The Chanler Group Attorneys Negotiate Third Chinese Manufacturer Settlement

Continuing its clients’ battle against the use of toxic chemicals in consumer products manufactured by Chinese companies for sale in the U.S., The Chanler Group attorneys have recently finalized terms with another Chinese manufacturer of products sold in U.S. “big-box” retail stores, Shanghai Lansheng Corporation (SLC).  This is the third such settlement in six months, following on the heels of settlements with DAP Incorporated and Hangzhou Great Star Tool Co.  These are the first private citizen Proposition 65 enforcement settlements ever achieved with overseas manufacturers, and this most recent settlement with SLC is the first settlement reached without litigation between our client and the settling manufacturer in the country of export.

SLC manufactures and distributes raincoats sold by Lowe’s stores in California.  At issue were Moore’s allegations made in a 60-day notice of violation, that SLC’s products contain excess amounts of the phthalate chemical, di(2-ethylhexyl)phthalate (commonly known as DEHP), and that SLC did not provide consumers with the health hazard warning required by Proposition 65. 

The terms of the settlement include SLC’s payment of a $5,000 civil penalty, seventy-five percent of which will go to the State of California, and a commitment to reformulate its products to virtually eliminate DEHP.  Because private agreements with Chinese companies have enjoyed little success when it comes to their enforceability in China, and U.S. courts lack the jurisdiction necessary to have their judgments enforced in China, the agreement contains an international arbitration clause, and provides specific rules under which Moore and SLC also have agreed to arbitrate any disputes that might arise out of their agreement.  By incorporating provisions like these into their clients’ agreements, The Chanler Group attorneys have taken their clients’ claims to the top of the supply chain and obtained commitments to make safer products from manufacturers in the country of origin who supply U.S. markets.

The Chanler Group represents citizen enforcers who, acting in the public interest, commence actions against businesses offering products for sale in California that contain chemicals known to cause cancer or reproductive harm without first providing the health hazard warning required by Proposition 65. Citizen enforcers bringing Proposition 65 actions in the public interest may obtain a Court Judgment imposing civil penalties, an injunction requiring reformulation of products, and/or provision of health hazard warnings. The Chanler Group has represented citizen enforcers of Proposition 65 for more than twenty years.