Small businesses worry about new lead law

With less than three weeks to go before regulations become law, federal officials are scrambling to clarify rules calling for lead testing on all children's clothing, books and toys that some thrift shop owners and small manufacturers say could put them out of business.
The regulations center on a new law set to go into effect Feb. 10. One problem is that the deadline for public comment on how the law is to be implemented is a week later, on Feb. 17.
One bow manufacturer says testing of each finished product as required by the regulations would cost her more money than she has made in 12 years in business. The Salt Lake City-based Kid to Kid resell franchises say an aspect of the law governing sales could mean fines and jail time for thrift-shop owners who don't comply.
"We support our government in trying to protect our children, but the bill was poorly crafted and has horrendous, unintended side effects that outweigh the benefits," said Shauna Sloan, founder of Kid to Kid, with 75 stores in 21 states and Portugal.
Thrift stores already are civilly liable if a product injures someone. But under the new law, selling any product containing lead becomes a criminal offense, making it virtually impossible to obtain insurance coverage and "exposing resale businesses to unnecessary risks," Sloan said.
Congress passed the Consumer Products Safety Improvement Act this summer after U.S. officials recalled millions of tainted toys made in China.
A spokesman for the Consumer Product Safety Commission, charged with enforcing the act, said the agency has received thousands of complaints and requests for more information but can do little immediately "because of how tightly the law is written."
"The timetable in place (Feb. 10) is unrealistic," said spokesman Joe Martyak. "We're reaching the breaking point on this. We have very little flexibility and no resources" to figure out how the law should be implemented.
Martyak said that although he understands the retailers' and small manufacturers' concerns, initially the agency will focus on products that pose the greatest risk and the largest chance of exposure, such as children's jewelry, toys with small parts, painted items, cribs and play yards.
Although thrift stores do not have to conduct testing, they face civil and criminal penalties if they sell children's products containing more than 600 parts per million total lead after Feb. 10 -- regardless of whether the items have been recalled, according to the agency's Web site.
The testing requirements have Leslie Smith very worried. Working from home, she makes 10,000 new hair bows for Kid to Kid outlets each year.
To comply with the law, Smith said she would have to send several samples of each bow style to an independent lab for testing. In addition, each bow component -- such as the ribbon, barrette, lace, wire and hot glue -- would have to be tested separately, along with more testing for each color.
"I did the math for the current products I have available on my order form, and to test all my styles and colors, it would cost me $138,780," said Smith. "That's more than what I've made during the 12 years I've been in business."
Smith pointed out that even if restrictions were loosened to allow bulk testing instead of individual product testing, she would not benefit. That's because Pennsylvania-based ribbon manufacturer Berwick Offray will not conduct tests because under the new law, its lines are "not considered to be children's products."

Reach Dawn House at dawn(at)sltrib.com. For more stories visit scrippsnews.com

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