Some History and Two Possible Answers

by Dan Marshall

Published February 05, 2009 @ 10:54PM PT

More and more, we have come to perceive that the plight of small businesses under the CPSIA is a result of an ongoing conflict between Congress and the leadership of the CPSC.  We have been caught in the middle.

During the 8 years of the Bush administration, the CPSC and other federal agencies such as the EPA and the FDA were compromised. In many cases, their funding was slashed and industry insiders were appointed to leadership positions.  At the CPSC, this came to a head in early 2007, when Bush nominated a NAM lobbyist to chair the agency.  Congress was now controlled by Democrats and the nomination was rejected.

Two months later, the recalls began.

Then, in 2008, Democrats began work on the CPSIA.  The Toy Industry Association, a trade group of mostly mass-market toy interests, and its largest member, Mattel, actually supported third party testing requirements.  They knew that large manufacturers had the economies of scale to afford testing and that publicly supporting such regulations would go a long way toward cleaning up their image.  It would even give them a chance to argue against more price cuts in their negotiations with Wal-Mart, the largest toy retailer in the US.  And, as a side effect, it would decimate smaller manufacturers.

Acting CPSC Chair Nancy Nord, a Republican, argued that these testing requirements were unworkable.  She said her agency didn't want or need more funding, either.  It was also disclosed that CPSC staff had taken trips at industry expense.  Congressional Democracts and many others called for her resignation.

But, she didn't resign.  And, three months before a presidential election, the CPSIA was made into law with aggressive timelines for implementation.  And who would be responsible for implementing it?  Nancy Nord.

The CPSC has been ineffective in implementing the CPSIA.  The website they set up to explain the law is nearly incomprehensible.  Their rulings have been at turns both sweeping and narrow. They failed to address dozens of key issues: are one-of-a-kind items exempt?  Must a wood toy be tested for phthalates?  For lead? Must every size and every color of a clothing line be tested?  Approaching the February 10 deadline, it was seeming increasingly impossible for any company acting in good faith to comply with the law. The CPSC kept repeating that more direction on all these issues was needed from Congress.

Congress kept reiterating that the CPSC has full authority to interpet the law as it sees fit in order to make testing both effective and affordable.  Many representatives and senators wrote letters to the CPSC asking them to make the changes neccessary to save small businesses.  After the CPSC stayed enforcement of many parts of the law on January 30, 2009, key Democrats were once again calling for Nord's resignation.

So, we have lawmakers on one side and an embattled agency chair on the other, each saying it's the other's responsibility to fix the CPSIA.  There are two possible solutions.

1. A technical amendment from Congress. This would amend the CPSIA in several possible ways, the most important aspects of which, from the perspective of the Handmade Toy Alliance, would be to allow exemptions from testing for natural materials known by science not to contain lead and to allow manufacturers to rely on certification of their component parts instead of testing finished items.  Senator DeMint, a Republican from South Carolina, has authored a bill which contains these provisions and the HTA has endorsed it.  We wish to emphasize, however, our hope that Democrats will also support this bill and that it should in no way be seen as a partisan issue.  It took a bipartisan vote to create the CPSIA and it will take a post-partisan attitude to amend it.  We are also VERY open to any Democratic technical amendment which also addresses our concerns.

2. New leadership at the CPSC. We understand that President Obama will be nominating a new chair for the CPSC in the coming week or so.  Many Congressional Democrats seem to feel that a technical amendment to the CPSIA is not necessary and that a new chair at the CPSC will make all the difference.  They feel that the CPSC has full authority to address issues like natural materials exemptions and component-based testing--all that's needed is a new leader who will act effectively and in good faith to implement the CPSIA.  We truly hope this is the case.  We also hope this new leadership will be given the increased funding mandated by the CPSIA yet not yet allocated to the CPSC which will enable the agency to do its job better.

So, where do we stand?  Frankly, either solution would be fine as long as it adresses the needs of small businesses.  We will actively support both alternatives. One way or the other, there must be a way out of this forest of Mirkwood.

Facebook and Twitter and Blogging, oh my (think, Wizard of Oz)

by Jill Chuckas

Published February 03, 2009 @ 07:33PM PT

I admit it.  I am "technology impaired".  I don't have a Facebook account and I'm still trying to figure out what a "Twitter" is.  I'm not completely challenged - I am blessed to have a husband who is a web developer and knower of all things computer.  So, I have an excuse, maybe. 

I have never blogged before and only recently begun reading blogs.  The CPSIA had the "unintended consequence" of making a blogger out of me.  Now, this is probably a good unintended consequence, and certainly not what we generally talk about as an unintended consequence, but there it is.  Me - imagine that!  Embracing technology!  It is amazing.  I have found this to be one tool that I can use to fight to change this well intentioned, but over reaching law.  Frankly, I would rather be in my studio/ office sewing children's nap mats until my hearts content.  Or speaking with my girlfriends instead of the aide at my Senator's office, but this is my life since the CPSIA. 

How has your life changed?  What are you now doing that is different since the CPSIA?  Are you like me, taking on new skills and challenges?  Embracing things that you never imagined you would do?  It is empowering, I must say.  The first week or 2 after I found out that the CPSIA would affect me, I wanted to crawl under my covers and sleep for a VERY, LONG TIME!!!!  Then, I joined the Handmade Toy Alliance and got busy.  How about you?  Tell me what you are now embracing that surprised even you!

Jill Chuckas

CraftyBaby.com

Amend the CPSIA!

by Cecilia Leibovitz

Published February 03, 2009 @ 09:33AM PT

In mid-November of 2008, a small handful of toymakers and retailers began to discuss a complicated new law called the Consumer Product Safety Improvement Act, or CPSIA. Over weeks, as the Handmade Toy Alliance began to fight for changes to CPSIA, several industries, and thousands of individuals joined them, realizing that producers and sellers of all items intended for children aged 12 and under would be affected by the law. From new and used clothing, books, toys, and bicycles, to jewelry, all children's products would need to be tested for lead and phthalates, and marked indelibly with tracking information.

Testing each item would run from $150 to thousands of dollars, in many cases totaling more than the producer’s yearly income. Created in the wake of the 2007 lead toy scare involving cheap toys and jewelry produced overseas, CPSIA did not distinguish between products made in giant factories, and those carefully crafted in the United States. On February 10, 2009, anyone selling untested children’s products, even if made from materials that could never physically contain lead or phthalates, and even if each material was already tested and certified safe by the Government, would become a criminal, risking jail time and fines of up to $100,000 and more for each offense.

In just two months, thousands have stood up to fight for the rights of independent crafters, small businesses, and libraries to provide children with important tools, much needed if they are to grow up with diversity, creativity, and intellect. Together, the internet serving as our connecting link, we have managed to attract the attention of scores of media outlets, lawmakers, and increasingly, citizens troubled by the threat of extinction for much of the children’s industry. Senator Jim DeMint, has crafted a bill that would amend the CPSIA. A one year stay on enforcement of CPSIA has been issued by the regulating agency, Consumer Product Safety Commission.

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