WSJ Editorial 1/14/09 Pelosi's Toy Story

We are being heard. Keep screaming!

Rick

http://online.wsj.com/article/SB123189645948879745.html
WALL STREET JOURNAL
REVIEW & OUTLOOK
JANUARY 14, 2009
Pelosi's Toy Story

In the tale of "The Velveteen Rabbit," a child's stuffed toy can only become "real" once all its fur has been loved off, and it's missing a button or two. If only. Under a new law set to go into effect February 10, unsold toys, along with bikes, books and even children's clothing are destined for the scrap heap due to an overzealous law to increase toy safety.

The damage comes from new rules governing lead in children's products. After last year's scare over contaminated toys made in China, Congress leapt in to require all products aimed at children under 12 years old to be certified as safe and virtually lead-free by independent testing. The burden may be manageable for big manufacturers and retailers that can absorb the costs of discarded inventory and afford to hire more lawyers. Less likely to survive are hundreds of small businesses and craftspeople getting hit with new costs in a down economy.

Because the new rules apply retroactively, toys and clothes already on the shelf will have to be thrown out if they aren't certified as safe. When Congress passed the legislation in August, House Speaker Nancy Pelosi boasted that "With this legislation, we will not only be recalling, we will be removing those products from the shelves." Yeehaw. While large retailers may ask manufacturers to take back uncertified products, independent stores may be stuck with inventory that is suddenly illegal to sell. One Web site, NationalBankruptcyDay.com, is cataloging the costs faced by small businesses.

Small batch toymakers, many of whom make old-fashioned wood and sustainable products, say the testing requirements -- which can cost thousands of dollars -- are unaffordable. At Etsy.com, a Web site where entrepreneurs can sell their handmade items, many expect the new law to put them out of business. Also ensnared are companies that make products like bikes or childrens books. Because they aren't toy companies, many were caught by surprise when it became clear the law would apply to them. The only lead that can be found on childrens bikes is on the tire, where it poses no risk to a child not in the daily habit of licking the wheels. And while childrens books may contain no more noxious materials than paper and ink, under the new rules they would still need a test to prove it.

Responding to the uproar, CPSC has issued a rule-making notice that would exempt natural materials from having to be certified as lead-free -- but it will need to go further to avoid an economic trainwreck in February. The real responsibility lies with Congress, which rushed through "kid-friendly" crowd-pleaser legislation without considering the consequences. Despite warnings from small businesses, Illinois Representative Bobby Rush and California's Henry Waxman pushed provisions that now require pulling products from the shelf. Mr. Waxman demanded lead standards without allowing compliance to phase in.

Now even their allies are skittering away from strict enforcement, fearing the looming fiasco could force Congress to amend the bill. Last week, consumer groups that once flogged the law, including Public Citizen, Kids in Danger, and the Naderite U.S. Public Interest Research Group, wrote a letter urging the CPSC to "take the initiative . . . by providing prompt, common-sense, and explicit interpretations regarding exemptions to CPSIA." Now they tell us.

Congress has beaten down the CPSC for allegedly not doing enough about toy safety, but last year's toy law was an election-year overreaction by Congress. The Commission needs to implement the rules without putting more companies out of business in an already tenuous economy.

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