U.S. probes Lumber Liquidators

Safety of Chinese-made laminate flooring at issue

A customer enters a Lumber Liquidators Holdings Inc. store in Bolingbrook, Ill., earlier this month. Elliot Kaye, chairman of the U.S. Consumer Product Safety Commission, said it’s too early to tell whether flooring will be recalled because of an investigation.
A customer enters a Lumber Liquidators Holdings Inc. store in Bolingbrook, Ill., earlier this month. Elliot Kaye, chairman of the U.S. Consumer Product Safety Commission, said it’s too early to tell whether flooring will be recalled because of an investigation.

RICHMOND, Va. -- The U.S. Consumer Product Safety Commission said Wednesday that it is investigating Lumber Liquidators' Chinese-made laminate flooring after a national TV broadcast raised concerns over levels of formaldehyde.

Commission Chairman Elliot Kaye said Wednesday that the agency is taking the issue seriously and is working to get answers for consumers, but it's too early to tell whether any flooring would be recalled.

"As a parent of young children, I completely understand and share the strong desire that parents and other consumers have to know as soon as possible whether these products present a health risk," Kaye said.

It'll likely be months until there will be "some sense of the answers," he said, and the science "does not often provide the clarity" where consumers will know immediately whether they need to take action.

The agency is working with other federal organizations such as the Environmental Protection Agency, the Centers for Disease Control and Prevention, and the Federal Trade Commission.

The move comes after a report on CBS' 60 Minutes earlier this month that said Lumber Liquidators' laminate flooring made in China contains high levels of formaldehyde, a carcinogen. Democratic Sens. Charles Schumer of New York and Bill Nelson of Florida both called for investigations after the broadcast.

The Toano, Va.-based discount hardwood flooring retailer has said it complies with applicable regulations for its products, including California standards for formaldehyde emissions.

In a recent emailed statement, Lumber Liquidators said it wants to reassure consumers that its flooring is safe, and it looks forward to addressing the issues with the Consumer Product Safety Commission and other regulatory agencies and lawmakers who have questions about its products. On Wednesday, the company said it is fully cooperating and already has provided a significant amount of testing and safety information to the agency.

Kaye said the agency is focusing only on the Chinese-made laminate at this time but could expand the investigation if it finds reason to do so. The testing will be a method that most closely replicates how the flooring is used in homes, he said.

The company's executives have criticized 60 Minutes, saying the program "distorted the facts" and used a test for its report that was not a "real-world" test. The Federal Wood Industries Coalition said earlier this month that "deconstructive testing" removes a coating on laminate flooring that helps to reduce formaldehyde emissions and that the testing method is not required to meet California standards.

Lumber Liquidators Holdings Inc. has more than 350 locations in North America.

Shares of Lumber Liquidators have dropped 59 percent since Feb. 24, when it announced that the 60 Minutes segment would air and said the federal government might file criminal charges against the company.

Lumber Liquidators shares rose $3.03, or 10.5 percent, to close Wednesday at $31.86.

Business on 03/26/2015

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