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Wednesday, December 10, 2008

Save small businesses!

Sorry that I haven't posted for a while. We'll have to save the updates for a while.

In the meantime, here is something important that I got from a dear friend today. I will try to have more links about this up soon.

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Hello everyone...

I've never ever sent a wide reaching email to everyone who's on my personal email list before, and I apologize if this is the first email you've received from me in a very long time (or if you don't even remember who I am?)...but this is very important to everyone - as the impact will be great for everyone - business owners and customers alike. Please pass this information along to everyone you know!

As you may or may not know, the CPSIA (Consumer Product Safety Improvement Act) is coming into effect on February 10, 2009. Our soon-to-be-EX-President, GWB already passed it into law and we are now facing an epic battle to save our small businesses!

In a very small nutshell, the CPSIA mandates third-party testing and certification for all toys and goods marketed to children 12 and under. The manufacturer must permanently label each item with a date and batch number. Failure to do so would result in hundreds of thousands of dollars worth of fines for each occurance. (You can read a very good summary of the law at http://www.handmadetoyalliance.org/Home)

Sounds good on the surface, right? Of course! I totally believe in the assurance of safety in the marketplace! However, the wording of the CPSIA is too far-reaching and would result in the removal and destruction of ALL handmade children's goods on market shelves today. You see, when this law takes effect, it will be illegal to sell or even donate inventory manufactured before Feb. 10th without the proper certification in place. It would even be illegal for you to try to sell your used kids clothing on Ebay! As a result, all of these items will be tossed out to fill our landfills - never reaching the hands of even a needy child.

But wait, testing is good, right? Yes! Of course! But consider the impact on your small/micro-business friends who already make handmade toys and kid's clothes responsibly out of known safe materials with standard safety in mind. They are already bound by current laws to create safe products. But, the CPSIA does not distinguish between small/micro businesses and big business. As written, the law encompases each SKU made by the company and requires that each size be tested as well as each color. Add that up and testing will cost hundreds of thousands of dollars - within the reach for huge corporations, but far beyond the capabilities of most small businesses.

As a result of this law, it is speculated that small business funding will be cut, banks will retract loans and businesses will shut their doors since there is no way anyone could run those numbers and come up with a profit! In the Wall Street Journal, Rick Woldenberg was quoted as describing February 10, 2009 as "National Bankruptcy Day" (source: http://www.fashion-incubator.com/archive/national-bankruptcy-day/).

All in all, this will GREATLY impact ALL small companies who make anything for kids under 12 including all handmade clothing, costumes, toys, blankets, diapers and even baby carriers. It will impact parents, grandparents, relatives and friends with kids by, at minimum, ensuring the removal of all unique, handmade items from the shelves of shops, boutiques and stores all across the country.

While I completely believe in product safety and testing to ensure the protection of our children, this act as written will surely force many, if not the majority of small/micro business owners to close their doors and cease the production of the products and further push our economy downward as hundreds of thousands of people flood the already dried-up job market.

We need to ask our Congressmen and Senators to rewrite the CPSIA to support our country's small businesses and exclude all items made in batches of less than 5,000 units per year or manufactured within the USA and trusted countries with established toy safety regimes such as Canada and the European Union and that they all be held exempt from third party testing requirements. If they still feel that testing should be required, then we should ask them to provide free testing services for USA manufacturers and importers from Europe or Canada with revenues less than one million dollars.

I encourage you to read the links below and do your own research before writing to your Congressmen and Senators. After I fully comprehended the impact of such a law, I signed the petitions and emailed my Congressman and Senators right away (using a modified version of the Handmade Toy Alliance letter).

By taking a stand, we can save our country's small businesses. Thank you in advance for your action and support of the handmade community.

Sincerely,

Marlo Miyashiro
Jeweler / Teacher / Mentor
Organizer, EtsyRAIN.com meetupSeattle, WA


marlom.com (jewelry website - day job)

tote2go.com (recycled fabric bags - new line)
imakecutestuff.com (personal blog)
imakecutestuff.etsy.com (etsy shop - crafts)
marlom.etsy.com (etsy shop - jewelry)