What: On November 20, 2024, the Consumer Product Safety Commission (CPSC) published a proposed rule that establishes new performance and revised labeling requirements to address potentially deadly hazards associated with neck floats. Specifically, the proposed rule:
- defines a neck float as “an article, whether inflatable or not, that encircles the neck, supports the weight of the child by being secured around the neck (such as fastening, tightening, or other methods), and is used as an instrument of play in water environments including sinks, baths, paddling pools, and swimming pools, and is intended for use by children up to and including 4 years of age.”
- adds test requirements for conditioning, buoyancy, fastening systems, restraining systems, and neck opening.
- updates marking, labeling, and literature requirements.
- amends its list of notice of requirements (NORs) to include neck floats.
Why: The proposed rule would cover manufacturers, importers, and retailers of neck float products. CPSC estimates that a total of 19 small U.S. manufacturers and importers and 27,260 small U.S. retailers deal in neck floats.
CPSC has prepared an initial regulatory flexibility analysis (IRFA) for the rulemaking outlining the costs and impacts to small businesses. Under the IRFA, small firms of inflatable products will incur a significant cost from redesign/retooling and material changes because of the proposed rule. If the rule is finalized, small manufacturers would incur one-time costs related to redesign, retooling, testing, labeling/literature updates, and ongoing certification costs to comply with the rule for product lines that currently do not meet the proposed requirements. Generally, CPSC considers an impact to be potentially significant if it exceeds 1 percent of a firm’s revenue. Based on the costs, CPSC expects approximately 19 small firms would incur a cost that exceeds 1 percent of the annual revenue of the firm.
CPSC estimates that the incremental costs of the material change would be $6 per product based on a comparison of retail prices of inflatable neck floats with non-inflatable neck floats. CPSC assumes that most inherently buoyant neck floats are likely to meet the proposed performance standards without costly modification, while inflatable neck floats are likely not to comply with the performance requirements. CPSC assumes the observed premium of 20 percent of the retail price?for non-inflatables represents the incremental cost of material between the types. CPSC estimates a range of 3 to 4 months of labor by a material engineer would be required for neck float redesign. The IRFA indicates that the average full hourly compensation rate of a material engineer, which includes wages and benefits, is $79.64 per hour.
CPSC assumes that firms would be able to incorporate design changes across all product lines that the manufacturer offers without the additional effort required for each product line. CPSC estimates a range of possible redesign costs of $38,227 to $50,970 per firm.
The IRFA states additional costs might be incurred related to updating and/or adding labels/literature. However, CPSC assumes that the labeling costs per product are negligible (less than $0.01) and would have an insignificant impact on small firms. Additionally, CPSC states nearly every manufacturer already provides some literature with their product.
CPSC is requesting comments on the rule, and small businesses are encouraged to provide detailed information on their annual revenue, direct cost implications, and whether any regulatory alternatives would minimize the impact on small entities.
Comments due: Comments are due by January 21, 2025.
Action: Read the proposed rule and submit comments.
Advocacy contact: Send an email to Shanerika Flemings at shanerika.flemings@sba.gov.