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standards.

· UL helps develop national and international codes and

works toward standards harmonization.17

UL does not provide the insurance function of under-

writing risk.  It produces no testimonials, advertisements,

or other marketing support for its clients.  The sole busi-

ness of UL is disseminating safety and performance informa-

tion.  UL approval sometimes is conditioned on manufactur-

ers' issuing warning labels, use-and-care booklets, safety

tips, and other consumer information.  UL itself distributes

informational literature, news releases and broadcasts

public service announcements to educate the public about the

meaning of the UL mark.  UL disseminates all this informa-

tion because the market demands it, not because the govern-

ment requires it.

How good is UL at what it does?  UL's employees are the

most expert personnel in their profession.  Their profes-

sional opinion on a given subject is the best available.

Homer Pringle of UL's legal department says, "Put UL person-

nel on the stand, and they will beat anybody else's expert

witnesses."18

Value Added and No Monopoly

No statutory, regulatory, or court-ordered mandate

requires manufacturers to seek UL approval, yet tens of

thousands do.  Why?  Consumers want to buy safe and effec-

tive products.  The people at UL have staked their time,

their reputations, and their livelihoods on providing con-

sumers with accurate and timely information.

The UL organization acts like a performance bond.

Manufacturers who pay for UL's services are posting that

bond.  Consumers recognize this and are willing to buy or

pay more for UL-listed products.  Thus, manufacturers who

produce a good product want UL listing.  Companies that make

a poor, unsafe product are not listed with UL, many retail-

ers balk at stocking such products, and many consumers think

twice before buying them.  Product safety is ensured, and

the private market has generated value-adding information.

Incentives

Market survival dictates that UL be extremely diligent

in avoiding both Type I and Type II errors and in maintain-

ing independence from its clients.  If UL were a tool of