The High Risk of Low Prices

by Cristina Martin Firvida, Director of Government Affairs and Senior Counsel
National Women's Law Center

Two events took place this Wednesday morning, seemingly unrelated, but in reality representing two sides of the same coin.

After ninteen years of using the same slogan – “Always low prices” – Walmart launched a new slogan: “Save money. Live better.”  Walmart believes it has gotten a bad reputation as a cheap junk merchant, and wants to improve its image. On the same morning that Walmart rolled out its new campaign, Mattel’s CEO and the head of the federal Consumer Product Safety Commission were testifying before Congress about the millions of recently recalled toys, almost all made in China. 

It is no secret that price wars, often initiated by Walmart, have resulted in ultra-cheap toys. It is also no secret that China, where production costs are cheaper, is responsible for 87 percent of toys imported into the United States.  And here is where low prices result in high risk – lead paint is an excellent way to cut costs. So is recycling electronic waste exported from the United States to China, to make children’s jewelry.

In case you are wondering why the Chinese are having all the fun saving money and living better, don’t fret – the Consumer Product Safety Commission is busy saving money, too. It turns out that the federal agency responsible with testing the safety of products sold to Americans and issuing recalls for things you really, really should not own, has over time cut its own budget and staff in half.   The entirety of the toy-testing department at the Consumer Product Safety Commission is now one guy named Bob with an overloaded workbench.

Perhaps there is a conservative somewhere who is prepared to defend an agency that has cut costs while putting taxpayers at risk.  But for our money, we’d be willing to spend a little bit more, and live better.

Comments

[Mark]

Right on the mark! I've been working with Wake Up Wal-Mart and we issued a report yesterday detailing the company's joint venture with China. We launched a new ad that you might be interested in as well.

As an American company, wal-mart is obligated to make a best effort to keep the products it sells safe for all of us. As you pointed out, Wal-Mart is passing on the risks with the savings. We've got to make sure people are aware.

Mark