Los Angeles Business Journal

I had heard of the Transparency in Supply Chain Act, but until I read Charles Crumpley’s Comment column in the Jan. 30 issue (“Disclosures Legal, Financial Exposure”), I did not realize it had la mano nera of the trial lawyers all over it. It is a clone of Proposition 65 and any business can tell you how that thing has been bastardized into a racket that would make Al Capone jealous. You must understand how Proposition 65 has been tortured to know what will happen.

Proposition 65 is the Safe Drinking Water and Toxic Enforcement Act of 1986; it had the laudable purpose of getting toxic substances out of our environment. Lead in food products has come to be a favorite target of Proposition 65. The truth: lead, a heavy metal, is everywhere. Naturally. Anything grown in the ground, anything that eats anything grown in the ground, will contain minuscule amounts of it. Parts per billion. Always has, always will. All natural and organic. Nature’s little joke. How about that all you vegetarians? But before you panic, realize that it’s all about acceptable amounts. Iron in your diet, for instance, is essential. You will become anemic and die without some. Too much and you’re dead.

Proposition 65 says if you have any lead, you must put a notice on your label or on your door. Because of our warped legal system, devised by and for the benefit of lawyers, Proposition 65 allows citizens to file lawsuits as if they were the attorney general. That has led to an industry of lawyers filing suits against businesses; the lawyers make money when businesses pay settlements to get rid of the lawsuits. Even if a business fights and “wins” a Proposition 65 challenge, it can cost hundreds of thousands of dollars.

When something doesn’t make sense, look for the payoff. And who gets the payoff.

Although you probably pay no attention to them anymore, didn’t you ever wonder why warning signs are on the door of every building you walk into? Every market? Every restaurant? For crying out loud, even Starbucks? That’s how stupid Proposition 65 has gotten.

Here’s a profile of one legal abuser: A guy in Georgia got sued for selling a product that actually violated the true spirit of Proposition 65. But he learned. Since then he has filed more than 100 frivolous suits, making a tidy living. Do you really think he cares about California? The reality is it’s way cheaper for businesses to pay him off than fight him. Remember, only he can make money. A business only pays, either to him in a settlement or in legal costs. The difference is that’s his job.

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