Endorsement of the NAM Plan

On December 18, 2008, The National Association of Manufacturers (NAM) submitted an exhaustively inclusive 15 page document (pdf) in response to the CPSC’s request for comments. It is the position of this site to heartily endorse this plan. Furthermore, NAM is commended for their proactive action in this matter.

Other entities supporting the plan:

  • American Apparel & Footwear Association
  • Association of American Publishers
  • Book Manufacturers Institute, Inc.
  • Fashion Jewelry Trade Association
  • Juvenile Product Manufacturers Association
  • National Association of Manufacturers
  • National Association of Printing Ink Manufacturers
  • National Retail Federation
  • Retail Industry Leaders Association
  • Printing Industries of America
  • Specialty Graphic Imaging Association
  • Toy Industry Association
  • Fashion-Incubator.com

Feel free to comment if you’re not represented by one of these groups. For the greatest impact, consider printing the plan and mailing it to the address included in the header. Be sure to include your contact information with your statement that you support it.

Urgent: Please collect lab price quotes

Thanks to your efforts, we’ve gained the ear of key legislators and media. However, as no law maker wants to be known as “the legislator who wants to put lead back in toys,” we need documentation. Now. If you’ve gotten any price quotes, please send those as they are desperately needed. If you prefer, you can upload them at CPSIA Central.

One senator — a sponsor of the Consumer Product Safety Improvement Act — who understands manufacturing, has also requested testing time estimates. He wants to know how long will it take for lab results to be returned to you. In other words, he understands that waiting on testing for several weeks can amount to unanticipated losses, particularly if delivery deadlines are missed due to a lengthened production schedule.

If you have requested a price quote and have not received one, please send a statement that includes the date of your submission, to whom it was sent, a description of the product, a description of the testing requested (if known) and your contact information. Rob Wilson — who’s been waiting five business days for a price quote — mentions Bureau Veritas won’t even give estimates. This and related information is likewise useful as it demonstrates one is compelled to commit to testing without knowing the costs.

CPSIA vs Science Round 3; Congress wins by a KO!

The easy winner in round three of Congress versus science, Congress wins by a knock out! Yeah Congress! Boo Science!

To: judith.bailey@mail.house.gov, Christian.Fjeld@mail.house.gov, brian.mccullough@mail.house.gov, shannon.weinberg@mail.house.gov, william.carty@mail.house.gov, nnord@cpsc.gov, jmartyak@cpsc.gov, MToro@cpsc.gov, tmoore@cpsc.gov, Cathy.hurwit@mail.house.gov

Judy and Christian,

I thought you would be interested to know that I was informed today that one of the leading U.S. suppliers of science educational materials has suspended sales of all light bulbs (principally microscope light bulbs) owing to the little dot of solder found on the bottom. Apparently this little dot of solder makes those bulbs just too dangerous to sell into schools, despite the fact that no microscope bulb has ever harmed anyone from exposure to its little dot of solder. To my knowledge, there is no available substitute on the market for this ten cent item. This is EXACTLY what I predicted in my CPSC presentation on November 6. As my email from Friday indicated, it is no longer economic to sell telescopes either. Can someone explain to me what Congress had in mind with this law? Has Congress decided to delegate scientific pursuits to the Germans, Japanese or Chinese so Americans can be “safer”? Or is Congress hoping we will all move back into caves to adopt a “safer” lifestyle?

I still have kids in school. Your law makes illegal or uneconomic those implements they need for an adequate education. I can’t escape the reach of the CPSIA by sending my children to private school – the ridiculous strictures of the CPSIA follows them everywhere in this country. Will I have to send them to boarding school in another country so they can look through a microscope or a telescope? What’s Congress’ master plan?

Richard Woldenberg
Chairman
Learning Resources, Inc.

Astronomy is boring anyway, who needs it?

Now we can thank Congress for eliminating the drudgery of astronomy curriculum. Yeah! No More Telescopes!

To: Judith.bailey@mail.house.gov, Christian.fjeld@mail.house.gov
Cc: nnord@cpsc.gov, jmartyak@cpsc.gov, tmoore@cpsc.gov, jmullan@cpsc.gov, Brian_hendricks@hutchison.senate.gov, david@commerce.senate.gov, Shannon.weinberg@mail.house.gov, Brian.mccullough@mail.house.gov, Cathy.hurwit@mail.house.gov, “Larry Lynn” <LLynn>, MToro@cpsc.gov, william.carty@mail.house.gov, patrick.magnuson@mail.house.gov

Subject: No More Telescopes – Congress Wants You To Squint Instead

I am writing to follow up on the below email on the cost of testing under the CPSIA. The attached document is a quote we received to test ONE telescope product under the CPSIA. The cost of the testing is a mere $24,050 for this single item. The average annual sales of this item are approximately $32,000 over the past two years. Needless to say, we cannot afford to spend $24,050 to test this (or any) item. I presume that Congress intended this result and wants us to stop selling telescopes to keep everyone safe. I guess kids can see the planets by squinting from now on. Thanks, Congress!

This absurd result is increasingly common under the destructive and poorly-conceived CPSIA. It is not surprising to me that a law born out of anger and written in a spirit of retribution has created market chaos and many unintended consequences. In my prior correspondence, I have set out many dangerous and unacceptable effects that are wreaking havoc among law-abiding companies. Good corporate citizenship is no help when facing a law which markets itself as “pro-safety” but cripples companies with unbearable financial burdens and pointlessly complex compliance requirements that redirect safety investments into bureaucracy. The CPSIA is simply an invitation by the Federal Government for all children’s products companies to find something else to do.

My letters to you are of public record. We are posting them on the Internet for all to see and read. These letters have put you on notice of many problems the CPSIA is creating. When the damage takes place, there will be no way for legislators to disclaim responsibility. I don’t want to see the destruction happen, which is why I keep writing you. It is unnecessary and will have lasting effects if not arrested now. I call on you and on Congress to act promptly to convene hearings on the effects of the CPSIA on commerce and markets, and to take immediate steps to partner with industry and the CPSC to rebuild a truly effective CPSIA to address real (not imaginary) children’s products safety issues. A stripped down, but focused, CPSIA could add a great deal of safety value without weakening companies, markets and the economy. A vindictive CPSIA salted with bitter distrust and enmity toward industry will simply gut markets and weaken the regulators’ ability to patrol markets for real safety issues. The choice is obvious – I urge Congress to choose the right path for our country.

Sincerely,

Richard Woldenberg
Chairman
Learning Resources, Inc.

CPSIA is saving our schools, one kindergardner at a time

From: Rick Woldenberg
Sent: Wednesday, November 26, 2008 12:34 PM
To: Mary Toro (MToro@cpsc.gov); Nancy Nord (nnord@cpsc.gov); Joe Martyak (jmartyak@cpsc.gov); ‘tmoore@cpsc.gov’; ‘jmullan@cpsc.gov’; ‘Judith.bailey@mail.house.gov’; ‘Cathy.hurwit@mail.house.gov’; ‘Christian.fjeld@mail.house.gov’; ‘Brian.mccullough@mail.house.gov’; ‘Shannon.weinberg@mail.house.gov’; ‘Brian_hendricks@hutchison.senate.gov’; ‘david@commerce.senate.gov’

Subject: Cost of Testing

Mary,

I want to continue our dialogue over the issues presented by the CPSIA. I realize you are swamped with inquiries from many sectors, so I thought I would send this comment in via email.

I have previously raised the serious issue of the high cost of testing under the CPSIA. To be clear, the issue is not about the testing per se, rather it is the cost of the testing to prove compliance with the CPSIA. It is our legal obligation to produce products that comply with the law, of course. Financing proof of that compliance is the problem that confronts industry right now.

The attached lab test is a great example of the dilemma caused by the CPSIA testing requirements. The item in question is a new item called Let’s Tackle Kindergarten. This item is similar to other items in our product line and is quite uncontroversial from a safety standpoint. Because of our experience testing virtually identical items, we know this item is in compliance with the CPSIA on phthalates, lead and its other requirements. Nevertheless, to prove compliance, we will apparently have spend $6,144.06 on myriad tests. The product will be no more or less safe after this expenditure. No child will be safer or better protected. Our company will simply be much poorer.

High testing costs will have a significant effect on our business and businesses like ours. First, the cost of testing has increased about 5x – 20x under the new law. We do not believe these costs can be recovered because under current economic conditions, raising prices is not an option. Thus, the breathtaking increase in cost becomes part of our overhead.

The testing costs cannot be absorbed by small and medium-sized businesses. At typical net profit levels prevailing in the children’s products industry, the $6,144 cost of testing probably exceeds the anticipated total net profit derived from three or more years’ sales of the item. This does NOT take into account the cost of development, the cash expense of buying the inventory or the cost of owning inventory (usually estimated at 2.5% per month). Given that children’s products have finite commercial lives (three years is a good life for a consumer product), the CPSIA test costs might exceed the present value of creating a new item for many, if not most, businesses. So, will this product ever come to market? Not under the CPSIA. The only products left for sale will be mass market items where the scale of their production runs can support this wasteful expense. I believe this “mass market world” is not in the national interest as specialty companies like Learning Resources are an important means by which consumers obtain the products and services they need in our economy.

Notably, the gross cash expense required to finance these tests right now is literally unbearable. The law requires that all of this testing must be completed on all products in our line all at once. Several years of “catch-up” testing must be financed in just a matter of a couple months, bunching up the vast expense into one or two financial statements. Together with other excessive costs suddenly imposed by the CPSIA (for instance, lot traceability infrastructure), the economics of producing children’s items are being distorted into an unrecognizable form. If children’s products companies cannot produce a fair profit, they won’t be able to attract financing or risk capital, and the jobs (and products) will disappear. This problem needs a solution fast, and if we can’t come up with one, no one in Congress or the CPSC should be surprised to see bankruptcies rise inexorably as a result. The price will be paid.

I would appreciate the opportunity to dialogue with you on these rules and other negative incentives under the CPSIA. I am confident that through a partnership with industry, the CPSC can develop a common sense approach to safety rules and enforcement that will reward those companies committed to compliance while discouraging the bad actors who give the children’s products industry a bad name. The time to act is now. My associates in the business community are under intense pressure to pay these exorbitant testing bills – and once the money is shipped to the Chinese testing companies, there will be no getting it back.

Thank you for considering my views on this important topic.

Sincerely,
Richard Woldenberg
Chairman
Learning Resources, Inc.

Watch the CPSC FAQs

From Mike Lee owner of Sarah’s Silks. Item #3 is particularly important for kindred.

I just spoke with Mary Toro, of the CPSC. She gave me quite a bit of specific information regarding our own products and compliance, but also some general information that I think would be useful for other manufacturers.

  1. suggested I check CPSC web site FAQ’s on CPSIA on a daily basis at this time as she expects a lot decisions to be posted this week. These are very specific answers to questions such as are shoes and socks subject to Phthalate regulations.
  2. discussion on exemption for textiles from phthalate standards. She definitely does not see CPSC granting an exemption for textiles due to the problem of those little plastic footsie things on baby and toddler pajamas which have used phthalates. So perhaps a case could be made for pushing for uncoated textiles.
  3. she is expecting a ruling or at least a posting on FAQ on the issue of component testing vs whole product testing in the next few days.

Activists Meet Up!

In the interests of promoting greater unity in the CPSIA fight and given that Fashion-Incubator has had the most active participation with solid information (no mythinformation or rumors), the CPSIA section of the forum has been opened to the public. At last count there are 40 different threads, nearly 700 posts and thousands upon thousands of views. Anyone can read, post, create stickies, announcements etc in this section (all other sections of the forum are closed to the public unless you join).

In participating, act as you would sitting in someone’s living room. Please don’t post “is my [child related] product exempt” because it isn’t. It just isn’t. Likewise, any posts containing rumors, unsubstantiated claims or mythinformation will be removed. I realize it will be difficult and time consuming to read through some of the multi page threads but please make use of the search feature because it is likely your question has been answered. As most of them have been; we’re focusing on activism at this point.

Speaking of activism, there is now an automated method of emailing all of your legislators from one simple window. Scroll down, fill out the form (don’t forget to include your state of residence) and all of your senators and congressmen will receive your message.