What do you think the effects of the CPSIA will be?
out of business as will I. It's hard to truly recognize the gaping hole
that this will leave in the economy until you see it though.
In case you don't know, the CPSIA(Consumer Product Safety blah blah blah) is
an act passed by Congress back in August of last year and being overseen by
the CPSC Consumer Product Safety Commission. The commission seeks to make
all children's products(or anything that will be used by someone under the
age of 12 including cribs, bikes, books, and clothing) to be tested and have
fewer than 600 ppm of lead. Manufacturers are required to send out every
single product they sell for expensive third-party testing from accredited
facilities by the CPSC.
For the average manufacturer, selling a product line of 40 products, at an
average cost between $500 and $1000 per test, this will cost $20,000.00 and
$40,000.00 per season. For most small to mid size manufacturers can not
afford the kind of testing being demanded and will be forced out of
business. Not only that, but products that manufacturers produced before
this law went into effect will be effectively labeled contraband. This
means that any children's product with over 600 ppm of lead content or any
contimation of plasticized pthalates is 100% illegal and can lead you to
fines over $100,000.00 as well as jailtime. This also applies to parents
and mothers selling children's clothes on eBay or thrift stores selling old
children's clothing, books, cribs, bikes, or anything that could potentially
have any amount of lead.
In other words, the majority of the children's business in the United States
will be effectively shut down and forever disappear. The companies that can
afford the testing, like Mattell and Tyco, will pay the money, develop new
products, and churn out more crap. The worst thing about it is that these
are the companies that got the rest of us, even domestic manufacturers, into
this situation. Their crappy Chinese garbage got caught with lead a bunch
of times, and now thousands and thousands of Americans will be losing their
jobs and businesses because the government thinks it will help protect our
children.
Frankly, I understand that they don't want lead in their products, but can
they really expect micromanufacturers to afford these things? If you like
quality children's products, domestic manufactured goods, or anything not
MADE IN CHINA, then I suggest you talk to your congressperson immediately
because this law goes into effect on February 10th and that is it. The day
is already being called National Bankruptcy Day because of all the
destruction it will cause.
So the question is: Can we afford this ridiculous new law right now? What
do you think the real effects will be? Will Obama stop it before the 10th
and save the industry? Sound off, I want to hear what other people think
and not just my insane disgruntled ramblings.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$3 Answers
- What started out as a well-meaning law to protect children under 13 has morphed into a potentially catastrophic economic disaster for America’s small businesses catering to kids: manufacturers; home-based businesses; crafters; small publishers; and proprietors of secondhand (thrift, antique, and book) stores.
This law is likely to shut the door on WAHMs, cottage industries, small publishers, and enterprising manufacturers nationwide because the method and cost of testing products for lead and phthalates is prohibitive for the small businessperson. This poorly crafted law not only impacts these businesses, but the millions of consumers who will have fewer choices at higher prices.
In light of our current economic downturn, is this the year to:
Force thousands of small businesses to shut their doors?
Forbid struggling families from reselling used children’s clothing, toys, books, and furniture to help make ends meet?
Bring to a screeching halt the services once provided by secondhand stores to put affordable products into the hands of those who choose to live frugally?
Put collectors and used-book stores out of business because they can’t buy or sell collectible antique toys or vintage children’s books anymore?
There are many concerns among children’s toy and clothing manufacturers about the effect that expensive mandatory testing will have on their businesses, and with good reason.
http://farm1.static.flickr.com/23/24563726_a4e0b9d419_m.jpg
Consignment, antique, and thrift stores will lose a major component of their business–used children’s articles. And the babies-only thrift stores will be forced to close their doors entirely. Bye-bye to donating used clothing and toys to the church nursery and Mexican orphanages. No more lovingly handmade quilts and afghans for preemies, cancer patients, American troops, and senior citizens.
Collectors who buy and sell vintage toys will not be able to conduct business anymore. Collectible Barbies, comic books, retro toys and lunchboxes, Victorian dollhouses, you name it! If these items are no longer saleable, they will lose their value because no one can buy them anymore without prohibitively expensive testing. These items, once intended for kids, are now adult collectibles, yet the door will be shut on their businesses without a swift and sweeping change in the law.
Let’s not forget the garment industry. For every children’s garment in every style and every size, testing will need to be done on fabric, thread, zipper, buttons, and trim. The cost will be staggering, especially for the small manufacturer or WAHM or grandma who makes handmade blankets, bibs, and other sewn items.
http://dustfactoryvintage.com/CC_MYSPACE/landfill1.jpg
And landfills. That’s another quandary. Since used items can’t be donated or sold, they’ll end up in landfills. A law whose original intent is to promote green thinking will actually have a horrible backlash as used articles make their way to the trash unnecessarily. How crazy is that?
Some effects that can be predicted ---------------
The mass market--------
Fewer choices from fewer brands. The big companies in infant care, children's toys, and apparel will begin reducing the variety of "styles" of individual products, and cut some less-profitable lines entirely rather than pay for redundant testing. This means a single model of sippy cup will suddenly come in two color choices instead of six, a pacifier in one style instead of four, and a lunch box in two licensed-character lines, one for boys and one for girls, instead of a half-dozen different characters plus a couple of generic models. Your local big-box store's sleepwear section will have half the number of fabrics, and you'll suddenly have trouble finding that yellow or green onesie to welcome a baby whose gender isn't known, and go with white instead. Brands that produce some kids' products but don't rely on them exclusively (high-end designers, furniture makers, and small companies with a range of small-batch products) may abandon the children's product market completely. Parent companies will shuffle their holdings. Startups will thin out, with fewer new entrants into the market, even than in past periods of recession.
The 8-to-12 toy gap. Although it is illegal to claim that a product intended for children is only intended for adults, a major gray area exists in the 8-to-12-year-old market. New products that would traditionally be marketed as "8 and up" will suddenly be labeled as "13 and up" or "over 12." The CPSC will challenge a few of these claims, but only the most egregious cases, because those are the only fights they can win. Other companies may choose to strengthen divisions offering products for older children at the expense of those for younger children. Either way, parents will face fewer choices as well as diminished rights for those they buy for "off-label" use.
Increased prices. Safety costs money and is worth our investment as consumers. But companies, at least initially, will be more concerned with protecting profits than competing on price. Depending on company strategy, these increases may be gradual or may hit in about six months.
The green purge. Consumers and retailers will remain confused regarding which product types can still be sold from current stock, and for how long; as a result, more products will showcase non-plastic materials, undergo stricter voluntary materials testing (Oeko-Tex), and promote themselves as "free" of banned chemicals. Book publishers will shy away specifically from synthetic covers, vinyl infant books, and integrated toy-book gimmicks. Meanwhile, vast quantities of unsold children's merchandise will be exported or destroyed. Companies doing business in the developing world will dump products there at cut-rate prices. Those that don't will send them directly into landfills, where they will slowly leach their banned substances into the environment. Non-compliant products will be retired as quietly as possible to minimize customer complaints and attempted returns.
Booby traps. Manufacturers who believed the CPSIA had no bearing on their product area will have a rude awakening. Congress will pass new laws to exclude them.
The used market--------
Online reselling will get safer. eBay, Craigslist, and other peer-to-peer sales services will see fewer listings of recalled items as top sellers are investigated and a few prosecuted, resulting in an overall increased safety level for cribs, high chairs, and toys offered through such services.
Online swapping will get more secretive. Many small and hobbyist forums for swapping between parents currently permit the viewing of posts by outsiders. Most of these will go fully private, often in response to requests from members, to help decrease participants' chances of being targeted for prosecution. Moderators will develop new methods for vetting members or require referrals for new members.
Thrift store profiling. Resellers are not required to test products, but are liable for the products they sell. This will likely result in product "profiling" strategies that vary wildly from store to store, but products obviously made from softened PVC (backpacks, play yards) will become difficult to find used and will go directly into landfills without being reused or passed on. Painted and plastic toys by unknown brands will also be broadly rejected. Few, if any, will conduct any testing.
The handmade and craft market-----------
The handmade industry will contract and undergo a broad cultural shift. Consumer options and volume will both be significantly reduced as work-at-home artisans are forced to choose between going out of business and flaunting a law they feel is unjust. Those who stop selling will tend to be older, and have more to lose from the risk of prosecution - homes, assets - while those who remain will tend to be younger, and will absorb the new business while pressing the "handmade movement" into more pointed political service. The most active agitators will help articulate the movement's goals using techniques from edge communities and will improve their skills at drawing media attention, which will protect them from prosecution to some degree. DC-area crafters will hold crafting sit-ins at public hearings and agency meetings. Sales of Civil Disobedience will rise. Those who leave may find other work, or may wait, and even produce goods, while they wait for a fix.
what may finally happen--------
The mass media will speak up about the issue. An ill-informed spike in television news coverage will miss much of the point and overhype the rest. Oprah will get involved, Martha might, and when they do, they'll nail it.
Some mis-conceptions------------
(1) This law is not just about toys. This law involves all products subject to any consumer product regulation, ban, standard, etc.
(2) The lead content ban does not just apply to toys. The lead content ban applies to ALL children's products. The term children's product is defined as any product under the CPSC's jurisdiction intended for children under the age of 12. As of February 10, 2009, all children's products must meet the lead content limit of 600 ppm lead. This cannot be averaged across the product - each part (except those that are inaccessible within the CPSC's definition) must meet the limit. This limit goes down to 300 ppm on August 12, 2009.
(3) The lead content limit is different from the limit on lead in paints and coatings. The limit on lead in paints and coatings applies to those products that are painted or coated. In addition, children's products must ALSO meet the lead content limit.
(4) Items manufactured after the lead content limit is effective must be accompanied by a general conformity certificate from the manufacturer - for domestically made products - or the importer - for foreign made products.
some more info..... ( http://frugalhacks.com/2009/01/09/cpsia-and-you-and-me/ )
Here are some reactions from the people regarding the act ( sourced from various forums)
" There were good intentions behind this new law, but these good intentions have gotten out of control and have affected more types of companies than you might suspect. Domestic companies that have always been aware of quality and safety issues are being punished as a result of greed and short-cutting in asia. "
" Confusion has arisen recently regarding the Consumer Product Safety Improvement Act. Due to inaccurate reporting, some congressional offices have received phone calls from concerned constituents who believe they may be adversely impacted by the new law. For instance, some thrift store operators believe they may be forced to stop operating because of the new law. "
" This new law is extremely disturbing. I find it sad that the CPSIA will put our childrens futures at risk as they will no longer have good toys as our children learn from child play especially in thier early years. What happens if their are no toys to learn from? Where will our children be educationally in 2,3, 5 or 10yrs? Will this create more Colombine kids? I'd hope not but if were banning childrens toys due to lead why not ban guns and bullets too as they are made of lead that obviously kill "
" If all these small businesses truly go "Bankrupt" as opposed to just going out of business, in what way does this affect their creditors? The ripple effects on the economy are unimaginable..... Its the same first-domino-in-the-row scenario that we fear with the possible collapse of the auto industry. "
" Our family owns Jacobsen Books, a small bookstore in Clinton, Wisconsin. In our store, we sell wonderful books of all kinds, including rare books, books for collectors and researchers, and books for families and children. While we love great literature of all kinds, our initial specialty and first love is children’s literature. The children’s corner is the favorite area in our store.
It’s my understanding that after February 10, 2009, it will be illegal for Jacobsen Books to sell any “children’s product” unless it has been tested according to new lead safety standards. The Consumer Product Safety Improvement Act of 2008 (CPSIA) requires lead testing of every batch of every children’s product, including books, and it includes no exemptions for used items, homemade items, adaptive and special needs items, or items already in inventory. The effects of this legislation could be devastating to our already troubled economy. Unless changes are made immediately, many children’s retailers are expecting February 10, 2009 to become known as National Bankruptcy Day.
Lead testing is important. I’m the mother of eleven children ages 18 years to 21 months. I love my children, and I definitely want to see my children and all American children safe and healthy. Protecting children from lead and phthalates is a good thing, but this legislation is very short-sighted. For sellers offering very low risk, very high quality products to children, this legislation threatens to destroy our small and medium-sized businesses.
Unless an exemption is added for used goods, our store will no longer be able to provide low-cost, high-quality used children’s books, but the ripple effect goes further. "
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$Thoughts and concerns regarding the CPSIA going into effect 2-10-09
For those consumers that are unaware - change is coming to the children’s product business - and it’s not necessarily going to be a good thing. The CPSC (Consumer Product Safety Commission) oversees the Consumer Product Safety Improvement Act that will be enforced beginning February 10, 2009 for products intended for children ages 12 and under. How does this affect me, and many other WAHM/D’s and others within the cottage industry? Well, unless changes are made to the laws, and exemptions added, many of us will essentially be out of business. To sell anything after February 10, 2009 that does not have a compliance certificate stating that is is lead free, phalate free and non-flammable, it will simply be illegal to sell items without compliance certificates. The financial fines are pretty steep as well. For those of you that love recycled wool products, at this point in time under the current law, you will no longer be able to obtain them because the testing process is cost-prohibitive to many of us. This also affects cloth diapers. Clothing. Toys. Many items that children use are directly affected. They are claiming testing will cost anywhere from $150-4,000 per unit (i.e. item) depending upon the end product. Since recycled wool is different for each piece, it will be nearly impossible to do the testing required (which for wool would be lead testing, as it is already cleared for flammability). If they come up with a way to afford testing within the home with some sort of home testing kit, then perhaps this will save the many small businesses and give us the ability to survive. Otherwise, the end is nigh.
This also affects you as the consumer. If the many small businesses, both in home and those who have actual physical store front or factory locations, cannot afford to test their end product - there will be a reduction in products available for purchase. The larger companies that can afford the testing will have to raise their prices to compensate for the testing costs. The loss of income from the businesses forced to close will put even further burden on our suffering economy. While I agree that some testing needs to be done, especially in the case of imported toys and children’s items, it is unfair of the CSPC to lump everyone within the same pot and call for the same rules for everyone, regardless of size and product. They need to come up with some solution so that we all can survive this while still being able to comply with the laws.
I am asking you to please review the links I will be including. There are many many more links you can find by simply “googling” but these are what pertain to my business at hand - mostly children’s apparel. Contact your Congressman/women, contact your Senator. Ask them to review the laws and to please stand in for not only the businesses but for the buyer as well! What people don’t fully understand is that this also affects resale of children’s items, as currently worded within the CPSIA. You will not legally be able to buy or sell used children’s items without having them appropriately tested. Goodbye to resale shops. Goodbye to selling or buying on Craigslist or Ebay. Completely forget about selling on Etsy. They have already made it known that after 2/10/09 that Etsy will pull any listing for children’s items without the proper documented compliance certificate. Please, will you help us out and let your voices be heard? Join us making this work for everyone’s sake.
http://www.fashion-incubator.com/archive/cpsia-what-must-be-tested
http://www.fashion-incubator.com/archive/cpsia-requirementswww.fashion-incubator.com/archive/national-bankruptcy-day
http://www.fashion-incubator.com/phpbb/viewforum.php?f=32
Find your Senator
http://www.House.com
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$And the interesting, unique things I've been buying my kids will also be gone. The books that I sell myself have all been tested and are fine, so at least I have that. But the toys? I'm finding clearanced sales now.
There was a press release Friday that they aren't going to go after the used sales market, so thrift stores should be ok. It's the small manufacturers that are feeling it the worst.
This backfired in a big way. It all became a big issue in the Fall of 2007 when so many toys from China were found to have lead, and so many animals were dying of melamine poisoning (also from China). And now this summer, when so many babies in China were also dying. So Congress pushes through this legislation last December (2007). But CPSIA is choosing to enforce it in a way it was not intended, thus gutting yet another section of the economy.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$"There was a press release Friday that they aren't going to go after the used sales market, so thrift stores should be ok. It's the small manufacturers that are feeling it the worst"
I have to refute this part of your answer because it is only partially true. They didn't say they won't be going after the "aftermarket" like thrift stores. What they said is that they aren't going to force thrift stores to perform their own testing. However, it would still be illegal for them to sell products with a lead content over 600 ppm. So, since they won't have any way of finding out(since the original manufacturers have no reason to test or certify them) all the CPSC would have to do is buy a product from a thrift store and test it. If they even found one product in a thrift store that had lead in it, or had been recalled, the thrift store owner would be sent to jail and fined.
So, sure, they won't force them to spend a ton of money, but they will still be held fully accountable for everything they sell and be open to lawsuits and prosecution. They have to be very very cautious of what they sell, where it came from, and if it has ever been recalled before. They'll have to buy plain cotton undyed, unprinted, items to be completely safe. Or books made of recycled paper with organic dyes. It will be very difficult for anyone to comply with this ruling. If owned a thrift store, I'd still get out. Too much risk involved.

