CPSIA – Freedom of Information Act Request – Follow-up

As sent today:

Dear Sir,

It has now been almost two months since I submitted the below request for information under the Freedom of Information Act. Your office acknowledged receipt of this request on April 1 and stated the following:

“Due to certain procedural steps we are required to take under our statute, there may be delays in providing the records. Please be assured that every effort is being made to process each request as equitably as possible, and that the records or information that you have requested will be made available to you at the earliest possible date.”

My request relates to pending legislation currently under consideration in the U.S. House of Representatives. As such, the request is both relevant to the development of this legislation and rather time-sensitive. The public has a right to know about these documents. Disclosure of these documents is in the public’s interest – transparency in how we are governed is a paramount interest of U.S. citizens. The disclosure of these documents are very relevant to the development of the Consumer Product Safety Enhancement Act, the subject of a recent hearing by a subcommittee of the House Committee on Energy and Commerce. I testified at that hearing.

Notwithstanding the assertion in the April 1 letter above, the requested documents have not been disclosed yet. This is especially disappointing as the documents involved in this request are few, easily-located and in the possession of very few, easily-identified people at the CPSC. The effort to gather, review, redact (if necessary, which seems unlikely), duplicate and transmit these documents is almost certainly inconsequential. I find the delay inexplicable and inexcusable under your statute.

I urge you to rapidly comply with this request for disclosure. As I noted in my original request, your agency’s rules demand it – “disclosure is the rule and withholding is the exception.”

Thank you for your prompt consideration of this matter.

Richard Woldenberg
Chairman
Learning Resources, Inc.

——————————————————————————–
From: Rick Woldenberg
Sent: Tue 3/23/2010 3:44 PM
To: ‘cpsc-foia@cpsc.gov’
Subject: Fast Track FOIA Request Relating to Draft House Legislation Know as “Consumer Product Safety Enhancement Act of 2010”

I am making this document request pursuant to the Freedom of Information Act and 16 CFR §1015. I would like to receive copies of all documents (written or electronic, including notes and staff briefing packages) relating to (a) interactions between Chairman Inez Tenenbaum and/or Commissioner Robert Adler and/or their staff and the House Committee on Energy and Commerce (and/or staff associated with that committee or its members) relating to the Consumer Product Safety Enhancement Act (CPSEA), and (b) any CPSC legal analyses or legal opinions relating to the CPSEA. Since the CPSEA is presently being circulated in draft form on Capitol Hill and since the committee’s staff is seeking feedback from various stakeholders at this time, time is of the essence for this information request. Please accord this request “fast track” status.

In making this request, I note the following statement in 16 CFR §1015(b): “The Commission’s policy with respect to requests for records is that disclosure is the rule and withholding is the exception. All records not exempt from disclosure will be made available. Moreover, records which may be exempted from disclosure will be made available as a matter of discretion when disclosure is not prohibited by law or is not against the public interest.”

My contact information is found below. Thank you for your cooperation.

Sincerely,

Richard Woldenberg
Chairman
Learning Resources, Inc.

Read more here:
CPSIA – Freedom of Information Act Request – Follow-up

CPSIA – What is a "Substantial Product Hazard"?

Read more here:
CPSIA – What is a "Substantial Product Hazard"?

CPSIA – What a Job Program!

I have apparently been quoted as “admitting” that the CPSIA is a “job creator”. I wonder what kind of person could so profoundly misunderstand, or intentionally misconstrue, my testimony at the April 29 hearing. Even more to the point, I wonder what kind of saps those people think they are fooling. It really insults intelligence, if you ask me. Other than testing companies, plaintiff lawyers and government agencies, it is hard to find a company or industry that thinks the CPSIA will help them employ more people. The law does not create economic activity – just wastes lots and lots of money.

Quick aside: I find this remark, even if in made in passing, to be bizarre. Is someone really defending the CPSIA by asserting that it actually benefits the economy? The purpose of the law was never to help companies like ours – if anything, the law was motivated by Congress’ absolute malice toward manufacturers of children’s products. The volume of data to the contrary is overwhelming. To portray the law as a generous act of economic stimulus is so far removed from truth as to invite the term “Big Lie”. Inez Tenenbaum was quoted today attempting a similar act of legerdemain when she contended that markets will be lifted by surging consumer confidence under the CPSC’s watchful eye. This recasting of reality is dangerous – if these people ever find anyone they can persuade with nonsense.

For those of you who missed it, I noted in my oral testimony at the April 29 hearing that our QC department grew from one to four people. In addition, we have a CPSC Bar attorney on retainer and work with another Washington law firm on other representation matters relating to this mess. This has been taken as my “admission” that the awful CPSIA creates jobs. Yippee, we’re saved!

I write this blog myself. No CPSIA jobs there, unfortunately.

I testified that our company’s testing costs increased 8x because of the CPSIA, with the prospect of another 3x increase to come after the CPSC lifts its testing stay in 2011. [I get lightheaded at this thought.] We have also seen sharp increases in QC personnel costs plus other frictional operational costs relating to safety under the new law. It’s ugly. We estimate the total annual cost increase SO FAR to be $450,000 for our company. This money has to come from somewhere. We are unable to increase our selling prices in a recession, yet the costs must be recouped. Guess how we did it.

Our headcount records speak to the stimulative effect of the CPSIA. As of July 31, 2008, immediately prior to passage of the CPSIA on August 14, 2008, LR employed a total of 162 full-time team members. After only four months of magical CPSIA job creation, the ranks of our employees fell to 145 by December 31, 2008. By year end 2009, our headcount had shrunk by one more, to 144 people. As of March 31 of this year, after almost 20 months of CPSIA fun and games, we had 141 employees. At least our QC department is growing . . . .

I will freely admit that we are probably creating jobs galore in China where we do all of our product testing. It’s too expensive to test in this country. The reported 8x increase in our testing costs reflects our intense effort to control costs. I have no idea how many jobs our testing created in China. Nonetheless, I am sure Mr. Waxman’s handiwork is stimulating the Shenzhen region nicely.

So is it really fair to say that I “admitted” that the CPSIA creates jobs?

I don’t mind being misquoted or even to have my testimony under oath twisted beyond recognition. It’s not a problem for two reasons – first, no one is being fooled, and second, the truth is obvious in this case.

So guys, if it helps you to misquote me or to attribute absurd “admissions” to me, go ahead. Everyone knows how “stimulative” this law has been. Our Casualties of the Week have documented business deaths attributable to this law for months. The HTA put a list of victims of the law into the record for the April 29 hearing. I have published over 400 blogposts that add measurably to the data on the costs and consequences of this awful law.

The truth is well-known. And the people who twist it are also well-known. And their efforts won’t soon be forgotten – especially when we go to the voting booth in November. Can’t wait!

Read more here:
CPSIA – What a Job Program!

CPSIA – It’s Raining Paper . . . Again

At the April 29th CPSIA hearing, I testified that the CPSIA and associated rulemaking had exploded into more than 2500 pages in new CPSIA laws, rules and documents that pertain to my business. I also noted that 608 pages had been issued in the 30 days preceding the hearing and that the rulemaking process continues unabated. Well, the CPSC just spewed out another ream of paper (396 pages) for you to absorb this week:

1. Publicly Available Consumer Product Safety Information Database, Notice of Proposed Rulemaking, DRAFT Federal Register Notice, May 7, 2010. [150 pages]
2. Testing and Labeling Pertaining to Product Certification, Notice of Proposed Rulemaking, DRAFT Federal Register Notice, May 7, 2010. [164 pages]
3. Conditions and Requirements for Testing Component Parts of Consumer Products, Notice of Proposed Rulemaking, DRAFT Federal Register Notice, May 7, 2010. [82 pages]

At a mere 396 pages, this week’s new rules increases the total paper released in the last 45 days to at least 1,004 pages. In its usual helpful fashion, the agency issued these rules to replace other documents recently released and that you may have already read. Gotta read these pupies from the top, since they aren’t redlined against prior drafts. This doubles the fun of the new rules – you need to master them to run your business PLUS you get to go on an exciting treasure hunt as you try to figure out what has changed! And we get all that fun for free!

Good thing time grows on trees or else I might get frustrated.

Happy reading! Just remember, if you don’t comment on these rules and the CPSC imposes final rules that are unreasonable or crush your business, you will have no one to blame but yourself.

As I said, happy reading!

Read more here:
CPSIA – It’s Raining Paper . . . Again

CPSIA – New York Times Highlights Big Government at CPSC

The New York Times today highlighted the explosion in regulations under President Obama, particularly noting the CPSC and the controversy over the CPSIA. Here’s what Inez Tenenbaum had to say about our problems:

“‘I don’t want to put anyone out of business,’ said Inez Tenenbaum, chairwoman of the Consumer Product Safety Commission, who was appointed by Mr. Obama. ‘But if anything will help the marketplace, it is to make sure that people have confidence in the products that they buy.’” [Emphasis added]

Let’s be clear about something – this is pure opinion. It may sound like fact, but there’s nothing factual about that self-justifying remark. I am not aware of ANY data to support this point of view. I believe the tenor of Ms. Tenenbaum’s remark is that she knows what’s best for our markets, namely a lot more regulation. I thought her job was to make people safe . . . . She apparently contends that the market for children’s products was sinking under the weight of declining consumer confidence and the CPSIA was some sort of stimulus bill intended to save our market with lots of confidence-restoring regulations.

That is a pretty rosy reconstruction of the CPSIA, don’t you think? I love a good work of fiction!

I have a message for our overlords in Washington – thanks for all your help but frankly, I would prefer to run my business without your assistance. We know our customers, our suppliers, our products and most definitely, our markets – and you do NOT. You say our market needs a boost of consumer confidence. I say that if it does, we’ll take care of it ourselves. You have no right to enter our market and tell us how to run our businesses more successfully. That’s the ultimate in regulatory arrogance and is completely contrary to the capitalist system prevailing in this country. We are the efficient capital allocators, not YOU.

This is all Washington “spin”. The noxious regulations choking our businesses are indefensible for their safety impact so now our regulators are telling us the new rules have been designed to be GOOD for our markets. Pass me a barf bag.

I would like to close by quoting the May 12 HTA letter on the Waxman Amendment:

“Finally, we hope to settle any confusion regarding our intent in endorsing the CPSEA. We endorsed it as our only available alternative. We truly believe that many of our members will be forced out of business after February 10, 2011 without meaningful, clear reform provided by your committee.“

Thanks, Congress and CPSC, for boosting our markets so well with all your new regulations. It’s a brave new world for all of us. Yippee.

Read more here:
CPSIA – New York Times Highlights Big Government at CPSC

CPSIA – Has Congress Ever Done This Before? Ha!

The CPSIA was crafted as a response to a then-shocking but rather inconsequential series of toy recalls in 2007/8 (very few injuries or deaths). After years of intentionally starving the CPSC of budgetary resources, Congress blamed the agency for the large scale toy recalls, leaped to the conclusion that children’s products (not just toys) weren’t “safe” anymore and proceeded to gut the law governing safety and the CPSC (the CPSA). The resulting law (the CPSIA) upended regulation of children’s product safety across an unprecedented array of industries. “Unintended consequences” popped up everywhere almost immediately. Many people claimed to be “surprised”. Given the low injury statistics across the category, the law seems like a vast overreaction.

It’s easy to overlook historical precedent during a crisis. Has Congress ever missed the boat like this before?

Okay, dumb question. But well put!

Consider the response to the Titanic tragedy in 1912. In that famous collision with an iceberg, 829 passengers and 694 crew died when the Titanic sank in the Atlantic. Perhaps you recall the movie . . . . Anyhow, it turns out that the Titanic did not carry enough lifeboats to save everyone. There were 2,228 people on board but the lifeboats only held 1,178. Don’t doubt my math but 705 survived.

Congress couldn’t stand still after the Titanic. Pinning the blame for the loss of life on the lifeboats, rather than the iceberg, Congress passed the La Follette Seamen’s Act of 1915 mandating boats and life rafts for all persons on board seafaring ships. The thinking goes that if every ship had a life boat seat for every passenger, no one would ever die in such a tragedy in the future. The public furor over the loss of the Titanic prevented consideration of the fact that most ships have no risk of colliding with icebergs because of their routes. Likewise, lifeboats are an ineffective remedy in many marine disasters because they would not be able to be launched. No matter, Congress “solved” the problem.

Notably, some members of the maritime industry resisted. In Congressional testimony, A. A. Schantz of the Detroit & Cleveland Navigation Co. noted that the rules intended for the high seas would backfire on the Great Lakes. Schantz pointed out that the light draft and ship design would make Great Lakes ships top-heavy and unseaworthy under the new law. He went so far as to predict that some Great Lakes ships would “turn turtle” if forced to operate with the heavy and useless lifeboats. His argument wasn’t just that the expense was pointless – he also noted that it was counter-productive and even dangerous.

Let’s pause for a second here. Congress rushes onto the field to “solve” a problem it doesn’t really understand. Why doesn’t Congress understand the problem despite hearings and so on? Well, among other things, Congress lacked industry-specific know-how and expertise. It is better at identifying “effect” than “cause”, and therein lies the problem. Consequently, Congress was looking for a particular answer, and tended to reject discordant data (like Mr. Schantz). When industry tried to advise Congress of the inadequacy of its solution, Congress knew better and brushed them off. After all, who has more integrity, Congress or the industry that “caused” the problem in the first place?

Can anyone guess where this is going?

On July 15, 1915, while at dock in the Chicago River, the S.S. Eastland capsized, killing 844 passengers and crew waiting to cruise on holiday to Michigan City, Indiana. The reason? The Eastland was already top-heavy and became unstable under the federally-mandated safety equipment. The ship, when it listed and sank, was described as rolling over “as though it were a whale going to take a nap”. Quite an image. Quite a tragedy. Thanks for all the help, Congress!

Not only is this story creepily similar to the CPSIA saga, it is also a reminder of the risks in the broad financial reforms currently being contemplated by this Congress. Senator Judd Gregg warned: “We shouldn’t put in place a regulatory regime that overly reacts and, as a result, significantly dampens our capacity to have the most vibrant capital and credit markets in the world.” He might as well be speaking of our friend, the CPSIA. As Jim Grant notes: “The intended consequences of government regulations are frequently less potent than the unintended ones.“

As obvious as Mr. Grant’s point has become in the case of the CPSIA, the Democrats if anything have hardened their position and remain resolute that they are doing “everything they can” for us. Put another way, everything else that we want (and which has been denied us) in a CPSIA amendment is NOT forthcoming. No reason supplied except the intellectual pap that everyone wants kids to be safe – America demands it. Apparently, the Dems think they have a much better idea on how to keep kids safe than the industry.

So the Democrats are willing to risk another S.S. Eastland in the children’s product industry rather than admit they went (way) too far. The Republicans, to their undying credit, admit that the CPSIA needs severe restructuring and are working hard to bring about real change. Sadly, Waxman and his Dem co-horts are able to block the Republican effort at reform, and that’s why we are in a stalemate. Who will be the S.S. Eastland of the children’s product industry? It could be my company, could be your company, could be your school or even your child. The unintended consequences keep coming to light, and as the evidence mounts, the Democrats in Congress and their counterparts at the CPSC will held to account for the damage they have wrought. History will not forget.

Read more here:
CPSIA – Has Congress Ever Done This Before? Ha!

CPSIA – Richmond Times-Dispatch Editorial "REGULATION: Protection Racket"

REGULATION: Protection Racket

By Staff Reports
Published: May 9, 2010

We live in the safest society in world history, Michael Crichton observed in State of Fear, yet Americans seem to go about their day in abject terror of minuscule threats. Perhaps nowhere is this more apparent than in Washington’s approach to child safety.

At the instigation of the American Academy of Pediatrics, federal bureaucrats at the FDA, the Department of Agriculture, and the Consumer Product Safety Commission are studying whether to require the nation’s hot-dog makers to redesign hot dogs to reduce the likelihood of choking. Choking is a serious hazard — about 15,000 children receive medical attention each year because of it. But children choke on a wide range of items, from candy and gum to balloons and small change. In 2006, only 61 choking deaths were food-related, and hot dogs accounted for only 13 of those.

Any child death is tragic. Yet it’s worth noting, as The Washington Times did not long ago, that children under age 10 eat almost 2 billion — yes, 2 billion — hot dogs a year. On a per-hot-dog basis, the odds of a child choking to death are 13 divided by 2 billion, which comes to . . . well, a microscopically small number. The odds that a person will be struck by lightning in any given year are about 4,000 times higher than the odds of a child choking to death on a hot dog. Given that context, redesigning hot dogs looks like a solution in search of a problem.

But it’s not just hot dogs. The Consumer Product Safety Commission also has sounded the alarm about baby slings, which have enjoyed a recent surge in popularity because the close physical contact allows for greater parent-child bonding. In extremely rare instances, children can slip out of the slings or smother in them. The CPSC says slings are responsible for as many as 13 deaths — in the past two decades.

The CPSC also has announced the recall of 1.2 million high chairs. No deaths have been attributed to the high chairs, but the agency says they do pose a fall hazard because screws securing the front legs of the chairs can loosen and fall out. Earlier this year the CPSC announced a recall of more than a half-million drop-side cribs because of “31 . . . incidents. In six of those incidents children were entrapped between the drop side and crib mattress. Three children suffered from bruises as a result of the entrapment.”

Three children suffered bruises.

Of course it is possible to understate hazards that can endanger children, epecially young children. But if it is possible to understate the hazards, then it also is possible to overstate them. Context and perspective matter. If the regulatory state has reached a point at which it is warning about the dangers of patently safe products, then the public might reasonably wonder what, exactly, is being protected — the health of young children, or the jobs of federal employees?

Read more here:
CPSIA – Richmond Times-Dispatch Editorial "REGULATION: Protection Racket"

CPSIA – So What’s the Problem? New CPSIA Product Ideas.

This bike is made of pure titanium – no lead!

Something cute for the nursery? Be sure to ask for the GCC!

“Safe Sleep” initiative candidate. Just watch out for the sharp points.

Read more here:
CPSIA – So What’s the Problem? New CPSIA Product Ideas.

CPSIA – HTA Letter Blasts Imperfect Waxman Amendment (CPSEA)

[Emphasis added. Actual Letter can be viewed here.]

May 12, 2010

To:

The Honorable Bobby Rush
Chairman, Subcommittee on Commerce, Trade and Consumer Protection

The Honorable Ed Whitfield
Ranking Member, Subcommittee on Commerce, Trade and Consumer Protection

The Honorable Henry Waxman
Chairman, Committee on Energy & Commerce

The Honorable Joe Barton
Ranking Member, Committee on Energy & Commerce

Re: The Consumer Product Safety Enhancement Act (CPSEA)

To the Leadership of the House Commerce Committee:

Thank you again for the opportunity to testify before your committee and for your continued attention to the needs of our small businesses. We would like to reiterate our position on the CPSEA and the relief we are seeking for our members.

We have previously endorsed the CPSEA because it is the only opportunity currently available to save small batch manufacturers from extinction after February 10, 2011, when the CPSC’s stay of enforcement of third party testing requirements expires. Under the CPSIA as it currently stands, many of our members are substantially limiting the products that they offer–some foregoing children’s products altogether–while others are laying off employees or limiting their business growth.

We have stated clearly that the CPSEA can and should be improved to reduce unnecessary regulatory burdens on small businesses without compromising safety. The CPSEA as currently written will likely save some of our member businesses. With improvements, however, you can save almost all of them. For the record, we would like to review the improvements we would like you to consider.

First and foremost, we would like the CPSEA to clearly state that small batch manufacturers are exempt from third party testing requirements. While report language to that affect would be helpful, a more explicit exemption within the language of the bill itself would provide more immediate and substantial relief. You can accomplish this by allowing:

* the use of XRF testing as an alternative testing method for lead in paint and lead in substrate

* alternative testing methods for products intended for use in classrooms or for children ages 7-12

* EN-71 testing as an alternative testing method

* CPSC rulemaking to allow for alternative testing methods based on risk analysis

* exemptions for small batch toymakers from ASTM F-963 testing

This language should be in the bill itself, not just in the report language. In the intervening days since our initial endorsement of the CPSEA, we have heard conflicting answers from several different CPSC commissioners as to the commission’s willingness or ability to provide affordable alternative testing methods for small batch manufacturers. If this bill is truly meant to benefit small batch manufacturers, it must be more clear and explicit in the exemptions it provides.

Second, we wish to reiterate our belief that alternative testing methods should be available to all companies. The Small Business Administration defines toy and clothing manufacturers with less than 500 employees as small businesses, which is far in excess of the CPSEA’s $1 million limit. If a revenue limit is used, it should be based only on income generated by the manufacture or importation of children’s products without including other unrelated business income. A manufacturer’s ability to pay for testing any given product is a function of the revenue it generates from that particular product, not the overall size of the company.

Third, we stated publicly during the April 29 hearing that the functional purpose exemption for products exceeding 300ppm/100ppm lead will not benefit our members because of the narrow scope of the exemption and the cost required to obtain it. The CPSC should instead be given authority to make exemptions to specific materials or product categories based on risk analysis. For example, the commission should have the power to exempt brass as a material and children’s saddles or microscopes as a product category. This is the only way in which small businesses would be able to take advantage of the functional purpose exemption.

Fourth, we believe that small batch manufacturers should be entirely exempted from mandatory labeling requirements.

Finally, we hope to settle any confusion regarding our intent in endorsing the CPSEA. We endorsed it as our only available alternative. We truly believe that many of our members will be forced out of business after February 10, 2011 without meaningful, clear reform provided by your committee. We believe that the CPSEA can and should be improved to better target risk and provide more comprehensive relief for our members, who were never the source of unsafe products in the first place.

We remain hopeful that the democratic process can prevail and that a meaningful and bipartisan reform of the CPSIA can be enacted. We urge members of the committee to mark up the CPSEA and allow open discussion within the product safety subcommittee. The CPSIA was a bipartisan bill—its reform should be, too.

You hold the livelihoods of hundreds of small businesses in your hands. Please, make this work.

On behalf of the 435 small business members of the Handmade Toy Alliance, we thank you again for your attention to this important issue.

Respectfully,

The Handmade Toy Alliance

savehandmadetoys@gmail.com
http://www.handmadetoyalliance.org/

Board members:

Cecilia Leibovitz, Craftsbury Kids, VT
Dan Marshall, Peapods Natural Toys, MN
Jill Chuckas, Crafty Baby, CT
Mary Newell, Terrapin Toys, OR
Jolie Fay, Skipping Hippos, OR
Marianne Mullen, Polkadotpatch, VT
Rob Wilson, Challenge & Fun, MA
Randy Hertzler, euroSource, PA
Kate Glynn, A Child’s Garden, MA

Read more here:
CPSIA – HTA Letter Blasts Imperfect Waxman Amendment (CPSEA)

CPSIA – HTA Letter Blasts Imperfect Waxman Amendment (CPSEA)

[Emphasis added. Actual Letter can be viewed here.]

May 12, 2010

To:

The Honorable Bobby Rush
Chairman, Subcommittee on Commerce, Trade and Consumer Protection

The Honorable Ed Whitfield
Ranking Member, Subcommittee on Commerce, Trade and Consumer Protection

The Honorable Henry Waxman
Chairman, Committee on Energy & Commerce

The Honorable Joe Barton
Ranking Member, Committee on Energy & Commerce

Re: The Consumer Product Safety Enhancement Act (CPSEA)

To the Leadership of the House Commerce Committee:

Thank you again for the opportunity to testify before your committee and for your continued attention to the needs of our small businesses. We would like to reiterate our position on the CPSEA and the relief we are seeking for our members.

We have previously endorsed the CPSEA because it is the only opportunity currently available to save small batch manufacturers from extinction after February 10, 2011, when the CPSC’s stay of enforcement of third party testing requirements expires. Under the CPSIA as it currently stands, many of our members are substantially limiting the products that they offer–some foregoing children’s products altogether–while others are laying off employees or limiting their business growth.

We have stated clearly that the CPSEA can and should be improved to reduce unnecessary regulatory burdens on small businesses without compromising safety. The CPSEA as currently written will likely save some of our member businesses. With improvements, however, you can save almost all of them. For the record, we would like to review the improvements we would like you to consider.

First and foremost, we would like the CPSEA to clearly state that small batch manufacturers are exempt from third party testing requirements. While report language to that affect would be helpful, a more explicit exemption within the language of the bill itself would provide more immediate and substantial relief. You can accomplish this by allowing:

* the use of XRF testing as an alternative testing method for lead in paint and lead in substrate

* alternative testing methods for products intended for use in classrooms or for children ages 7-12

* EN-71 testing as an alternative testing method

* CPSC rulemaking to allow for alternative testing methods based on risk analysis

* exemptions for small batch toymakers from ASTM F-963 testing

This language should be in the bill itself, not just in the report language. In the intervening days since our initial endorsement of the CPSEA, we have heard conflicting answers from several different CPSC commissioners as to the commission’s willingness or ability to provide affordable alternative testing methods for small batch manufacturers. If this bill is truly meant to benefit small batch manufacturers, it must be more clear and explicit in the exemptions it provides.

Second, we wish to reiterate our belief that alternative testing methods should be available to all companies. The Small Business Administration defines toy and clothing manufacturers with less than 500 employees as small businesses, which is far in excess of the CPSEA’s $1 million limit. If a revenue limit is used, it should be based only on income generated by the manufacture or importation of children’s products without including other unrelated business income. A manufacturer’s ability to pay for testing any given product is a function of the revenue it generates from that particular product, not the overall size of the company.

Third, we stated publicly during the April 29 hearing that the functional purpose exemption for products exceeding 300ppm/100ppm lead will not benefit our members because of the narrow scope of the exemption and the cost required to obtain it. The CPSC should instead be given authority to make exemptions to specific materials or product categories based on risk analysis. For example, the commission should have the power to exempt brass as a material and children’s saddles or microscopes as a product category. This is the only way in which small businesses would be able to take advantage of the functional purpose exemption.

Fourth, we believe that small batch manufacturers should be entirely exempted from mandatory labeling requirements.

Finally, we hope to settle any confusion regarding our intent in endorsing the CPSEA. We endorsed it as our only available alternative. We truly believe that many of our members will be forced out of business after February 10, 2011 without meaningful, clear reform provided by your committee. We believe that the CPSEA can and should be improved to better target risk and provide more comprehensive relief for our members, who were never the source of unsafe products in the first place.

We remain hopeful that the democratic process can prevail and that a meaningful and bipartisan reform of the CPSIA can be enacted. We urge members of the committee to mark up the CPSEA and allow open discussion within the product safety subcommittee. The CPSIA was a bipartisan bill—its reform should be, too.

You hold the livelihoods of hundreds of small businesses in your hands. Please, make this work.

On behalf of the 435 small business members of the Handmade Toy Alliance, we thank you again for your attention to this important issue.

Respectfully,

The Handmade Toy Alliance

savehandmadetoys@gmail.com
http://www.handmadetoyalliance.org/

Board members:

Cecilia Leibovitz, Craftsbury Kids, VT
Dan Marshall, Peapods Natural Toys, MN
Jill Chuckas, Crafty Baby, CT
Mary Newell, Terrapin Toys, OR
Jolie Fay, Skipping Hippos, OR
Marianne Mullen, Polkadotpatch, VT
Rob Wilson, Challenge & Fun, MA
Randy Hertzler, euroSource, PA
Kate Glynn, A Child’s Garden, MA

Read more here:
CPSIA – HTA Letter Blasts Imperfect Waxman Amendment (CPSEA)

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