Protecting People Out Of Business
Meet another casualty of the Consumer Product Safety Improvement Act (CPSIA), mandating expensive testing for lead and other substances, via Overlawyered.
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."
...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.
Nice! Just when more people than ever are out of work, and need used clothes for their kids more than ever, we'll make it impossible to run a small business or buy from one!
There may be a compelling case against the CPSIA, but this instance of anecdotal evidence is not it.
From the article: ..."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."
In other words, the big bad government didn't come in and find a billion health and safety violations and shut her down. She just assumed they would. Not impressed.
Patrick at January 16, 2010 2:05 AM
Wasn't cloth only items (clothes,stuff animals,etc) and wood only toys excempted? I that it had been amended to have those exclusions.
Patrick, from what I heard the law requires that the stores be able to show their products are safe and the fines are quite stiff -- especially if actual dangerous products are found for sale. The news report I saw said the testing was $50-200 per item. If they don't have the test results or some other way of certifying the safety, as soon as they are inspected theyare out of business (because of the cost). So they are gambling they will never be inspected.
The Former Banker at January 16, 2010 2:36 AM
There is extensive continuing coverage of CPSIA at Fashion Incubator:
http://www.fashion-incubator.com/?s=cpsia
and at ShopFloor:
http://www.shopfloor.org/index.php?s=cpsia
This legislation has indeed been devastating for many businesses, especially small businesses.
See also my post here:
http://photoncourier.blogspot.com/2009_06_01_photoncourier_archive.html#6516735764762633197
NOTE FROM AMY: ONE LINK PER COMMENT, PLEASE, OR YOUR COMMENT WILL GO INTO MY SPAM FOLDER, AS THIS ONE DID.
david foster at January 16, 2010 5:37 AM
Bu-bu-bu-but, I'm from the government, and I'm here to help!
Asshats. They pay themselves enough that used anything will never affect them. I'm jumping on the congressional term limits bandwagon.
momof4 at January 16, 2010 6:04 AM
Amy Alkon
http://www.advicegoddess.com/archives/2010/01/16/protecting_peop.html#comment-1689246">comment from PatrickThere may be a compelling case against the CPSIA, but this instance of anecdotal evidence is not it. From the article: ..."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." In other words, the big bad government didn't come in and find a billion health and safety violations and shut her down. She just assumed they would. Not impressed.
Should she wait for the penalties Walter Olson writes about in his Forbes article?
http://www.forbes.com/2009/01/16/cpsia-safety-toys-oped-cx_wo_0116olson.html
Amy Alkon at January 16, 2010 6:15 AM
The big retailers, while inconvenienced, will most likely be able to afford the testing. I don't suppose they're too upset about minor competitors being legally squished.
old rpm daddy at January 16, 2010 6:16 AM
Kids Closet (Remarkable Resale) is about a mile from me and I have a relative that used to work there. It's true that small business can't handle over-regulation. Even the threat of government force is enough to stop many small businesses because the consequences are too devastating, and it could crush the owners financially for life.
Part of the reason I've never went into business with myself is government intrusion and the risk that comes with it.
Trust at January 16, 2010 6:51 AM
old rpm daddy is right on. This is just government picking more winners and losers in the marketplace, all in the guise of protecting kids. If government really wanted to protect kids, they'd investigate ways to keep them from being tramped-up by the culture, often with their parents' consent (a topic discussed elsewhere), instead of worrying about .00000001 or some such of lead in clothing and toys.
More crony capitalism at its finest. Big Retail goes to Washington, makes a few "campaign contributions" (illegal bribes if done in the private sector), then gets laws like this passed that effectively shut down low-cost niche competitors, thus raising prices for everyone.
Do I have proof this is what happened? No, but with all the other ways big corporations go up there and buy favors, my default condition is cynicism. We cynics have to be convinced what I describe is not the case. I don't think they can do so. The whole process is rotten. It needs to be replaced -- all of it.
cpabroker at January 16, 2010 7:04 AM
I've noticed that the local Goodwill store has raised their prices tremendously, and on all merchandise, not just kid's clothes. I have to assume that this is why.
I still wonder how this will affect rummage sales. It sounds like most rummage sales are going to be illegal, but I just can't see how the government is going to regulate them.
KarenW at January 16, 2010 7:12 AM
KarenW, go read back through Overlawyered's coverage of this issue. AG's in some states have actually made public threats to start arresting proprietors of garage sales.
CPA, you could very well be right. However, even if you're wrong about the motivation, it doesn't matter. I'm sick and tired of being told that we have to tolerate bad outcomes just because the people who made the decisions (supposedly) had good intentions.
Cousin Dave at January 16, 2010 7:28 AM
Ahhh! Big Government. I'm feeling all warm and fuzzy.
They just make me feel so safe and secure.
I do hope our government just keeps getting bigger and bigger so they can keep helping me.
What would I do without them?
David M. at January 16, 2010 7:57 AM
The first thing to note is that we're not just talking about toys here. With few exceptions, the law covers all products intended primarily for children under 12.
Geez, with laws such as this one, kids will end up naked and toyless.
mpetrie98 at January 16, 2010 9:04 AM
Big Retail goes to Washington, makes a few "campaign contributions" (illegal bribes if done in the private sector), then gets laws like this passed that effectively shut down low-cost niche competitors, thus raising prices for everyone.
It wouldn't surprise me if that's exactly the way it went down.
Die, corporate scum.
mpetrie98 at January 16, 2010 9:07 AM
This is also affecting product-line breadth. If high testing expenses are required for each separate SKU (stock-keeping unit), then many companies will find it necessary to eliminate the less-frequently-bought items and concentrate on the most popular.
I've read that manufacturers of science kits have been particularly hard-hit.
david foster at January 16, 2010 9:58 AM
The recent Consumer Product Safety Improvement Act (CPSIA) requires testing items for lead, intended for use by children. This zero tolerance regulation has closed 10,000+ small businesses that make children's goods such as quilts, clothing, toy blocks, and books.
Even bicycles have been banned, because there are some parts in them which contain lead. How many children have suffered lead poisoning from chewing on their bicycle?
A great tragedy of this idiotic law is the banning of all children's books published before 1986. Nancy Pelosi, Harry Reid, and Obama have arranged for a national book burning, all in the name of "the children".
Stop the Death from Quilts and Food
This is the type of nuanced regulation and gentle nudging that you can expect from the regulatory state. Our all-seeing government will be watching and making life better for us all, as implemented by a thoughtful bureaucracy.
Don't expect them to make any judgments or allowances. Bending the law could interfere with getting their pensions and healthcare. Actually, the head of the Consumer Products Safety Commission, enforcer of CPSIA, asked Democratic Rep. Henry Waxman to clarify the law. Waxman is the powerful head of the The House Committee on Energy and Commerce. He merely replied with a letter advising some interpretation, but also said that the law would stand as written. This left no room for actual interpretation. The rules and penalties stand as is.
Andrew_M_Garland at January 16, 2010 10:31 AM
Amy Alkon
http://www.advicegoddess.com/archives/2010/01/16/protecting_peop.html#comment-1689307">comment from david fosterMy neighbor, a stay-at-home mom for nine years, now entering the work force, created four games for kids to supplement their household income. She's one of those southern California crunchy green moms, with her kids in a Waldorf charter school, so, predictably, her games were made from organic cotton and vegetable dye, and included game pieces made out of wood. Yes, that's organic cotton from the cotton plant, not the lead mine, and vegetable dye from the vegetable patch, and wood from trees, but the games are now stacked up in her garage -- investment lost -- because she'd need to pay $4K each to have them tested.
Walter Olson, at http://www.overlawyered.com , has been an absolute hero in his covering of this issue. Lots there on it.
Amy Alkon at January 16, 2010 10:56 AM
Hmm, so is the government going to come after me a few years down the road if I give a kid in my family etc. some of my old baseball cards? I guess that Mark McGuire rookie card might have led in it along with the stench of steriods. Nevermind it would already be in a plastic cover. Maybe the plastic has led in in too.
Sio at January 16, 2010 12:50 PM
Litlle by little, people just keep trading away their freedom for the promises of entitlements. This country is split down the middle. But it is split between those that want government to take care of them and those that want government to leave them alone.
Time to start hoisting those Gadsden flags...
http://en.wikipedia.org/wiki/Gadsden_flag
LoneStarJeffe at January 16, 2010 2:34 PM
Is there a lesson in this for those of you jonesing for legalized drugs?
Radwaste at January 16, 2010 2:57 PM
Vote them out, or pay the consequences.
MarkD at January 17, 2010 7:09 AM
Is there a lesson in this for those of you jonesing for legalized drugs?
I guess, if drugs were legalized, the new testing would make their sale prices higher than their current street prices! :-O
mpetrie98 at January 17, 2010 12:25 PM
AMy, has your friend cnsidered selling the game sets as "novelty" items with the disclaimer that s the games have not been tested for lead under CPSIA guidlines they are not recomended for children under the age of 12 and parents who choose to ignore the recomendation assume libility from the govenment agency which requires testing?
lujlp at January 18, 2010 7:54 AM
Not drugs, Rad... diet supplements.
The above statement has not been evaluated by the Food and Drug Administration.
Cousin Dave at January 18, 2010 8:53 AM
Put me out of business, as well. I used to have an online toy store--wasn't very big, but the CPSCIA would not only have mandated testing I couldn't afford, but would also have increased my legal liability.
On another note, didja' notice how the big, bad lead in kid's jewelry was replaced with antimony? I feel so protected....
Karen at January 18, 2010 1:58 PM
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