Big Government Kills Entrepreneurs

Have you heard about the CPSIA (Consumer Product Safety Improvement Act)? No? Do you have kids or know someone who does? Then read on...

The government, in a knee-jerk reaction to the recent headline-making lead contamination problems, passed a new law requiring extensive testing of children's products. All products intended for children 12 and under now need to have all their components tested for lead contamination. Sounds good, right? On the surface, it is. But let's read the fine print...

The law requires testing of every component of every unique product design or style. Let's say that three different children's products use the same button -- maybe in a coordinated collection of a shirt, sweater, and bag. Rather than testing the button once, it has to be tested three times -- once for each product it's used in. Can you say "Wasteful"? I knew you could!

The law is very unclear whether different fabrics constitute different products, or whether fabrics need to be tested at all. So far lawmakers have refused to clarify the law. Which means that, to make sure they're in compliance, manufacturers need to test each fabric -- and that same button -- again! Never mind the fact that it's scientifically impossible for fabric to retain enough lead from the dying process to fail the test in the first place. "Shortsighted" is an understatement.

The law makes no provisions for small businesses, handcrafters, or manufacturers of custom products. Big box manufacturers can spread the cost of testing over multiple units, but smaller manufacturers will have to pass the cost on to the consumer, raising the per-unit price far beyond market tolerances. Say "Goodbye" to thousands and thousands of small businesses and entrepreneurships, and "Hello" to an unemployment line the likes of which few alive today have ever seen. And, for those of you still making money in this economy, say "Goodbye" to your favorite kids' boutique.

The law includes "previously owned" items up for resale. Anyone who has spent any time around kids knows how quickly they outgrow clothes and toys. There's a huge market for used children's items in resale shops. It saves parents money. It keeps kids' stuff out of landfills. It keeps thrift stores afloat. Say "Goodbye" to all those benefits and "Hello" to a new local dump.

Washington was very short-sighted in passing this law. They succumbed to the cries of parents demanding that our children be protected from contaminated imports and blindly wrote a law that is complete overkill and will only contribute to the downward-spiral of our economy. Every industry impacted by this law has submitted questions, but so far Washington refuses to answer. Many have recommended modifications to the law that will retain the spirit of the law but allow responsible small business owners to stay in business, but the suggestions appear to be falling on deaf ears.

This section of the law goes into effect on January 30. There is no time to lose. Small business owners are already closing their doors assuming Washington will let us down, and they're probably right. From what I can tell, they're more interested in deciding what they'll wear to the inauguration. Well, if your children are going with you to that historic event, I hope you don't plan to resell their clothes.