Everything just might be bad for you!

My recent posts have suggested a certain optimism for the greening of the American consumer products business. Smart marketers such as Toyota, Target and even bleach maker Clorox are transforming their product lines to meet the expectations of health conscious consumers.

These companies are demonstrating a genuine concern for the health of living things and the planet. They are also motivated by fear -- a fear of losing market share if they do not meet the more demanding needs of health conscious consumers. Whatever the motivation, I predict continued progress towards a healthier set of products lining our supermarket shelves and mass market displays. Be on the watch for product reformulations, new product introductions, acquisitions and in limited cases, discontinued or divested products that don't make the grade.

This optimism is now challenged by a new book by Mark Schapiro, the Editorial Director of the Center for Investigating reporting. The book is called "Exposed: The Toxic Chemistry of Everyday Products and What's at Stake for American Power" (Chelsea Green, $22.95). link

In the book, Schapiro contends that the American public comes in daily contact with countless toxic chemicals and harmful substances used widely in our everyday products. Carcinogenic, gene mutating and birth-defect causing substances can be found in everything from cosmetics and personal care products to consumer electronics and computers. And there are plenty of toxins in toys, particularly plastic toys. If Mr. Schapiro is correct, the cynic may be right after all -- these days just about everything is bad for you...

Schapiro's further argues that European consumers have less to worry about in this regard. That is because the European Union has more stringent legislation and tougher regulations for consumer products manufacturers than the U.S. And, the EU is quicker to ban potentially bad substances even if the evidence is still forthcoming. How could this be? Are EU countries in fact environmentally safer than the U.S.?

The answer according to Schapiro is yes and for two solid reasons. First, political contributions are banned in Europe so the lobbying effort against legislation is completely non-effective (unlike the U.S. where lawmakers accept donations from lobbyists and companies and are then beholden to them). So, the EU regulators feel little need to protect company interests if consumer safety is in question. Second, European governments pay for health care for its citizens and are therefore more far sighted about potentially harmful factors in the environment. The governments have a vested interest in reducing the cost of health care and mitigating environmental factors in illness.

Interestingly, because the EU as a whole is a collectively larger economy than the U.S., companies (including U.S. based multinationals) have no choice but to follow the EU regulations for fear of having their products banned from the market. It is hard to believe this but some companies opt to produce two sets of products according to Schapiro -- the original formulation for U.S. consumers and a healthier version for EU consumers! This happens regularly in the case of toys (by the way, China produces 85% of the world's toy supply). Author Schapiro did an enlightening interview with NPR if you would like to listen to it or read the transcript. link



Makes you feel comfortable doesn't it? Well, here are a two thoughts to make you feel a little better.

First, even if government regulation is weaker in the U.S., companies will continue to innovate in an effort to strengthen the wellness claims of their product lines -- the U.S. market moves faster on market competition and consumer demand curves than it does on regulation.

And second, having two versions of the same product is not a recipe for long-term success. Large multi-nationals such as P&G standardize product, packaging and manufacturing process on a global basis -- because it makes economic sense to. And maybe I am a bit naive, but I believe companies would choose the healthier version of a product every time -- why risk damage to the brand?

And in the meantime, hold your breath when you are riding in your car. It turns out that a toxic chemical in the dashboard degrades over time and diffuses into the circulating air...