December 8, 2009
On August 6, 2009, U.S. Senator Sheldon Whitehouse (RI) introduced the "Foreign Manufacturers Legal Accountability Act of 2009." The bill requires foreign manufacturers to have an "agent" located in at least one state where the company does business that would accept service of process for any civil and regulatory claims. Foreign manufacturers would thus be forced to consent to state and federal jurisdiction where their registered agent is located.
The bill would apply to manufacturers of products (and the component parts of those products) regulated by the Food and Drug Administration ("FDA"), Consumer Product Safety Commission ("CPSC") and the Environmental Protection Agency ("EPA"), including: drugs, devices and cosmetics; biological products; consumer products; chemical substances; and pesticides. The registration requirement would be limited to those that manufacture or produce the covered product in excess of a minimum value or quantity.
The bill prohibits the importation of any of the above products or a component part that will be used in the United States to manufacture one of the above products unless the foreign manufacturer has identified an agent.
The bill also requires the USDA and FDA to perform a joint study on whether this bill could apply to foreign manufacturers of food.
Two major consumer groups, Consumers Union and the Consumer Federation of America (CFA) and one plaintiff's lawyers group, American Association for Justice, support the proposed legislation.
The bill is currently before the U.S. Senate's Committee on Finance and must be approved by both the Senate and the House of Representatives before it could be presented to the President for signature or veto. We will keep you advised as this matter proceeds.
If you have any questions, or if you would like to learn more about our products liability or toxic tort defense practice groups, please contact Frederick W. Reif at (212) 634-5042 or by email at freif@brhr.com.
