Bad News for Consignment Shoppers

This is from one of our smaller local papers (The Cypress Sun):

New law will have far-reaching impact on consumers

Updated: 01.09.09
Consumers, retailers and resale shops alike will be affected by new federal regulations going into effect Feb. 10, 2009, that prohibit the reselling of clothing and toys for children 12 and under unless they are tested for lead and a plastic additive called phthalates.

Recent media reports have focused on these new regulations, reporting that testing can cost anywhere from $35,000 - $50,000. The broad scope of the complicated law and its interpretation by the Consumer Product Safety Commission (CPSC) could effectively make it illegal for parents to resell their children’s clothing and gear at a garage sale, on eBay, Craigslist, or through consignment stores or annual children’s consignment sales. If donated to a nonprofit like Goodwill, Salvation Army, or Northwest Assistance Ministries (NAM), those organizations cannot legally resell it as of February 10. Hand-me-down clothing for kids ages 12 and under will be considered a banned hazardous product and therefore illegal to resell.

Fines are stiff for this violation, ranging from $100,000, to potential jail time with possible felony charges.

On Tuesday, the CPSC tentatively exempted the following: items with lead parts that a child cannot access; clothing, toys and other goods made of natural materials such as cotton, silk, wool and wood; and electronics that are impossible to make without lead. That means that clothes made from polyester or other non-cotton materials and toys made from plastic must be tested or discarded. It also means that only clothes without embellishments, such as zippers, snaps, buttons, and tags, are exempted from the policy.

Resale shops like NAM’s throughout the country are hoping for a reprieve on these strict regulations, so that they can continue to provide low-cost children’s items to the community.

Carole Little, NAM President and CEO, said, “NAM cares for the well being of our clients, and we plan to be in full compliance with any regulations that are set. It appears unlikely that a solution for shops such as ours will be found before the law goes into effect on February 10. At best, there may only be a temporary pause on the sale of many items while we prepare for compliance.”

For further information or updates, please check the Consumer Safety Product Commission's Web site at www.cpsc.gov.
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