Richard Gottlieb

How much government regulation is too much government regulation?

The New York Times had quite a bit to say about the Toy Industry on its Editorial and Op-Ed pages this Sunday. The Editorial page made a call for government regulation for all imports in an a piece entitled “The Need for Regulation For All of the Nation’s Imports.” Just below it, the editor saw the need to single out the toy industry in a piece aptly entitled “And Especially for Our Children’s Toys.”  

The editorial, however, accuses the industry and the Bush administration of seeking what it calls “…regulation on the light side.” This comes from what it sees as the toy industry’s desire to have testing done by independent labs under standards set by the government. The editorial feels that this will give parents a false sense of confidence because the Consumer Products Safety Commission does not have the manpower to do the laboratory and product inspections necessary to assure compliance. The New York Times states: “To guarantee the safety of the nation’s children, American toy makers must be truly regulated by a well-financed, powerful government agency.” 

Will we get such a powerful government agency?  In my opinion, with the Democratic party in control of Congress, a lame duck President, the mood of the country a bit scared about imports, and a cowed toy industry, we may just see this type of government authority.

Will this be good for the toy industry? Well, I think, yes and no. Yes, if it actually makes for safer toys and assures worried parents. No, if it ends up being a bureaucratic maze that slows down the ability of companies to bring new products to market without missing customer shipping deadlines, movie openings, and fast moving fads.

My perception is that the toy industry did a good job at the Senate hearings and will likely do so when it appears before the House. It admitted problems and provided solutions. This kind of forthcoming behavior will go a long way to providing the kind of balanced approach that the industry and parents require. One that guarantees safety while assuring that that safety does not come at the cost of a bureaucracy; A bureaucracy that will, as all bureaucracies ultimately do, grow larger; grow more cumbersome and; inevitably, evolve into an impediment to creativity.

Posted by Richard Gottlieb on September 17, 2007 | Comments (0)