CPSIA killing thousands of small businesses
January 24, 2009
The Consumer Product Safety Improvement Act will go into effect February 10. It was passed after lead was found on toys assembled in China. Among other things, it requires stringent testing of every batch of a product, whether the production run is 10 or one million.
Unfortunately it is the textbook example of a poorly written law, passed in haste, which places unbearable burdens on many business and favors large corporations over small businesses.
In fact, the biggest winners may end up being Mattel and other large toy manufacturers (which created the mess to begin with by outsourcing to unscrupulous Chinese suppliers), as most small and home-based producers are driven entirely out of the market.
If you wanted proof that our government answers to corporations (aka ‘special interests’), this is it.
This story is especially important to me: My friend owns a successful boutique toy store, and he will be struggling to stay afloat when the law takes effect. I shudder to think that my own business could one day be threatened so profoundly by a congressman or bureaucrat that didn’t think things through or was doing a lobbyist’s bidding.
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