On Toy Makers And The Financial Crisis

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Matt-Thanks for this important commentary.

As the owner of the Warm Biscuit Bedding Co. (and a member of the Handmade Toy Alliance) this new law critically impacts how I do business. Batch testing for small runs is impossible to pass on costs to the consumer and more importantly for my fabric based business (of which LEAD was never an issue) unnecessary.

What I see as the problem in this case, are the law is like a speeding train. By the time, they are made known to the companies (and politicians) and the public, the devestation from the crash has already taken place...ie companies run out of business or money is wasted.

A key point to remember for Mattel...is the toy industry responded far more rapidly than the government. Because it opened the eys to our industry of the risks associated with Chinese production, the industry became smarter and began to self regulate. Companies began asking their Chinese manufacturers for lead testing, and the public began to question their toy purchases.

Guess what? Without the CPSC's demand of 100% Guilty Until Proven Innocent law, cases of high lead levels dropped severely!

And on that note, although lead levels have significantly been reduced, what remains is that 98% of lead exposure is from environmental exposure (soil, paint in home, etc) This is where we need to FOCUS our attention should be if we truly want to reduce lead exposure risk.

Vicki Bodwell of NY 6:27PM September 04, 2009

Matt-Thanks for this important commentary. As the owner of the Warm Biscuit Bedding Co. (and a member of the Handmade Toy Alliance) this new law critically impacts how I do business. Batch testing for small runs is impossible to pass on costs to the consumer and more importantly for my fabric based business (of which LEAD was never an issue) unnecessary.

What I see as the problem in this case, these laws are like a speeding train. By the time, they are made known to the companies (and politicians) and public, the devestation from the crash has already taken place...companies out of business or money wasted. The key point to remember is that in the case for Mattel...the toy industry responded far more rapidly than the government. Cases of high lead levels dropped severely, the industry self regulated and began asking their Chinese manufacturers for lead testing, and the public began to question their toy purchases. And on that note, although lead levels have significantly been reduced, what remains is that 98% of lead exposure is from environmental exposure (soil, paint in home, etc) This is where the FOCUS should be if we truly want to reduce risk.

Vicki Bodwell of NY 6:20PM September 04, 2009

Matt-Thanks for this important commentary. As the owner of the Warm Biscuit Bedding Co. (and a member of the Handmade Toy Alliance) this new law critically impacts how I do business. Batch testing for small runs is impossible to pass on costs to the consumer and more importantly for my fabric based business (of which LEAD was never an issue) unnecessary.

What I see as the problem in this case, these laws are like a speeding train. By the time, they are made known to the companies (and politicians) and public, the devestation from the crash has already taken place...companies out of business or money wasted. The key point to remember is that in the case for Mattel...the toy industry responded far more rapidly than the government. Cases of high lead levels dropped severely, the industry self regulated and began asking their Chinese manufacturers for lead testing, and the public began to question their toy purchases. And on that note, although lead levels have significantly been reduced, what remains is that 98% of lead exposure is from environmental exposure (soil, paint in home, etc) This is where the FOCUS should be if we truly want to reduce risk.

Vicki Bodwell of NY 6:20PM September 04, 2009

Muser- The Dem's are sadly sitting back and refusing to do much of anything about all of this while the Republicans have tried several times to pass amendments to this ill-conceived law (by the way, it was passed nearly unanimously in both the House and Senate). Even my own Democratic Senator Lautenberg (NJ) hasn't returned any of my emails on this issue. Waxman (D-CA) is finally holding his first hearing, but has seen fit to only invite Chairman Tenenbaum, the head of the CPSC, to testify.

The Handmade Toy Alliance is doing everything we can to bring change to the CPSIA while keeping with what we believe is good intent- making toys safe. But the people in DC who are listening to us have not yet been able to make the necessary changes, and the ones who can do something about it are turning a deaf ear.

I sincerely hope the theme of Mr. Waxman's upcoming hearing is not Hear no evil, See no evil, Speak no evil.

John Greco of NJ 5:13PM September 04, 2009

is something that is already done---for the moment anyway---elect Obama and a stable of Democrats to the Congress.

But that is not enough.

We may need a law about "who" exactly can draft language and provisions in Congressional bills that the Senators and Representatives cannot even read---let alone write. (I didn't say this is "easy", but proof abounds on every corner that corporations and their lobbyists have been running your country for some time now.)

This good article from Matt puts a spotlight on the "problem".

Muser of NM 4:07PM September 04, 2009

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Capital Commerce

Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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