The California law designed to protect consumers from toxic chemicals is costing Texas and other states millions in lawsuits.
Texas companies have racked up nearly $8 million in losses due to Prop 65 lawsuits, according to an article from Times Record News. A report from the Center for Accountability in Science says that figure makes Texas the sixth most affected state. Prop 65, or the Safe Drinking Water and Toxic Enforcement Act, is a California measure enacted in 1986 that requires organizations to label products or areas that contain chemicals that are cancer-causing or harmful to reproductive health.
The CAS report asserts that the law has required labeling hundreds of items and areas from flip-flops and potato chips to restaurants and that consumers are likely tuning out to potential dangers. Small businesses shoulder the brunt of lawsuits over products that might not actually endanger customers, according to the article. Between 2010 and 2017 in Texas, “out of $7,916,615 in lawsuit fines, about $5.2 million went directly to attorney fees and costs.” Since 2000, Prop 65 has reportedly cost businesses across the country in excess of $310 million. The CAS calls chemical labeling laws “broken” and believes Congress should intercede to stem unecessary lawsuits.
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