Posts Tagged ‘CPSIA and toys’

CPSIA: Part II at Forbes.com

Just as my earlier piece on CPSIA was going to press last Friday at Forbes there came a new development: Reps. Henry Waxman (D-Calif.) and Bobby Rush (D-Ill.), who sponsored the law and have opposed efforts to revisit it, issued a letter that seemed to soften their stance a bit and hold out hope for more exemptions. The magazine asked me to analyze these new developments and the result is up now. Unfortunately, the news is bad: the letter’s suggestions for exemptions are piecemeal, narrow, and much too late. We are still on course for a calamity should the law’s provisions go into effect Feb. 10 and (later round) in August — a calamity that Waxman and other sponsors of the law had every reason to see coming when they passed the bill last year.

In the mean time, as I point out, the Waxman/Rush letter raises the question of whether our leaders on Capitol Hill realize that ordinary children’s books are often bound with metal staples, and that toddlers seldom convey to their mouths such objects as bicycle tires and dartboards. The piece, again, is here (& Matt Bandyk, U.S. News).

More: In comments on an earlier post, kids’ wear entrepreneur Amy Hoffman says the New York Times still has not covered this debacle — a crucial point, since it’s hard to get an issue truly onto the news agenda at other highly ranked media outlets if the Times refuses to notice it (though some are covering the story anyway, as with Bloomberg in a pretty good piece today). There’s something truly crazy here, given that the Times plays a conscious role as a key trend-spotter in both the design world and the apparel trade, as well as the world of law and governance.

In addition, Common Room provides some sorely needed guidance to protesters as to where their CPSIA outrage should be directed: the fact is that Henry Waxman, as chair of House Commerce, is by far the #1 decisionmaker in whether or not this law will be changed. (Next in importance? His counterparts over at the U.S. Senate.) Protests to other House members are significant mostly in creating pressure on Waxman; the ordinary course of business in the House is to leave these matters to the Committee chair, so protesters must hope to get across the message that the ordinary course of business won’t do this time. As for the incoming Obama administration, as Common Room explains, it has few if any ways of intervening directly to prevent a business calamity on Feb. 10 and a further calamity in August; its main power is the power of picking up the phone and jawboning Waxman with the message that he cannot expect cooperation on unrelated things he wants unless he un-bottles up legislation to fix CPSIA. Waxman is also known to listen to the lawyerly pressure groups like Public Citizen and U.S. PIRG, and to Consumers’ Union. My personal view is that while it’s pointless to try to change the minds of these three groups — they will remain utterly in the grip of their ideology or constituency, and unsympathetic to producers — they might be made to see the prudence of urging compromise on Waxman lest national attention to the issue damage their own images.

Filed under: CPSIA, CPSIA and Congress, CPSIA and toys, Henry Waxman, New York Times, PIRG, safety

CPSIA: furor builds over toyless shelves

In our previous posts about the Consumer Product Safety Improvement Act (CPSIA), the federal law passed by Congress last year in the wake of the panic over Chinese toys with lead paint, we noted that it threatened to drive out of business a lot of small makers of wooden toys and other childrens’ products who cannot afford to spend thousands of dollars per lot to confirm the absence of lead paint (or phthalates, another banned substance) in their wares. A group called Handmade Toy Alliance has formed to call attention to the law’s burden on small manufacturers, and offers further detail at its website.

As reports in the last week make clear, however, a second economic disaster is also looming: thrift and secondhand stores around the country sell a large volume of clothing, toys and other items meant for use by those under 12, and are now exposed to stringent liability under the law. “The reality is that all this stuff will be dumped in the landfill,” predicted Adele Meyer, executive director of the National Association of Resale and Thrift Shops. Among the biggest losers if stores stop selling secondhand kids’ items: poorer parents who would have trouble dressing a growing family if they had to buy, say, winter coats new for $30 rather than used for $5 or $10. The regs are scheduled to take effect Feb. 10.

On January 8, as press coverage mounted, the Consumer Product Safety Commission (CPSC) rushed out a supposed clarification of the regulations: thrift shops, eBay sellers and other second-hand retailers would not be compelled to institute testing programs on all items sold, the way manufacturers would. But the commission made clear that if the stores do wind up selling any secondhand products containing the substances — phthalates, for example, are often found in bendy plastics — they face both criminal liability and civil fines (which run up to $100,000). It isn’t required that the store know or should have known that a pre-2009 item was in violation, and of course it isn’t required that anyone be harmed by the good (the entire episode has gone on with a near-total absence of any showing that actual kids had been harmed by the products swept from American shelves).

None of which seems to faze some advocates of the new measure. At Law and More, Jane Genova quotes Sue Gunderson, executive director of an anti-lead-paint group called ClearCorps:

What thrift stores seem to be requesting [in Gunderson’s view] is for the right to expose children to health and safety hazards. “Let’s get our priorities straight,” she insists. She goes on to pose this rhetorical question: “Mmmmmm, do we want cheap, second-hand toys that could damage children?” She frames this issue as a “business” one which the thrift-store industry will have to solve just as will every other business impacted by the new act.

If you think this is all too crazy to actually be happening, wait until you read the Boston Phoenix’s piece on the law’s threat to libraries:

“We are very busy trying to come up with a way to make it not apply to libraries,” said [Emily] Sheketoff [associate executive director of the American Library Association]. But unless she succeeds in lobbying Capitol Hill for an exemption, she believes libraries have two choices under the CPSIA: “Either they take all the children’s books off the shelves,” she says, “or they ban children from the library.”

Filed under: CPSIA, CPSIA and libraries, CPSIA and resale, CPSIA and toys, eBay, lead paint

Toyless Yule, cont’d

About two weeks ago SSFN posted an item on the threat to independent toymakers of a new law passed by Congress in response to the lead-paint-on-Chinese-toys panic. A day or two later the Washington Post covered the issue and the story has been spreading to other media. Maybe the next Congress, though not exactly business-friendly in many other ways, will act before any general wipeout of the economy’s handcrafted-toy sector.

Filed under: CPSIA, CPSIA and toys

Unhappy holidays for American toymakers?

The Consumer Product Safety Act of 2008, sponsored by Illinois Congressman Bobby Rush and quickly signed into law by President Bush, soon goes into effect. Sold as a measure to protect children from the perils of Chinese and other foreign-made toys which may contain lead paint, the law was written with good intentions. Unfortunately, good intentions sometimes produce bad consequences. While this law may never save a child, it will certainly have consequences for small businesses which produce toys, as well as other products intended primarily for children under 12.

As always, the devil is in the details, and Publius Endures has given the details careful scrutiny. Among other little details, this law may require toy manufacturers and importers to perform costly outside testing, at a cost of over $4000, on each lot of toys shipped. If the law is so interpreted by the people who draft its enabling regulations, that will simply put small manufacturers out of business, leaving the American toy market to giants such as Mattel or driving more of the business to overseas competitors who produce on a larger scale and can absorb the cost. The result, probably not intended at all by lawmakers, may be monopoly or oligopoly in the American toy market, accomplished through regulation rather than market forces.

For more on this example of unintended consequences of hasty lawmaking in response to a panic, see Upturned Earth, which suggests that congress or regulators might be persuaded to amend or sensibly interpret the law, if only they understood what a potential monster they’ve created.

Filed under: CPSIA, CPSIA and toys, safety