
Legal Risk to Small Businesses Amid CPSC Deregulation
INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE.
Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed David C. Japha.

The David C. Japha Commentaries
On a recent Price of Business show, Host Kevin Price interviewed David C. Japha, Levin Jacobson Japha, P.C.
Ironically, deregulating federal consumer product safety may expose small businesses to greater legal risk, not less. Without federal rules as a guidepost or defense, injured consumers can more easily bring lawsuits under state law and some federal laws. Small businesses should not confuse reduced oversight with reduced liability
1. No Federal Regulation ≠ No Liability
Even without CPSC regulations, injured consumers can sue under state tort law—negligence, strict liability, or failure to warn. The absence of federal rules does not eliminate exposure.
2. Loss of Federal Defense
If CPSC standards are rolled back or never implemented, businesses lose the ability to claim compliance with federal standards as a shield against liability.
3. Small Businesses Are More Vulnerable
Lacking in-house counsel or compliance teams, small firms are at greater risk. They must rely on voluntary standards (e.g., ASTM, ISO), careful documentation, and proactive risk management.
4. State-Level Regulation and Litigation
States may adopt their own consumer safety rules or allow aggressive litigation. The absence of federal preemption can lead to state class actions and AG-led enforcement.
Recommendations
– Monitor voluntary industry standards (ASTM, UL, ISO) – Maintain rigorous product testing and documentation – Keep updated on emerging state-level safety rules – Consult legal counsel before launching or modifying products.
Over his more than three decades of practice, David Japha has earned a reputation for resolving difficult and complex matters, sometimes being the second or third lawyer to take on a case. David has tried many criminal and civil cases to conclusion and argued numerous appeals, post-conviction cases and cases involving mental health issues. He also currently represents clients in federal and state administrative matters, including ongoing matters before the Consumer Products Safety Commission. David got his start in litigation before leaving the University of Denver College of Law, where he tried his first DUI case in state court through a program called the student law office. He also negotiated settlements and argued his first administrative appeal before the Social Security Administration in the winter of 1984, before his law school graduation in May of that year. Soon after starting out, David shared office space with his current partners, Don Jacobson and Daniel Levin at Ptarmigan Place. There he learned law office management hanging out his shingle and doing evictions, collections and court-appointed federal criminal cases. And, it was there, in federal court, that David truly cut his teeth in criminal defense litigation, culminating in his appointment to the Criminal Justice Act committee (which oversaw the appointment of conflict counsel in federal court) by then-Chief Judge Richard Matsch. Over 30 years of practice has given David the opportunity to be involved in some amazing cases, including taking depositions in Katmandu, Nepal in a complex criminal case in 1991; representing a witness in the trial of Timothy McVeigh (where David was also a credentialed reporter for the Intermountain Jewish News); handling criminal matters in Nebraska, Kansas and California and appearing in Washington State. David has been an expert witness for the Colorado Supreme Court Office of Regulation Counsel in the area of attorney fees for court appointed counsel.
Learn more at https://www.ljjlaw.com/attorney-profiles/david-japha/.
Connect with David on social media:
LinkedIn: https://www.linkedin.com/in/david-japha-23937912/