Apr. 6, 2009 – ‘I know I’m taking a big chance’

Before publicly defying a new federal law, Southern California dealer Malcolm Smith says he called the Consumer Product Safety Commission (CPSC) to alert them of his plans.
He never heard back from the federal agency before he appeared with a group of motorcycling enthusiasts and well-wishers to sell three youth motorcycles to high-profile clients. It was a one-time act of defiance of the new Consumer Product Safety Improvement Act (CPSIA) that seeks to limit the lead content in products made specifically for children 12 and under. The law was passed with the intention to keep children away from lead-tainted toys that they might put in their mouths or even worse, swallow. It has, however, affected other products, including youth ATVs and motorcycles.
“We’re turning into a nanny state where everybody has to be protected by everything,” Smith told Powersports Business on the day preceding the public selling of the vehicles.
Smith says he would limit his selling of such youth vehicles to the one-day event. Even with that, however, he faces the possibility of considerable fines and even imprisonment. The
law calls for a maximum civil penalty of $100,000 per individual violation. There also are criminal penalties of up to imprisonment for not more than 5 years for a knowing and willful violation.
“I know I’m taking a big chance,” Smith said before the event.
But he said he “finally had enough” and thus contacted a marketing agency to coordinate the public event. A group of motorcycle celebrities, including multi-time AMA National Champion Jeff Ward and Troy Lee Designs owner Troy Lee, turned out for the event that was covered by a host of media, including USA Today.
One of the youth who was scheduled to receive a youth bike as part of the event, called “Kids Love 2 Ride Protest,” wore a T-shirt with the slogan “I promise not to eat it.”
Although the event included its humorous moments, the effect of the law has been anything but funny on Smith’s Riverside, Calif., dealership. Smith says he has had to lay off employees because a crucial portion of his inventory, the youth ATVs and bikes, is no longer legal to sell.
Smith also believes other dealerships have been hit even harder as a result of the new Consumer Product Safety Improvement Act. “There are a lot of dealers that all they sell is small bikes,” he said.
Smith’s defiance did not go unnoticed within the industry. “On behalf of KTM North America I am extending our deepest gratitude to Malcolm and his staff for their proactive approach to the CPSIA issue,” KTM North America President Jon-Erik Burleson said in a press release. “The more people involved and attention generated on this issue will ensure a timely resolution to the matter at hand.”
— Neil Pascale