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CPSIA threatens The Little Hat Company

cpsia.jpgThe Consumer Product Safety Improvement Act (CPSIA) is sweeping new legislation that was passed with overwhelming support in both the U.S. House and Senate last summer in the wake of fears about imported products containing lead, including children’s clothing and toys.  CPSIA creates new requirements for product testing and labeling for a wide range of products for children under 12 and includes stiff penalties for failure to meet the requirements.  The Act was signed into law in August and is set to go into effect February 10, 2009.

While many applaud that the new law will set high standards for large companies that have imported children’s products with no testing for product safety, the far reaching nature of the legislation is threatening to put very small manufacturers and crafters out of business.  Mandatory testing rules require that the manufacturers of children’s products test each and every component of their products.  Laboratory testing has been reported to run as much as $4000 per test.

CPSIA is threatening one of South Berwick’s most promising entrepreneurs.  Jennifer Houghton, owner of The Little Hat Company,  describes the potential effect of the new law on her business.

“…it will be cost prohibitive for us to continue to manufacture and sell baby and children hats of any kind.  Also we will no longer be able to carry local handcrafted goods or manufactured products if they do not have a certificate of analysis from a third party. “

“What does this mean?  The law states that we will not be able to sell or donate our children’s hats that are in current inventory unless they are sent out to a lab for testing of lead.  Each new bolt of fabric, each new spool of ribbon means a new certificate on a finished hat.  Each batch of testing is quoted as costing $400-2000.  Currently there are only 14 certified labs in the United States.”

Jennifer Houghton has spent the week contacting legislators and rallying opposition to the new law.  She is not alone either, there is a national grassroots effort going on to raise awareness of the the negative effects this legislation will have on small manufacturers, cottage industries, crafters and even nonprofits, like scouts and sports team boosters, who sell children’s t-shirts and hats to raise money.

Jennifer is also preparing for a future at Little Hat Company if the the law does go into effect as it’s currently written.  She is offering her stock of hats at 50% off, since they will have to be destroyed if the law goes into effect.  She and her designers are already coming up with an expanded line of teen and adult hats.  She is determined to keep moving ahead no matter what.

Here’s contact information if you want to weigh in on CPSIA with Maine’s legislators:

Senator Olympia Snow Read Senator’s Snowe’s Jan 16th statement on CPSIA Note:  Senator Snowe is the ranking member of the Committee on Small Business and Entrepreneurship
Senator Susan Collins
Congresswoman Chellie Pingree

The link to the official website of CPSIA and the full text of the legislation

Some media coverage and commentary about CPSIA:
Post Star:  Lead law weighs on toy industry
PostStar.com Getting Greener Blog: A GREEN SIDE TO EVERYTHING: More than one green side to the new safety regulations.
Forbes Magazine Commentary:  Scrap The Consumer Product Safety Improvement Act

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