National Bankruptcy Day (CPSIA Consumer Product Safety Improvement Act)

[CraftyChef]

This small-business-killing lead scare legislation puts thousands of home-based entrepreneurs out of business so that China will get a free pass on cheap, tainted children's products. This can have a huge effect on larger businesses, too; lead testing requirements and certification will apply to existing inventory as well as any new products made. This is being called National Bankruptcy Day, and there's a site nationalbankruptcyday.com which has helpful links to videos and other sites.

This has flown under the radar since August 2008; apparently congress overwhelmingly passed it so they could stamp "We care about the children" on their foreheads (oddly enough, Ron Paul was the only dissenting voice there), but none of the strangling details were forthcoming. Now companies must scramble over the busiest buying season of the year to make decisions about how on earth they'll afford lead testing and how to get it accomplished before the deadline of February 10, 2009. Otherwise their inventory is declared hazardous and must be disposed of. Think of school books and supplies and you can see a nice property tax increase to cover the costs to schools. Amazon.com has already notified publishers that it's comply or eliminate.

It will be a felony to sell anything for the 12 and under age group that hasn't been certified (by overworked labs that couldn't possibly handle the volume no matter what the regulations say); you can enjoy jail time along with stiff fines according to the new laws.

Much as I love WalMart, I also love the fact that a stay-at-home mom can be at home with the kids and make a few bucks to contribute to the mortgage payment by making cloth diapers or toys with her own hands and sell them to other caring folk on the internet. People are starting their own businesses and selling all kinds of products on their own websites or at mall sites like Etsy.com. All of them will have to shut their doors on February 10.

We're up against the likes of the monster Consumers Union, among others, and they're not going to be satisfied with just targeting children's products. They want life itself to be lead and chemical free and they don't care how it affects businesses or prices, yet they ensure with this latest legislation that the ONLY products in the marketplace are cheap, tainted crap from China.

Of course, this puts pocket change into our fine gub'mint hands and they have doubled or tripled the budget of the CPSC. I didn't think I needed to elaborate on that.

[Tina HD]

I am one of those home-based businesses who will be put out of business by this new law. I make and sell cloth diapers online. I do not have a high volume business to spread costs over. Most of my items are one-of-a-kind, or nearly so. The most of any one style/size diaper I've made is 3 or 4. My customers like variety, so I try to continually change up what I offer.

This law specifies that end-unit testing must be completed, at a certified lab (there are currently 14 in the US, I believe), for every different SKU. (Please note that this forces testing to the SIZE level for each 'batch'. If everything is identical in 2 diapers I create, but one is a small, and one is a large, BOTH are required to be tested). Testing is destructive, so the item is not returned. When something in that "batch" changes--need to order new snaps, new bolt of fabric, etc--the testing must be done again.

A US lab quoted $75 per component for testing a cloth diaper. I have at least 2 different fabrics, thread, snaps and elastic in a diaper. $375 to test EACH different combination of fabrics/snaps/thread/size combinations. THAT is insane.

Now consider the fact that almost ALL of the supplies I use are ALREADY certified lead free by the suppliers of those items, through internationally accredited testing programs. I have ALREADY paid (through the costs passed on by the supplier) for those items to be tested. And yet I have to pay AGAIN, to show that simply assembling these items into a different form on my home sewing machine (NOT a dirty factory in China) did not somehow magically infuse the product with lead.

The most logical, and simplest way to allow me to stay in business, would be to allow me to rely on those supplier certifications that my finished products are lead free. Working in my home, if I dye certified lead free fabric with certified lead-free dye, does it not stand to reason that the end result is also lead free? If I knit certified lead free yarn into a pair of booties, a cupcake, or a pair of pants, is it not reasonable to assume that those end products are not also lead free? And similarly, if I sew fabric together that is certified lead free?


The other element of the law that creates a hardship for business (small and large alike) is the retro-active nature of the lead limits. The law specifies, as op said, that as of Feb 10, 2009, no product may be SOLD in the US without a certificate proving it is lead free. All inventory currently held in stores, warehouses, or on my shelves in my workroom is considered to be laden with lead and is "banned hazardous material" unless proven otherwise. It is ILLEGAL to sell this inventory or export it. These items were legally purchased in good faith at the time. For large retailers, their inventories were purchased with loans secured by the value of that inventory. What happens to these lenders and retailers when the value of that inventory goes to zero? It is conceivable, at least to me, that retailers will be the next group in front of congress asking for a bailout.

I am but one of MANY micro-manufacturers who will be forced to give up the American dream of owning my own business because of this legislation. Even my 11 year old daughter, who has her own little business making and selling doll diapers will be shut down.

Who will remain? The mega manufacturers, sourcing their products from China, who were the reason for the legislation in the first place. When the toy recalls of 2007 happened, many consumers turned to the handmade industry as a way to escape the dangers of imported products. And now the government will remove that choice from consumers, in the name of improving child safety.

Don't get me wrong--I believe standards should be tightened and children's safety is important. I'm not asking to be exempt from the law. I just believe there is a better way to implement this law that puts the costs where they belong--on the companies that caused the problem--and allows smaller businesses, who do not represent the same level of risk, to remain in business and competitive.

[cmmjaime]

I’m trying to figure out why there is so little in the news about the CPSIA legislation and its looming impact on
the economy. Congress voted for it last July, President Bush signed it into law last August, and most of us are just beginning to hear about it almost 6 months later. I run a small family store in Madison, Alabama – I sell used books and other educational materials, new books and other educational materials, and I self-publish educational materials. All of those activities may become illegal on February 10th, under this law!

The initial problem: After issues in December 2007 with some toys imported from China, Congress started working on a piece of legislation to deal with the problem. But the legislation does much, much more than t hat. It doesn’t just deal with toys, and it doesn’t just deal with imports.

The government response: A law that deals with ALL products intended for children under 13 (including
clothes, furniture, toys, science kits, art materials, and BOOKS). And not just imports – all new products, from home or abroad. And not just new items – used ones are also included in this law. Those of us who sell any children’s products will have to prove (through expensive tests) that these items are lead-free. No tests, no certification. No certification, no sales…


The consequences: Minus a serious shift in the interpretation of the law, the second-hand market of all children's products will be seriously hampered in the United States as of February 10th. Much of what is currently sold used could be considered illegal. While resellers won’t be required to test for lead, we’ll still be breaking the law if we sell something that contains too much lead. (Can someone explain how that clarification is supposed to make us feel better?)

Additionally, hand made and home made items are also included in this list. Craft fairs
look out. Moms making a side income sewing, beware. The federal government is about to outlaw all of that.
Another market that is threatened is the self-publishing market. At the moment, books are included in the list of children’s products that must be certified, even though books have never had a lead problem. As a self-publisher, I don’t even know how to begin to make my books “legal”. It may be easier to just stop producing things for that market. (Which is a horrible thing to think!)

You can google CPSIA and find all sorts of interesting things, some of it accurate and some of it not. But most of it very disturbing!

May Congress somehow come to its senses, and February 10th not turn out to be "National Bankruptcy Day".

Catherine Jaime
Creative Learning Connection

[cmmjaime]

The Consumer Public Safety Commission is still "looking into" some of the problems with this law. And yet, it goes into effect, problems and all, in less than 2 weeks. So, as of this date, all children's products, for those children under 13, will still need to be tested in order to be sold after February 9 -- including Furniture, Books, Toys, Games, and more...Can we see the prices rising yet???

[Old_Mil]

I’m trying to figure out why there is so little in the news about the CPSIA legislation and its looming impact on
the economy. Congress voted for it last July, President Bush signed it into law last August, and most of us are just beginning to hear about it almost 6 months later. I run a small family store in Madison, Alabama – I sell used books and other educational materials, new books and other educational materials, and I self-publish educational materials. All of those activities may become illegal on February 10th, under this law!

The initial problem: After issues in December 2007 with some toys imported from China, Congress started working on a piece of legislation to deal with the problem. But the legislation does much, much more than t hat. It doesn’t just deal with toys, and it doesn’t just deal with imports.

The government response: A law that deals with ALL products intended for children under 13 (including
clothes, furniture, toys, science kits, art materials, and BOOKS). And not just imports – all new products, from home or abroad. And not just new items – used ones are also included in this law. Those of us who sell any children’s products will have to prove (through expensive tests) that these items are lead-free. No tests, no certification. No certification, no sales…


The consequences: Minus a serious shift in the interpretation of the law, the second-hand market of all children's products will be seriously hampered in the United States as of February 10th. Much of what is currently sold used could be considered illegal. While resellers won’t be required to test for lead, we’ll still be breaking the law if we sell something that contains too much lead. (Can someone explain how that clarification is supposed to make us feel better?)

Additionally, hand made and home made items are also included in this list. Craft fairs
look out. Moms making a side income sewing, beware. The federal government is about to outlaw all of that.
Another market that is threatened is the self-publishing market. At the moment, books are included in the list of children’s products that must be certified, even though books have never had a lead problem. As a self-publisher, I don’t even know how to begin to make my books “legal”. It may be easier to just stop producing things for that market. (Which is a horrible thing to think!)

You can google CPSIA and find all sorts of interesting things, some of it accurate and some of it not. But most of it very disturbing!

May Congress somehow come to its senses, and February 10th not turn out to be "National Bankruptcy Day".

Catherine Jaime
Creative Learning Connection

Well, that's just too bad. If you hadn't shifted production to China and started making things with the level of quality control that would have made the muckrakers roll in their graves, we wouldn't be at this crossroads now, would be.

The only thing alarming about this law is the number of business types trying to smear it so they can keep their little Chinese cash cow from being slaughtered.

[Uncle Ludwig]

Sorry, but after having glanced through the actual text of the proposed CPSIA, I fail to see what some of these doom-sayers are basing their dire predictions on.

NO way every single product is going to have to be tested, as there is mention of certifying third-party entities to do the testing and provide certificates, even blanket ones for manufacturers. And even if it's going to cost some small businesses money to do business because of testing requirements, I can't see how those costs wouldn't be deductible under even the most "socialistic" tax laws.

So, it seems that, yet again, we've got a straw man stood up for knocking down, and some groups are hoping for special consideration against the greater good of society.

[bioya1]

Sorry, but after having glanced through the actual text of the proposed CPSIA, I fail to see what some of these doom-sayers are basing their dire predictions on.

NO way every single product is going to have to be tested, as there is mention of certifying third-party entities to do the testing and provide certificates, even blanket ones for manufacturers. And even if it's going to cost some small businesses money to do business because of testing requirements, I can't see how those costs wouldn't be deductible under even the most "socialistic" tax laws.

So, it seems that, yet again, we've got a straw man stood up for knocking down, and some groups are hoping for special consideration against the greater good of society.

Thank you for your effort in researching this.

[localview]

Uncle Ludwig
This law criminalizes the sale of any product that does not meet the new standards that go into effect 2/10/09. This applies to individuals and small business, like thrift stores and resale shops. These businesses play a vital role in many communities both supporting charity causes and providing affordable clothing and children's items to those who could not otherwise provide for their families.
These small businesses employee people and the for profit segment pays taxes. I assure you, the effects are very far reaching. There is no "straw man". This legislation hits close to home for many who struggle to make it every day, support their own families, start their own businesses, work from home so that they can stay home and raise their families.
We are not opposed to the law and do not want special treatment, we simply don't agree with the retroactive application of the new law.

If the letter of this law is followed, this means that it is illegal to sell your children's items in a yard sale, resale shop, on ebay or Etsy. Where do you think these items will end up. In the landfill.

It is good legislation gone bad. An Anti-Stimulus Act of devastating proportions.

[cmmjaime]

Maybe in some sense what you say is true about the large businesses who started this trouble in the first place by importing low quality items from places like China. But we're talking about the effect on smaller businesses, not on larger businesses.

This bill is not just about raising standards -- it is requiring items like regular books, which have never been a safety issue, to be tested and certified to be lead-free. No one in the scientific or legislative community considers those to be a health hazard, but they are still included in the definition of "all children's products".

I don't import things from China to sell-- I make them myself. I self-publish books for children, that under these new requirements I will no longer be able to do. My niece makes perfectly safe baby slings that she will not be able to sell if they must be tested and certified. (Because the costs of the test are too much, not because they would fail the test.) And so the list goes on. Those are our concerns with the requirements for new items; a testing/certification requirement that has at least been postponed.

[daveNYC]

Some tidbits of info from the gov's website (http://www.cpsc.gov/cpscpub/prerel/prhtml09/09086.html).

Sellers of used children’s products, such as thrift stores and consignment stores, are not required to certify that those products meet the new lead limits, phthalates standard or new toy standards

The new safety law does not require resellers to test children’s products in inventory for compliance with the lead limit before they are sold.


So I'm not sure exactly what 'self publish' means in the sense of do you do your own printing or not. Your sister would have to get her slings tested though. And this will have zero impact on yard sales. So pack rats and their enablers the world over can celebrate.

How much does the testing cost anyway?

[cmmjaime]

Uncle Ludwig,
I'm not sure what parts you missed in your "glance" through the legislation. I have read the entire law, and most of what the Consumer Product Safety Commission (those that will enforce this law) has said since then. I have also called my senators and the CPSC hotline to make sure I was understanding the law properly. We are not exaggerating the dangers of this law.

I have the privilege of serving the homeschool community in my area as a retailer, a reseller and a self-publisher. And my services in all of those areas are in jeopardy as a result of this law. I didn't come to those conclusions lightly, or as a doomsayer. I came to them carefully.

Here is part of what the CPSC said in their clarification to resellers: ".... resellers cannot sell children’s products that exceed the lead limit and therefore should avoid products that are likely to have lead content, unless they have testing or other information to indicate the products being sold have less than the new limit. Those resellers that do sell products in violation of the new limits could face civil and/or criminal penalties." In another part of their clarification they remind us that we cannot sell recalled items.

Have you looked at the list of recalled items on their website? It is huge. Both of those requirements make it too risky for me to carry almost all used children's products in my store. I do not have the resources to test them for lead or to check the recall list every time someone brings something to our store. So we lose out on selling opportunities, and more importantly our customers lose out on opportunities -- opportunities to purchase used items that came into the market legally, and that in most cases are still safe.

And that is just one of the results of this law.

[localview]

Sorry DaveNYC, but yardsalers are effected like any other individual or business who sells an item intended for a child under the age of 12. Granted, the law could not reasonable expected to be enforced on yardsalers - but why crimilize something.

And true, resellers aren't required to test items. however, IT IS STILL ILLEGAL TO SELL AN ITEM THAT DOES NOT MEET THE NEW STANDARDS. And, resellers face the threat of criminal and financial penalties if determined in violation of the law.

The "Stay" on testing requirements and exemption of resellers from testing requirements does absolutely nothing to save small business!! We are in jeopardy unless congress takes immediate action.

And too, If you have any children that want an ATV or Mini-Motor Cycle you better buy it before Tuesday or they might not be available. Turns out those children's items contain Lead!!!!

[cmmjaime]

Some tidbits of info from the gov's website (http://www.cpsc.gov/cpscpub/prerel/prhtml09/09086.html).


So I'm not sure exactly what 'self publish' means in the sense of do you do your own printing or not. Your sister would have to get her slings tested though. And this will have zero impact on yard sales. So pack rats and their enablers the world over can celebrate.

How much does the testing cost anyway?
By self-publishing I mean print and bind my own books. Unless the law is changed those will have to be tested, as well as any hand-made items like the baby slings.

According to a position paper that Consumer Union put out, tests cost "only" $50, though other figures I've seen are much higher than that. For those of us who manufacture in small amounts, those $50 tests could really add up!

[cmmjaime]

We were required to dispose of inventory valued at over $,4000 because of CPSIA. (Our average monthly sales are $5,000.) And I found out today that if we find more books hiding on our shelves that are now illegal -- we can't even GIVE them away!

[cmmjaime]

CPSIA isn't going to Bankrupt the country in one fell swoop. It's going to do it little by little by little...The Wall Street Journal ran another article yesterday on-line (on March 4) -- "Makers are Pushing Back on Toxic Toys". The author documents the millions of dollars of wasted inventory -- new items being rejected by Wal-mart, Target, and Toys "R" Us, and used items being rejected by Goodwill and Salvation Army.

And please don't start about the "dangerous imports from China". That's not what most of these items were. For the used items, many of them were clothes or books, neither category which has been shown to cause problems.

The CPSIA law is too far-reaching and too broad. Some toys have been a real lead problem and some jewelry has been -- but none of the rest of these children's products have been problems at all. And most of the new products were removed from shelves because they hadn't been tested, not because they were unsafe.

We are having economic issues in this country right now...Taking perfectly safe new and used products out of circulation is not helping anyone -- regardless of age!

[slackkeymike]

never mind