TIA blasts efforts to re-establish mandatory tire registration (Update)

By Miles Moore, Senior Washington reporter

WASHINGTON (July 14, 2015) — The Tire Industry Association (TIA) said it will “do everything in its power” to defeat legislation making its way through Congress to re-establish mandatory tire registration.

The Tire Efficiency, Safety and Registration Act — S. 1741 — was introduced in the Senate July 9. Among other things, the bill, which has the strong backing of the Rubber Manufacturers Association (RMA), would require independent tire dealers to register the tires they sell.

The Senate bill followed closely the introduction of the GROW AMERICA Act, the Obama administration's six-year, $478 billion transportation funding bill, which also contains a provision mandating tire registration by independent dealers.

TIA is on record as opposing both bills because of their mandatory registration provisions.

“We are 100-percent against mandatory tire registration,” said TIA Executive Vice President Roy Littlefield in the July 13 issue of TIA's Weekly Legislative Update.

“We plan to fight it. We also plan to reach out to the industry and talk about it.”

However, the RMA has shown no desire to work with TIA on this issue, according to Mr. Littlefield.

Tire Business file photo by Bruce Davis

Roy Littlefield III, executive vice president, Tire Industry Association

“I've been around (the industry) since 1979, and I can't believe that on a market solution, the RMA and the manufacturers are supporting legislative action.”

In supporting S. 1741, the RMA argues that since voluntary registration became law in 1982, tire registration rates fell from nearly 50 percent to only about 15 percent.

However, Mr. Littlefield said the RMA's figures don't account for tire dealers who register the tires they sell and keep the numbers in order to contact customers directly in case of a recall.

Mr. Littlefield said TIA doesn't oppose the other provisions of S. 1741 — to create minimum tire fuel efficiency and wet traction standards, and to establish a consumer-friendly tire recall database on the National Highway Traffic Safety Administration (NHTSA) website.TIA also supports the basic premise of the GROW AMERICA Act, including its provision to use a one-time, 14-percent tax on the profits U.S. corporations keep overseas to replenish the Highway Trust Fund. This is similar to the bill sponsored by Rep. John Delaney, D-Md., which TIA has long supported.

However, TIA is opposed to GROW AMERICA's Section 4112, which would require tire dealers and distributors to maintain tire registration records and transmit the information electronically to tire manufacturers at no cost to the consumer.

TIA has urged its members to write their federal legislators opposing Section 4112 since its introduction in May, and it now asking its member to oppose S. 1741 as well.

There are major efforts in Congress to add mandatory tire registration language to other highway funding bills as well. In a July 13 press release issued jointly by TIA and the New York Tire Dealers Association (NYTDA), tire dealers were told that the House Subcommittee on Consumer Protection of the Senate Commerce Committee is pushing the full committee to include a mandatory tire registration provision in its highway bill.

 

Furthermore, the Subcommittee for Commerce, Manufacturing and Trade of the House Energy and Commerce Committee is likely to add mandatory tire registration language to the full committee's transportation legislation, TIA and the NYTDA said.

“Such language could drastically change the industry in terms of liability, fines and the turning over of customer lists to the manufacturers,” the trade groups' joint press release said.

TIA and the NYTDA offered their members a link to a sample letter they could send their House members opposing mandatory registration.

“Section 4112 is a thinly veiled attempt by the tire manufacturers to shift their liability for recalled products to small businesses like mine,” the letter states. ”I could be subjected to large fines and penalties that would have the potential to financially ruin my business if someone makes an innocent mistake.”

Congress has only until July 31 to pass a multi-year transportation re-authorization bill. It is scheduled to recess for the summer the day before.

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