Tuesday, January 6, 2009

CPAIA and it's impact on consignment!

There is a new law going into effect on Feb. 10th that could have a huge economic impact on everyone! First, let me say that I am all for raising the safety standards, we all want to keep our children safe! There is nothing more important than to make sure our kids come into contact with safe items!

CPSIA is a law that was passed in August 2008. It is intended to guard against elevated lead levels in children's toys.Triggered by the huge Mattel Toy Recall last year. It appears the law was very hastily put together and rushed through Congress with little thought as to how this law could un-intentionally affect other industries, consignment and the resale industry in particular.

Essentially, this law makes any children’s product that has not been specifically tested for lead levels a "Federally Hazardous Substance" and makes it illegal to sell. The way this law is written, it will also apply "retroactively", which means that after Feb. 10, 2009, selling of any children’s product that has not been specifically tested for lead will be a crime. This affects our seasonal consignment events, consignment stores, thrift stores, goodwill stores, church yard sales, individual yard sales, even private individual transactions. This also affects Wal-Mart, Target, and any store that has inventory catering to children under 12 on their shelves prior to Feb. 10, 2009. Essentially, all items will have to be thrown away because they do not have a certificate of compliance. Those hand me down jeans are now “a federally hazardous substance”. You could send them to a third party testing facility at the cost of around $500.00 to have them tested if you want to resell them.

Can you imagine the impact this will have on our landfills? The landfills will become full of children’s items and according to this law, “federally hazardous substances”. More over, most people are unaware of this new law and the implications of it.

Here is an article that addresses the issue and law: http://www.tampabays10.com/news/mostpop/story.aspx?storyid=96284&provider=top

It will put thousands of small business children’s product manufacturers and many in Rock Hill out of business - hurting our economy further and causing even more loan defaults! Each item for sale will have to go to a third party testing facility at the cost of $500 to thousands of dollars.

I am sure this was not the intention of the law, so immediate action must be made to amend this law. Though this legislation was well-intentioned, it cannot be allowed to stand as written.

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