) has filed a lawsuit to overturn the amended regulatory rules
that govern upholstered furniture flammability. The newly adopted
rules replace the prior fire safety standard in California, which
served as the benchmark for furniture makers and retailers
nationwide for almost four decades.
According to the revised rule, the furniture makers are required
to pass a cigarette 'smolder test'. The rule eliminates important
criteria that all filling material used in upholstered furniture
should pass an 'open-flame' test to replicate a candle, match or
lighter flame. As per Chemtura, the revised fire safety standard
is weak and if not challenged would lead to more fires and
injuries, deaths and property damage nationwide.
Chemtura further stated that the revised rules, effective Jan 1,
2014, ignored a key requirement in the fire safety standard that
led the company to file a lawsuit for obtaining judicial review
of the revised rules from the authority of the California Bureau
of Electronic and Appliance Repair, Home Furnishings and Thermal
Insulation (the Bureau).
According to Chemtura, the Bureau ignored a very important fire
safety standard that led the company to file for a lawsuit so
that the Bureau adheres to its statutory obligations in the
rulemaking process. The company is seeking judgment that will
rule out the revised standard that does not provide protection
from open-flame ignition sources, as mandated by law.
Though national statistics indicate that both smoldering
cigarettes and open flames are significant sources of ignition,
the significant drop in smoking and Fire-Safe Cigarette laws has
led to lesser fire threat from smoldering cigarettes. This brings
in the importance of maintaining open-flame protection in a new
or revised standard.
Even the fire safety-minded National Fire Protection Association
(NFPA) has raised concerns over the new standard and opposes the
elimination of open-flame protection from the standard rules.
Chemtura, which currently carries a Zacks Rank #2 (Buy), will
release its fourth-quarter and full-year 2013 results on Feb
Other stocks in the specialty chemicals industry worth
Globe Specialty Metals, Inc.
Sensient Technologies Corporation
HB Fuller Co.
). All these stocks retain a Zacks Rank #2 (Buy).
CHEMTURA CORP (CHMT): Free Stock Analysis
FULLER(HB) CO (FUL): Free Stock Analysis
GLOBE SPECIALTY (GSM): Free Stock Analysis
SENSIENT TECH (SXT): Free Stock Analysis
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