CPSIA changes are coming. Are you ready?

First off I am seeing a lot of bad information going around lately and want to encourage everyone to visit their site. You will come across some great people who have read the regulations word for word but in the end you are accepting legal advice from someone without a law degree.

Here is their site http://www.cpsc.gov/about/cpsia/cpsia.html

You MUST get certified with and approved lab. This is stated on their site and they have a listing of approved labs. You cannot get home kits and be compliant. You are not testing all that needs to be tested. Even then in an uncontrolled environment you have results not 100%. I am sure if you read their instructions and fine print this is explained. Get your items tested where they belong.

Here is where you can find approved labs http://www.cpsc.gov/cgi-bin/labapplist.aspx

They are not just testing for lead. The site has tons of information on this and what they are testing for to ensure the safety of products. This seems to be the biggest misunderstanding so I want to remind everyone lead is not the only issue here.

Everyone is so focused on the first set of required limitations but we forget there is more coming. August they are lowered even further if you read the site. This is the beginning of bring down the dangerous limits to ensure safety.

Another that is going around is if the pieces they purchase are certified, no further testing is needed as long as they get certification from their supplier. This is not true. You purchase part A and part B which are compliant and within the listed guidelines but may be over the guidelines when you put them together that creates a new product. Example used often is bows. The barrette is compliant at lead levels of 400ppm, the ribbon is compliant at 300ppm. The legal limit of a finished product as the law stands if 600ppm. Guess what? It is over and it is now a hazardous product. That is why the finished product must be tested.

There are several wanting to share costs. The idea is great but the problem is this is per batch not per product type. The only way this can work is if several of you come together and make 1 product using the same materials from the same batch and sell in one place. Cannot be repackaged in anyway or even modified in any way. Even just a tag change. How do I as the consumer know that the toy fipsy is the same toy wipsy? They can't. Same with the law makers. They can say that yes this is the same exact toy just with a new name and tag based on the company. That is why it has to be tested.

Another I am seeing is the use of the name "assemblers". Many feel if they are assemblers they are not required to test.

What does assemble mean? to put or fit together; put together the parts of:
What does manufacture mean? the making of goods or wares by manual labor or by machinery,

Both put things together to make a specific item correct? So why are they different? They aren't.

It is listed in the law that assemblers, producers, and manufacturer are required to do testing. Just because you are given a different title does not mean you found your loop hole. It is there.

I know it is long, nobody wants to read it, but if you want to save your business and not lose everything over information NOT on the site you must read the law. Don't rely on others to give you the correct information. How do you know they didn't hear it from someone else? What they are saying can they show you in the law where it states what they are saying? This is why you must read it. As a business owner this is your job.

I understand how hard this is. Some just started only to be shut down. I wouldn't want to see my business go through this and I don't want to see others. But with this coming upon us in a few short weeks we need to prepare a plan to keep our doors open. We can fight to the death to change the laws but realistically that may not happen in time. Because of this you may have to close your doors in Feb until you hear whether or not you can open again. That may not happen.

Are you just going to give up? Are you going to risk your business, your family, your home and just illegally? What are your plans to keep the doors open when this goes into effect? Have you received any quotes or just taken the quotes others have posted? If you can't comply what is the next step? You can afford the testing because you received quotes based on your actual product from an approved lab, how will this affect your numbers?

It is time to get prepared. Yes fight if you must but the idea behind fighting to keep a business not to shut it down and just hope things will go your way. You have to be ready to change. Know what you are up against and make it happen.

Make a plan. What do you have that is specifically for anyone under 12? Can you get them from somewhere else that can manufacture enough product where you can buy from them and resell? Can you remove part of your business until you can comply with children items? If you have to close what do you need to do to make that happen now? Remember if you can't comply you can't sell items after the new regulations begin even if you are just selling off your old inventory. Can you close for a short time to reorganize and open in a month or so? If you must close how do you plan to make up the income lost? If you have to remove part of your product line, what will you to do keep your sales steady?

This is planning time not panic time. Think rationally about the future of your business. Emotions have no place here. You want your business? Do something about it instead of waiting for something to happen.

New regulations on childrens products

If you haven't already heard there is new CPSIA Regulations to take affect 2/10/2009 that will require testing of all products intended for children under 12. With the rash recalls of children's toys containing lead this past couple years I understand and support testing. However my concern comes from why everything? Unless it is modified, clothing, books, toys, shoes, backpacks, notebooks, cloth diapers, blankets, stuffed animals, everything must be tested. They are not looking for just lead. They are looking for phthalates. This effects more items than people really know. Things you would never have thought of.

If you create and sell anything and I mean ANYTHING that is specifically for children, you are required to adhere and comply with the new regulations set to take place 2/10/2009. This also means anything you have in stock prior to this date. It is retroactive and you are not exempt.

This means less availability of products to consumers, higher prices to offset the testing cost, job losses. Can you imagine the cost of a backpack during back to school? Before you had a wide variety of items. Imagine only a few? We already have high unemployment rates. Do we want to imagine higher rates?

The testing required is on finished products. Do you realize that if you make a handcrafted overnight bag with a childs name on it every piece will be tested? The fabric, any buttons, the zipper, the snaps, the thread. Everything. For the sake of argument lets just say testing is $500 per component. Lets say that bag has 5 components. That is $2500 for testing. Because it is per batch and it is personalized, this one item becomes one batch. Now you see the concern?

What about antique items such as that antique doll you have had for generations that you wish to sell? Guess what? You guessed it. It must be tested. You know how many items made for children would not pass? What about that old Howdy Doody lunch box? Bet that won't pass. You can't sell it now. Why? It was intended for children.

Figure you can't sell it so might as well donate it. No can do. It will be sold and if it is not tested it is illegal and banned as hazzardous.

In such hard economic times this can spell the end of many home businesses and also many mom & pop specialty shops. Many seamstresses will be out of work because they cannot sell a young girls one of a kind dress without it being tested at $500$10,000 average per batch, per color. If only one item is in a batch, that price is for one not for multiple. You create another a different time, you have to test AGAIN. This is really upsetting thinking about the high cost of a wedding to think of how high the cost will rise for a flower girl dress and the accessories. Remember each of those items have to be tested. What about those ebayers that sell their gently used children's clothing? Do you crochet baby bonnets and sell on esty? Guess what? You have to have that tested now before you can sell it. Can you see someone wanting to pay $525 for your one of a kind bonnet made just for you? What about Goodwill who receives donated items.

At this moment it affects both manufacturers and retailers. You can't buy an item from a manufacturer who is certified and sell it. You have to get it certified to sell it. They may not have it tested because they didn't sell you the item or the component to be sold for children. I have less than 60 days to clear out my inventory of items intended for the little customers unless the regulations change. That also means I have to drop 2 suppliers who offer me just custom items for our little customers. These poor ladies are WAHMs just trying to make a living off their talent.

Lets say I can come up with the money to have my items tested and keep them available to my customers who desire them. Do you know that these labs will get twice the money for the same products? That's right. Not only does the manufacturer have to have it tested but now that I have it in and selling it I have to have it tested too. So who really wins here?

The customers don't because they have to pay the extra costs for one product. Not just one item has to be tested. You see the same doll in 3 colors, each color in the same style doll has to be tested. That is 3 times the cost for the one type of doll and who pays? You do. All costs relating to the business is factored into the cost of products. That means you have the privilege of paying for those tests. There is a but here. Because of the economic state of this country, raising prices if we are able to pay for the testing will only sway customers away from us rather than bring them to us. That means I can raise the prices but nobody will pay. So now what?

Did you know these tests can be problematic for our schools? There was a discussion I read about regarding telescopes. There are many microscopes that could no longer be provided to schools because of a required light bulb with a small solder on the bottom. Another I read about regarding a telescope that will no longer be sold. The testing is nearly the same as yearly sales so its ridiculous to sell a product they cannot profit from due to the testing needed.

With so many that have to be tested, can you imagine how long it will take to get certification? Even those big bucks retailers have won't speed anything up. You favorite cartoon character toy will now be off the shelves 6 weeks (just guessing here) because of this testing. Now it is back you may have to stand in line to get it. Remember the days of Tickle Me Elmo? Those could return.

Because so many have closed their doors because they simply could not shell out the thousands required for testing. Now you don't have the variety you loved before. We all like variety right? How many times have you sifted through several aisles of items looking for the perfect piece. Maybe you even went to several stores just for the right one. Well at least you can say you saved on gas because that favorite boutique is no longer.

Well maybe it is use that works at the beloved boutique. They have to close because those thousands do not grow on trees. So where do you plan to work now? You aren't the only boutique so you better have your game face on and ready to fight for those few positions so many are wanting. Either that or have a good book ready for that unemployment line because it could be long.

Maybe you only shop at those big retailers so maybe you won't see the impact. That won't be true but lets just say that is what you believe and we will stick with that. What about those who do shop at the small boutiques. What about those moms, grandmothers, neighbors, friends, you buy from that make those special items you buy. What about those moms, grandmothers, neighbors, friends, that make those special items and sell to others for extra money to make ends meet.

I am just so sad to think about the little guys (or ladies if you prefer) who are us the small business owners who will be devastated by these new regulations. The large retailers will be hit hardest in many ways as they are the bigger targets, they have investors who are worried about their investment, consumers who watch them with an eagle eye. The smaller businesses can't handle the financial burden and for many that will be seen as the little guy hit the hardest.

I am not against regulations to protect our children. I am against the regulations that will prevent and even crush the business of all. I want better regulations that define protection. Not just banning and restricting all items.

This is serious and you are valid with your concerns and worries. It may seem as though some are overreacting but are you willing to blow it off and not read the below links only to receive a fine upwards of $100,000?

Do yourself a favor and get informed.

You can read more about the regulations at:
http://www.cpsc.gov/about/cpsia/cpsia.html
http://nationalbankruptcyday.com/
http://www.fashion-incubator.com/blog/
http://www.fashion-incubator.com/archive/national-bankruptcy-day/
http://www.toyassociation.org/AM/Template.cfm?Section=Toy_Safety&Template=/CM/HTMLDisplay.cfm&ContentID=5916