The Supreme Court and the Toy Industry

There is an important case coming before the Supreme Court that could have important implications for the toy industry. The case does not directly involve toys. It is results from a woman who used a pharmaceutical product which met Federal labeling standards but not those of her state.  

According to a November 18, 2008 New York Times article entitled, ”Drug Label, Maimed Patient and Crucial Test for Justices,”  she became injured, sued in her state court and won a $6 million judgment. That case was appealed and has found itself before the Supreme Court with some other cases that all want a determination on the principle of “pre-emption,” a legal concept that stipulates that the federal government has the ultimate authority. In other words, a Federal law trumps a state or local law.

What does this have to do with the toy industry? Plenty! 

A growing concern for our industry has been the multiplication of state laws, some of which are more restrictive than those of the Federal government. This creates a patchwork of laws, a mine field of liability and a great deal of extra cost.

As one reader of the New York Times article in question so aptly commented: “It is ridiculous to expect businesses engaged in interstate commerce to comply with the vagaries of fifty different and conflicting sets of product standards.”

Keep your eyes on this trial. It could have important implications for all of us.