Posts tagged as:

CPSIA

KiteWoodcutA nonprofit in suburban Chicago each year encourages its woodworker members “to craft and donate wooden Christmas toys to less fortunate children.” After donating upwards of 700 toys a year in the past, it will have to discontinue the program in future since it can’t afford the third-party testing required under the Consumer Product Safety Improvement Act, sponsored by area members of Congress Bobby Rush and Jan Schakowsky (D-Ill.). “Woodworking hobby magazines have pegged prices for third-party testing as high as $30,000 for 80 items.” Testing is particularly impractical for items made from donated/recycled wood, since each donated wood source needs to be put through separate testing. Another triumph for CPSIA! [Jenette Sturges, Sun-Times/Beacon-News]

PUBLIC DOMAIN IMAGE from John Bate’s 1635 book, The Mysteryes of Nature and Art, Wikimedia Commons.

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CPSIA, uncompliable

by Walter Olson on October 29, 2010

Katherine Mangu-Ward at Reason “Hit and Run” provides two snapshots of the continuing damage being done by the Consumer Product Safety Improvement Act of 2008, including the rage-and-despair reaction of Rick Woldenberg (AmendTheCPSIA.com), who says that the new regulations “will jack up Learning Resources’ annual compliance costs to $15 million, FAR in excess of our profits. We have no Plan B — so we are trying to get a new government.” And a commenter points to the “Criticism” and (very partial) “List of Companies Whose Closure Is Linked To CPSIA” sections of the Wikipedia entry.

Related: “Not available because of the CPSIA“: wood-and-beeswax Selecta Spielzeug Rhonda dollhouse dining room, formerly imported from Germany. Why pay a whopping testing bill to clear an innocuous product that’s at best going to sell modestly on this side of the Atlantic? [EuroToyShop.com]

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The Wall Street Journal had a report Tuesday on newly mobilized sentiment among businesspeople intent on challenging the rapid ongoing expansion of federal governance and regulation. It profiles Rick Woldenberg, well known to readers of this site as a tireless agitator against the insanities of the Consumer Product Safety Improvement Act AnimalsBall1c(CPSIA) of 2008. Woldenberg had been an Obama voter and basically apathetic about politics until the CPSIA debacle unfolded, putting at risk his medium-sized educational products company and many other makers and sellers of basically harmless products for kids. The indifference of the federal establishment to the resulting distress in the business community — and in particular the deaf ear turned by such lawmakers as Rep. Henry Waxman (D-Calif.) and Jan Schakowsky (D-Ill.) — propelled Woldenberg into legislative activism (AmendTheCPSIA.com) and then politics, where he has backed Joel Pollak in an unusually strong challenge to Rep. Schakowsky in her Chicago-area district.

On CPSIA’s tendency to ban rocks used for study in Earth Science classes, see our earlier post. More: ShopFloor.

PUBLIC DOMAIN IMAGE from Elise Bake, Der Ball Der Tiere (“The Animals’ Ball”, German, 1891), courtesy ChildrensLibrary.org.

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The website of the Golden Cockerel import firm includes a rather elaborate warning as to why its matryoshka are not meant for the under-12 set, at least not since the enactment of the calamitous Jan-Schakowsky-backed law:

the law requires each batch of toys be tested by a 3rd party laboratory to be sure they are “toy safe.” Such tests can cost well over $1000 per nesting doll set! And sometimes, as with our museum quality one-of-a-kind dolls, a “batch” consists entirely of one doll, or only a few, making it totally unfeasible to test.

CPSIA: reserving treasured toys for strictly adult use since 2008.

More: The CPSC has just sided with purported consumer groups and against pleas from the business community in adopting a broad definition of what constitute “children’s products” under the disastrous Barbara-Boxer-backed law: for example, ordinary paper clips must go through costly separate CPSIA testing when meant for kids’ use as part of a science kit with magnets and similar items [NY Times, AP/WaPo ("Kids' science kits may take hit from safety ruling"), Commissioners Anne Northup and Nancy Nord]

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An ombudsman? For CPSIA?

by Walter Olson on September 15, 2010

Rick Woldenberg reacts to a peculiarly inutile suggestion, in a Baltimore Sun interview, from CPSC chair Inez Tenenbaum (“We think if we had a small-business ombudsman who was out there regularly educating small businesses, we could help them prevent problems in terms of compliance.”):

…The necessary implication is that we small businesses are just too stupid to understand their complicated rules – I guess she thinks only Mattel can read the English language. Of course, the pending testing frequency rule (which I believe will be implemented in the coming weeks, get ready for it) will cause our company to spend $15 million per annum on testing. This sum far exceeds our profits. Perhaps the ombudsman will help us terminate our people to pay for testing, or provide a shoulder to cry on.

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August 30 roundup

by Walter Olson on August 30, 2010

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August 13 roundup

by Walter Olson on August 13, 2010

  • Lawyer sued for sexual harassment countersues, wins $1.55 million in damages [The Recorder]
  • Court rejects another challenge to tobacco multistate settlement agreement [Sullum, Reason]
  • European human rights claim: “Fury as German doctor seeks injunction against victim’s sons” [Daily Mail]
  • New CPSC rulemakings on CPSIA testing frequency and component testing could sink many small businesses [Woldenberg]
  • Connecticut AG Blumenthal picks fight with life insurers [Hartford Courant, with comments]
  • Undies moral: “Excess litigiousness is part of the whole shebang of dangerizing everything.” [Skenazy, Free-Range Kids]
  • “False-Marking Suits Head for a Showdown” [Robbins, Texas Lawyer]
  • “I think my years in the [adult film] industry will make me a great lawyer.” [Above the Law]

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Lenore Skenazy at Forbes: “How the Consumer Product Safety Commission drives parents — and everyone else — crazy.” Besides the CPSIA rock-poster story of the headline (earlier), the CPSC has scared parents about not-very-terrifying Graco high chairs and Little Tykes workbenches, to say nothing of those McDonald’s Shrek glasses with traces of cadmium.

Related: the Federalist Society presents a podcast on CPSIA with CPSC commissioners Nancy Nord and Robert Adler; rules for making kids’ products recall the IRS code in complexity; the new public database of alleged product-related injuries, a la NHTSA’s, draws critical attention from manufacturers and CPSC commissioner Anne Northup; and the commission tackles the dangers of clacker balls.

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You might be bitter too:

I called the lab, got the quote and did the math. CPSIA-mandated testing costs for my little product line was over $27,000 for just over $30,000 worth of product. I cannot express the horrible feeling I had when I realized that I had made a mistake that was going to cost my family all of our money. …

I blame every one of the Energy and Commerce legislative staffers.

– Jolie Fay, crafter, SkippingHippos.com, guest post, AmendTheCPSIA.com

SeeSawa

PUBLIC DOMAIN IMAGE from Ethel Everett, illustrator, Nursery Rhymes (1900), courtesy ChildrensLibrary.org.

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And testing and testing and testing: “This item has been tested I don’t know how many times. Many times in many forms. Every test was a pass. This latest $4,000 test told us NOTHING we didn’t already know.” [Rick Woldenberg] Plus: “It’s raining paper… again,” and who is CPSC going to get to test the test testing testers?

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The newspaper profiles Randy Hertzler of Lancaster, Pa., whose small family-owned business imports European-made specialty toys and is reeling under the costs of the 2008 enactment. [via CPSC Commissioner Anne Northup]

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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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Reader Chaim Gordon, a Georgetown 2L and former clerk with the Institute for Justice, cc’d us on an excerpted email to call our attention to

… a potential rule by the Consumer Product Safety Commission (CPSC) or legislation by congress (S. 3400, H.R. 5386), see, e.g. (PDF), banning “the sale, manufacture, distribution, and use in public facilities of drop-side cribs.” As a parent, I feel violated (not really, because I own two such cribs already), and as a multiple-drop-side-crib-owner, I feel robbed.

I have been following this story for over a year now, and it seems to me that this rule/legislation is likely to implemented (I think that a rule is more likely than a bill). Originally, I thought that this ban was an effort by the crib manufacturers to reduce potential liability without losing market share by way of voluntary action. I now think that something more sinister is at work here. I now think that the manufacturers want to increase demand for their product by taking a large portion of the used-crib market/family-gift competition out of the picture. (Drop-side cribs used to comprise around 50% of the new crib market, and now, because of CPSC warnings and voluntary measures, that percentage has dropped to around 20%.) This of course comes at the expense of the innocent parents who may have been counting on selling their used cribs or giving their used cribs to family members (and at the expense of parents who will have to pay more for a used/new crib). Personally, I have never heard of a regulation that limited the rights of consumers to resell (or give away) their legitimately purchased, but now considered deficient, product (consider used cars without airbags).

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BadMrsGinger3bA Minnesota seller of imported and specialty playthings closes its doors, and its owner reflects on the ill-conceived Consumer Product Safety Improvement Act. [Allison Kaplan/St. Paul Pioneer-Press, AmendTheCPSIA]

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

Readers of this site will recall that as reports rolled in last year of the calamitous effects of the Consumer Product Safety Improvement Act of 2008, the Congressional leadership, and in particular key lawmaker Henry Waxman (D-Calif.) steadfastly refused to hold hearings or in general acknowledge that the law was causing systematic ill effects of any sort. As resale outlets across the nation swept harmless winter coats from their shelves or stopped dealing in kids’ goods entirely; BadMrsGinger1bas librarians warned that whole collections of pre-1985 books would need to be either put through prohibitively expensive testing or simply discarded; as makers, importers and sellers of perfectly harmless apparel, school supplies, furniture, musical instruments and other children’s items puzzled over ruinously high testing costs and bans on common materials like brass; as smaller, craft-oriented producers began folding, leaving the market to be served by the largest mass-production toymakers and retailers (many of which had supported the legislation); as the kids’ motor vehicle industry, including makers and sellers of dirtbikes and mini-ATVs, found itself transformed overnight into outlaws; even as all this unfolded, Henry Waxman and his counterparts on the Senate side kept the lid clamped down tight on any Capitol Hill airing of such woes. Eventually Waxman held a hearing with exactly one (1) witness, Obama-appointed CPSC chairperson Inez Tenenbaum, who sought to put the best face on the law. (After a false start, a House small business committee lacking actual legislative jurisdiction was also allowed to hold a more varied hearing.)

In recent months, without of course admitting any error whatsoever, representatives of Waxman’s office have been quietly floating amendments intended to correct some of CPSIA’s most blatantly impractical elements. The fixes would be likely to help in some specific areas where opposition has been vocal and influential, BadMrsGinger2bsuch as children’s books and mini-vehicles, while affording much less relief, or none at all, to many others trying to cope with the law. At the same time, Waxman’s staff has been demanding that “business” (conceived as if it were some monolithic group) gratefully sign off on the fix as acceptable and perhaps even accept new provisions that would increase CPSIA burdens. While many affected groups are understandably eager to reach a deal, others, such as persistent critic and businessman-blogger Rick Woldenberg, are reluctant to sign off on obviously partial and inadequate fixes as if were going to solve the wider problems with the law.

The fixer amendment has gone through several iterations; its current draft is here (PDF), named the Consumer Product Safety Enhancement Act of 2010, or CPSEA (more background from the committee, PDF, via ShopFloor). Now, at long last, Waxman has agreed to hold a hearing tomorrow (to be chaired by his colleague Rep. Bobby Rush, D-Ill.). The witness list includes persons from Goodwill Industries, the National Association of Manufacturers, Handmade Toy Alliance, and the Motorcycle Industry Council — all of which groups have apparently agreed to support the legislation — as well as Rick Woldenberg of Learning Resources Inc., who continues as a critic, and Steve Levy of the American Apparel and Footwear Association. Of course the difference now, and the reason some of these groups at long last will get their chance to testify, is that they have agreed to testify at least nominally on Waxman’s and Rush’s side — perhaps in some cases while biting their tongues.

We’ll be reporting more in days to come. In the mean time, this would make a good occasion for news organizations to renew their attention to the public policy disaster that CPSIA has wrought.

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

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Why do CPSIA’s ultra-stringent regulations apply not only to items used by kids small enough to chew on toys or buttons or combs, but also to those intended for much older kids? Because of an “urban myth” developed by consumer groups, Rick Woldenberg explains.

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New at Point of Law

by Walter Olson on April 19, 2010

Things you’re missing if you’re not keeping up with my other site:

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April 8 roundup

by Walter Olson on April 8, 2010

  • “Litigation nightmare” seen in Unvarnished, site that allows Yelp-like review of people’s reputations [L.A. Times, Balasubramani] Arkadelphia, Ark.: “16-year-old boy accuses mother of Facebook slander” [AP]
  • Inadvertent rape? At Duke, “perceived power differentials” might negate consent [Popehat, Joanne Jacobs]
  • New CPSC leadership signals policy of greatly stepped-up fines for CPSIA violators [Northup, Rick Woldenberg/Amend the CPSIA ($2 million Daiso fine) and more]
  • “PI Lawyer Pleads in $2.2M Client Theft, Will Get Between 3 and 9 Years” [ABA Journal, NY Daily News, earlier; Marc Bernstein of Bernstein & Bernstein, NYC]
  • Let’s say landlords who knowingly rent to accused criminals or released convicts can get sued for negligence in case of repeat offense. Then where do we propose that accused criminals and released convicts live? [Volokh]
  • Some theories on lawyer unpopularity [DeVoy, Legal Satyricon]
  • Privacy class action over ill-advised Facebook “Beacon” venture settles for… for what, exactly? [Popehat]
  • Wisconsin D.A. to teachers: if you obey state’s new sex-ed law, I’ll prosecute you [Radley Balko, Reason "Hit and Run"] More: Volokh.

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