NYC Bill to Ban Reuse of Lithium Ion Batteries, Right-to-Repair Advocates Warn
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This sounds like a better place to start than legislating in the dark.
Ban it in densely populated areas, make testing mandatory in regular US suburban area, check in 6 month for results of testing. If the test change nothing, keep the ban and change the tests.
Kind of the new SE mentality of testing in prod.
The lithium ion battery fire problem is extreme. Batteries can be permanently damaged without visible damage. Manufacturing defects in an imperfect world mean they're not even totally safe brand new from the factory.
To accurately judge this we'd need a statistical analysis that I don't think exists. So yeah, in general a government shouldn't make laws without proof they'll be successful, but this is fire safety in city of mid & high-rises. The risk calculation is tough to criticize.
If safety or fires would be truly a concern, costly test would be mandatory every year for each battery powered device.
Battery connection and test modes would be standardized, to check the rest of the device for shorts and isolation etc. Usually those things are glued together with epoxy and sufficient testing is impossible without destruction of the toy.