Newsletter June 15, 2023

POLICY

• FTC issues business guidance on INFORM Consumers Act compliance
• Ecology pushes new rules to reduce chemicals in consumer products
• Washington My Health My Data Act - Part 3: The Scope of Entities and Consumers Captured by the Act

ECONOMY

• WA has most robust economy across all U.S. states, according to recent report
• Record-breaking $22.9 billion to be spent on Father's Day gifts
• Healthcare bumps tech as Washington’s hottest job market sector

ON THE LOCAL FRONT

• Ben Bridge Jeweler invests in Seattle’s future with new downtown flagship store

RETAIL THEFT & PUBLIC SAFETY

• AG’s Organized Retail Crime Task Force Seattle meeting set for Aug 15

IN THE NEWS

• Walmart introduces eco-friendly packaging to reduce waste and boost sustainability

SAFETY

• The importance of a PPE job hazard analysis 

FTC issues business guidance on INFORM Consumers Act compliance

Last week, the Federal Trade Commission published a blog post and a business guide addressing the INFORM Consumers Act and its enforcement by the FTC. This Act will come into effect on June 27.

According to the blog post, the Act “…boils down to this. Under the INFORM Consumers Act, online marketplaces must have more information about who’s selling on their platform. Covered sellers must promptly comply with those requests for information or risk suspension. And consumers who buy from those sellers will have a place to report questionable activity.” 

The blog post, Informing Businesses about the INFORM Consumers Act, elaborates on the legislation, giving specific attention to the duties of online marketplaces. The FTC has indicated that the agency will be vigilantly observing and expects online marketplaces to implement measures in compliance with the INFORM Consumers Act on or prior to the effective date.

Ecology pushes new rules to reduce chemicals in consumer products

At the end of May, the Washington State Department of Ecology adopted a new rule, Chapter 173-337 WAC—regarding product restrictions and reporting—which goes into effect on July 1. This new chapter establishes a regulatory program to reduce certain chemicals in consumer products.

While consumers use hundreds of items every day containing chemicals, WR is concerned about the impacts these rules will have on product availability and safety, especially fire retardancy. Washington state is just 2% of the U.S. market which will make it logistically and financially difficult to make products specifically for our state and could push manufacturers to forgo distribution here altogether.

The newly adopted rule creates reporting requirements and restrictions for manufacturers, distributors, and retailers of priority consumer products that contain chemicals, which include:

• PFAS in aftermarket stain and water-resistance treatments, carpets and rugs, and leather and textile furnishings
• Ortho-phthalates in vinyl flooring and in personal care product fragrances
• Organohalogen flame retardants in electric and electronic products
• Flame retardants (as defined in RCW 70A.350.010) in recreational polyurethane foam
• Phenolic compounds in laundry detergent, food and drink can linings, and thermal paper

Visit the Washington stakeholder webpage for more information.

Washington My Health My Data Act - Part 3: The Scope of Entities and Consumers Captured by the Act

By Mike Hintze, Hintze Law

Welcome to the third installment of our blog series focusing on the Washington My Health My Data Act. Having presented a general overview and described the scope of covered data in the first two posts, Part 3 discusses in more detail the broad range of entities and consumers this Act will directly affect.

The substantive obligations of Washington’s My Health My Data Act will impact nearly all companies that have some connection to Washington state and that collect or process consumer health data. And the scope of consumers whose data may be subject to the Act can extend well beyond those located in Washington – if their data is merely processed in Washington. This broad reach may surprise enterprises that might not realize they are subject to the Act’s obligations. This blog post will delve into this critical aspect of the Act and shed light on its full implications.

As we continue to delve into this topic over the coming weeks, we will highlight additional blog posts that examine other components of the Act and the critical issues they raise.

Read Mike Hintze’s blog post here

WA has most robust economy across all U.S. states, according to recent report

A recent study by WalletHub ranked Washington the best economy among all U.S. states in 2023. California, usually known for its strong economy, came in fifth. The study examined 50 states and the District of Columbia using 28 key indicators of economic strength, categorized into economic activity, economic health, and innovation potential. These indicators also included GDP change, exports per capita, unemployment rate, adjusted median household income, and share of high-tech and STEM jobs.

Washington ranked first overall and held high positions in several categories, tying with Louisiana, Oregon, and Texas for exports per capita and California and Massachusetts for independent inventor patents per 1,000 working-age population. It also secured second place for the average educational attainment of recent immigrants and the number of high-tech jobs. However, the state ranked poorly in unemployment, tying with Delaware for 47th, and came 46th for state-government surplus per capita.

Washington's success was attributed to fast-growing firms, high exports per capita, a large share of high-tech jobs, and strong innovation potential. However, WalletHub's methodology received criticism, notably from the National Federation of Independent Business, which claimed the rankings were biased towards the tech sector. Mike Fong, director of Washington's Department of Commerce, recognized the state's achievement while acknowledging the need for continued work on economic opportunities for all residents. Despite the economic prosperity, Washington's unemployment rate of 4.3% exceeded the national average of 3.6%.

Record-breaking $22.9 billion to be spent on Father's Day gifts

Consumers are set to spend a record $22.9 billion on Father's Day this year, a significant increase from the previous year's expenditure of $20 billion, according to a recent survey. The figures also beat the previous high of $20.1 billion spent in 2021.

Approximately three-quarters of consumers are expected to participate in the celebrations, which is consistent with recent trends. Average spending is projected to reach a new high of $196.23, an increase from $171.79 in the previous year, surpassing the old record of $174.10 in 2021.

The uptick in both collective and per-person spending primarily stems from more consumers investing in categories like clothing, electronics, personal care, and special outings. Half of celebrants plan to purchase gifts for their father or stepfather, followed by husbands (27%), sons (11%), brothers (9%), friends (8%), and grandfathers (7%).

Top picks for Father's Day gifts include greeting cards, with 61% of consumers opting for them. Other favorites include clothing (55%), special outings (52%), gift cards (48%), and personal care items (32%). A growing trend in gifting experiences, like concert tickets, has emerged, with 29% considering such options, the highest percentage seen in recent years. Product subscription boxes are also gaining traction, with 42% of consumers considering this option, up 37% over last year.

The largest spenders will be consumers aged 35-44, who will outspend their counterparts by almost $100, while those aged 45-54 are set to increase their spending the most, at $57.04 more than last year.

Online shopping remains the preferred choice, with 43% of consumers shopping online for Father's Day, up from 40% last year. Other popular shopping destinations include department stores (38%), discount stores (24%), and specialty stores (22%).

Healthcare bumps tech as Washington’s hottest job market sector

Washington’s job market has shifted significantly, with the healthcare sector surpassing the tech industry as the hottest job market. In April, six of the top 10 employers in the state were healthcare companies, while tech giants faced a decline. Registered nurse job openings dominated the market, reflecting the high demand for healthcare professionals.

However, the healthcare sector’s triumph in the job market comes with its own challenges. Financial constraints and heavy losses have led to a reduction in healthcare job openings. Hospitals, in particular, have struggled with rising labor and supply costs and stagnant Medicaid reimbursement rates. These financial pressures have resulted in substantial losses, with Washington hospitals reporting a combined $2.7 billion loss in 2022.

Despite the difficulties faced by health care and tech, the overall state economy has demonstrated resilience. Unemployment rates, although relatively high at 4.3% in April, have declined compared to earlier in the year. Other sectors, such as construction and aerospace manufacturing, have exhibited strong hiring trends, contributing to the state’s economic stability.

The shift in the job market could also be due to demographic factors. An aging population is expected to increase the demand for healthcare services, making the sector a significant employer in the foreseeable future. This demographic reality, often overshadowed by the focus on tech-sector growth, is now gaining attention from economists who recognize the long-term employment prospects in health care.

The job market in Washington has experienced a notable transformation, with the healthcare sector outpacing the tech industry. Although health care faces financial challenges and reduced job openings, the overall state economy remains resilient, with opportunities in various sectors. The aging population’s increasing demand for healthcare services solidifies the sector’s position as a major employer. As the job market continues to evolve, understanding and adapting to these shifts will be crucial for job seekers and employers alike in Washington.

Ben Bridge Jeweler invests in Seattle’s future with new downtown flagship store

Ben Bridge Jeweler, a longtime Seattle-based company, is again demonstrating its belief in the city’s core by opening a new flagship store downtown. Despite recent tumultuous years with pandemic-driven challenges and civil unrest, the downtown location had its best two years on record and is betting on the city’s vitality and is planting its flag at the heart of the metropolis. Ben Bridge had been in its previous location for 94 years. 

The new 5,315-square-foot store, located at Fifth Avenue and Pine Street, softly opened on May 26 and had it’s grand opening celebration on June 8. This space, more spacious than the retailer’s previous location at Fourth Avenue and Pike Street, lies at the center of a bustling street scene across from Nordstrom flagship and Westlake Center.

CEO Lisa Bridge emphasized that the company, which has been a part of Seattle for over 111 years, remains committed to the city despite various economic ebbs and flows. She hopes this new investment will serve as a catalyst for other retailers to invest in downtown Seattle, following in the footsteps of companies like Uniqlo that have recently opened stores.

Ben Bridge’s confidence in downtown Seattle shines despite crime concerns and the closure of stores like Nike and Carhartt. With an increase in foot traffic and a significant surge in demand for luxury items, Ben Bridge is optimistic about its future in the city’s core. Despite downsizing to 36 stores nationwide from 95 in 2019, the company has broken records with its revenue in both 2021 and 2022.

“Our goal in investing in our flagship store in the heart of our hometown includes creating a sense of pride and excitement in our community, both with our associates as well as our customers,” said Vice President Theresa Signorini Treat. “We are committed to ensuring Seattle remains a strong and vital business center and hope to be the Personal Jeweler for generations to come.”

AG’s Organized Retail Crime Task Force Seattle meeting set for Aug 15

The Office of the Attorney General is holding its fourth Organized Retail Crime Task Force meeting on August 15, 2023, between 9:00 a.m. and 12:00 p.m.

Since its launch last year, WR has been an essential member of the ORC Task Force team. The meetings have included a variety of stakeholders, including law enforcement, the King County and Seattle city prosecuting attorney's offices, and a wide range of retail industry sector representatives.

In-person space at the Task Force meeting will be limited, and a hybrid option will be available. RSVP details will be announced in the coming weeks.

For any questions, please reach out to the Policy Team at policy_team@atg.wa.gov.

Walmart introduces eco-friendly packaging to reduce waste and boost sustainability

Walmart, the largest retailer in the U.S., is planning a significant overhaul of its packaging to curb waste. One significant change will be replacing plastic mailers with recyclable paper versions, a move expected to remove over 2,000 tons of plastic from circulation in the country by next January. Walmart also intends to deploy technology that creates custom-fit boxes at around 50% of its fulfillment centers, reducing material usage and optimizing truckload efficiency.

The retail giant will also offer customers the option to skip using plastic bags for curbside pickups by the end of the year, demonstrating a continued commitment to environmental responsibility. Walmart's new initiatives align with a growing business focus on digital sales, representing about 13% of the company's total annual sales.

Senior Vice President of Sustainability at Walmart, Jane Ewing, stressed that the aim is to make sustainability an effortless choice for customers, with eco-friendly products not carrying a higher price. This approach is expected to resonate with environmentally conscious consumers and those frustrated by accumulating packaging waste at home.

Walmart's move to more sustainable packaging mirrors initiatives by other major retailers, including Amazon and Target. Amazon has also adopted custom-fit packaging and encouraged vendors to use their own containers, while Target has introduced recyclable paper cushioning and returnable bags at select stores.

The sustainability drive isn't just for appealing to consumers. It also brings cost benefits. Custom-fit packaging, for instance, not only lessens the use of materials but also makes transportation more efficient and simplifies labor tasks. By championing sustainable practices, Walmart hopes to meet customer demand and reduce its environmental footprint.

The importance of a PPE job hazard analysis

A PPE Job Hazard Analysis (JHA) focuses on identifying which PPE is necessary for specific job hazards in the workplace. The process involves identifying potential dangers and substandard practices in their work environment. By actively involving employees in this process, business owners can tap into the expertise and knowledge they can provide pertaining to their specific job tasks.

Involving employees promotes safe work practices and helps prevent injuries and incidents. The JHA process also improves communication and collaboration among line employees, supervisors, team leaders, and senior managers.

The benefits for employees and employers include:

• Employee Empowerment: Involving employees in identifying hazards and modifying work methods instills a sense of ownership and responsibility for their safety and the safety of their colleagues.
• Enhanced Safety Culture: By actively engaging employees in the JHA process, organizations foster a culture of safety where safe work practices become ingrained in daily operations.
• Improved Productivity: Implementing JHAs can lead to enhanced productivity as it identifies inefficiencies, substandard practices, and potential hazards that can be eliminated or mitigated.
• Higher Product Quality: By addressing safety concerns through JHAs, organizations can reduce incidents that may impact product quality, improving customer satisfaction and reducing waste or rework.

A JHA template can be found here. You should review JHAs every two years or when there is a change of processes to current operations.

Also, ensure your Accident Prevention Program (APP) is current and includes your JHA findings. If additional training or personal protective equipment is necessary, include that information in the APP. A free tool to help streamline the process of creating an Accident Prevention Program is eAPP.

Our safety team is available to help members take their safety program from compliance to quality safety practices. Contact us at safety@waretailservices.com to learn more.

WR diversity statement

WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.

We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.