Is Etsy Doomed?

There’s some dire news for crafters and business women who earn income, selling children’s products through Etsy. Apparently, the U.S. government is intent on killing the business- federal legislators have passed a law that requires children’s products to be tested for lead and phthalates. The average Stay-At-Home-Mom knitting booties and selling them on Etsy for $5 cannot afford testing for every component in the material. It’s a thoroughly ridiculous law.

Small retailers and local producers of children’s products say new federal regulations for lead and plastics softener testing set to go into effect Feb. 10 will destroy their ability to do business.

Some are joining a national push to convince the incoming Obama administration to change amendments to the Consumer Product Safety Product Information Act that were passed in August 2008. The changes came in reaction to toy recalls in 2007 because of unsafe lead found in paint on certain toys made in China.

The law states that all products for children ages 12 and under are required to be tested for lead and phthalates, chemicals used to soften plastics.

The law would require third-party product testing on products such as clothing, shoes, bedding, toys, tennis balls, staplers, books, bicycles and consumer electronics.

Nashville-based children’s clothing designer Lil Smith, owner of 3LilMuses, says the law is an overreaction to the Chinese toy scare. She says children’s clothing is not a likely place for lead to show up.

“I honestly don’t understand what they were thinking,” Smith says. “Are we really going to outlaw people who’re making baby booties at home?

“This law is just so broad and no one is sure what to do. Even people that signed the bill don’t understand it.”

Smith uses materials such as fabric, buttons, labels and thread manufactured by others to make her creations — a line of bloomers, dresses, hats, overalls and jumpers. Although these products would have theoretically been tested before she constructs her clothes, Smith would be required to pay for re-testing and show a certificate of compliance to sell her products.

She says her research has found the testing and certification can run “anywhere from $100 to $4,000 a test.”

“It will put too many people out of business at a very bad time for the economy,” Smith says.

I have to wonder- is this only for domestic production? Because if the government is still letting Chinese cheapo junk and beading supplies to come into the country without the same rigorous testing that the government is demanding of its citizens, then this law isn’t going to do diddly-squat. Unless, of course, that’s exactly what the government wants- to kill domestic small business and encourage cheapo Chinese junk to keep flooding in…

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