See if you can identify either of these two tiny companies, both of whom make children's products:

Three friends launch their company out of a garage in Southern California. Their first products are picture frames, but they developed a side business in dollhouse furniture made from picture frame scraps...

And

Three partners in New York make toys out of heavy steel parts and ponderosa pine, which resists splintering and held up well to heavy use. The details and charm are added with colorful labels based on characters from one of the partner's children's books. They took 16 of their wooden toys to the American International Toy Fair in New York City and they quickly become a success...

Wait--don't bother searching through our list of over 300 business members, even though these descriptions might describe many of our member businesses who make their children's products in their garages or basement.

Actually, the first paragraph describes Mattel when it began in 1945.

The second paragraph describes the early years of Fisher-Price (now wholly owned by Mattel) in the 1930s.

What would have happened to Mattel or Fisher-Price if the CPSIA had been in effect during their early years? Certainly the early Mattel might have redoubled their focus on unregulated picture frames rather than invest in testing their tiny batches of dollhouse furniture. And Fisher-Price would likely have reconsidered their business plans if they knew that every buyer at Toy Fair would need to see their certificate of compliance.

This is one of the most compelling reasons to nurture and support American small businesses. We are the future of the American economy. Small businesses bring innovation and an opportunity for growth that big business can't match. And, although Mattel and Fisher Price lost their moral compass in the many decades since their humble beginnings, their failures had been providing opportunities for small manufacturers as parents sought out toys made with integrity.  But the CPSIA took all that away and left Mattel smelling like roses. 

If anything, Congress needs to learn the lesson that harming small business without cause is like throwing away the future.

When questioned directly by Ranking House Member Radonovich (CA) and Chairman Emeritus Dingell (MI) if the CPSC needed flexibility in the CPSIA to grant exemptions and fully implement the law before them, Chair Tenenbaum repeatedly stated that it was premature for her to answer the question. Later, when Rep. Dingell further pressed the issue asking if she would support targeted amendments to the CPSIA, Chair Tenenbaum again stated that it was premature to fully answer, but once her staff finished “untangling the knots”, that a legislative response may be needed. Throughout her testimony, Chair Tenenbaum reinforced her commitment to work diligently to educate consumers, implement the legislation before her and be transparent in the process.

One issue that Chair Tenenbaum began to touch upon was component based testing – an area on which the HTA has long awaited a ruling. “We heard it clearly stated by Chair Tenenbaum that a ruling relating to component based certification will be forthcoming, but no time line as to when that will be and exactly what it will encompass,” Chuckas stated. “We recognize that she has only been in office for just over 2 months and has made tremendous progress in a short period of time, but our member businesses are closing now and this ruling could keep them open. It is extremely frustrating that this process takes so much time when it appears, at least from our standpoint, to be a fairly straightforward request.”

Following the hearing, Chuckas and Glynn visited with their members of Congress – the offices of Sen. Kerry (MA), Sen. Dodd (CT) and Rep. Himes (CT). Chuckas and Glynn had met with staffers from these offices after the April 1st rally and had kept in consistent communication with these Congressional members. At this meeting, the HTA team sought additional support and outreach to request further hearings and open dialogue with both Congress and the CPSC, hoping to enact common sense changes within the fabric of the CPSIA. “It was encouraging to hear that my Congressmen are willing and able to openly discuss the concerns of the HTA membership as a whole,” Glynn commented. “Although I recognize that our journey is not yet over, I feel some amount of hope that our voices are being heard.”

The Handmade Toy Alliance is a grassroots alliance of 382 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.

September 10, 2009

My name is Jill Chuckas and I own a small hand crafted children’s accessories business called Crafty Baby (www.craftybaby.com). In December, when I learned that the CPSIA would indeed affect my business, I joined and quickly took on a leadership role within the Handmade Toy Alliance. Currently, I am on the executive board and hold the position of Secretary. Our grass roots alliance of almost 400 businesses, represent children’s product artisans, small batch manufacturers and retailers of children’s products throughout the country. Today, I am here to share not only my story, but the stories of all the members of the Handmade Toy Alliance.

As a hand crafted artist, I am involved in every aspect of my business – from production to sales, advertising and marketing to accounts receivable. When the toy recalls began, my business increased. People were seeking out hand crafted and made in the USA products in droves. When Congress first spoke of this “toy safety” legislation, I applauded their efforts along with the rest of the country. In December of 2008, though, I read the fine print. I, along with many others, quickly realized that this law, meant to regulate the companies that had betrayed the countries trust, would effectively put me out of business in less than a year. Not because my products are unsafe, but because I simply can not afford the cost prohibitive, redundant testing protocol that this law stipulates.

The biggest obstacle to compliance for our membership is the third party testing protocol. The companies represented by the Handmade Toy Alliance are very small – many have only one or two employees, if that. Many are operated out of homes and are a supplement to the family income. All are run out of a love for children, and a desire to share products that are an alternative to the mass produced items that invade our society. Some strive to become larger – possibly employing 5-10 people – but most like being small and having personal relationships with their customers. Jill Courtright of Auntie Jill’s Shop (VT), recently shared with me the joy she was having in working with a four year old to design a stuffed animal just for him. Under the CPSIA, she would not be able to do this work because the cost of third party testing this one stuffed animal would be 10 times as much as what she would sell it for (as well as being a destructive test). At sixty five, Linda Moore Kurth, owner of Whimsmoore, LLC (WA), had finally realized her twenty five year long dream of having a children’s toy, gift and book site that invites children’s imaginations out to play. Although she had her product line tested using XRF scan technology and is confident that her products are safe for children and meet the standards of the CPSIA, this is not sufficient for her to prove compliance. She is wrestling with the reality, like so many of us within the Handmade Toy Alliance, that she may have to close the doors to her business.

A major issue within the CPSIA, as we see it, is the lack of flexibility within the law to employ risk assessment and alternative forms of testing to prove compliance. Our members agree with the original intent of the law – to provide our nation’s children with safe products. In doing so, compliance needs to be geared at products as a whole – looking at the parts used to put together a product. The reality is that many of our members use raw materials from the same supplier, whether it be fabric, wood, ASTM certified non toxic paint, finished Onesies, snaps, zippers or so on (and have compliance certificates from those suppliers), to make their finished products. Good sense would dictate that if these items were tested prior to being sourced to our members, than why should the materials be tested again? At the very most, using a technology already employed by the CPSC, such as an XRF hand held scanner, would seem highly appropriate. Yet, the CPSIA does not allow for this common sense approach to proving compliance.

Another obstacle for many of our members – particularly retail store owners and importers – is the lack of harmonization with European Union standards. The European Union has long had stronger safety standards than the US and toys entering our market stream have certification of passing these standards. Yet the CPSIA does not allow for this testing to be accepted as proof of compliance. For that reason, many beautifully hand crafted toys and products from Europe have been pulled from the US market. These products are completely compliant with the levels set forth within the CPSIA, but because the testing protocol in the EU tests for soluble lead (or ingestible lead) rather than total lead content, the testing is deemed invalid. Science has shown us that soluble lead is of greater concern than total lead content, but the CPSIA does not lend itself to this implementation of risk assessment. Handmade Toy Alliance member Jonathan Green of Jonathan Green & Co. (NJ) who specialize in German products shared with me, that now, many store owners, including his, will no longer be able to supply customers with products from their native Northern European countries that express and maintain their ethnic heritage.

All of our members have expressed frustration in the lack of flexibility and use of risk assessment within the law itself. We recognize that in the last few months, a number of rulings have been issued by the CPSC that have brought some relief to our members. We also recognize that more rulings are soon to be issued that may bring additional relief. Although we are happy to see common sense implementation of the CPSIA by the CPSC, we continue to feel strongly that change needs to come directly from the law itself. As we have seen on numerous other occasions, rulings by regulatory agencies can be overturned. The very fabric of the law allows for litigation, and little “wiggle” room in interpretation. The Handmade Toy Alliance has put forth documents we call “Seeds of Change” that highlights our suggestions for common sense changes within the CPSIA. We urge the committee to consider these suggestions in a technical amendment to the CPSIA.

Thank you for the committee’s willingness to open the CPSIA up for discussion in the House of Representatives.

Best Regards,

Jill Chuckas
Owner, Designer
Secretary, Handmade Toy Alliance
www.craftybaby.com
www.handmadetoyalliance.org

House Energy and Commerce Committee
2322A Rayburn House Office Building
Washington, DC 20515

Re: Format of the House Subcommittee on Commerce, Trade, and Consumer Protection Hearing, “Consumer Product Safety Commission Oversight: Current Issues and a Vision for the Future”, scheduled for Thursday, September 10

Dear Chairmen and Ranking Members:

We are writing in regard to the subcommittee hearing set for September 10, 2009, the first Commerce Committee hearing on consumer product safety since the CPSIA was passed over a year ago. We are very disappointed to learn that the committee will not be taking this opportunity to hear from any small businesses affected by the CPSIA. Indeed, we have learned that CPSC Chair Tenenbaum will be the only person invited to testify.

While we have full faith in the abilities of Ms. Tenenbaum and believe she is working to apply common sense interpretations to the CPSIA, we do not believe that the she can represent the full scope of the CPSIA's impact on responsible American small businesses. Nor do we believe that the unintended consequences of the CPSIA can be solved through the CPSC's rulemaking. A technical correction is required, and we would like the opportunity to tell your committee why.

Our businesses have been burdened by a law designed to fix a problem created by irresponsible multi-national corporations such as Mattel. The small manufacturers, crafters, and retailers represented by our alliance have impeccable safety records, yet we are burdened by excessive compliance costs while Mattel has once again been trusted to police itself.

Now is the time for Congress to hear the voices of small businesses. Now is the time to show that laws can be written for the common good, not just for the interests of large, well-connected corporations such as Mattel. Now is the time to invite small businesses, including a representative of our alliance, to speak truth to Congress about how the CPSIA is devastating our businesses and our livelihoods.

As parents, consumers and small business owners, we all believe that children’s products should be free of toxins and safe for our children. We are in business due to our sincere desire to put forth quality products. Unfortunately, the CPSIA has made this endeavor much more difficult than it should be.

Please, help us fix the CPSIA. Help us continue to provide unique clothes and playthings for America's children. Please, invite us to testify.

Respectfully,

The Handmade Toy Alliance

Contact information and a listing of all 382 business members of the Handmade Toy Alliance is available at http://www.handmadetoyalliance.org/members-of-the-handmade-toy-alliance

savehandmadetoys@gmail.com

www.handmadetoyalliance.org.

Board members:

St. Paul, MN – September 1, 2009 – The Consumer Product Safety Commission (CPSC) continues to issue important guidance on several key areas of the Consumer Product Safety Improvement Act (CPSIA), which was passed by Congress in August 2008 and requires all children's products to be tested for safety by third party laboratories. Except, it turns out, for toys made by Mattel, the world's largest toymaker, who has recalled 12.7 million toys for safety hazards or lead paint since 2007.

The CPSC granted Mattel permission to operate "firewalled" in-house testing facilities instead of paying third party laboratories for performing required toy safety testing. Although such in-house testing facilities are allowed under the CPSIA (due to Mattel's heavy lobbying in 2008), only very large manufacturers can meet the requirements set forth in the law. Smaller manufacturers, including the members of the Handmade Toy Alliance (HTA), must pay third party labs for testing services ranging from several hundred to several thousand dollars per item.

“We are concerned that this is just another example of the fox guarding the hen house,” wrote Consumer Reports. Members of the Handmade Toy Alliance couldn't agree more. “Mattel is one of just a few companies that caused all the panic over toy recalls back in 2007,” said Dan Marshall, Vice President of the HTA and co-owner of Peapods Natural Toys (MN). “While the provisions of the CPSIA are causing hardship for hundreds of smaller companies with impeccable safety records, Mattel has been allowed to bring their testing back in house with only a promise that they will not have continued lapses in product safety.”

“This really makes me crazy,” said Jill Chuckas, Secretary of the HTA and owner of Crafty Baby (CT). “This law is nearly impossible for small businesses like mine, but Mattel gets let off the hook. How is that fair?” Mattel's stock has risen 33% in the first six months since major provisions of the CPSIA came into effect on February 10, 2009.

The Handmade Toy Alliance again calls to Congress to amend the CPSIA to make it fairer for small businesses by allowing the CPSC to apply risk analysis to mediate the costs of compliance without sacrificing safety. Small businesses should not be punished for Mattel's mistakes.

Although the CPSC has recently defined a list of materials that are not expected to be contaminated by lead, many materials still require testing. “It's fine to exempt wood, fabric, and paper from testing,” said Cecilia Leibovitz, President of the HTA and owner of Craftsbury Kids (VT). “But as soon as you attach a nail, zipper, button, hinge, or a coat of paint, we're back to having to pay for testing. Most of our members are still very much struggling with this law.”

The Handmade Toy Alliance is a grassroots alliance of 382 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.