Impact on second hand stores

[mollyodesigns]

O-kay, I'm chatting with a columnist here in Las Vegas. He wants to know what this means for children's second hand stores such as Children's Orchard. Will their entire store/inventory need to be thrown out as of Feb. 10th? What about people who make a living selling on ebay. For example, they shop the sales at gymboree at the end of the season, hold the merchandise for 9 months then resell it on ebay for a profit. I'm assuming all their inventory will also need to be trashed on Feb. 10th?

Feel free to move this question if it is in the wrong area.

[Esther]

Well, the answer is they must comply too and yes, the Children's Orchard may have to cease operations (I have no idea how they could comply in time). Ebay sellers have to comply too. Ebay is currently doing police work for the CPSC.

[annika]

[Esther]

Ebay's policy on recalled items (and items defined as dangerous or hazardous).

Ebay has a close relationship with the CPSC. CPSC has it's own profile. When you list a child related product, you are encouraged to see if it is a recalled item. I wonder how this will work come February? Submit copies of your certificate of conformity?

Etsy has not had to deal with the CPSC a whole lot yet. I think there was an issue with swvaroski crystals on baby pacifiers a year ago, but Etsy was not really involved. Etsy has really not had to deal with some of the garbage Ebay has in regards to protecting or policing various product categories. They will though.

[lance t]

the impact on second hand stores is huge. because of the retroactivity of the lead regulations all our inventory has to be certified for us to sell it after feb 10 all the resale stores in our area have stopped or severly cut back on taking in new items and have stated to liquidate their current inventory. we are all looking at closing as an option and some stores have even announced that they will be closing on feb 9th unless the CPSIA is amended to have resale stores continue our business. the biggest issue for us is the amount of different items that we carry and the varing age of the item. testing all of our merchandise would be prohibitivly expensive and time consuming especally for the amount that we sell items for. Ex. 2.99 for a top 4.99 for a pair of jeans. we are all very concerned and trying to sort out what we are going to do.

[DAMC]

[Guest]

My wife quit her job to start a childrens resale shop in knoxville TN last november. This allowed her to be with our first son instead of sending him to daycare, gives her the flexibility to close shop and take him to the dr, or do whatever else may be done.

We were very happy to be pursuing the american dream of small biz ownership, being part of the community etc... Today we are disheartened. We feel betrayed by our goverment. If we had known this Act existed, we probably would not have started this biz.

Today we sent an email out to our large mailing list informing our customers we would not be taking any new items in for resale or consignment. We have also contacted some of our local Work At Home Mom's to let them know we may be returning their unsold products if this is not amended.

Our plan is to continue as normal, selling our current inventory, but not purchasing any new inventory. We are returning all of our new Melissa and Doug items to them for a full refund (minus cost of shipping, which will be a few hundred dollars).
We will be deep discounting our cloth diapers and other new items that we cannot return to manufacturers.

if it sounds as if no change is comming closer to Feb 10th we will run ad in the local papers about our big "forced out of biz by the goverment" sale. I plan on trying to get a few other local consignments to go in with us on that to get a front page ad.

Come Feb 10th, we will be a Maternity Clothing resale shop, as we cannot get out of our lease agreement with our landlord.

I did sign everything as our LLC, so I will talk to our attorny and CPA about filing bankruptcy on the LLC to get out of the lease and other yearly contracted services we have.

Good luck everyone!!!

[catertot]

Guest - did you call Melissa & Doug? They can provide GCCS for all of their products. They are certified and comply with the new regulations.

[KD]

I am not the previous poster but I did call M&D today regarding my inventory I received last month. I have over $1000 worth. The woman I spoke to treated me like I was a confused moron and didn't understand the law. She said they don't have GCCs yet because they haven't even been given them and not to worry because it only effects deliveries after 2/10/09. I told her I needed GCC for my past shipments and she said again they have not even been given to them yet and they have always tested and been in compliance anyway.

Although I am faithful they meet the standards I can not just take their word that they are and ignore a written law that states I need GCC for all products sold after 2/10/09. I guess if I don't get the actual GCC in hand by the end of the month their stuff will be shipped back to them. What is it worth to me if I don't have the proof in hand? Isn't this what the whole Learning Resources conferences and letters were about...a game of "Hot potato" being played with existing inventory?

I just wish we could all be given a better understanding of the laws so we know what to do. We have a month to figure out if the government will allow us to do business anymore as a children's consignment store. The past 3 years of my life, my dream, my sweat & tears all in the hands of the CPSIA and Congess....great.

[catertot]

http://www.cpsc.gov/cpscpub/prerel/prhtml09/09086.html

CPSC Clarifies Requirements of New Children’s Product Safety Laws Taking Effect in February
Guidance Intended for Resellers of Children’s Products, Thrift and Consignment Stores
WASHINGTON, D.C. - In February 2009, new requirements of the Consumer Product Safety Improvement Act (CPSIA) take effect. Manufacturers, importers and retailers are expected to comply with the new Congressionally-mandated laws. Beginning February 10, 2009, children’s products cannot be sold if they contain more than 600 parts per million (ppm) total lead. Certain children’s products manufactured on or after February 10, 2009 cannot be sold if they contain more that 0.1% of certain specific phthalates or if they fail to meet new mandatory standards for toys.

Under the new law, children’s products with more than 600 ppm total lead cannot lawfully be sold in the United States on or after February 10, 2009, even if they were manufactured before that date. The total lead limit drops to 300 ppm on August 14, 2009.

The new law requires that domestic manufacturers and importers certify that children’s products made after February 10 meet all the new safety standards and the lead ban. Sellers of used children’s products, such as thrift stores and consignment stores, are not required to certify that those products meet the new lead limits, phthalates standard or new toy standards.

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. Those resellers that do sell products in violation of the new limits could face civil and/or criminal penalties.

When the CPSIA was signed into law on August 14, 2008, it became unlawful to sell recalled products. All resellers should check the CPSC Web site (www.cpsc.gov) for information on recalled products before taking into inventory or selling a product. The selling of recalled products also could carry civil and/or criminal penalties.

The agency intends to focus its enforcement efforts on products of greatest risk and largest exposure. While CPSC expects every company to comply fully with the new laws resellers should pay special attention to certain product categories. Among these are recalled children’s products, particularly cribs and play yards; children’s products that may contain lead, such as children’s jewelry and painted wooden or metal toys; flimsily made toys that are easily breakable into small parts; toys that lack the required age warnings; and dolls and stuffed toys that have buttons, eyes, noses or other small parts that are not securely fastened and could present a choking hazard for young children.

The agency has underway a number of rulemaking proposals intended to provide guidance on the new lead limit requirements. Please visit the CPSC website at www.cpsc.gov for more information.

[a_quint]

"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. Those resellers that do sell products in violation of the new limits could face civil and/or criminal penalties. "

This does NOT say to me that resellers are exempt like you have said. It says to me that you don't need a certificate to sell used items, but if any of the items you sell are found to be non-compliant with the content level that you will still be held accountable with hefty fines. How in the world is that an exemption??

[Patti]

I am the sole owner of a small children & maternity consignment shop. I am very confused by everything I am reading. Most of what I read tells me that after 2/2009 I won't be able to stay in business, as there is no way that I can afford to have the items in my store tested. There have been a couple of things that have stated resale/consignment stores will be able to continue selling the clothes they have now. Where can I go to find the absolute final word on this. It sickens me to think that I will have to close the doors on my business that I have had for less than a year. Every cent I have is tied up in this store. Bankruptcy will be my only option.

[Melanie]

ALL-see this press release....looks like 2nd hand stores are off the hook...this came from the CPSC and just released today.
http://www.cpsc.gov/cpscpub/prerel/prhtml09/09086.html

[DAMC]

[Melanie]

True...but at least people can still donate and sell used clothing...I view it as a start...but obviously we still have a ways to go before this thing is a workable law that will do some good, without harming our economy...