Webb, Bipartisan Group of Senators Urge Federal Trade Commission to Crack Down on Chinese Drywall Scams

Washington, D.C. – United States Senator Jim Webb (D-VA), along with Senators Bill Nelson (D-FL), David Vitter (R-LA), Thad Cochran (R-MS), Roger Wicker (R-MS), and Mary L. Landrieu (D-LA), yesterday urged the Federal Trade Commission (FTC) to help protect homeowners from scams by companies and individuals claiming to have solutions for tainted Chinese drywall. In a letter to FTC Chairman Jon Leibowitz, the Senators raised concerns about deceptive practices that prey on consumers with defective drywall and asked the Commission to fully investigate and prosecute companies engaging in these activities. 

“With more than 70 separate reports of contaminated Chinese drywall in Virginians’ homes and businesses, these unacceptable predatory practices deserve immediate attention from the federal government,” said Senator Webb. “I will continue working to ensure that those affected receive the necessary federal attention. I have also asked President Obama to address the issue of defective drywall with President Hu Jintao during his visit this week to the People’s Republic of China.”

“Homeowners in our states are already struggling to deal with the health and property issues related to the defective drywall,” the Senators wrote.  “We believe that these impacted homeowners should not be further victimized by spending additional funds on remediation or preliminary testing not approved or endorsed by the Federal government or any State agency.  As we work together with the designated Federal and State agencies to develop real solutions to the problems created by contaminated drywall, it is important that the FTC ensure that homeowners are protected from companies seeking to make fast money off the misfortune of these homeowners.”

Following well-publicized reports detailing the problems with defective Chinese drywall, companies and individuals have announced and advertised “solutions” for affected homeowners.  These solutions promise testing procedures to identify Chinese drywall or remediation protocols that claim to completely remove the product from homes.  Some companies have even advertised that they are part of a national certification program – despite the fact that the federal government has yet to fully determine the exact substances in this defective product.

“We respectfully request that the FTC investigate these claims in order to ensure that homeowners are not further damaged financially by this crisis,” the Senators wrote.  “We would also request that the FTC continue to work with the affected states as some are already investigating consumer complaints.”

Today’s letter follows months of efforts from Senator Webb on behalf of those affected by the tainted Chinese drywall. Since April, Senator Webb began constituent casework for individual reports, contacted seven federal agencies requesting disaster declarations, casualty loss tax deductions, expedited tests and evaluations, and mortgage assistance, and requested that President Obama raise the issue with President Hu Jintao during his visit to the People’s Republic of China. 

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