Why Americans Can't Depend On The Government To Protect Their Families From Dangerous Products

Toyota's sudden unintended acceleration defect is a case study in the relationship between government regulators and manufacturers

. Specifically the role of the Government in regulating manufacturers in order to protect the public.

Toyota Motor Corp. is now facing a blizzard of lawsuits concerning problems with sudden acceleration and braking, which have triggered about 10 million recall notices worldwide as of this writing. Which raises the question - - why didn't government regulations prevent this whole mess?

For now we are discussing the automobile industry. However, it just as easily could have been a host of other products which the Government is charged to regulate. The issues and concerns are the same - - can consumers rely on the Government to keep them safe from dangerous defective products? The answer is the same for automobiles, toys, children's pajama's, recreational boats, personal watercrafts, industrial machinery, cribs, paints, asbestos, tractors, prescription drugs, supplements, medical devices, etc.

The reality is this - - consumers can not rely on the Government to keep them safe from defective products. There are several reasons which explain the Government's inability to protect Americans from defective products. First, there are too many products and not enough government regulators. Think about all the products sold in America. Now think about how few government regulators there are. For every regulator there are hundreds, if not thousands of products.

Second, manufacturers have much more money and resources than the Government does. Meaning manufacturers can literally overwhelm Government regulators. Toyota is a case in point. Until Toyota's sudden acceleration/ brake issue was broken by the media - - National Highway Traffic Safety Administration (NHTSA) was completely overwhelmed by Toyota.

How did this happen? Starting with President Reagan, government regulators have had their funding cut again and again. NHTSA's current funding can be laid at the doorstep of the 1980's anti-Government regulation movement. In today's dollars, NHTSA's annual budget is half what it was in 1980.

Third, the Government is in bed with industry. The ties between Government regulators and the industries they are charged to regulate get pretty blurry. Again, Toyota illustrates this point. Toyota's "regulatory affairs" department is run by two former NHTSA employees. Which reminds one of the movie scene in Casablanca when Renault declares, "I'm shocked, shocked to find gambling is going on here."

According to Bloomberg, former government regulators hired by Toyota helped halt acceleration probes by NHTSA. Bloomberg reports at least four U.S. investigations into unintended acceleration by Toyota Motor Corp. vehicles were halted with the help of former regulators who are current Toyota employees. Bloomberg contends court documents evidence the relationship between Toyota and the former regulators.

Christopher Tinto, vice president of regulatory affairs in Toyota's Washington office, and Christopher Santucci, joined Toyota directly from NHTSA. Mr. Tinto left NHTSA in 1994 and Mr. Santucci in 2003. Bloomberg reports Mr. Tinto and Mr. Santucci helped persuade the National Highway Traffic Safety Administration to end NHTSA probes of Toyota vehicles, including those of 2002-2003 Toyota Camry's and Solaras.

In response to formal defect petitions, NHTSA opened and closed several investigations without action. Several Toyota owners expressed outrage in their dealings with NHTSA over the Toyota sudden unintended acceleration problem before the media broke the story wide open. These Toyota owners experiences with NHTSA were frustrating to say in the least. Time after time, NHTSA employees would simply regurgitate Toyota's "official position" back to these complaining drivers. Investigation closed.

We all know the result of Toyota's cozy relationship with NHTSA - - the largest recall in Toyota history. Instead of having a "problem" with a few models and a few years - - Toyota's "problem" now involves many, many different models encompassing 10 years.

Further, NHTSA's slap on the wrist - assessing a $16.4 million fine against Toyota for failing to timely disclose accelerator defects is almost silly. According to a document released by Congress, Toyota boasted internally last summer that it had saved $100 million by limiting a recall of floor mats in 2007. Stated differently, Toyota profited $83.6 million dollars for not doing the right thing.

The bottom line is this: American's can not depend on the Government to protect them from dangerous products. Too many products, too few regulators, too much money and resources by industry and government regulators being in bed with industry all add up to a one conclusion.

At the end of the day, there is only one institution that is going to protect Americans from dangerous products. The only institution that is going to hold manufacturers responsible for their defective products is the American jury. Toyota owners and Lexus owners are going to have their day in court. For example, the California Toyota Class Action and California Lexus Class Action have requested jury trials. When Toyota's shenanigans are exposed to the bright light of an American courtroom, then the truth will be brought out regarding Toyota and unintended sudden acceleration.

by: William Turley

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