The CPSC's Off-Road Adventure

Side by side

By Joseph Cordes and Blake Taylor

March 23, 2015

Published in Regulation Magazine, Spring 2015

This article raises issues with the Consumer Product Safety Commission's proposal to regulate recreational off-highway vehicles, commonly referred to as side by sides. CPSC issues rules to mitigate "unreasonable risks." In order to deem a risk as either reasonable or unreasonable, it is necessary to have information on the risk rate. The CPSC, however, proposed this rule without reliable information on the rates of injury and death associated with use of side by sides. Additionally, it is possible that the proposal rule, if enacted, would have a negative impact on consumer surplus if the safety standards make the products undesirable. Such a loss, however, is absent in the Commission's assessment of expected benefits and costs. 

Read the full article here