CPSIA = Cultural Genocide, another win for Congress!

I just know you’re going to be jolly jolly jolly to read the latest unintended consequence of CPSIA (Consumer Product Safety Improvement Act). Truly, the CPSIA is a gift from Congress that keeps on giving; I’m giddy just telling you about it. Just when I think it can’t get any better, Congress comes through with another knock out punch -this time, it’s cultural genocide against Native Americans! Yes! I can see you nodding, it just gets better and better. Enough preamble, here’s Janet Littlecrow who wrote me to explain how the CPSIA is the equivalent of cultural genocide:

The new law will cut our business in half, because there is no way that we can afford to test one-of-a-kind outfits. We’ll be totally knocked out of the kids dance clothing business, except for Canadian orders. It’s the death of our dreams too, cultural genocide for us.

These recently completed and sold outfits will be illegal for us to sell next month, so we’re trying to finish and sell all of our children’s inventory by Feb 10. The loss of children’s business will probably bankrupt us. Business is way down, except that people have been ordering dance clothes for their children and grandchildren. Dance regalia isn’t a necessity per se, but it’s almost a necessity among many families for their children. I’ve been working at this business for six years, and can’t even go back to my computer career again.

It’s cultural genocide for us too. We won’t be able to support our native cultures by getting children dancing in the powwow arena. We won’t be able to make dance outfits for any more children’s Native American dance troupes, or foundations, or Indian student groups or school Johnson-Omalley programs. We won’t be able to dress younger girls who are school princesses either, we’ll have to check ages of customers. It’s a major blow for us, and I can’t see any way around it. It’s probably the death of our business. It’s certainly the death of our dreams. We can’t dress children for our culture any more. The government wins another round of forced assimilation.

Janet Littlecrow
Littlecrow Trading Post LLC
PO Box 243
Red Rock, OK 74651
(580) 723-9244

See Janet’s web page on the CPSIA and cultural genocide for more information. You can also consider contacting Native America Calling to interest them in the cause. I haven’t heard back from them yet.

Please take the Economic Impact Survey

I’m not above begging. Please take this survey I created in an attempt to measure the impact of the CPSIA (Consumer Product Safety Improvement Act) on small businesses like yours. It is industry neutral meaning it works for any industry so please pass the link around on line. Obviously, the goal is to attempt to measure the effects of the law on businesses which thus far, the CPSC (Consumer Product Safety Commission) has implied would be negligible. Right. If you’re a larger concern, the AAFA created a survey that may be more appropriate but there’s no reason you couldn’t do both.

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.