Capsized by CPSIA

by Walter Olson on June 10, 2010

Dallas entrepreneur Phebe Phillips tells in this speech (PDF) why she had to get out of her successful plush animal business:

Then in 2008 and 2009 the U.S. economy tanked … retail dwindled and a new toy regulation was enacted in response to the poor quality and mass quantity oversights by some really big toy companies. BadMrsGinger4bThis new law raises the testing price for each product and in some cases, doubles or triples the costs. For some small companies, it can cost one year of total revenue just to meet the requirements of this law. The law is for any product marketed to a child age twelve and under and for any product made anywhere…even here. It has frozen many small and midsize companies leaving the companies that caused the problems in the first place as some of the only companies that can afford to stay in business. Financially, it caused me to temporarily halt my business…I changed!

Via Amend the CPSIA, which had this report on Phillips in December; earlier on CPSIA and stuffed animals here and here.

Consumer Product Safety Commission member Anne Northup has also been blogging about some of the law’s ongoing damaging effects on sellers of dolls, kids’ furniture and apparel imports.

PUBLIC DOMAIN IMAGE from Honor C. Appleton, The Bad Mrs. Ginger (Frederick A. Stokes Co., 1902), courtesy ChildrensLibrary.org.

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