I’ve still not read how/if it affects those of us selling from Canada

My wife and daughter have small businesses of their own selling hand crafted children’s items here and elsewhere on the web. Because of this law I have had to do a lot of research of my own to assess the level of risk involved to keep their businesses open past the February 10, 2009 deadline. To do this I have read many online articles from newspapers including the one mentioned here at http://www.timesdispatch.com/rtd/business/local/article/E-TOYS26_20081225-212814/162286/ . The actual law found at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_public_laws&docid=f:publ314.110.pdf . Next take a look at the CPSC’s webpage on the CPSIA law that will show the approved and pending amendments at http://www.cpsc.gov/ABOUT/Cpsia/cpsia.HTML . Also look on Bloomberg where they mention an amendment that exempts “wool, cotton, silk, gemstones and pearls” found at http://www.bloomberg.com/apps/news?pid=20601103&sid=a0Xr2Iw1Vi_8&refer=us .

Questions they have asked the past month are. 1. We are very small businesses. Are we exempt from this law? No. The only references to small businesses I can find is in the penalty phase. On pages 44 and 45 this law states that the Consumer Products Safety Act’s penalty section (20) is to be amended to include “including how to mitigate undue adverse economic impacts on small businesses, the nature, circumstances, extent, and gravity of the violation”. This does not exclude any crafter from the law based on their business size. It just talks about the size of the penalty, without giving you any idea what the government considers “undue adverse economic impacts” to be. But the law still applies.

2. This excludes all fabrics and ribbons… Right? No. The only fabrics that are excluded are wool, cotton, and silk per the article noted above. One important note, as of writing this the CPSIA webpage does not reflect that this has passed.

3. We don’t make the fabric or ribbons. Doesn’t the company that makes the fabrics we use have to do the testing before they can sell it to us? No. When the manufacturer makes the fabric, it is not made exclusively for children. When you make a child’s product out of someone else’s fabric, now the responsibility to have it tested is on you. The law as written states on page 8 “every manufacturer of a product which is subject to a consumer product safety rule under this Act or similar rule, ban, standard, or regulation under any other Act enforced by the Commission and which is imported for consumption or warehousing or distributed in commerce (and the private labeler of such product if such product bears a private label) shall issue a certificate”

4. How can we be sure that the stuff we make is covered by this law? This document is very clear. Products included are cribs(pg 15), durable infant products(full list on pg 17), and toys & games(pg 17). Reading those pages I thought that we were in the clear with the exception of the shopping cart infant covers that we are not making any more. But wait, there’s more! Read down to page 60. This is where they define or redefine the words “children’s product”. ‘‘(16) CHILDREN’S PRODUCT.—The term ‘children’s product’ means a consumer product designed or intended primarily for children 12 years of age or younger. In determining whether a consumer product is primarily intended for a child 12 years of age or younger, the following factors shall be considered: ‘‘(A) A statement by a manufacturer about the intended use of such product, including a label on such product if such statement is reasonable. ‘‘(B) Whether the product is represented in its packaging, display, promotion, or advertising as appropriate for use by children 12 years of age or younger. ‘‘(C) Whether the product is commonly recognized by consumers as being intended for use by a child 12 years of age or younger. ‘‘(D) The Age Determination Guidelines issued by the Commission staff in September 2002, and any successor to such guidelines.” Now go back up to page 1 and read the sentence under the words “An Act”. You’ll see that the law is written to include anything that is defined as a “children’s product”. This law now wraps around and includes everything I can think of that is made for a child. The question I have is in the Times Dispatch article above. The only loophole that could help my wife would be in the article where Julie Vallese of the CPSC is quoted “There are exceptions to the testing rule for crafters making only one unique copy of each item”. I can’t find that exemption anywhere in the law. I have searched the entire document for the words EXCLUSIONS, EXCLUSION, EXCEPTIONS, and EXCEPTIONS. The word EXCLUSION is used once in the document. It’s on page 4 and pertains to component parts inside a product that will be inaccessible by the child. The word EXCEPTION is used twice in the document on pages 4 & 6. I can’t find anything here about unique or one of a kind items. Hopefully someone else can find what I am missing. If you find it, PLEASE POST IT HERE! The words EXCLUSIONS, EXCEPTIONS, and UNIQUE are never used anywhere in the document. The answer to my question may be answered by the fact that Julie Vallese of the CPSC resigned yesterday 1/7/2009. http://www.cpsc.gov/cpscpub/prerel/prhtml09/09085.html .

Please notice that every person that posts on this blog as well as many forums seems to have their own idea what this law will mean to their business. I highly recommend that you take everything you read here and elsewhere with a grain of salt. This includes my post that you are reading now. I have provided the links to the websites to review the law and the amendments on the table now and in the future. I also recommend that you read this law in its entirety along with the amendments. I did. And yes, it is very boring. But this is the best way to truly understand the law that you are required to comply with.

Now that I have reread the Penalties section on page 44 several times, my advice to my wife and daughter at the time of writing this is to make their children’s products using only cotton, wool, and silk or find something else to make. I truly believe that the law will be amended somewhere in the future to exclude small businesses found here and elsewhere. I also realize that a few crafters could be prosecuted before the law is amended. I’m not saying that it will happen, just that it is possible with this law. With the size of the penalties, I don’t think it is worth the risk for us personally until the law is changed.

Thank you very much!