Date: July 27, 2009
Source: News Room
The electronics industry has filed suit charging that New York City's e-waste rules are illegal, unconstitutional and would "impose crushing costs and excessive burdens" on electronics manufacturers. The city's e-waste law, which passed in February 2008 and is scheduled to take effect July 31, requires manufacturers to take back unwanted electronics. The suit filed last week asks the U.S. District Court in Manhattan to block the rules from taking effect and seeks a "critical" preliminary injunction to bar the city from enforcing the plan.
Under the law, each manufacturer must by 2012 collect annually e-waste whose total weight is 25 percent of that of the new electronics it sells. This increases to 65 percent by 2018. The complaint charges that "these targets are completely arbitrary in that they mistakenly assume a manufacturer has the ability and legal authority to require equipment owners to relinquish ownership of their equipment, yet the city can fine a company $50,000 for each percentage point they fall below the target."
The two organizations behind the suit, the Consumer Electronics Association (CEA) and the Information Technology Industry Council (ITI), claim that the law violates federal commerce laws by attempting to regulate businesses from around the world and discriminates against those that do not have operations in the city. They also argue that the law imposes "crushing costs and excessive burdens" on smaller firms, and call it "arbitrary and irrational." They estimate it will cost companies more than $200 million annually. They also cite the alleged environmental drawbacks of the law, claiming that hundreds of delivery trucks necessary for the e-waste program will needlessly increase traffic congestion, air and noise pollution, and carbon emissions.
PRESS RELEASE:
TECHNOLOGY INDUSTRY GROUPS FILE SUIT CHALLENGING ONEROUS NEW YORK CITY ELECTRONICS RECYCLING LAW
Law Will Have Severe Environmental and Economic Consequences, say CEA and ITI
Arlington, Va., July 24, 2009 – The Consumer Electronics Association (CEA)® and the Information Technology Industry Council (ITI) today announced that they have filed a legal challenge against a new law in the City of New York mandating that manufacturers provide free, door-to-door electronics collection to City residents. The regulation, which is scheduled to go into effect July 31, 2009, will force hundreds of additional trucks onto city streets, needlessly increasing traffic congestion, air and noise pollution, and carbon emissions. Estimates suggest the requirements will cost manufacturers, including many small businesses, more than $200 million annually, resulting in cost increases to consumers and job losses.
"Despite the technology industry's best efforts to negotiate with New York City officials on a reasonable and effective recycling program, the City is proceeding with plans to impose the most costly, burdensome and environmentally harmful electronics recycling requirements in the world," said Dean Garfield, president and CEO of ITI. "At this point, we have no option but to file suit to avoid the disastrous environmental and economic consequences of this poorly conceived regulation. There is a better way to achieve the common goal of an effective recycling program."
"Manufacturers recognize that they have a key role in providing recycling opportunities for consumers, and have recycled billions of pounds of electronics through voluntary programs," said Gary Shapiro, president and CEO of CEA. "However, they do not have the only role. The responsibilities and costs for electronics recycling should be shared among all stakeholders, including city and state governments, retailers, recyclers and consumers."
The enormous financial burden of door-to-door collection threatens to force electronics companies out of the New York City marketplace or into bankruptcy. Despite the fact that most manufacturers do not have a corporate presence in New York City nor the infrastructure to provide direct collection services to residents, the City's regulations place the entire cost of collecting and recycling old electronics products on manufacturers, including hundreds of U.S. companies whose products are shipped into the City by distributors.
About ITI:
The Information Technology Industry Council (ITI) is the premiere voice, advocate, and thought leader for the information and communications technology (ICT) industry. ITI is widely recognized as the tech industry's most effective advocacy organization in Washington D.C., and in various foreign capitals around the world.
About CEA:
The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $172 billion U.S. consumer electronics industry. More than 2,000 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion and the fostering of business and strategic relationships. CEA also sponsors and manages the International CES - Where Entertainment, Technology and Business Converge. All profits from CES are reinvested into CEA's industry services. Find CEA online at www.CE.org.
For more information, contact:
Jennifer Bemisderfer, CEA
tel: 703-907-4322
e-mail: jenb@CE.org
www.CE.org.
or
Ashley Simmons, ITI
tel: 202-626-57254
e-mail: asimmons@itic.org
www.ITIC.org.
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