CPSIA – Let’s Keep Sucking Our Thumbs . . . .

803 days have passed since ANY Democrat in Congress did ANYTHING to help us on the CPSIA. There are only 7 days left until Election Day.

Seven days to go! Go, baby, go!

I just found this article documenting the pain of some Illinois toy craftsmen owing to the CPSIA. Imagine, these guys are being held up by the noxious CPSIA and are essentially shut down. I have been reading these articles for almost three years now. Ho-hum.

Have any of you heard of Mattel or Hasbro going out of business because of this law? Me, neither.

Articles of this type are discouraging on several levels, not least of which is the lack of comprehension of almost everyone who gives a quote. The scale of the problem for small business, even the very nature of the problem presented by the law is unclear, apparently. No one asks the right questions like – why are we doing this? What are we achieving? Is it worth the cost? Can we even measure what we have accomplished?

Of course, the answers to these questions are all negative. No one knows why we’re doing this, other than a general love of children. Don’t know about you but a “general love of children” is a rather flimsy justification for killing off an entire industry (other than mass market companies like Mattel). Given that we have many fine universities here and train the occasional engineer in this country (I am one of them), I would think we could be a just a little more “science-y” in our analysis. So, if we can put our “general love of children” on the shelf for just a moment, why indeed are we doing this? To improve the health of children, right? That sounds good to me.

To assess whether we have had any impact on the health of children, presumably we would need to be able to describe what is WRONG with the health of children now. The zealots assure us that there is no safe level of lead. They also assure us that lead harms children “silently”, in other words, the harm cannot be measured accurately, but trust us, it’s there. In other words, there is no way to differentiate between lead “poisoning” in children not presenting symptoms – and a purely imaginary condition in those same children. The “real” problem and the imaginary problem present exactly the same way – no symptoms. Contrast banning pixie dust with banning lead-in-substrate – the issues are the same.

[Ed. Note: Apparently there ARE safe levels of lead in musical instruments made of brass if they are full-sized, but not if they are under-sized. This is part of the new interpretative rule on the definition of "Children's Products". Therefore, if you had a small trumpet (dangerous, subject to regulation) and you stretched it, making it into a full-sized trumpet with thinner walls of brass, it would become safe (no regulation)! Hmmm. This is not magic, this is the CPSIA!]

And if you want to measure your impact on this dreaded problem, how would you do it? The health statistics are purely made up, because there are no symptoms. The reasoning goes – since there is “no safe level” for lead, then we must consider anything that could possibly cause a blip in blood lead levels as a causative agent, therefore, we must ban everything that COULD POSSIBLY make blood lead levels rise.

Given that blood lead levels are declining these days and are not considered a health risk by the EPA, FDA, NIH or CDC except in connection with certain specific hazards (leaded house paint, residual pollution from leaded gasoline, or other environmental factors like air pollution), we cannot measure any improvement in health. It’s literally impossible (remember, the “real” problem and the purely imaginary problem present exactly the same way). Thus, it will be impossible to measure how much we have achieved for our investment. We must cling to our assertion that there is “no safe level” for lead to assure ourselves that we have accomplished something. This is a logical argument, but there’s no evidence to support it.

So the entire exercise is speculative? The benefits cannot be measured. The problem can’t be measured or even described accurately. There weren’t any victims before, there aren’t any victims now. Seems like nothing has changed. Uh-oh.

Ah, thumb suckers, THAT isn’t true. Something fundamental has changed, thank you Congress. Safety hasn’t improved . . . but a few things have changed substantially:

1. Our regulator is no longer capable of exercising a judgment about what is and what is not safe. Consider the musical instrument example above. The CPSC has also become quite aggressive, perhaps to justify its existence and its new jumbo budget. Not pretty.
2. The cost of compliance has already skyrocketed. Those dollars are coming out of activities that would otherwise be used to grow our businesses.
3. You ain’t seen nothing yet on costs – wait for the CPSC to approve the 15 Month Rule on testing frequency and reasonable testing programs. Costs will rise by 10-100x for many companies if the rule is adopted as presently drafted. I’m not kidding.
4. Complexity and risk have skyrocketed. What do people do when they can’t figure out the rules or they get scared about the consequences of failure? They exit.

   [Here's another pre-Xmas threat by the ever-lovable Inez Tenenbaum: "'We will continue to recall their products and it will damage the brand. There will be penalties, there will be lost customers,' she said in an interview." She's quite a charmer, isn't she? Does this sound good to you? Want to enter the Children's Product market? Want all your family's wealth dependent on the health of a business in this market, being regulated by Ms. Tenenbaum? Hmmm, the line's out the door, everyone wants in!!!]

5. Products and markets are being dropped, or aren’t being entered in the first place. Profits are being lost (profit prevention) and jobs are being shredded. Lots of jobs . . . .
6. It’s not fun anymore to be in this business.

As for the Illinois wood toymakers, it’s a shame for them. We read about this kind of thing all the time. Maybe it will go away on its own. Maybe it’s all their imagination. Small businessmen are often so unsophisticated, they probably don’t know what they’re talking about. The U.S. government is just too smart to get something this wrong. If they really screwed up, they’ll fix it – the government’s not the enemy, you know. Something this big and stupid can’t be true. Somebody big and important, like a trade association, will save us. No, no, 60 Minutes or John Stossel will do an embarrassing story and that will break the logjam. [Ed. Note: been there, done that.] I’m too busy running my business to address this. You can’t fight City Hall. It will get fixed, don’t worry! Nothing this ridiculous lasts very long.

Boy, that thumb must be yummy! But at your age, thumb-sucking seems so inappropriate.

Don’t forget to vote on November 2nd. Even if this scourge won’t go away and has become entrenched, you can still strike a note for capitalism and for sanity by voting against the idiots and the venal people who want to destroy your businesses and deprive you of valuable products that you prize. You can defend yourself – and you MUST.

Read more here:
CPSIA – Let’s Keep Sucking Our Thumbs . . . .

CPSIA – CPSC Sets Its Sights On the Real Menace to Society . . . Buttons

In yesterday’s USA Today article entitled “Lead testing can be costly for mom and pop toy shops“, Scott Wolfson, Director of Public Affairs at the CPSC, cited the “positive effects” of the CPSIA on the market. What were those “positive effects” that Wolfson bragged about to the national media? “[Wolfson] notes global suppliers are choosing lead-free buttons for adult and children’s clothing, which is safer for everyone and helps shift the burden from small businesses to suppliers up the line. He says Tenenbaum is trying ‘to find the right balance between compliance and not putting companies out of business.’”

Let’s be clear here, Wolfson is talking about making everyone “safer” by eliminating lead-in-substrate in buttons. He is NOT talking about lead-in-paint. Lead-in-paint has been illegal for decades, and a small number of recalls have occurred for lead-in-paint violations relating to buttons. [No injuries were ever reported, of course, but don't get me started.] Buttons have been recalled for coming loose and violating the small parts rules. This is a REAL hazard to small children. Kids can actually choke on a button and be injured. Wolfson is NOT talking about this issue. He is focusing on other “positive effects” from the law.

Wolfson also took pains to note that the buttons were being removed from adult clothing, too. Did you realize how much danger you were in before the CPSC was able to induce these “positive effects”? I really appreciate Wolfson bringing this to my attention. Thank heavens for our federal protectors!

How many recalls have occurred in the United States for lead-in-substrate in buttons – EVER? According to the CPSC website, ZERO. According to a Google search this morning, I believe this kind of recall has NEVER occurred ANYWHERE IN THE WORLD. And the removal of lead-in-substrate is a positive effect of the law? Is Wolfson responsible to explain this puzzling remark?

So after two years of continuous arguing and the devotion of many tens of thousands of man-hours of work to implement the noxious CPSIA by the federal government and industry alike , the CPSC holds up as its great achievement – buttons. Whew, it’s safe to walk the streets of America again!

Thank you CPSC for seeking the right balance between compliance and NOT putting companies out of business. Yeah, I get it.

Unfortunately, by highlighting something as asinine as buttons as a possible lead hazard, the CPSC fuels a long-simmering public hysteria over latent chemical hazards. No one was previously aware that buttons could kill you from their bound=in lead content, but apparently our federal government is quite concerned about button lead content. Isn’t that what Wolfson said? After all, why would he mention it to USA Today if it wasn’t a problem at all? This kind of remark helps persuade the public that dangers lurk where they can’t see them. Lead must be terrible, right, if the CPSC is so hysterical about it? The conclusion is inescapable.

And let’s not forget the McDonald’s Shrek glasses. Cadmium must also be a terrible problem or else why would our trusted federal government urge recall of the drinking glasses out of “an abundance of caution”? Which are we to believe – the CPSC’s actions in demanding the recall for undisclosed trace levels of cadmium in the enamel on the OUTSIDE of the glasses, or Wolfson’s own written reassurance that the glasses aren’t toxic? And of course, there is the Congressional “inquiry” by Waxman and Stupak as further evidence of the “justifiable” health concern. As the relentless stream of breathless and panicked media stories confirm, the public believes that the recall was justified and therefore that cadmium is a real concern, a silent “killer”. The fact that there has never been a single reported cadmium injury from a consumer product in this country’s history is never discussed.

This kind of reinforcement leads to paranoia about many safe products – and makes doing business in the children’s market in this country exceptionally difficult and unpleasant now. No one trusts us anymore and the only thing we did wrong was elect the wrong people to Congress.

The message that we business people can’t be trusted is clogging the airwaves almost daily. The weekly corporate bashings by Congress and the White House paints a clear picture to the American public. You need only consider the treatment of BP, Toyota, Wellpoint, Massey-Ferguson, GM, Chrysler, evil bankers . . . the list is long. We’re all bad, right? That’s the theme these days.

CPSC leadership also reinforces the notion that corporations must be closely supervised by the federal government. Corporations will cut corners and take chances with your children’s health but for the crusading efforts of this pioneering and courageous safety agency. Remember Tenenbaum’s theme: the CPSC is not a “teething tiger” anymore. With this approach at the CPSC, small wonder then that these are among the USA Today comments:

“Yeah…Tests can be costly, but on the other hand death seems to be pretty costly also. But I guess the determining factor will always be money. Save 10 cents, 10 dollars, 100 dollars at the cost of someone else.“

“Well if they cannot test the products they make to insure that our children are safe. Then its time to start making other items. The simple fact is that the Chinese and our bought and paid for congressmen/congress women have allowed this to happen. My opinion ban all products from China since it is evident that they do not care for the health of our citizens.“

“WE can never ever trust the Chinese. They are the worst people! Why do we do any business with them is beyond me.“

“This is just more gov regulation that the GOP says get’s in the way of the Free Market. Let the Free Market get the lead out on it’s own. Too bad there’s no profits in ‘getting the lead out’. It’s cheaper to use lead as a filler, and hire lobbyists to pay-off congress. We’ve got it all dialed-in in America!“

Thanks for all the help, CPSC. You sure are helping our market. Your efforts will only succeed in driving the good people out of this market, along with their good products, their innovations, their productivity gains and their jobs. And who will be around to help educate your kids and grandkids? Let’s not think about that one. No, no, ignore me for a few more years. This can go on indefinitely. We’ll just take it. We love it. Go ahead.

It’s time for Nero to share the stage with the Democrats. Go on, fiddle while Rome burns.

Read more here:
CPSIA – CPSC Sets Its Sights On the Real Menace to Society . . . Buttons

CPSIA – CPSIA Casualty of the Week for January 25

The Alliance for Children’s Product Safety’s “CPSIA Casualty of the Week” highlights how the Consumer Product Safety Improvement Act (CPSIA) is disrupting the U.S. marketplace in order to draw attention to the problems faced by small businesses, public institutions, consumers and others trying to comply with senseless and often contradictory provisions of the law. These provisions do nothing to improve product safety, but are driving small businesses out of the market.

Congress and the CPSC need to address the problems with CPSIA implementation to help small businesses by restoring “common sense” to our nation’s product safety laws.

CPSIA Casualty of the Week for January 25, 2010

CPSIA Means No Bling for Baby

When Elementary School teacher Marcy Cohen had her first baby girl, she and her sister Lori Rockoff, a social worker, started making tiny accessories for the newest addition to the family. With only a few strands of hair to adorn, the sister team developed “no slip” clips and bows. Soon, their sparkling rhinestone creations were catching the eye of friends and strangers, prompting them to launch Pea Soup Accessories for Kids, which quickly became a leading manufacturer of hand-made children’s products. Their trendy product line includes a wide variety of accessories from embellished headbands to ornate socks.

Yet, while the sisters behind Pea Soup were busy supplying hundreds of high-end boutiques, Congress was working on the Consumer Product Safety Improvement Act (CPSIA) to devise new testing standards of the metal and crystal embellishments that give Pea Soup accessories their unique flair. While none of Pea Soup’s products ever had any safety or lead problems, the confusing nature of the CPSIA forced the sisters to make substantial changes to much of their line.

“We did not want to take any chances with violating the new law,” says Marcy. “In order to avoid any risks, we scrapped many of the products in our line and had to manufacture new ones with different and compliant materials.”

As a result of the law and the cost of the required testing, Pea Soup was forced to significantly change their product line, eliminating much of the creative embellishments that made their accessories distinctive and leaving them with thousands of dollars worth of perfectly safe (and adorable) unsalable inventory.

For more information about Pea Soup visit, http://www.peasoupaccessories.com/about_us/

For additional information on the Alliance for Children’s Product Safety and CPSIA, and to view previous “Casualties of the Week, visit http://www.AmendTheCPSIA.com/

Read more here:
CPSIA – CPSIA Casualty of the Week for January 25

CPSIA – CPSIA Casualty of the Week January 7

The Alliance for Children’s Product Safety’s “CPSIA Casualty of the Week” highlights how the Consumer Product Safety Improvement Act (CPSIA) is disrupting the U.S. marketplace in order to draw attention to the problems faced by small businesses, public institutions, consumers and others trying to comply with senseless and often contradictory provisions of the law. These provisions do nothing to improve product safety, but are driving small businesses out of the market.

Congress and the CPSC need to address the problems with CPSIA implementation to help small businesses by restoring “common sense” to our nation’s product safety laws.

CPSIA Casualty of the Week for January 11, 2010

NEW SAFETY LAW CLEANING OUT “THE KIDS CLOSET”

Kitty Boyce worked for 18 years to build her resale shop, The Kids Closet, located in Rochester, IL, into a well-known resale shop. With its colorful signage, brightly decorated interior and whimsical whale logo, The Kids Closet built its reputation on offering customers quality second-hand children’s products at great values.

Shortly after being voted the “Number One Place to Shop Resale” by the Illinois Times, Kitty announced that because of CPSIA she was converting her store to sell predominately teen and adult clothing, home accessories and furniture, and changing its name to Remarkable Resale. The loss of revenue in her shop due to the changes in inventory forced her to lay off several employees.

“CPSIA has been devastating for us,” said Kitty. “We just decided to get rid of all the toys and furniture. It’s just not worth the risk.”

While the Consumer Product Safety Commission has temporarily stayed requirements for testing and certifying products, all resale shops still must comply with the new lead and phthalate standards. Realistically, resale shops cannot be 100 percent certain that the used items meet the new requirements.

Due to the over-reaching law, Kitty Boyce’s dedicated attempts to provide children and families with reasonably priced, gently used baby equipment, furniture and toys have been shut down. For Kitty and others, the risk of enforcement action by state attorneys general or private groups is too great. The result is that during one of the worst economies in decades, resale shops around the country are avoiding selling winter clothing for kids and other children’s products.

This winter, ask Congress how denying a perfectly safe used winter coat to a child whose parents can’t afford to buy a new one is protecting that child’s health.

For more information about Kitty Boyce, visit http://www.thekidscloset.net/closet.htm

For additional information on the Alliance for Children’s Product Safety and CPSIA, and to view previous “Casualties of the Week, visit http://www.AmendTheCPSIA.com/.

Read more here:
CPSIA – CPSIA Casualty of the Week January 7

CPSIA – News Round-up

What a day for news on our favorite subject!

a. A sad, almost pathetic, illustration of the ill-effects of the CPSIA is found here: “Police Switch To Handing Out Books To Children” (WISC-TV, Channel3000.com). Be SURE to check out the embedded video, too. In this article, this Wisconsin television station shares the news that police cannot give out teddy bears anymore to children who witness traumatic events like a robbery or the arrest of a parent. For years, the police had been trying to soften those blows with comforting teddy bears. But no more! The CPSIA straightened them out: “The new Consumer Product Safety Improvement Act . . . has law enforcement officers rethinking handing out stuffed animals because of the chemicals they might contain. . . . Mueller said that he used to hand out Teddy bears or other stuffed toys to children. Now, Middleton police are using the books to make sure they’re in compliance with new federal regulations.”

The local police are scared of the consequences of breaking this law: “‘One of the reasons for that is we get older toys that come in and they’re perfectly fine to give out, but we don’t know if they were made under the new requirements,’ [Middleton police Sgt. Don Mueller ] said. . . . The new federal law is retroactive so the departments like Middleton are no longer using any stuffed animals as they can be held liable.”

How charming! The CPSIA is actually taking teddy bears away from traumatized children, nice. At least we know the kids will be so, so safe now.

Btw, as you all know, our company makes educational products, including readers, so I am hardly opposed to giving books to kids. I would observe, however, that there are a couple obvious issues here. First of all, it’s an odd message to a kid that just saw a parent being arrested to receive a book. Hey, kid, go read this book and try not to think about where we’re taking your folks. Not much solace in that, certainly compared to a teddy bear. A second objection is, here’s a shocker, not everyone speaks English. Giving a book in English to a traumatized child who does not speak English or has poor reading skills could even be seen as a kind of insult.

b. For a view from the scary people behind the law, check out: “Toxic Toy Law Criticized For ‘Lack Of Enforcement” (WBZ Boston). In this alarming article full of inaccuracies, fear of the unknown is given a great deal of unquestioning credibility. “‘They don’t really know if lead or phthalates are in their products, so we don’t know either,’ said [Environmental activist Laura Spark]. Her daughters have a playroom full of toys that she can only hope are free from lead and other toxic chemicals.” In other words, Ms. Sparks doubts everything about everyone, and feels free to spread this doubt among the populace. The grounds for this latest libel of the toy industry: HealthyStuff.org’s recent spot check of pet products, automobiles and women’s handbags.

HealthyStuff.org (formerly known as HealthyToys.org) has been the subject of criticism in the past for its shoddy field work. Among other things, the Wall Street Journal published an article entitled “Guerrilla Toy Testers Take Aim at Lead” on December 16, 2008 documenting their maligning of a toy company. Now the presence of “dangerous chemicals” in pet products is enough to convince a TV station that the entire children’s products industry can’t be trusted?

To compound the sense of fear, the article also completely misstates the Target fine, asserting that it was a “knowing” lead-in-paint violation, which is patently untrue. See my recent blogpost on Target.

c. For a glimpse of the future of litigation under the CPSIA, check out “Mattel Settles Suit Over Lead in China-Made Toys ” (WSJ). Mattel has already paid big settlements in California and Arizona, as well as a serious CPSC fine, and paid many millions more for the expense of its mega recall. It’s not enough, apparently: “Co-plaintiff lead counsel Whatley Drake & Kallas said in a statement the settlement provides ‘tens of millions of dollars in monetary relief as well as significant injunctive relief.’” That’ll teach ya!

While my heart does not bleed for Mattel (“The world’s largest toy maker previously recorded charges to reserve for the litigation. The company, based in El Segundo, Calif., said final settlement won’t be material to its operating results. . . . Mattel shares were up 2.9% to $19.41 in recent trading amid a broad market rally.”), this case is at the heart of one of the worst risks embedded in the CPSIA – the possible onslaught of litigation opened up by recalls under the new law.

This problem will continue to bite the children’s product industry HARD. My previous blogpost highlighted the snarling lawyers poised at the gate, eyeing us eagerly. Oh joy.

Read more here:
CPSIA – News Round-up