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	<title>Business is Personal &#187; prohibition</title>
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		<title>CPSIA: I&#8217;m from the government and I&#8217;m here to help</title>
		<link>http://www.rescuemarketing.com/blog/2009/01/28/18th-amendment-cpsia/</link>
		<comments>http://www.rescuemarketing.com/blog/2009/01/28/18th-amendment-cpsia/#comments</comments>
		<pubDate>Wed, 28 Jan 2009 11:51:44 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[China]]></category>
		<category><![CDATA[Competition]]></category>
		<category><![CDATA[Corporate America]]></category>
		<category><![CDATA[CPSIA]]></category>
		<category><![CDATA[Homemade products]]></category>
		<category><![CDATA[Leadership]]></category>
		<category><![CDATA[Manufacturing]]></category>
		<category><![CDATA[podcast]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Small Business]]></category>
		<category><![CDATA[consumer product safety commission]]></category>
		<category><![CDATA[consumer product safety improvement act]]></category>
		<category><![CDATA[CPSC]]></category>
		<category><![CDATA[prohibition]]></category>

		<guid isPermaLink="false">http://www.rescuemarketing.com/blog/?p=1687</guid>
		<description><![CDATA[Former FEMA Director Michael Brown One of the natural reactions to a CPSIA discussion with store owners, manufacturers, the press and other business people that I speak to about the Act is &#8220;Oh, the government would never do anything to shut down an entire niche of businesses, especially in this economy.&#8221; Well, they would be [...]]]></description>
			<content:encoded><![CDATA[<p></p><div class="photo_right"><img class="alignnone colorbox-1687" style="border: 0pt none;" src="http://www.rescuemarketing.com/images/KatrinaMichaelBrown.jpg" border="0" alt="Way to go, Brownie" width="245" height="282" /><br />
<small>Former FEMA Director Michael Brown</small></div>
<p><span class="drop_cap">O</span>ne of the natural reactions to a <a href="http://www.rescuemarketing.com/blog/category/cpsia/" target="_blank">CPSIA</a> discussion with store owners, manufacturers, the press and other business people that I speak to about the Act is &#8220;Oh, the government would never do anything to shut down an entire niche of businesses, <em>especially in this economy</em>.&#8221;</p>
<p>Well, they would be wrong.</p>
<p>Take a long, hard look at the <a href="http://en.wikipedia.org/wiki/Eighteenth_Amendment_to_the_United_States_Constitution" target="_blank">18th Amendment to the U.S. Constitution</a>, ratified in 1919 and reversed in 1933 (depression, anyone?)</p>
<p>Regardless of how you feel about the consumption of alcoholic beverages, think long and hard about how that hurt a specific niche of businesses (bars, breweries, dance halls, distilleries, night clubs and similar), and what the situation has in common with today&#8217;s CPSIA fiasco.</p>
<p>It isn&#8217;t just about the bars and the drunks. Moms and dads lost their jobs.</p>
<h3>I&#8217;m from the government and I&#8217;m here to help you</h3>
<p>Now, are you so sure that the Federal government &#8211; or more accurately, Congress &#8211; wouldn&#8217;t intentionally do something that might impact an entire industry &#8211; intentional or otherwise?</p>
<p>That&#8217;s what the CPSIA will do to the segment of the children&#8217;s product industry that doesn&#8217;t depend on massive manufacturing plants in China (clothing, toys, books, you name it).</p>
<p>It might push those overseas plants to adhere to safety regulations (a welcome change from the <a href="http://www.google.com/search?q=melamine+recall+china" target="_blank">People&#8217;s Republic of Melamine</a>), but it also grants them the power to decimate much of their competition &#8211; simply due to economies of scale that finished product testing costs will burden handmade manufacturers with.</p>
<h3>The CPSIA *favors* China with its &#8220;step-wise approach&#8221;</h3>
<p>You heard me right. Large scale manufacturers can afford to do the testing. They simply have to raise their prices a little. It&#8217;s the little guy, the stay-at-home mom, the cottage industry shop that employs 12 local people &#8211; they are the ones whose business gets hammered by finished product testing costs by lot.</p>
<p>&#8220;This step-wise approach will impose immediate changes to protect children while giving manufacturers additional time to develop controls to ensure that all children&#8217;s products are free of lead.&#8221; (see <a href="http://oversight.house.gov/documents/20071003152943.pdf" target="_blank">http://oversight.house.gov/documents/20071003152943.pdf</a>)</p>
<p>The reality is that the legislation isn&#8217;t limited to toys &#8211; even though Rep Pelosi *repeatedly* uses the term toy when talking about the CPSIA. Toys are not the only thing the law controls.</p>
<p>And yes, 6 months might be time enough for manufacturers to &#8220;develop controls&#8221; &#8211; even the small ones &#8211; if you gave manufacturers the ability to use component testing for products manufactured after the law becomes effective.</p>
<h3>A Scout is no longer Thrifty</h3>
<p>If you still think it wasn&#8217;t intentional&#8230;. Look long and hard at the &#8220;<a href="http://oversight.house.gov/documents/20071003152943.pdf" target="_blank">simple, commonsense</a>&#8221; effort Representative Waxman and Senator Feinstein made to be sure that  trouble to <a href="http://feinstein.senate.gov/public/index.cfm?FuseAction=NewsRoom.PressReleases&amp;ContentRecord_id=d0d33ee4-99d6-0810-e314-efbf79ace102&amp;IsPrint=true" target="_blank">make the law retroactive, covering to all children&#8217;s products ever manufactured</a>.</p>
<p>Operative text from the letter: <em>&#8220;</em>United States Senator Dianne Feinstein, California: <em>This language unambiguously restricts not only the manufacture of these products following enactment, but also the retail sale of any children’s toy manufactured before this deadline.</em>&#8221;</p>
<p>Thrift stores? Not on their radar. Doesn&#8217;t matter if they don&#8217;t have any intention of selling lead-infused baby bottles, doesn&#8217;t matter if they are a specialty resale shop that only sells clothes made from organic US-grown cotton and wool: they can&#8217;t even take a chance, because they can&#8217;t afford to test anything given their margins.</p>
<p>Being thrifty could become a lot more difficult if the law stands as written.</p>
<h3>I don&#8217;t even like &#8220;lead&#8221; pencils</h3>
<p>Again, no one wants lead in stuff made for kids. Likewise, not everyone wants to close their business and go work at Wal-Mart or what not.</p>
<p>Yet that&#8217;s clearly the direction that the CPSIA is driving many small businesses because the economics of testing using XRF and digestive technologies couldn&#8217;t possibly have been considered in the sphere of homemade products and similar items.</p>
<p>They&#8217;re PROUD of what they&#8217;re forcing businesses to do, without a second thought to the smaller businesses that will be forced to close or cut children&#8217;s product lines because they have no way to reasonably test their products in an economical fashion.</p>
<p>One thing becomes clear when you did around for comments made by the lead (heh heh) proponents of the CPSIA: Small businesses and work at home moms weren&#8217;t even on their radar.</p>
<p>And they still aren&#8217;t. It hasn&#8217;t been that long since the CPSC&#8217;s spokesperson dismissed those working against the CPSIA in a derisive tone, calling them &#8220;mommy bloggers&#8221;.</p>
<p>Be careful. Those mommy bloggers just might buy a swift boat, if you know what I mean.</p>
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