My Take On the CPSIA

by CraftyCoach - Norm Lanier on December 18, 2008

I’ve been been getting a lot of questions regarding the CPSIA. If you haven’t heard of the CPSIA stands for the Consumer Product Safety Improvement Act. It’s a knee-jerk reaction piece of legislation in response to the issues with toys - mainly from China - that were contaminated with lead and other hazards. Here is what the general discussion in the Etsy Forums boils down to:

The new rule - which is extremely vague by anyone’s definition - would require lab testing of any products marketed to children under the age of 12. It’s no big deal for Mattel but for small business the cost could make it prohibitive to sell these items. This act will shut down most crafters selling anything for children on Etsy.

OK here’s where my opinion starts. This is my opinion and I’m sure I will tick-off some whom read this. I’m OK with that. I don’t have a blog to make everybody happy, it’s my blog, it’s my opinion and if you disagree with me then that’s fine.

First of all I see a huge number of people on Etsy worked up into a froth and putting a huge amount of time into complaining to each other about how unfair this is, how Esty should be doing something, on and on it goes.

So my first thought is you are getting worked up based on what facts? Most of what I see is ” I heard” “Someone said” ” I don’t know but we need to do something” etc. If you feel you need to do something then contact your Representative where there’s at least a snowballs chance in Hell of your opinion doing any good instead of preaching to the choir on Etsy.

Second, let’s for the sake of argument say that this law plays out just as the people above think it will. Anyone heard of YouTube? How much of what is on YouTube is a copyright violation? Yet you don’t see anyone going to jail for it. Do you think government agents are going to police Aunt Martha selling hair bows on Etsy or craft fairs? Do you think Etsy is going to monitor it? They don’t seem to do a great job when you complain every day about the same vendor. Even if they did what would they do - send you a form letter asking you to remove it? I don’t think for a second Etsy or the Government will bother.

Third, lets say that the law plays out just as predicted in the doomsday scenario embraced by those vocal Etsyians. Let me tell you a true story. When I started www.HauntedPortraits.com there was me and only two other people that made anything similar. I was raking it in, it was unusual, the demand was huge to a niche crowd and all of us were charging a premium for the product.

Then another competitor took the idea and made a really crappy knockoff that they had mass-produced in China. I thought well people will see the difference and it won’t make much of a difference and at first it didn’t. The next Halloween I was in Krogers and saw an even cheaper knockoff of the the knockoffs - IN Krogers.

I’m not stupid, I knew that was the beginning of the end. My competitors slashed prices to compete. My sales dropped in half the following year. I said screw it, if the rules are changing then I need to find another game to play - and that’s exactly what i did. I raised prices so I spent less time making the portraits and I started another Internet company that now generates triple what Haunted Portraits did even at it’s peak.

If you believe in your heart that the CPSIA will put you out of business then get off your ass and find something else to make and stop wasting time complaining to others in Etsy about how unfair it is. It’s called business.

Your oppinions are welcome here

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Craft Market Predictions 2009 | CraftyCoach
12.23.08 at 10:47 pm

{ 21 comments… read them below or add one }

1 Liz 12.18.08 at 12:14 pm

I agree. This is how business works. If you want to create something, no one can stop you. If you want to sell something, sometimes plans and strategies change. But the possiblity for something better is always there!

2 Jennifer 12.18.08 at 12:19 pm

I agree with you. You can’t just complain, you to have to do something. I sent letters to both my state Senators, congressman & various reps. I also joined change.org to vote to put this issue in front of President Obama when he takes office. I also twitter about it so more and more people can be aware.
This issue affects a side of my business that I was planning to start in the coming year, but doesn’t shut down the rest of my business. It’s always wise to diversify.

3 Zizi 12.18.08 at 12:45 pm

I couldn’t agree more. To be a business person means to be dynamic. When you find yourself facing a wall, you have to creative in finding a way to move forward. Sometimes it means cutting something out and trying something new but as you say, thats business.

4 velmalikevelvet 12.18.08 at 12:50 pm

Although the CPSIA doesn’t affect my yarn biz, I have been following the the story to stay current in the broader sense of Etsy/crafter-related issues. And I say ‘hear, hear’, CraftyCoach!

My quibbles with vocal critics of *any* legislation are:

1) did you *read* the text of the law (if yes: kudos, if not: shut up ’til you do!); and

2) what’s the point of railing against something to those what agree wit’ ya??

Thanks for presenting my ideas better than I could.

5 Erin 12.18.08 at 12:56 pm

Don’t we want toys to be safe? I think it’s a good idea. I understand the frustration among people who make children’s toys, but I also agree with much of what is said in the article. I doubt someone making $100/month on hair bows or other Children’s items are going to be chased down by the Government. I also have seen a lot of people go on Change.org to get this noticed. I know this is very important to many people, but I think our country has MANY other things that our future president needs to attend to, not this, not right away.

6 Trish 12.18.08 at 1:42 pm

You nailed it, Coach!
All the railing and wringing of hands won’t do a bit of good, nor will writing your congressman…do they care? No. I also agree that the government is not going to waste
time over craft businesses…and if they do….hey there’s a lot of adults to market to…

7 KImberly Orosco 12.18.08 at 2:03 pm

Redheado says:
WOW. That was well, interesting. I guess I am in that elite group that isn’t just complaining about it but actually doing something. Yes, I am diversifing my product line to include “mammal” carriers that are the same design but intended for pets. Hey, I can go with a don’t ask don’t tell policy here right?! But, I am also writing to legislators, calling News stations, Signing (actual) petitions. Not just complaining. And, I am getting my friends and family involved too. They are crying out to their legislators too. I found it profoundly funny when I was first hit with this whole thing. I was irate!! “They can’t do this!!” Then I looked back at a similar problem a friend had with some other legislation that really hurt his small computer business. My thoughts then were “Well, that’s how the cookie crumbles sometimes in business.” Ironic (and a bit revealing) that when it turns on me I didn’t have the same answer. I will continue (passionately I might add) with my fight. I will continue to fire up other Crafters and my fellow Etsians about this. I is very common to have only 8% of a group actually doing the work. So if my wild thrashing on the cyber floor of this problem provokes anyone into action, well I have done my job!!

Blessings, Kim O.

8 Careen 12.18.08 at 2:38 pm

I have worked in the Medical field for over 13 years. As most everyone, by this time, has found out something called HIPPA occured some time ago which means that when you go to see a Dr. you have to read their statement about what they will and won’t do with your private information…….. Then you have to sign a paper that you read them, understand them and received a copy…….

The Law is very vague so many different businesses have opted to do many different things. For example some M.D. offices will not talk to me, over the phone, about anyone in the family (kids included) and others will….. It is their interpretation of the vague law.

There is a huge fine all the way up to and inclusive of jail time for not complying.

My point: It is a knee jerk reaction to what happened with Mattel…..and more than likely will only be enforced on the big companies.

That is my thoughts and opinions about all of this.

9 Holly Jahangiri 12.18.08 at 3:16 pm

I haven’t read the text of the CPSIA; as a parent, I applaud initiatives to protect kids from unscrupulous manufacturers and marketers (and lead in toys imported from China is a great example of the kind of protections we NEED). That said, does it say “marketing to children under 12,” or “intended for use by children under 12″? I do think parents need to exercise discretion, always, in determining if a product is suitable for their child. I didn’t know until I was in my 40s that swallowing two magnets could be fatal! I also wasn’t inclined to put magnets or magnetic toys in my mouth, and taught my children not to put things like that in their mouths. Some kids explore the world orally - no amount of saying “No!” would ensure their compliance and safety. Now, if the magnetic toys were shaped and colored to look like food, I’d put more of a burden on the manufacturer. If they looked like magnets, perhaps the burden should rest mainly with the parents.

10 dstroy 12.18.08 at 4:11 pm

The law is very poorly written, and there is no scaling for the penalties. We had a meeting with some attorneys and even with folks trained in reading the legalese there were troubles wading through the text.

In truth, the way it stands now - yes - it pretty much puts any and all crafters who market any sort of children’s products (even when not directly, because there’s one section in particular that states that anything seen as “appealing to children” is subject to these new rules) will be put out of business, not because their products are unsafe, but because the third party testing of units doesnt work with non large-scale manufacturers - it’s a 500-4k investment to test a SINGLE UNIT - so if you make one-of-a-kind or limited quantity pieces and designs, you cant say they’re tested - it’s not enough to know that all the components used in your work is clean because the way the regulations are written you still have to submit a “manufactured” item for testing. Manufactured being basically if you have a completed piece and it’s been photographed and put on your etsy site, it’s considered a manufactured unit too.

My business is not wholly dependent on marketing surrounding kids, but for many businesses this is the case. I will be totally rethinking my business model and revamping the parts that do depend on a relationship with children… you claim “they probably wont police it” but would you be willing to be the test case that demonstrates how unfair and unscaled these new regulations and penalties are if they do? Because I suspect that the big companies are the ones that CAN do this testing since they do mass-produce - it’s the smaller ones that will be operating illegally.

Personally, I would much rather see this implemented on the level of actual imported supplies rather than up the chain.
For one thing, it is ridiculous that a person can walk into a craft store and purchase yarns and fabrics and beads and paints to make something for their children, but these supplies are NOT subject to these laws. So when someone makes a business of these readily available supplies, they are required to carry the burden of testing.
I for example, buy the expensive home lead tests whenever I buy from new suppliers, even as I always shop for lead-free components, and have once even had to throw out supplies sold to me as lead free but which tested positive for lead - and I now avoid that vendor completely. (The expense of my home kits doesnt even hold a candle to the sort of third party lab testing costs these regulations would require though!)
But these importers continue to be in business because as a supply vendor, non-commercial buyers continue to purchase unknowing that these items are tainted - and because they are not explicitly selling “manufactured goods marketed to children” - there will continue to be kids exposed to this stuff. Basically - grandma’s blanket isnt subject to testing either, and in fact, because small businesses have a reputation to maintain and because there are already enough worries about lawsuits in America, the blankets made by a small business are likely to be safer than the one grandma made at this point, because these business owners are already aware of all the pitfalls that could kill their business.
If we really want our kids to be safe, we should be stopping this stuff *at the source* - where it comes from. There’s absolutely no reason to have these lead-tainted paints and metal charms being manufactured in the first place!

It is highly ironic, though, that the very companies that ship their production overseas for cheap manufacturing and generated all of these concerns with tainted products are likely to be the only ones who will survive the new regulations.

11 Shannon 12.18.08 at 5:11 pm

Well written. I really like what you had to say.

12 Rene'e 12.19.08 at 12:13 pm

:grin: Well, I think I agree with you on the part about nothing really being done about it even if the law passes.

In my opinion, it’s subjective as to whether something handmade can even be considered a “child’s toy” or not. Just change the description of your item to “collectible” or “knick knack”, add precautionary details and let the consumer decide how to use it. I mean let’s be realistic, I’ve seen some people hand their car keys to their 5 month old in the grocery store (which disturbs me, but hey, it ain’t my kid and I don’t like to tell others how to raise their kids, because I don’t want to be told how to raise mine !). Do keys need to be tested for child safety ? Half the people getting all riled up in the Etsy forums, won’t even do anything to make a change if it comes down to it.

Where I disagree with you is telling someone to get off their ass and find something else to do. I say, if you love making “children’s toys” (or whatever it is you do), don’t let anyone take it from you. Find a way around it and/or fight for it, BUT don’t give up your dream !

I, for one, love to sew. I’m not going to give it up just because a bunch of constipated old farts in Washington DC say I have to. We are skirting dangerously close to becoming a nation ruled by our government. All of our basic freedoms are slowly being taken from us.
If we do not speak up, we are giving up our right to speak up.

I say fight. I would be glad to fight next to whomever is willing to take this all the way (if it comes to that) !

:grin:

13 Carissa (GoodNCrazy) 12.20.08 at 12:46 pm

The new law has me completely confused as well.

If it’s aimed at more than toys but only at items marketed to/for children??? Then it seems there’s a lot of ways around it?

I agree with the go out and change your business part.. to a point. If you only sell children’s items, then you are kind of screwed, tho?

@carissarogers

14 Jimena 12.21.08 at 8:32 pm

I agree with you…
This is not going to be enforced on sites like etsy EVER!!!!

And about the business approach you suggest, well I kind of agree, but it does suck that there are people who made a living out of it and now they will be out of business.

15 Kathleen 12.22.08 at 7:59 am

Thanks for publicizing this! May I also suggest visiting the War Room for up to the minute updates and focused activism? http://tinyurl.com/5fhzbd. My site is focusing on education and activism for producers of sewn products (actually, is DIY edu for the same). There’s tons of solid information there from attorneys and scientists.

16 Stacey 12.22.08 at 4:47 pm

OK, OK. Point taken. But most of us who are “complaining” about this on the etsy forums have ALSO already taken steps outside of etsy to do something about the law, i.e. calling senators, congress people, the media, etc. But you know, when you’ve poured your heart and soul into something as we have, it helps to commiserate with others. I don’t personally believe that bitching and moaning in the etsy forum will change anything, but it’s a great place to share info and support each other. It might be business, but we’re only human, y’know!

17 cara 12.23.08 at 2:02 pm

I think it’s ironic that doing this to protect people from unscrupulous big business means only big business can continue.

In the end, it’s not a done deal yet and we have to see how it plays out.

18 Misha M. 12.23.08 at 2:02 pm

Bravo! Finally, a point of view that isn’t full of THE SKY IS FALLING rhetoric. I agree that:

1. the law is vague.
2. if it really is as restrictive as some people are interpreting it to be, then it will inevitably be changed. It’s common sense.
3. people will continue to sell “illegal” items, regardless of the law. Look at the number of people on the Internet who make items using licensed character fabric (yes, that is copyrighted, and the information on the selvage clearly states that it’s for private home use only).

I also don’t understand why some people are so willing to believe the worst of this law. I’ve seen forums where someone will post something to the effect of, “Here is why I don’t think it will be as bad as it seems,” and he or she will inevitably be greeted by someone from an angry mob saying “YES IT IS THAT BAD AND UNLESS YOU CAN GET SOMETHING IN WRITING FROM A CONGRESSPERSON THEN YOU HAVE NO RIGHT TO GET PEOPLE’S HOPES UP.” Fines for noncompliance have been exaggerated, as has the information regarding what needs to be tested and how much tests cost.

Common sense will prevail.

19 H.C. O'Neill 12.23.08 at 2:20 pm

I am indeed writing my congressman about this. I am a book store and I handle used, rare, and out of print children’s books. I am looking at having to stop carrying children’s book because I cannot prove that aren’t filled with lead. The enforcement IS retroactive. 2007 Harry Potter and the Deathly Hollows? Can’t sell to kids 12 and under. First edition of the Tales of Beatrix Potter? can’t be sold.

That you have to test each finished product rather than the components is also ridiculous. You run two books on the same press on the same day, with the same materials, with the same crew working, but you have to test each book separately. The arrangement of the words inside may somehow produce lead!

Even if you don’t sell kids items or buy kids items, if the testing goes through, you’ll be paying for it. The major buyer of kids items are out public schools. That’ll drive up school budgets and drive up your property taxes. Some of the items that need to be tested under this law, for use by schools:
Textbooks
Microscopes
School buses
Basketballs
Gym Mats
Desks
Notebook paper

The list goes on and on. Many of these are things kids would never put in their mouth and have no risk of getting lead poisoning from. If kids are managing to disassemble and EAT the engine of a school bus, you have more serious issues than lead poisoning.

20 Me 2008 01.01.09 at 10:53 am

This also takes down clothing, used clothing, ebay sellers of used clothing. Consignment stores. Once upon a child stores,They have not exempted clothing. I can not sell a Baby Gap 2008 outfit, the law is retroactive. I have a friend who is closing her kids consignment shop because she will not be able to sell clothes now. The new stuff won’t even be available to her until the buyers use then and bring them in to consign, maybe a year (at least) down the road.

I have called and written everyone I can think of and continue to do so. As it stands right now, no ammendments to exempt used clothing.

21 LC 01.13.09 at 8:07 am

USED ITEMS ARE EXEMPT:

The new law requires that domestic manufacturers and importers certify that children’s products made after February 10 meet all the new safety standards and the lead ban. Sellers of used children’s products, such as thrift stores and consignment stores, are not required to certify that those products meet the new lead limits, phthalates standard or new toy standards.

The new safety law does not require resellers to test children’s products in inventory for compliance with the lead limit before they are sold. However, resellers cannot sell children’s products that exceed the lead limit and therefore should avoid products that are likely to have lead content, unless they have testing or other information to indicate the products being sold have less than the new limit. Those resellers that do sell products in violation of the new limits could face civil and/or criminal penalties.

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