Sunday, January 25, 2009

CPSIA Could Bankrupt Small Businesses


In an valiant attempt to protect our children, the government passed the Consumer Product Safety Improvement Act (CPSIA), in August 2008. CPSIA's intent is to protect children from lead exposure in the products they come into daily contact with.

We've all heard about lead in paint, toys, etc, especially from toys manufactured in China, but the threat is an issue in products made throughout the world. So, in an effort to make some enforceable guidelines to battle this health issue, we now have CPSIA.

ONE BIG PROBLEM THOUGH....the government didn't think this one out well enough. (Imagine that).The regulations in the Act will include products that were manufactured and placed on the shelves prior to CPSIA going into effect, which is February 10, 2009. That means that all, "in inventory" products, such as new or used children's books, children's items in a thrift store, bicycles, children's clothing, etc, will all have to comply with CPSIA. Basically, any retailer that has products in their inventory, that include products focused to children ages 12 and under, must comply with CPSIA. It will be illegal to sell or give these items away to charities, and the government will require their destruction or permanent disposal. Gosh, I wonder what that's going to do to our landfills?

There are costly tests that resalers will be required to complete, to certify the product's safety, in order to keep it on their shelves. Of course, the resalers will be responsible for any expenses incurred, to certify the product's safety. A small manufacturer of children's clothing, recently priced out the manufacturing and testing expense, of a girl's skirt, keeping in compliance with CPSIA. What was a $40 skirt, would become over $15,000 retail. Check it out for yourself. As mentioned in a CNN article this month, the law makes no distinction between large-scale manufacturers, mom-and-pop businesses, and one-man operations. While large corporations may be able to easily absorb the costs of product testing, the price is potentially overwhelming for small businesses.

The organization, Change.org, has become actively involved in trying to get the word out about CPSIA. Obviously, the overall concept of CPSIA is a great one, but our Congress needs to review and amend the Act, prior to February 10, 2009. If they don't, the results could be catastrophic to small businesses throughout the globe. Please share your concerns with your local Congressman immediately. There's no time to waste on this one, as shown in the below video.



Also, here's a link the goverment's website, telling more about the Consumer Product Safety Protection Act.