As Seen in Today's Issue of The Hill

Fix the CPSIA!

Fix the CPSIA: ‘Unintended Consequences’ Cost Thousands of Small Business Jobs

The Consumer Product Safety Improvement Act (CPSIA) passed by Congress in 2008 was intended to make products safer, but after three years it has also effectively ended the American Dream for many small businesses and needlessly raised consumer prices. Both Democrats and Republicans agree that the law's "unintended consequences" must be urgently fixed.

The safety of our products is our top priority. Our member companies want to focus on improving safety instead of generating paperwork. We want to invest in our products and employees instead of spending millions of dollars for unnecessary and redundant testing. The CPSIA has jeopardized the availability of and, in some cases, banned safe products such as books, bicycles, musical instruments, rhinestones, youth model ATVs and motorcycles, and clothing with zippers.

HR 1939 maintains the CPSIA's important safety provisions but adopts some modest, common sense reforms. HR 1939 amends the CPSIA to ease regulatory burdens where appropriate, eliminate duplication and needless paperwork, and improve the accuracy of information in the CPSC’s public database. With unrealistic deadlines and new regulatory burdens fast approaching, the time is now to fix the CPSIA.

It’s Time to Put Politics Aside. Support HR 1939 and Save U.S. Jobs

A message from the National Association of Manufacturers, with thanks to:

Alliance for Children’s Product Safety
American Apparel & Footwear Association
American Pyrotechnics Association
The Art and Creative Materials Institute
Association of Home Appliance Manufacturers
Bicycle Product Suppliers Association
Craft and Hobby Association
Fashion Jewelry and Accessories Trade Association
Handmade Toy Alliance
HandsOn Science Partnership
International Sleep Products Association
Juvenile Products Manufacturers Association
Motorcycle Industry Council
National Retail Federation
National School Supply & Equipment Association
Promotional Products Association
International Retail Industry Leaders Association
Specialty Vehicle Institute of America

Press Release: HTA Urges CPSC to Stay Enforcement of ASTM Testing for Small Batch Manufacturers

Stamford, CT – July 5, 2011 – In a letter dated July 3, 2011, the Handmade Toy Alliance (HTA) addressed the Consumer Product Safety Commission’s (CPSC) recent staff briefing package on the “notice of requirements” for laboratories to become accepted to test for ASTM F963 as presented to the Commission and public. Primarily geared towards testing laboratories, this notice also signals to stakeholders such as the HTA that once approved and published in the Federal Register, all children’s products falling under toy guidelines manufactured 90 days after publish date will need to be tested and certified by a CPSC accepted laboratory.

“To begin requiring third party testing to the ASTM F-963 standard will dramatically and permanently harm small batch toymakers,” shares Dan Marshall, HTA President and owner of Peapods Natural Toys (MN). “We are therefore petitioning the Commission to delay the publication of lab certification standards for ASTM F-963 or to stay indefinitely the enforcement of the ASTM F-963 third party testing requirement for small batch manufacturers.”

Currently, Congress is considering substantive changes to the Consumer Product Safety Improvement Act (CPSIA) which would significantly reduce the compliance costs for small batch manufacturers. “We have received clear indications from the leadership of both the Democratic and Republican parties of their intention to modify the CPSIA in order to reduce its unintended consequences for small batch manufacturers,” states Randall Hertzler, HTA Vice President and owner of euroSource (PA). “While this legislation is pending and progressing, it is simply unnecessary to employ a ruling that will imperil thousands of small business.”

“The vast majority of HTA members are extremely small businesses, consisting of no employees, very small revenues and a limited number of products produced in short quantities,” explains Jill Chuckas, HTA Board member and owner of Crafty Baby (CT). “Yet, the CPSIA treats these micro businesses exactly the same as large, multi-national corporations. A typical HTA manufacturer making only a few thousand units of a toy per year simply cannot afford to absorb fixed testing costs (often at $500 to $3500 per toy created).”

The HTA also states concerns regarding the timing of this proposed rule making, which, by estimates, will bring ASTM F-963 into effect in mid-October, directly in the middle of holiday production runs. “Large companies who mass produce product for holiday sales complete their production runs at least 6 months prior to sale,” shares Mary Newell, HTA Treasurer and owner of Terrapin Toys (OR). “Imposing third party testing requirements in mid-October will have a much more negative impact of small batch toymakers like those in our membership who generally are crafting and creating product right up until the actual holidays.”

“For almost 3 years now, our membership has been working tirelessly together in order to better understand and manage the CPSIA. The basic language within the law is extremely difficult at best for our membership to comprehend, particularly without the assistance of attorneys and technical support staff,” states Marshall. “We have urged the Commission to author a simplified guide to the ASTM F-963 standards for small businesses, to no avail. Without such clear guidance, small batch manufacturers cannot negotiate fairly or openly with the third party labs they would be required to employ.”

The HTA consists of 653 member businesses, including retail stores, toymakers and children's product manufacturers from across the country who want to preserve consumer access to unique handmade toys, clothes and all manner of small batch children's goods in the USA. Formed in November of 2008 in response to the CPSIA, HTA members are parents, grandparents and consumers who are passionate about their businesses as well as the safety of the children in their lives. While in support of the spirit of the law, the unintended consequences of the CPSIA have motivated members of the HTA to work to enact change at a federal level. For more information, visit www.handmadetoyalliance.org.

Image from Wee Wonderfuls.

HTA Letter to CPSC on Upcoming ASTM Toy Safety Testing Requirements

July 3, 2011

Office of the Secretary
Consumer Product Safety Commission
Room 502
4330 East-West Highway,
Bethesda, Maryland, 20814


RE: Commencement of ASTM F-963 Toy Safety Testing Requirements and Petition for a Stay of Enforcement

Dear Honorable Commissioners:

We are alarmed to learn that the Commission is proceeding this month with rulemaking to begin certifying third party labs to test for the ASTM F-963 Toy Safety Standard. Unless the Commission's course is altered, the result of this process will be the initiation of third party testing requirements for all toys made after mid-October of this year as mandated by the Consumer Product Safety Improvement Act (CPSIA).

To begin requiring third party testing to the ASTM F-963 standard will dramatically and permanently harm small batch toymakers. We are therefore petitioning the Commission to delay the publication of lab certification standards for ASTM F-963 or to stay indefinitely the enforcement of the ASTM F-963 third party testing requirement for small batch manufacturers.

We request this action for four reasons.

First, our members simply cannot afford to pay for third party testing of toys they produce in small batches. ASTM F-963 testing fees range from $500 to $3,500 or more per toy. A manufacturer making only a few thousand units of a toy per year simply cannot afford to absorb this fixed cost, which is borne easily by larger corporations.

Second, the timing of the CPSC's proposed actions is markedly unfair to small batch manufacturers. Many, if not all, small batch toymakers continue to make their toys for the holiday season right up until the third week of December. Large-scale manufacturers, however, almost always complete their holiday production runs by early summer. Imposing third party testing requirements in mid-October will therefore have a much more negative impact on small batch toymakers.

Third, the language of the ASTM F-963 standard itself is extremely difficult for a typical small batch toymaker to comprehend. It is intended solely for the use of product safety engineers. The result of this complexity is that our members are much more at the mercy of third party labs and must rely entirely on these labs to determine which standards apply to a given product. Labs can therefore require and bill for redundant or unnecessary tests under the standard that they could not impose on larger companies which employ a dedicated compliance staff. We have urged the Commission to author a simplified guide to the ASTM F-963 standards for small businesses, but to no avail. Without such a document, small batch manufacturers cannot negotiate fairly or openly with the third party labs they would be required to employ.

Fourth, as the Commission is well aware, Congress is actively considering substantive changes to the CPSIA which would significantly reduce the compliance costs for small batch manufacturers. Leadership of both the Democratic and Republican parties have expressed their intentions to modify the CPSIA in order to reduce its unintended consequences for small batch toymakers. While this legislation is pending and progressing it makes little sense to unnecessarily imperil thousands of small businesses.

For these reasons, we urge the Commission to delay the third party testing requirement for the ASTM F-963 standard or stay its enforcement for toys made in batches of fewer than 10,000 units per year.

On behalf of our 653 member small businesses, we appreciate your willingness to consider our concerns. We hope to preserve the long American tradition of hand-crafted children's goods while ensuring safety for the children who enjoy them.

Respectfully,

The Handmade Toy Alliance

Image from mypapercrane.com.