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Furniture Makers Count Up Formaldehyde Rule Costs

Ashley FurnitureFederal rules on formaldehyde in composite panel could add about $28 million to Ashley Furniture‘s costs, according to CEO Todd Wanek.

Speaking at an industry roundtable organized by Furniture Today, Wanek said the rules don’t add value to end consumers, the website reports. Wanek said the company already has a chain of custody certifying its board and the board’s manufacturers, using third-party testing, so the additional finished product testing is unnecessary.

The furniture industry CEOs at the roundtable said other compliance challenges for their sector include Proposition 65, conflict minerals and the Lacey Act.

The industry has certainly has been one of the most visible in the environmental lawsuit arena, frequently serving as a target for Prop. 65 litigation. Ikea, JC Penney and Kmart are among the 35 companies that recently settled with Chanler Group, a law firm specialzing in Prop. 65, to the tune of more than $2.3 million. The law firm said it expects more than 100 companies to reach similar settlements in the next month.

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