Relationships between retailers, vendors will be key to surviving CPSIA

Gerri Hunt -- Kids Today, 2/10/2009 5:57:00 PM

DENVER, Colo.—Small manufacturers and retailers of children’s products gathered here today to discuss the latest developments of the Consumer Product Safety Improvement Act and its effects on businesses, on what has been coined “National Bankruptcy Day.”

“As of today, the CPSIA goes into effect. Months ago we knew today would be critical,” said Olivia Omega Logan, moderator of the event and founder of Aurora, Colo. business networking group, Congrats From Colorado, as well as baby apparel manufacturer, Baby Candy, and blogger, at CPSIA Cheerleader.

“I’m happy to say that there are hundreds of companies still in business today,” she continued. “But the fight is not over.”

Logan said consumers may not have known anything about the legislation until today.

Jennifer Taggart, a Los Angeles product safety attorney and owner of children’s product safety Web site, www.TheSmartMama.com, visited Target recently, in an effort to find out how the CPSIA is affecting big box retailers.

In the children’s apparel department, she spotted some acrylic rhinestones.

“They were a little bit duller, not quite the same,” said Taggart.

She said that although consumers may notice a reduction in inventory at many stores, they will still see products on the shelf that are not compliant.

“It depends on how fast retailers can comply,” Logan interjected.

“In the long term, as the law is more developed… (it may) leave out some things we never find lead in, like textiles with no lead in the dyes,” said Taggart.

Kathleen Fasanella, publisher of Fashion-Incubator.com and active lobbyer against the rules and regulations of CPSIA implementation, advised retailers on dealing with the law.

“It all boils down to the relationships and confusion,” she said.

Fasanella said there will be legal challenges from special interest groups; that a few states have deputized their attorney generals to enforce the law, including California, Arizona, Illinois and Connecticut; and that retailers are proceeding as though the law is fully enforceable now.

“From our perspective, we realize a lot of manufacturers and vendors don’t have the finances to get third-party tested,” said Marianne Mullen, owner of online retailer Polkadot Patch Boutique in Barre, Vt.

She said she’s asking her vendors for their General Certificates of Conformity, which certify that they are CPSIA compliant. One vendor led her to believe their products were compliant, but they failed when the retailer tested them.

“Questioning relationships with vendors, that’s a really uncomfortable position to be in,” said Mullen. “I want to support handmade products that make our boutique unique.”

Logan said a 3,000-piece order was recently cancelled on her, because she lacked the compliance paperwork.

It comes down to the relationships a retailer has with vendors and sales reps.

“It’s a resurgence of traditional relationships—we’re going to have a shakeup,” said Fasanella. “Retailers are already in a shaky situation. Retailers and manufacturers are going out of business.”

She pointed out that technology has enabled manufacturers to sell directly to consumers, but many manufacturers haven’t followed voluntary standards.

“The market has tightened up. The people who will survive are those who were professional to begin with,” said Fasanella.

Ali Mayer, owner of Denver-based Ambajam, a designer and manufacturer of children’s clothing, blankets and accessories, just returned from the New York Gift Show.

“Anytime someone came into our booth, we provided them with a copy of our GCC,” she said. “Many retailers had just a small baby area and didn’t know about the CPSIA.”

Mullen said she appreciates when her vendors are proactive, getting their GCCs and taking the law seriously. She said she spoke to some manufacturers just last week that aren’t doing anything yet.

 “We’re looking for long term partnerships, not a quick fix,” she said. “For us, if you’re a small manufacturer, we’re looking for products to replace those.”

Taggart had some advice for manufacturers.

“Know your product, know the parts that are in your product,” she said. “And build relationships with suppliers you trust.”

Logan reiterated that the fight isn’t over.

“Call your congressmen, and tell them you want safe products and support CPSIA, but it needs reform.”