE CONSUMER REPORTS IN SUPPORT OF COORDINATING PETITIONERS George P. Slover Cale Jaffe Senior Policy Counsel Director, Environmental Law and Consumer Reports Community Engagement Clinic 1101 17th St., NW, Suite 500 University of Virginia School of Law Washington, DC 20036 580 Massie Rd. Tel: (202) 462-6262 Charlottesville, VA 22903 [email protected] Tel: (434) 924-4776 [email protected] Dated: January 21, 2021 Counsel of Record for Amicus Curiae Consumer Reports USCA Case #20-1145 Document #1881108 Filed: 01/21/2021 Page 2 of 43 CERTIFICATE AS TO PARTIES, RULINGS, AND RELATED CASES A. Parties and Amici Except for the following, all Petitioners, Respondents, Intervenors, and Amici Curiae appearing before this Court are as listed in the Briefs of Petitioners Center for Biological Diversity, et al., City and County of Denver, et al., and National Coalition for Advanced Transportation, et al. Amici Curiae: Consumer Reports; and The Coalition to Protect America’s National Parks, the National Parks Conservation Association, New Mexico Wilderness Alliance; and American Thoracic Society, American Lung Association, American Medical Association, Medical Society of the District of Columbia; and National League of Cities, U.S.
    [Show full text]
  • Essays on Transparent IT Support for Asymmetric Client-Advisor Encounters: the Case of Swiss Investment Advisory Services
    Zurich Open Repository and Archive University of Zurich Main Library Strickhofstrasse 39 CH-8057 Zurich www.zora.uzh.ch Year: 2012 Essays on transparent IT support for asymmetric client-advisor encounters: the case of Swiss investment advisory services Nussbaumer, Philipp Abstract: Investment advisory encounters are strained by information, knowledge and interest asymme- tries between client and advisor. These are detrimental to advisory quality and client satisfaction, leading to an unfavorable client perception of investment advisory services. This situation is disadvantageous for both clients and financial service providers. Clients increasingly turn to other information sources and fail to reap advisory services’ potential benefits for their investment decisions; financial service providers fail to exploit personalized advisory services as one the most promising differentiation strategies against competitors and struggle with low client satisfaction and retention. This dissertation suggests a novel approach for these issues: addressing asymmetries in investment advisory encounters with transparent, shared IT artifacts. Hence, it is based on the following thesis: Shared collaborative IT artifacts are a fea- sible and useful means to improve transparency of investment advisory encounters and, thus, to increase client satisfaction. The dissertation supports this thesis along three research essays: Essay I provides an empirical investigation of the status quo of Swiss investment advisory services. It suggests that investment advisory
    [Show full text]
  • Consumer Organizations and Promotion of Sustainable Energy Consumption: Comparative Product Quality Testing and Its Impact
    Panel III, 04 – Wahnschafft/Huh Consumer Organizations and Promotion of Sustainable Energy Consumption: Comparative Product Quality Testing and its Impact Ralph WAHNSCHAFFT Energy Resources Section, United Nations Economic and Social Commission for Asia and Pacific (UN-ESCAP), Bangkok, Thailand Kwisun HUH Department of Environmental Science & Engineering, Hanguk University of Foreign Studies, Seoul, Republic of Korea 1 - SYNOPSIS This paper reports selected preliminary results of an ongoing survey on consumer organizations. It analyzes comparative product quality testing and its potential impact on promotion of energy efficiency. 2 - ABSTRACT The paper provides an overview on consumer organizations in OECD and high income developing countries, in particular with regard to their consumer information activities. It focuses on a review of comparative product testing of selected electrical home appliances and on test reports in consumer interest magazines. The paper analyzes the relative weights allocated to the different product quality criteria, including energy efficiency. Based on the above the paper reflects on the role that consumer organizations can play in the promotion of “green consumerism” and sustainable energy consumption, in particular with regard to the residential sector. 3 - INTRODUCTION 3.1. Background and objectives Advancing commercialization of societies has brought with it the formation of a growing number of local and national consumer interest groups. Today, Consumers International, the largest federation of consumer organizations and agencies worldwide, counts 243 member organizations in over 110 countries (1). Individual organizations greatly differ in their membership and organization, their sources of financing and government sponsorship, their work methods, activities and relative political influence. However, enhancement of consumer protection and better consumer information are overall common objectives that unite the “consumer movement”.
    [Show full text]
  • Five Questions to Ask When Considering Health Supplements
    Five Questions to Ask When Considering Health Supplements COMMENTS JANUARY 19, 2016 / by KATIE WORTH Tow Journalism Fellow, FRONTLINE/Columbia Journalism School Fellowships Compared to most drugs sold at pharmacies, health supplements are loosely regulated by government agencies. Law prohibits manufacturers from selling products that are adulterated or mislabeled, and they cannot claim to cure things they don’t. But there is little oversight or enforcement to ensure they comply. And unlike prescription drugs, which pass through a strict premarket approval process, the Food and Drug Administration does not evaluate a supplement’s contents or effectiveness before it hits the shelves. Even then, the agency has only a modest capacity to test the pills. The result is a more than $30 billion industry that is largely regulated by the honor system. Given this framework, there is little to guarantee that any vitamin, mineral, probiotic, sports supplement, herbal treatment, or other dietary supplement is safe, effective, or even contains what’s on its label. Last year, for example, an investigation by the New York Attorney General’s office found that several popular store-brand supplements at four major retailers — GNC, Target, Walgreens and Walmart — contained contaminants not listed among the labeled ingredients. Just 21 percent of them actually had the DNA of the plant species they purported to be vending. While there are no guarantees, there are steps consumers can take to improve the chances that their supplements contain what they claim to, in the labeled quantities, and that they may indeed have a health benefit. Here are five questions a consumer may want to ask when considering supplements.
    [Show full text]
  • The Price Sensitivity of Health Plan Choice Among Retirees: Evidence from the German Social Health Insurance
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Wuppermann, Amelie; Bauhoff, Sebastian; Grabka, Markus Conference Paper The Price Sensitivity of Health Plan Choice among Retirees: Evidence from the German Social Health Insurance Beiträge zur Jahrestagung des Vereins für Socialpolitik 2014: Evidenzbasierte Wirtschaftspolitik - Session: Health II, No. B10-V3 Provided in Cooperation with: Verein für Socialpolitik / German Economic Association Suggested Citation: Wuppermann, Amelie; Bauhoff, Sebastian; Grabka, Markus (2014) : The Price Sensitivity of Health Plan Choice among Retirees: Evidence from the German Social Health Insurance, Beiträge zur Jahrestagung des Vereins für Socialpolitik 2014: Evidenzbasierte Wirtschaftspolitik - Session: Health II, No. B10-V3, ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft, Kiel und Hamburg This Version is available at: http://hdl.handle.net/10419/100352 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte.
    [Show full text]
  • Gauging the Influence of the Consumers Unions of the World Views of a Consumer Economist
    GAUGING THE INFLUENCE OF THE CONSUMERS UNIONS OF THE WORLD VIEWS OF A CONSUMER ECONOMIST E. Scott Maynes, Cornell Universityl ~~~~~~~~~~ABSTRACT.~~~~~~~~~~ 3. What vehicles for influence (e.g., Influence : " t he effects of actions, behavior, product testing, advocacy offices) and opinions on others." This paper explores does each employ? the various dimensions of t he influence of t he Consumers Unions of the world and proposes My next two questions deal with what we need to measurements of each. Dimensions explored know : include a selective, a nnotated bibliography of publications that deal with t h eir influence, 4 . What has been the short-run influence estimates of the growth of U. S. consumer of each CU on (1) its readers/users organizations, a listing of t he "vehicles" for and (2) the public in i ts country? influence employed by Consumers Unions of U. S .A. (e.g., Consumer Reports), a model t hat depicts 5 . What has been the long-run influence the stages of influence t hrough which consumers of each CU on (1) its readers/users pass in the short - run (aware of it, approve of and (2) the public in i ts country? it, etc.) , and a benefit/cost model of the long­ run i nfluence of the Consumers Unions (e.g. , My paper consists primarily of five tables better choices . l onger life. etc.). which, suitably filled in, will answer these questions. The main publications of t he t hree largest Consumers Uni ons--Consumer s Unions of U.S .A. For completeness, I list four additional (hereafter CU), Consumers' Association of t he questions, worthy of consideration, that are United Kingdom (CA), and Sti ftung Warentest of excused for lack of space : Wes t Germany (SW)--are purchased by 2% to 5% of households in their countries and are cons ulte d 6.
    [Show full text]
  • Why Third-Party GMP Certification Should Not Be Optional for Dietary Supplement Firms
    Why Third-Party GMP Certification Should Not Be Optional for Dietary Supplement Firms By Scott Ravech Nutitional Outlook November 20, 2014 Quality took on a whole new meaning for me when I joined Deerland Enzymes as CEO in 2008. During my first tour of our manufacturing facility, I noticed that one of the enzyme products we produced was in fact the exact product that a naturopath had suggested for one of my sons. This personalized and drove home to me the seriousness of the responsibility that we as industry members have to ensure that the products we manufacture are absolutely safe for consumption. Current good manufacturing practices (GMPs), which require that companies have proper controls for the manufacturing, packaging, labeling, and storing of dietary supplements, are a key facet of product safety. FDA first introduced GMP regulations for dietary supplements (21 CFR Part 111) in 2007, with the intent of industry-wide compliance by 2010. By now, all companies should be GMP compliant. The industry itself—as well as consumers—pushed for greater safety regulations following concerns about substandard dietary supplement manufacturing practices and labeling. Unfortunately, those concerns continue to have merit. In 2013, FDA reported that as many as 70% of the GMP inspections it performed on dietary supplement manufacturing facilities identified GMP noncompliances. Independent testing by such groups as Consumer Reports and ConsumerLab.com continues to find incorrect or misbranded supplement labels in the market and, in some cases, supplements that contain unacceptable levels of contaminants. As manufacturers, we need to take supplement safety seriously. It is our responsibility to provide, above all else, safe dietary supplements that consumers can take without fear of harm.
    [Show full text]
  • Summary of Annual Report 2016
    Annual Report 2016 coming together for change I’d like to thank our members for their support of Consumers International and indeed their efforts for consumers around the world. I look forward to our ongoing impact and collaboration. Bart Combée President Contents 01 From our President 02 From our Director General 04 About Consumers International 06 Achievements and performance 08 International advocacy and campaigning 10 Building a digital world consumers can trust 12 Making international trade work for consumers 14 Advancing excellence in global consumer protection 16 World Consumer Rights Day 18 Campaigns, communications and brand development 20 Fundraising and partnerships 22 Consumers International’s governance 24 Financial summary 26 Trustees responsibilities statement 27 Respective responsibilities of trustees and auditor 27 Opinion on financial statements 27 Opinions on other matters prescribed by the Companies Act 2006 From our President, Bart Combée Bart Combée became President at Consumers And we’ve seen many successes this year. International’s General Assembly in Brasilia on • Consumers International played a major role in 21 November 2015 and is serving a four-year term. the adoption of an ISO standard on mobile services Mr Combée is also the Chief Executive of and new international guidelines to prevent the Consumentenbond in the Netherlands. mis-selling of financial services which will help create a better environment for consumers. I am pleased to report that Consumers International has had an excellent year of delivery for its members • In March more than 90 Consumers International and for consumers. members in 60 countries worked together to mark World Consumer Rights Day 2016 on the theme of The updates to our governance, which members voted antibiotic resistance, raising awareness of the overuse for at our 2015 World Congress have greatly supported and misuse of antibiotics in the food supply chain.
    [Show full text]
  • 10 Top Picks APRIL 2021
    10 Top Picks APRIL 2021 For the latest ratings and information, visit These are the most exceptional new cars on the road today. They all shine in CR’s tests and surveys, and each comes standard with key advanced safety features. BY JEFF S. BARTLETT ach year more way onto our list through outstanding Consumer Reports. “That means we than 250 models performance in more than 50 tests at care more about how your next car or compete for the CR’s Auto Test Center, as well as having SUV performs when it comes to safety, hearts, minds, solid marks for reliability and owner comfort, and fuel efficiency than how and driveways satisfaction in our member surveys. All quickly it can circle a race track.” of American car have also scored well in dynamic safety Each Top Pick has an Overall Score shoppers. At tests, such as our challenging accident that’s among the highest in its category. Consumer Reports, we rank the new maneuver, and, if tested, earned And it must come standard with models we buy and evaluate based passing grades in crash assessments forward collision warning (FCW) and on regimented performance tests and conducted by the federal government automatic emergency braking (AEB) survey results from our members. Here, and the insurance industry. with pedestrian detection—proven we highlight the best of the best in our “We put thousands of miles on features that prevent injuries and save annual Top Picks, standouts in popular each test car and evaluate them for lives by reducing collisions. price categories and types.
    [Show full text]
  • Still Not Safe: New Recalls Underline Need for Strong Hazardous Product Legislation
    STILL NOT SAFE: NEW RECALLS UNDERLINE NEED FOR STRONG HAZARDOUS PRODUCT LEGISLATION A report by Consumers Union, publisher of Consumer Reports May 15, 2008 In its 2007 fiscal year, the U.S. Consumer Product Safety Commission (CPSC) announced a record 473 product recalls as the marketplace was besieged by unsafe toys and other products. The recalls included more than 25 million toys, tainted with hazardous lead paint, harmful, tiny magnets, toxic chemicals, and other dangers. In response, on December 19, 2007, the House of Representatives passed the CPSC Modernization Act, which gave the CPSC expanded powers and funding to improve product safety. The Senate passed its own CPSC reform legislation in early March. Members of the House and Senate are meeting now to hammer out a final agreement on a bill that can be endorsed by both houses and go to the President. It is essential that they combine the best consumer protection provisions in each bill. Much is still at stake. In just the first four months of 2008, the CPSC has recalled almost 10 million more consumer products. More than half of these, almost 6 million, were children’s products—toys, clothing, pacifiers, bicycles. More than 1.3 million of the children’s products were recalled because they contained dangerous levels of lead. And as in the past, the bulk of recalled products were imported from China—some 87 percent. Recalls, however, are not the solution; they only catch dangerous products after they have entered our stores, homes, and toy boxes. The real solution involves making certain that manufacturers test their products before they get to the market to ensure that they are safe for consumers, and penalizing those who do not comply with more stringent safety rules.
    [Show full text]
  • Adverse Event Reporting System for Dietary Supplements: an Inadequate Safety Valve (OEI-01- 00-00180; 04/01)
    Department of Health and Human Services OFFICE OF INSPECTOR GENERAL Adverse Event Reporting For Dietary Supplements An Inadequate Safety Valve APRIL 2001 OEI-01-00-00180 OFFICE OF INSPECTOR GENERAL The mission of the Office of Inspector General (OIG), as mandated by Public Law 95-452, is to protect the integrity of the Department of Health and Human Services programs as well as the health and welfare of beneficiaries served by them. This statutory mission is carried out through a nationwide program of audits, investigations, inspections, sanctions, and fraud alerts. The Inspector General informs the Secretary of program and management problems and recommends legislative, regulatory, and operational approaches to correct them. Office of Evaluation and Inspections The Office of Evaluation and Inspections (OEI) is one of several components of the Office of Inspector General. It conducts short-term management and program evaluations (called inspections) that focus on issues of concern to the Department, the Congress, and the public. The inspection reports provide findings and recommendations on the efficiency, vulnerability, and effectiveness of departmental programs. OEI's Boston Regional Office prepared this report under the direction of Mark R. Yessian, Ph.D., Regional Inspector General and Joyce M. Greenleaf, M.B.A., Assistant Regional Inspector General. Principal OEI staff included: BOSTON HEADQUARTERS Laura C. McBride, Lead Analyst Elise Stein, Program Specialist Aimee L. Kasenga, Program Analyst Joseph Rutherford, Program Specialist Nancy L. London, Program Analyst Nicola Y. Pinson, Program Analyst To obtain copies of this report, please call the Boston Regional Office at (617) 565-1050. Reports are also available on the World Wide Web at our home page address: http://www.dhhs.gov/oig/oei EXECUTIVE SUMMARY PURPOSE To assess the effectiveness of the Food and Drug Administration’s (FDA) adverse event reporting system for dietary supplements in protecting the American consumer.
    [Show full text]
  • Improving Federal Consumer Protections in Financial Services
    TESTIMONY OF TRAVIS B. PLUNKETT LEGISLATIVE DIRECTOR, CONSUMER FEDERATION OF AMERICA BEFORE THE COMMITTEE ON FINANCIAL SERVICES OF THE U.S. HOUSE OF REPRESENTATIVES ON BEHALF OF CONSUMER ACTION, CONSUMER FEDERATION OF AMERICA, CONSUMERS UNION, CENTER FOR RESPONSIBLE LENDING, NATIONAL CONSUMER LAW CENTER AND THE U.S. PUBLIC INTEREST RESEARCH GROUP IMPROVING FEDERAL CONSUMER PROTECTIONS IN FINANCIAL SERVICES JULY 25, 2007 Chairman Frank, Ranking Member Bachus and Members of the Financial Services Committee, my name is Travis Plunkett and I am the Legislative Director of the Consumer Federation of America (CFA).1 I appreciate the invitation to testify today on behalf of a number of national consumer organizations with tens of millions of members, including CFA, Consumer Action,2 Consumers Union,3 the publisher of Consumer Reports, the Center for Responsible Lending,4 National Consumer Law Center5 and the U.S. Public Interest Research Group.6 I commend the Committee for its diligence in examining the extremely important question of how well federal regulators are protecting consumers in the fast changing, increasingly complex financial services marketplace. This is the second hearing that the Committee has held on this topic, while many Committee and Subcommittee hearings this year have touched on regulation of important financial services markets, including mortgage lending, credit cards and other bank loans. 1 Consumer Federation of America (CFA) is a non-profit association of 300 consumer groups, with a combined membership of more than 50 million people. CFA was founded in 1968 to advance the consumer’s interest through advocacy and education. 2 Consumer Action (www.consumer-action.org), founded in 1971, is a San Francisco based nonprofit education and advocacy organization with offices in Los Angeles and Washington, DC.
    [Show full text]