Fix the CPSIA

While we all applauded efforts by the federal government to tighten the safety standards for toys, we all got much more than we bargained for. The law (Consumer Products Safety Improvement Act) that was passed extends to all products directed to children 12 years of age and younger, and includes such things as clothing & toys and much more, with very few exceptions or exemptions. That wouldn't be so bad, but there are a few requirements that, if left as is, will force most small businesses (and many medium & large sized businesses) out of business....including retailers, and work at home moms.
1. Existing Inventory: The law states that any affected product (children's products of all kinds) that does not meet the new standard (with the exception of phthalates) cannot be sold from the shelves after February 10th. The issue is this: children's companies across the country have purchased inventory based on the laws of the land at the time of purchase, without any idea their product would require additional, expensive testing, for new regulations not then in place. This inventory is both "safe" and legal today. To create an artificial deadline that deems them unsafe after the deadline, based solely on the lack of a piece of paper (certificate) confirming that they also meet the new standards is incredible. To test these items now, on the retail and/or wholesale level is prohibitively expensive, and/or simply not possible. So it is very difficult for anyone to confirm complete compliance, and at the same time, penalties for selling anything that doesn't meet the standard are very stiff. The options for anyone with inventory are not pleasant.

By the way, this affects all children's products businesses of all sizes across the country. As best as I can tell this is easily a $100billion* per year industry (toys alone are $22b) that is going to be in big trouble in February, not because of the economy, but because of poorly written legislation. (*if anyone has actual statistics on the size of the children's industry I would appreciate knowing.

2. 3rd Party Unit Testing: The law will require 3rd party testing in the future for each sku (or style). The large pair of jeans have to be tested separately from the medium size of jeans...even though all materials are the same. This makes testing prohibitively (impossibly) expensive. We can generally expect product selection to shrink. There are other ways to form a testing regimen and be just as satisfied with the results.

3. Markings: All products manufactured after August 12th, 2009 must have markings on the package and permanent markings on the product indicating where, by whom, and when the product was made. Large companies that mass produce tens or hundred of thousands of an item can afford purchasing multiple dies to do this. Small companies cannot. European companies with limited sales to the USA likewise cannot.

4. Complexity: The law is extremely complex. Needlessly so. It is requiring companies to hire lawyers just to get a grasp of what is required of them. Also, the requirement of including certificates of compliance of each product shipped, with each product is overly burdensome. Electronic certificates has been approved, and will help, but even then there is a substantial cost to the additional administration---which does very little, if anything, to improve the safety of our toys.

5. Frequency of Testing: I am still trying to get a clear grasp of this. However, it is very possible that each batch or imported shipment must be tested/certified. Again, this is okay for large companies running 10,000 or 100,000 pieces per batch, or with container loads of limited styles of products. For small or niche manufacturers with small runs, or small importers with small shipments, it multiplies the enormous cost from point #2, even higher. Certainly testing should be required but should be done in reasonable ways. If my supplier has a batch of certified products in Europe, and I import that in increments of 4 different deliveries, should I really need to pay for 4 tests?

What this means is innovative companies (of all sizes and shapes) that make or market niche products, will be forced out of business, or forced to narrow their product range and/or shift their focus to the mass market. Product availability and selection will diminish. We will be primarily left with mass produced imported toys from China. Yes, quite ironic isn't it.

By the way, that was the pitch for those concerned about specialty toys & children's products. For those concerned about the general economy, remember that what happens in our industry spills over into other industries. Massive bankruptcies impacts creditors & suppliers as well as local (and national) businesses, as well as our much discussed housing market.