Is retail regulation the wave of the future? At this site I have talked a lot about the attempts to reform the Toxic Substances Control Act (TSCA). So far TSCA reform efforts have failed to produce any federal action to modernize the now 35-year old law. But now, into this gap in federal-level regulation have come the "retail regulators." Retail regulation is when influential retail stores like Wal-Mart, Toys-R-Us and Sears make unilateral buying decisions that could effectively ban chemicals of concern. Call it The Wal-Mart Factor.
A recent article by Lyndsey Layton in the Washington Post discusses how Wal-Mart is "stepping ahead of federal regulators and using its muscle as the world's largest retailer to move away from a class of chemicals researchers say endanger human health and the environment." Those chemicals, polybrominated diphenyl ethers (PBDEs), have been used as flame retardants in a wide range of consumer products, including computers, furniture, and toys. With a worldwide buying power rivaling many national economies, when Wal-Mart speaks, manufacturers listen. And since manufacturers and formulators aren't likely to make one product for Wal-Mart and another version of the same product for other distributors, chemical bans by Wal-Mart have the ripple effect of eliminating chemicals from products sold elsewhere.
As the article points out, this is not the first foray into retail regulation by big box stores. Toys R Us, Sears, Kmart, Whole Foods, and others have started telling suppliers that products containing chemicals such as BPA, PVC, PBDEs and others will no longer be accepted. This is caused many suppliers to reformulate their products to replace components of toxicological concern with those that are less hazardous. The result, in effect, is a market-based ban on certain chemicals. Though it should be clear that the reason Wal-Mart and the other retailers have made the decision to ban is because state legislatures have been taking action to limit chemicals in which health and safety studies have raised concerns.
Since unilateral decisions by retailers and varied state-level action could create a patchwork of "regulation" across the country, this would seem to be more impetus for moving forward with federal-level action. Such federal action should include a modernized and rational TSCA reform legislation that encourages both innovation by retailers and manufacturers and protection of human health and the environment.
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Showing posts with label Wal-Mart. Show all posts
Showing posts with label Wal-Mart. Show all posts
Monday, February 28, 2011
Monday, February 1, 2010
Chemical Review - The Wal-Mart Factor, Redux

Those who have been following the ins and outs of chemical control reform know that one of the factors that have led to the current efforts is something I call the "Wal-Mart Factor." Wal-Mart's revenues and outreach surpasses the economic influence of many countries. So when Wal-Mart talks, lots of people listen. And Wal-Mart is talking about chemical control, albeit in a slightly softer voice than in the past.
In 2006 Wal-Mart launched its Chemical Intensive Products Network program, which was intended to identify 20 chemicals that it would work to eliminate from products sold at its stores. And if companies have to reformulate their products to meet Wal-Mart's standards, they will reformulate for everyone. Well, that program flattened out a bit once the real world hit the theory, and Wal-Mart shifted toward collaboration with suppliers to encourage safer and more sustainable alternatives rather than an outright banning of anything it put on its list.
Wal-Mart is now moving completely away from the pass-fail approach, though they will continue to work toward more sustainable products. Last year it introduced a screening program called GreenWERCS that will use a broad array of criteria to identify risks. Suppliers can simply enter the chemicals present in their products and GreenWERCS will evaluate them based these aggregated criteria. The goal is to help suppliers identify more sustainable ingredients to use in their products. Not quite the "if it's bad, it's gone" approach of 2006, but still in the right direction.
In the end Wal-Mart is shooting for a "sustainability index," which will be some measure that can be readily communicated to the public to identify sustainable products. Presumably there would be some number system or logo that could be branded on the product to let consumers make better choices.
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