Cartwright Introduces Legislation to Level the Playing Field for American Manufacturers

Press Release

Today U.S. Rep. Matt Cartwright along with U.S. Rep. Michael Turner (R-OH) introduced the bi-partisan Foreign Manufacturers Legal Accountability Act (FMLAA) with 31 original co-sponsors.

The FMLAA would require foreign manufacturers doing business in the U.S. to identify a registered agent authorized to accept service of process on behalf of the manufacturer. Registering an agent would constitute an acceptance of jurisdiction of the state in which the agent is located.

"Defective foreign products hurt American consumers, leading to serious injuries, and even death. They hurt the American businesses that must deal with angry customers, product recalls and unusable inventory. Our civil justice system should protect these consumers and businesses. The inadequacy my legislation aims to correct has left both at an unfair disadvantage," said Cartwright.

The issue has hit him locally in the 17th district. In 2008, a local family from Schuylkill County, PA purchased an electrical power strip from Sears distributed by Leviton Manufacturing and made by Primax Electronics, a Taiwan-based company. In Nov. 2008 there was a fire in the home started by the defective power cord. As a result the home was damaged and belongings, furnishings, and clothing were damaged by smoke, water and fire. Both residents alo had to be admitted to the hospital for burns and other injuries as a result of the fire.

Even though Primax made the power strip, had sales offices in the United States since 1990, and had participated in litigation in Pennsylvania state court in 2002 and 2003, the U.S. District Court for the Middle District of Pennsylvania dismissed Primax from the family's claim saying the courts did not have jurisdiction over the foreign company because they did not intend to put their product into the stream of commerce in PA. It made no difference that Primax made the product and sold and profited from sales in PA and in the U.S.

This FMLAA will allow Americans to overcome the current procedural hurdles and delays by serving legal papers on registered a

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