December 2009 CPSC Investigation Report Summary and Analysis (Part 1) January 9, 2010

Part 1 of a 2 Part Series

Note: The Update Provided By the CPSC December 2009 Report will be summarized in a two-part article on thechinesedrywalllawyer.com

Part I

Part II

The update, which can be found in its entirety here – describes the newest developments regarding the ongoing Chinese drywall investigations.

In General:

As of December 22, 2009 the federal agency had received 2,360 reports related to drywall.  These reports derived from 35 states, including Washington D.C.  The widespread nature of the problem has prompted intensive investigations by various federal agencies.

According to the report, most complaints came from homeowners in Virginia, Louisiana, and Florida.  More than 9 reports out of every 10 came from one of these three states.  The hurricane reconstruction period is thought to have caused a large influx in imported Chinese drywall.

Highlights Included in the CPSC December Investigation Report:

December 9, 2009:

The CPSC hosted a videoconference session regarding the drywall problem with authorities within the Chinese government on December 9, 2009.  This meeting was a step in a positive direction; opening the doors to communication is critical in solving problems of such financial magnitude amicably.

December 14, 2009:

The CPSC and its representatives participated in a town hall panel in New Orleans on December 14, 2009, indicating its dedication to solving consumer issues by considering various solutions.

December 16, 2009:

The CPSC issued a “Notice of Inquiry.”  The notice was premised upon the attempt to comment on a proposal that would prescribe labels that identify drywall on December 16, 2009. (1)

Additionally, the CPSC corresponded with HUD staff, in order to assist such authorities in the development of grant programs for drywall affected consumers.

(1) The labels would be identified pursuant to Section 14(c), of the Consumer Product Safety Act (74 Fed. Reg. 66622).