Trump CPSC Reverses Biden-Era Flawed Economic Methodology; Restores Sound Science and Common Sense

Washington-The U.S. Consumer Product Safety Commission (CPSC) today struck downa 2024 Biden administration regulatory policy that drastically changed how the agency measured the benefits of safety regulations. This action continues CPSC's efforts to reduce unnecessary regulatory burdens while preserving the agency's core consumer safety mission.

The Biden-era guidance altered how CPSC used the Value per Statistical Life (VSL), a tool for conducting cost-benefit analysis of safety regulations, by double-counting the lives of children to inflate artificially the projected benefits of new rules. No other government agency used that flawed approach. The guidance made it easier to impose costly and burdensome regulations and exposed the agency's lifesaving safety rules to significant legal risk.

"Under President Trump's leadership, CPSC is reversing the Biden administration's heavy-handed approach to regulation," said CPSC Acting Chairman Peter A. Feldman. "We are restoring sound science, common sense, and accountability. American consumers and businesses need to trust that CPSC's regulatory proposals are legally defensible, based on real data, and accurately reflect costs and benefits."

By rescinding the guidance, CPSC returns to a methodology that uses a single VSL estimate for all age groups, adjusted for inflation and economic factors. This is the same approach used across the federal government. It aligns with Office of Management and Budget guidance and is grounded in established economic research.

Consistent economic methodology provides regulated entities with clear rules of the road, reduces regulatory uncertainty, and ensures that safety decisions are transparent, predictable, and legally defensible. CPSC's deregulatory efforts maintain strong protections for American consumers while allowing American businesses to grow, invest, and compete. Regulations that reduce competition, promote unscientific agendas, impose unnecessary costs, or make products unaffordable are no longer agency priorities.