Richard Gottlieb

Following all the rules: The TIA and educational trips for the Consumer Product Safety Commission
November 7, 2007

I have, and I am sure you have as well, been a bit concerned about the accusations by Congress and the press that the Toy Industry Association (TIA), along with other industry associations, has paid for educational trips by Nancy Nord, the head of the Consumer Product Safety Commission (CPSC). I wanted to know if the TIA did anything wrong. So, I asked the TIA and here is what I found out:

• All trips were for educational purposes (industry seminars) and travel, vetted by the CPSC Legal Counsel.
• The CPSC actually issues an invoice with receipts for each trip and the TIA reimburses strictly against these invoices. 
• The TIA has records indicating invoiced payments for educational trips by CPSC personnel dating back nearly ten years. 

I find all of this to be highly illuminating. First, this did not start with the Bush administration, as media reports have suggested,  but gives credence to Chairman Nord's statement that this has been going on for close to twenty years.   The CPSC is said to have a limited budget, it is therefore unfortunate that , even though the CPSC has an educational mission, they have had to rely on non-governmental sources so that they can speak at industry educational seminars.   Never-the-less, this has obviously been standard practice for the agency and the TIA was clearly following the rules. 

Secondly, and to me most importantly, the TIA made a reimbursement with receipts via invoice rather than pay directly to travel providers. I find a reimbursement to be a very different animal than a free trip. To me, a free trip implies that the industry picked up the bill. If that were the case, there would be no accountability for what they actually paid. Rather, by reimbursing, the Commission’s legal staff is able to monitor the amounts, the dates and the types of services provided. There is accountability and that is the key.

We are in a major election cycle and the toy industry is, unfortunately, one of the hammers being used by politicians to hit each other over the head. It is going to become increasingly important for all of us to keep our heads. 

Bottom line: The people who run the TIA have been following the rules. Get the word out.

Posted by Richard Gottlieb on November 7, 2007 | Comments (1)