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The CPSIA... No Improvements Here!
Commentary by Gail Siegel, NARTS Director of Membership Services
Bankrupting Thousands of Businesses is No Way to Stimulate the Economy
FOR IMMEDIATE RELEASE
February 10, 2009
Contact: Adele R. Meyer, Executive Director
586.294.6700 or adele@narts.org
PDF of this Press ReleaseResale Professionals Living with CPSIA
St. Clair Shores, MI—The National Association of Resale & Thrift Shops (NARTS) is extremely disappointed that Congress did not act regarding the Consumer Product Safety Improvement Act (CPSIA) to provide meaningful relief to the resale industry. In unison with organizations representing almost every facet of manufactured children’s products, NARTS has been at the forefront in the battle to transform the CPSIA into a safety law that protects our children while respecting the resale entrepreneurs of this country.
“Resale professionals have always been strong advocates for product safety and remain committed to the protection of our nation’s children,” said Adele Meyer, NARTS Executive Director. “Although the CPSIA is a confusing and complex law, resale and thrift shops will do their best to comply using the guidance available from the Consumer Product Safety Commission." However, the long term negative affects of this new lead law will be felt by many. Businesses will close contributing to even more jobs lost, the shortfall to consumers and communities who depend upon the proceeds of Not For Profit thrift stores will leave those in need without solace and the extensive amount of waste generated will be profound.
"The resale industry is resilient and inventive," said Gail Siegel, NARTS Director of Membership Services. "NARTS will continue to work with resellers and consumers, not just to cope with the inequities of the CPSIA, but to rise above them. The catch phrases 'well intended' and 'unintended outcome' are now moot. It is time for the hardworking, ethical people of resale to move forward—perhaps with caution, but surely with determination and dedication to community and children’s safety."The National Association of Resale & Thrift Shops (NARTS), the world’s largest resale trade association, is dedicated to continuing education within the resale industry. The Association serves thrift, resale, and consignment shops of all types by providing educational and professional development for future owners and current store owners/managers. NARTS is committed to product safety, educating both consumers and store operators on how to identify previously recalled or banned products and any products that do not meet current safety standards. Please visit the NARTS Website at: www.narts.org for more information.
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FOR IMMEDIATE RELEASE
February 2, 2009
Contact: Adele R. Meyer, Executive Director
586.294.6700 or adele@narts.org
PDF of this Press Release
No Relief or Security for the Children’s Resale Industry
St. Clair Shores, MI—The Consumer Product Safety Commission (CPSC) granted a one year stay of testing and certification requirements for certain products. These requirements are part of the Consumer Product Safety Improvement Act (CPSIA). “Since resellers have never been required to test or certify products—something we have always fully understood—this stay offers no relief or security for the children’s resale industry,” said Adele Meyer, NARTS Executive Director. The Commission also emphasized that resellers cannot sell items if they do not meet the new standards and remain legally responsible if they sell products in violation of the new lead limit, facing civil and/or criminal penalties. So, the confusion over the law and its effects remains.
In a press release, CPSC stated, “The stay of enforcement on testing and certification does not address thrift and second hand stores and small retailers because they are not required to test and certify products under the CPSIA. The products they sell, including those in inventory on February 10, 2009, must not contain more than 600 ppm lead in any accessible part. The Commission is aware that it is difficult to know whether a product meets the lead standard without testing and has issued guidance for these companies that can be found on our web site.”
The resale industry continues to receive the same mixed message—they do not have to test, however, they must comply. This message defies common sense. It is not just “difficult” to know the lead content without testing—it is impossible! Where is the assurance that if resale stores follow the CPSC’s “guidelines” yet unknowingly sell a product which exceeds the lead limit, that civil and/or criminal penalties will NOT be enforced against them? They should not have to expose themselves to that kind of liability.
“We realize the CPSC faces a daunting task in implementing the Act,” states Meyer, “however the resale industry needs definitive and concrete rulings that reflect the reality of our marketplace.” Stores want to be able to operate within the law. The subtle signals being sent—messages of this being an “unintended consequence” of the Act, that resellers should just be careful of what they sell and talk that enforcement agencies will not target resale shops—gives them no protection from liability. Congress and the CPSC need to take immediate action so the children’s resale industry can have some semblance of certainty again.
Resale professionals are frustrated and frightened with their businesses and livelihoods at risk. They have a responsibility to employees who depend on their jobs during a time of high unemployment. Thrift stores are concerned about the loss of revenues to charitable works they support who already are having a difficult time meeting their needs.
Consumers are confused as they try to sell or donate children’s goods and find some stores are no longer accepting them during this time of uncertainty. Parents are worried about how they will clothe their children when the industry they depend upon during these dire economic times is affected. The public in general is confused with conflicting media coverage. Some reporters who may have scanned, rather than read and analyzed, recent CPSC releases wrote articles with misleading headlines or statements; such as, “Resale, thrift shops safe from new lead law” or “The Act originally covered thrift and consignment stores, but they are now exempt.” There is a big difference between being exempt from testing and being exempt from abiding by the law!
The National Association of Resale & Thrift Shops (NARTS) has always been a strong advocate for product safety. Our members diligently check for recalls and unsafe products, making sure they are removed from the stream of commerce. Without this filter, we fear recalled products will end up in the hands of the very people the CPSIA is trying to protect. NARTS wants to work together with Congress and the CPSC toward our common goal of keeping children safe.
The resale industry needs a realistic solution that will not trap them between a choice of going out of business or being in violation of the law. No one should be faced with that decision.
The National Association of Resale & Thrift Shops (NARTS), the world’s largest resale trade association, is dedicated to continuing education within the resale industry. The Association serves thrift, resale, and consignment shops of all types by providing educational and professional development for future owners and current store owners/managers. NARTS is committed to product safety, educating both consumers and store operators on how to identify previously recalled or banned products and any products that do not meet current safety standards. Please visit the NARTS Website at: www.narts.org for more information.###
FOR IMMEDIATE RELEASE
St. Clair Shores, MI—The Consumer Product Safety Commission (CPSC) press release, issued January 8, is void of relief and security for resale professionals unwilling to test their fate under the current Consumer Product Safety Improvement Act (CPSIA) as it stands. “It is a step in the right direction toward open communication," said Adele Meyer, NARTS Executive Director, “but it is NOT a ruling, exemption or exception to the CPSIA... it is a Press Release. It is NOT definitive! The children’s resale industry needs definitive rulings that will guarantee they can operate in compliance to the CPSIA without the risk of violations.”
January 12, 2009
Contact: Adele R. Meyer, Executive Director
586.294.6700 or adele@narts.org
PDF of this Press Release
Resale Professionals Unwilling to Test Their Fate
This attempt at “clarification” has worsened the confusion surrounding the law which goes into effect on February 10, 2009. The CPSC press release says, “The new safety law does not require resellers to test children’s products in inventory for compliance with the lead limit before they are sold. However, resellers cannot sell children’s products that exceed the lead limit and therefore should avoid products that are likely to have lead content, unless they have testing or other information to indicate the products being sold have less than the new limit.” Meyer says, “We have ALWAYS fully understood that manufacturers are required to test for lead, not resellers, but how is a store to know definitively if a product violates the lead requirements unless it tests.” CPSC also stated, “Those resellers that do sell products in violation of the new limits could face civil and/or criminal penalties.”
If a resale business—profit or NFP—cannot open its doors “knowing” they are following absolute clear guidelines of the law, they “don’t know” anything. Their integrity will be challenged and they will stand on shaky ground. They may feel they are always looking over their shoulders and wondering whether when they turn around they will receive support from the CPSC and the government . . . or receive a big fat fine! “As the CPSIA stands today, should resale shops be willing to continue business as is and jeopardize their business, their family and home for words that tip toe around a bottom line of fact and clear wording of the expectations of the law?” asks Gail Siegel, NARTS Director of Membership Services, “With so much at stake for the resale industry, we do not need a pacifier to ‘calm us down.’ We need a fix for this terrible mess a well intended law has become.”Consumers around the country are joining in the fight to Save Children’s Resale. It has taken on a life of its own with resale shoppers contacting Congress, signing petitions, posting on blogs and even organizing rallies, If you want to be able to shop children’s resale on February 10th please make your voice heard by visiting www.narts.org and clicking on “Save Children’s Resale.”
The National Association of Resale & Thrift Shops (NARTS), the world’s largest resale trade association, is dedicated to continuing education within the resale industry. The Association serves thrift, resale, and consignment shops of all types by providing educational and professional development for future owners and current store owners/managers. NARTS is committed to product safety, educating both consumers and store operators on how to identify previously recalled or banned products and any products that do not meet current safety standards. Please visit the NARTS Website at: www.narts.org for more information.###
FOR IMMEDIATE RELEASE
January 11, 2009
Contact: Adele R. Meyer, Executive Director
586.294.6700 or adele@narts.org
PDF of this Press Release
New Law Threatens to Devastate the Children’s Resale Industry
St. Clair Shores, MI—President Bush signed the Consumer Product Safety Improvement Act of 2008 (CPSIA) into law on August 14, 2008 without much fanfare or media attention. The CPSIA was passed to protect children from unsafe, lead laced toys imported from China which were the target of the widely publicized recalls of 2007 which shook the public's trust. However, the CPSIA does not just encompass toys. The new law expands the definition of products covered to include “any consumer product designed or intended primarily for children 12 years of age or younger.” Clothing, cloth diapers, hair bows, books, school supplies, blankets, sheets, bibs, footwear, baby equipment—EVERYTHING.
The Act is ornately complex—and is a daunting piece of legislation to digest even for experts. The most significant issues are the standards of lead content and phthalates. The resale industry became affected when the CPSC General Counsel, Cheryl A. Falvey, issued an opinion making the new lead standards retroactive. When the bill was signed into law none of the children’s products industries knew the lead standard was intended to be retroactive. The new lead standards for all children's products take effect on February 10, 2009—dubbed by many manufacturers, wholesalers, retailers and resellers as National Bankruptcy Day.
This legislation, while well intentioned, has unintended consequences that threaten to devastate the children's resale industry. The repercussions of making the lead standards retroactive will be enormous to many industries. Large portions of inventory that were safe and legal to sell on February 9th will be defined as "banned hazardous substances" overnight—regardless of whether these products contain dangerous materials.
NARTS and its members have always been strong advocates of product safety. Karen Shaffer, owner of Mommy and Me, Inc. in Topeka, KS, said, “When we take in merchandise we look it over carefully, check for any missing or loose pieces and check for recalls—making sure they are removed from the market immediately. When we no longer accept these children’s products the recalled or unsafe items just do not disappear! They will show up in garage sales where millions of the very people the Act is supposed to protect will end up with them! When we stop selling toys and children's products consumers lose that ‘filter’ for recalled products!” However, we are not talking about these recalled products, we are talking about “safe” items that Congress is trying to make “safer.
Consumers will be rightly confused when the things they recently purchased for their children can no longer be sold or donated because the resale and thrift stores will have no way of knowing the lead content in children’s goods without testing. “We have ALWAYS fully understood that manufacturers are required to test for lead, not resellers, but how is a store to know definitively if a product violates the lead requirements unless it tests?” asks Adele Meyer, NARTS Executive Director. “However, those resellers that do sell products in violation of the new limits could face civil and/or criminal penalties. Quite a dilemma.”
2009 may be known as the year children’s resale died if Congress and/or the CPSC do not take immediate action. Children’s resale and consignment shops will be forced to close; causing bankruptcies, loss of employee jobs and shattered dreams for entrepreneurs who struggled to build successful businesses that are a viable part of their communities.
This is just the tip of the iceberg. The Not for Profit thrift stores will have to discontinue their children’s departments, resulting in a significant loss of income for the charities they support. Additionally, when consumers can no longer sell or consign their children’s gently used items they will leave them in the bins of thrift shops—forcing them to pay for disposal—creating another loss of income for the charities they work so hard to support!
It does not stop there. If every resale and thrift store shelf in America was cleared and ton upon ton of existing goods “taken to the curb,” we will need landfills the size of three states. In this time of financial desperation for many, it is easy to envision a parade of helpless parents following the trucks filled with discarded, useful children’s items as they head to the landfills.
This is not just about saving children’s resale from the business point of view. Resale meets the demands of many facets of life today. The word “green” has taken on a whole new meaning. Warming and waste are common words in every vocabulary around the world. Recycling and keeping the landfills from overflowing the earth seems to be among the “spoken” goals of many a politician—yet implementation of this Act will create waste of immense proportions! Entrepreneurial determination is the only growing hope of many today as they watch their lifelong employment die—one company after another. Resale approaches these problems head on. This industry is the eliminator of waste, the proponent of small business and the provider to many of merchandise for their children they could otherwise not afford.
Resale is not a replacement for new product retail, but an alternative to many, especially those in need of a way to provide for their children when they can afford no other avenue. The resale industry has taken the long road to acceptance and has become the mainstay for many today. Children’s resale meets the sadly ever growing demand of the jobless and soon to be penniless in this country. The benefits from the not for profit side of resale extends beyond the doors of the thrift shop and into the whole being of those in need today.
Consumers around the country are joining in the fight to Save Children’s Resale. It has taken on a life of its own with resale shoppers contacting Congress, signing petitions, posting on blogs and even organizing rallies, If you want to be able to shop children’s resale on February 10th please make your voice heard by visiting www.narts.org and clicking on “Save Children’s Resale.”
The National Association of Resale & Thrift Shops (NARTS), the world’s largest resale trade association, is dedicated to continuing education within the resale industry. The Association serves thrift, resale, and consignment shops of all types by providing educational and professional development for future owners and current store owners/managers. NARTS is committed to product safety, educating both consumers and store operators on how to identify previously recalled or banned products and any products that do not meet current safety standards. Please visit the NARTS Website at: www.narts.org for more information.
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