Mrs. Septimus, who is active in the Etsy community, has been telling me about this for weeks. (Etsy is a site for buyers and sellers of handcrafted items.)Scrap The Consumer Product Safety Improvement Act
If someone you know volunteers at a thrift store or crochets baby hats for the crafts site Etsy or favors handmade wooden toys as a baby shower gift, you've probably been hearing the alarms about the Consumer Product Safety Improvement Act (CPSIA).
Hailed almost universally on its passage last year--it passed the Senate 89 to three and the House by 424 to one, with Ron Paul the lone dissenter--CPSIA is now shaping up as a calamity for businesses and an epic failure of regulation, threatening to wipe out tens of thousands of small makers of children's items from coast to coast, and taking a particular toll on the handcrafted and creative, the small-production-run and sideline at-home business, not to mention struggling retailers.
The first thing to note is that we're not just talking about toys here. With few exceptions, the law covers all products intended primarily for children under 12. That includes clothing, fabric and textile goods of all kinds: hats, shoes, diapers, hair bands, sports pennants, Scouting patches, local school-logo gear and so on.
And paper goods: books, flash cards, board games, baseball cards, kits for home schoolers, party supplies and the like. And sporting equipment, outdoor gear, bikes, backpacks and telescopes. And furnishings for kids' rooms.
Again with relatively few exceptions, makers of these goods can't rely only on materials known to be unproblematic (natural dyed yarn, local wood) or that come from reputable local suppliers, or even ones that are certified organic.
Instead they must put a sample item from each lot of goods through testing after complete assembly, and the testing must be applied to each component. For a given hand-knitted sweater, for example, one might have to pay not just, say, $150 for the first test, but added-on charges for each component beyond the first: a button or snap, yarn of a second color, a care label, maybe a ribbon or stitching--with each color of stitching thread having to be tested separately.
Suddenly the bill is more like $1,000--and that's just to test the one style and size. The same sweater in a larger size, or with a different button or clasp, would need a new round of tests--not just on the button or clasp, but on the whole garment. The maker of a kids' telescope (with no suspected problems) was quoted a $24,000 testing estimate, on a product with only $32,000 in annual sales.
Could it get worse? Yes, it could. Contrary to some reports, thrift and secondhand stores are not exempt from the law. Although (unlike creators of new goods) they aren't obliged to test the items they stock, they are exposed to liability and fines if any goods on their shelves (or a component button, bolt, binding, etc.) are found to test above the (very low) thresholds being phased in.
Nor does it get them off the hook to say an older product's noncompliance with the new standards wasn't something they knew or should have known about (let alone to say anyone was harmed; the whole controversy from start to finish has gone on with precious little showing of real-world harm to American kids from most of the goods being banned).
Thrift store managers, often volunteers themselves, have no way to guess whether every grommet or zipper on a kids' jacket or ink on an old jigsaw puzzle box or some plastic component of Mom's old roller skates would pass muster.
And even worse: Since the law does not exempt books, children's' sections at libraries and bookstores will, at minimum, face price hikes on newly acquired titles and, at worse, may have to rethink older holdings.
After all, no one has the slightest idea how many future violations lie hidden in the stacks and few want to play a guessing game about how seriously officialdom will view illegality. "Either they take all the children's books off the shelves," Associate Executive Director Emily Sheketoff of the American Library Association told the Boston Phoenix, "or they ban children from the library."
As CPSIA opponents mobilize, the phrase "unintended consequences" is often heard. Part of the irony, after all, is that the Hasbros and Targets, with their standardization and economies of scale, can afford to adapt to such rules as part of their business plan, while the sorts of enterprises that initially looked to benefit most from the Chinese toy scare--local, organic and so forth--are also the ones who find it hardest to comply.
And yet now it appears precious few lawmakers took the time to check what was in the bill, while precious few in the press (which ran countless let's-pass-a-law articles) cared to raise even the most basic questions about what the law was going to require.
Yes, something's being exposed as systematically defective here. But it's not the contents of our kids' toy chests. It's the way we make public policy.
So the problem with this scenario becomes, if you are a small handmade manufacturer, your batch may only be ten pieces of the product. And if the third party laboratory tests are $1,000, you've just added $100 per product to your cost. That is one expensive hair bow.
Next problem. Currently, as the law stands, the component manufacturer cannot do the testing for you. So if you make children's clothing and you use a zipper, YOU must submit your batch of jackets for third party testing, regardless if the zipper manufacturer tested it or not. And if you make sweatshirts with the same zippers, the sweatshirts must be tested as they are a separate SKU or finished unit.
This law is disheartening at best to small manufacturers of children's items.
Tracking the impact at National Bankruptcy Day. They are not kidding with that name.Under a new law set to go into effect February 10, unsold toys, along with bikes, books and even children's clothing are destined for the scrap heap due to an overzealous law to increase toy safety.
The damage comes from new rules governing lead in children's products. After last year's scare over contaminated toys made in China, Congress leapt in to require all products aimed at children under 12 years old to be certified as safe and virtually lead-free by independent testing. The burden may be manageable for big manufacturers and retailers that can absorb the costs of discarded inventory and afford to hire more lawyers. Less likely to survive are hundreds of small businesses and craftspeople getting hit with new costs in a down economy.
Because the new rules apply retroactively, toys and clothes already on the shelf will have to be thrown out if they aren't certified as safe. When Congress passed the legislation in August, House Speaker Nancy Pelosi boasted that "With this legislation, we will not only be recalling, we will be removing those products from the shelves."
Yeehaw. While large retailers may ask manufacturers to take back uncertified products, independent stores may be stuck with inventory that is suddenly illegal to sell. One Web site, NationalBankruptcyDay.com, is cataloging the costs faced by small businesses.
Small batch toymakers, many of whom make old-fashioned wood and sustainable products, say the testing requirements -- which can cost thousands of dollars -- are unaffordable. At Etsy.com, a Web site where entrepreneurs can sell their handmade items, many expect the new law to put them out of business. Also ensnared are companies that make products like bikes or childrens books. Because they aren't toy companies, many were caught by surprise when it became clear the law would apply to them. The only lead that can be found on childrens bikes is on the tire, where it poses no risk to a child not in the daily habit of licking the wheels. And while childrens books may contain no more noxious materials than paper and ink, under the new rules they would still need a test to prove it.
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