Impending law poses strict requirements on children's product makers, large and small

Fri, Oct 23, 2009    to del.icio.us

Within two years, Grand Haven Township resident Courtney Ransford's hair bow-making hobby has evolved into a subtle, yet profitable at-home business.

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But a new law could pose a dire future for the stay-at-home mother's Preppy Blueberry Bowtique and other handmade children's product manufacturers.

In a despairing economy where Michigan's unemployment rate often tops the nation, profits from Ransford's hair bows — which she sells online and locally at a downtown Grand Haven children's clothing store — have become an important supplement to the income for her family of four, with a baby on the way.

"It still enables me to stay at home with my kids and provide some grocery money," Ransford said in her basement office filled with ribbon and hair clips. "Obviously, it doesn't account for a majority of our income, but it does help. Every little bit helps."

The Consumer Product Safety Improvement Act (CPSIA) of 2008 sets testing and labeling statutes pertaining to products of nearly every kind that are intended for children age 12 and younger — even handmade items. One part of the CPSIA law, which took effect Aug. 14, requires each children's product — domestic or imported — to be marked with a tracking label. The label must include the location and date of production and cohort information, according to the CPSC Web Site.

"A label stating only the date of distribution, a product date and trademark information would not satisfy the requirements," the Web site states.

But that portion of the act is not what concerns many small business owners and at-home crafters, such as Ransford. What has many manufacturers concerned and confused is the pending CPSIA requirement for third-party lead content and phthalate testing on most children's products, including those handmade.

Phthalates are a group of oily colorless liquid chemicals that are used to make vinyl and other plastics soft and flexible, according to the U.S. Consumer Product Safety Commission.

It is currently mandatory to test lead in paint, according to CPSC spokeswoman Patty Davis.

"I think a lot of people are going to be hurt by this," Ransford said, explaining that it would cost an estimated $175 per hair bow for third-party testing. "If it keeps going and (the law) takes effect, then I will have to stop. I can't afford to test every single piece of ribbon. It's not worth it."

Certain materials — such as unpainted wood, dyed or undyed yarn, certain textiles, precious gems and specific metals — would be exempt from the third-party testing. The federal act also does not impact second-hand, thrift or consignment stores.

The CPSC has issued a stay of enforcement on the lead content and phthalate testing, which expires Feb. 10, 2010. At that time, the commission will then vote on whether or not to terminate the stay. If it is terminated, then the new testing requirements would be enacted, Davis said.

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Spreading CPSIA awareness

The CPSIA comes on the heels of the 2007 wave of toy recalls, effecting more than 20 million toys mainly made in China.

Since the widespread toy recall, Mattel Inc. officials have said they would commit to stringent child product safety tests, and announced earlier this month they would settle "virtually all" U.S. claims — totally more than $50 million — related to the 2007 recalls, according to an Oct. 15 Associated Press story.

"This law is intended to make products safer for children because there are too many incidents where children have ingested too much lead," said Kathleen Reilly, public affairs specialist for the U.S. Consumer Product Safety Commission. "There are many, many products that contain lead. So this takes a look at preventing that."

With the product safety act, the commission plans to significantly reduce the total lead content in products from 600 parts per million to 100 ppm by August 2011. Products now must not contain more than 300 ppm, according to the act.

"We're not trying to put people out of business," Reilly said. "But there has to be safer standards for children's products."

Right now, spreading awareness and understanding the complexity of the law seems to be the largest obstacle for fellow crafters and small business owners.

"A lot of people don't realize it applies to them," said Rachel Zylstra, co-owner of Hopscotch, a Grand Rapids children's store that sells primarily handmade items. "I agree with parts of the law. There definitely needs to be more awareness of lead and phthalates in children's products. But the way this law is written and implemented was not thought out at all, and is detrimental to the U.S. economy and local economy."

Crafters heavily debate the issue and vent their frustrations online through various blogs and forums.

Courtney Ransford is encouraging friends to write to state lawmakers regarding the impending law. After learning of the CPSIA requirements, she began creating non-children products, such as crocheted wine bags.

"I just really want people to be aware that this is going to affect everybody," Ransford said. "I mean, grandmothers can't knit little baby sweaters for their grandchildren and great-grandchildren — if they have a button or something that hasn't been tested."

People can join the CPSC's recall subscription list available from the commission's Web site to receive regular e-mails whenever a product is recalled. The commission has also published a guide to the act for small businesses, resellers, crafters and charities — which is also available on its Web site.

"We're not out to get anyone," Reilly said. "We're just following the law to make sure people at home who make children's products make safe products. How do you know whether or not it's safe if it's never been tested?"

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Changes ahead

About 10 percent of the inventory at Aberdeen's Clothing for Children in downtown Grand Haven consists of handmade products from four West Michigan residents.

"Everything is being tested for lead," said the store's owner, Megan Needham. "All of them — the little companies — are required to be tested. I'll just have to be careful about what I carry. ... People like homemade stuff and locally made things."

According to Needham, any non-handmade items sold at the Grand Haven store are tested for lead content and child safety prior to reaching the store's shelves.

Jennifer Brandstatter, a Grand Rapids mother of two girls who makes dress-up tutus and sells them at Aberdeen's and at Hopscotch and online, said she has already begun testing her products for lead content and phthalates.

"Right now, the only thing slowing me down is the tracking and putting a label on it," she said. "It's a hassle, but I have to remember it's for children and I don't want anyone to get hurt. ... It's time and money, and it's going to take away from my business."

By itself, the tutu material — tulle — would be exempt from the proposed law. But when Brandstatter adorns them with flowers and crystals, the tutus would then be subject to lead content and phthalate testing. Already, Brandstatter has discontinued using Swarovski crystals in the tutus because they contain lead.

In August 2008, Hopscotch sold a variety of children's products handcrafted from about 100 manufacturers, according to store co-owner Rachel Zylstra. Since news spread of the impending third-party testing law, about five one-person children's product manufacturers have halted sales at Hopscotch because they are not financially prepared to dive into that investment.

"We definitely have been effected by this law," Zylstra said.

Other crafters at Hopscotch are tweaking their products — by using only materials from the law's exempt list — to avoid the testing, Zylstra said. One such crafter has swapped out button eyes on a knitted doll for felt. Others have completely discontinued selling their products at the store.

"Instead of using a variety of ribbons for hair bows, maybe they'll use only two or three ribbons," Zylstra said. "It's less variety."

CPSC officials say they are looking at the issues raised from homemade crafters; but for now, they too have to follow the letter of the law.

"Crafters, like any other manufacturer, need to make sure they are complying with the law," CPSC spokeswoman Patty Davis said.

On the Net:

www.cpsc.gov

www.handmadetoyalliance.org

www.etsy.com