Preemption
Federal preemption -- the concept that federal law trumps state and local law when Congress so intends or when conflicts or inconsistencies are present -- is vitally important to companies doing business in multiple states because it allows them to operate under one set of rules rather than having to accommodate varying and perhaps even conflicting rules in each state. Uniform national rules foster economic growth by preventing a balkanization of markets and ensuring national and international markets for goods and services. When applied to requirements imposed by state tort law, preemption often brings the added benefit of limiting unwarranted liability and ensuring that safety decisions are made by regulators with a national perspective.
The U.S. Chamber Institute for Legal Reform is working to promote the use of federal regulatory authority to preempt state common law claims for damages that are inconsistent with legal reform, including in cases involving failure-to-warn and product safety or design defect challenges.
