November 6, The Honorable Michael P. Huerta Administrator Federal Aviation Administration 800 Independence Avenue, SW Washington, DC 20591

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1 November 6, 2015 The Honorable Michael P. Huerta Administrator Federal Aviation Administration 800 Independence Avenue, SW Washington, DC RE: Clarification of the Applicability of Aircraft Registration Requirements for Unmanned Aircraft Systems (UAS) and Request for Information Regarding Electronic Registration for UAS The Toy Industry Association, Inc. (TIA) represents over 800 businesses toy manufacturers, importers and retailers, as well as toy inventors, designers and testing labs who are all involved in bringing safe and fun toys and games for children. Approximately 3 billion toys are sold in the U.S. each year, totaling $22 billion at retail; TIA members account for approximately 90% of the market. Toy safety is the top priority for the industry and TIA and its members have long been leaders in toy safety, dating back to 1930s. Our efforts include leading the development of the first comprehensive toy safety standard (later adopted as ASTM F963, which in 2008 became a mandatory consumer product safety rule under CPSIA); and the industry continues to provide technical input and actively participate in the ongoing review of this "living" standard today, to keep pace with innovation and potential emerging issues. TIA and its members work with government officials, consumer groups, medical and child development experts, testing labs and industry leaders on ongoing programs to ensure safe play. The unmanned aircraft systems (UAS) market is one that is quickly developing into a significant industry. Technology developments and innovations make the market extremely dynamic and one that will likely look very different years from now. There is a lot to be gained from UAS technology whether it is through helping first responders better implement rescue missions or creating new sports like FPV racing. With safety as the number one priority, the Federal Aviation Administration (FAA) and Department of Transportation (DOT) must implement UAS

2 regulations that do not inhibit advancements but rather spur growth in this sector and inspire future innovators. The following comments are provided as preliminary analysis on the toy industry s position regarding the proposed UAS user registration system and toy UAS that should be exempt from registration requirements. Interim Rule TIA is supportive of the FAA and DOT working collaboratively with stakeholders with the goal of improving operational safety of UAS and supportive of the creation of a UAS user registration system. However, TIA members represent a significant percentage of UAS that are on the market. We are surprised that the task force and FAA would proceed in recommendations regarding toy UAS without the input of toy UAS manufacturers. For the following reasons, we strongly urge the Federal Aviation Administration (FAA) and Department of Transportation (DOT) to proceed with an interim rulemaking and not implement a direct and final rule: Implementing an interim rule would begin the process of developing a registration system while giving the agencies more time to work with the stakeholder working group and other interested parties to fully develop an effective system that appropriately reflects the risk of the products that should require registration. The interim rule should expire a year from enactment which would ensure all stakeholders that a proper and more comprehensive regulatory process occurs. In creating an interim rule, the UAS taskforce, FAA and DOT can focus on creating a pilot registration system that only includes the UAS that have the capabilities and factors that would classify them as high risk. To supplement this pilot program and improve overall UAS operational safety, FAA and DOT should accelerate consumer education efforts this holiday season. In an effort to support these education initiatives, TIA will be joining the Know Before You Fly Campaign and promoting it along with our toy safety messaging. In the interim rule and any future rulemakings, FAA and DOT should signal to states that they should not implement their own requirements or definitions to address the same risks being addressed by this UAS user database. Instead, the states should defer to the federal government s regulatory process and not come up with different definitions of UAS that do not present a risk and therefore should not be subject to regulation. 2

3 Toy UAS and Other Exemption Considerations Due to the inadequately short timeframe to collect sufficient data and provide comprehensive comments, the information provided below cannot be considered a comprehensive analysis of products that should be exempt from the UAS user registration category. The FAA and DOT should not require users of UAS to register if the performance capabilities of the UAS present a negligible risk of incident with other aircraft. Given the feedback received from TIA member companies and the research conducted in the current toy market, UAS classified as toys fit into a broader category of UAS that do not have the performance capabilities or other characteristics of more advanced hobby or recreational UAS. Therefore, for purposes of defining products that should be exempt from registration requirements, we do not think it is necessary to create an independent toy UAS category separate from the category of UAS that should be exempt from registration requirements due to their lower risk. In most cases, toy UAS can be (and are) sold in both toy and electronic departments of retail stores and are marketed to a broad category of consumers not just children. Despite the fact that traditional toys are seen as children s products, most UAS sold in toy departments or marketed as toys are age graded 14 and up. 1 (We note that regardless children should not be required to register as there are obvious privacy concerns and implications.) Cost appears to be the most obvious and consistent differentiation between UAS that are classified as toy UAS other UAS. That cost delineation is reflective of a variety of factors better technology, better materials, height, more advanced capabilities, etc. However, cost does not directly correlate to operational safety or risk. For example, collision avoidance technology making the UAS safer is available but adds significant costs to the product. Conversely, a less expensive product will not likely be able to fly as high which would mean the product does not present a risk to the aviation industry. The cost of the UAS is also not a good indicator to differentiate between toy and not toy UAS as the cost is a moving target one that will change due to a variety of reasons unrelated to the operational safety of the product like availability of products, consumer demand or technological improvements. In creating a toy UAS category, FAA and DOT run the risk of considering factors that are unrelated to operational safety like how the UAS is marketed or where it is sold. FAA and DOT should instead only look at targeted UAS performance indicators that directly speak to the operational risk of the product and exempt all UAS that fit in that category regardless of whether the product is marketed as a toy or not. The weight of the UAS seems to be the most 1 The Consumer Product Safety Improvement Act (CPSIA) defines toy as a Consumer product designed or intended by the manufacturer for a child 12 years of age or younger for use by the child when the child plays." This definition highlights two factors: play value and use by children. The Consumer Product Safety Commission has also issued an interpretive rule for determining whether the product is a children s product or not (16 CFR Part 1200 Definition of a Children s Product Under the Consumer Product Safety Act). The rule looks at several factors including, inter alia, how consumers view the product, how the product is marketed and labeled and who is the predominant user of the product. If more than 50% of the users of the product are children, then the product would be a children s product. 3

4 risk-related and measurable variable. Based on feedback from our members, most indicated that they manufacture UAS that are relatively light (below 1kg). However, there are products that weigh more than 1kg that should also be considered for exemption. For example if the product is intended to be flown indoors only, if the product can only fly relatively low or if there are other technological advancements in the product that make the product safer (like crash avoidance technology or technology that limits the height the UAS can fly). While height would seem to be another factor that would speak to the risk of the UAS, members are concerned that there is no way to test to ensure the height limitations of the UAS. While some companies use technology that limits the height the UAS can fly (the remote controller may have a limit in the range for example), not all do and it would be premature to spell out specific technological requirements to ensure that the product flies below a certain altitude when other technology advancements may develop that achieve the same purpose. Factors such as whether the UAS has a camera are not relevant to the risks outlined in the federal register notice and should not be considered at this time. While there are legitimate privacy concerns to take into account, this conversation should not take place in the context of the aviation industry safety at this time. Regardless of the factors considered now, it is crucial that FAA and DOT include mechanisms in the regulation that allows for routine review of the line that distinguishes between exempt UAS and non-exempt UAS to take into account new technological developments and new incident report data. Manufacturer Requirements As the FAA and DOT proceed with the UAS user registration system and possibly other requirements, we ask that the agencies take the following into account: - The FAA and DOT cannot mandate requirements for the products themselves that would go into effect the upcoming holiday season. These products have already been manufactured and have already been purchased, or are on the way to store shelves or in distribution centers. Changes such as mandating serial numbers or other identifying information would be near impossible for companies to implement. - UAS technology is quickly developing offering consumers new options and capabilities. FAA and DOT should not prematurely limit these technological advancements through regulations. Especially for this low-to-no risk category of products, operational safety should be the onus of the user and not the manufacturer. - Manufacturers should not be responsible for maintaining UAS registration information. Manufacturers have limited visibility into who buys their products and requiring that manufacturers maintain this data has consumer privacy and cyber security concerns. 4

5 Conclusion The toy industry is committed to working with the government and other stakeholders to ensure that all toys, including toy UAS, are as safe as possible. We support a user registration system and urge FAA and DOT to exempt users of UAS that present almost no risk to the national airspace. Additionally, given the short time frame, we hope FAA and DOT consider proceeding on an interim rulemaking with the goal of finalizing a rule next year. Thank you for the opportunity to provide comments and feedback on the proposed UAS user registration system. Please contact Rebecca Mond, senior director of federal government affairs (rmond@toyassciation.org or ) or Molly Carroll, assistant manager of external affairs (mcarroll@toyassociation.org or ) if you have any questions. Sincerely, Steve Pasierb President and CEO Toy Industry Association 5