TIA: Safety Act puts $2B crimp in toy biz
By Staff -- Playthings, 3/11/2009 10:45:00 AM
NEW YORK—A Toy Industry Association survey says that the 2008 Consumer Product Safety Improvement Act has already cost U.S. toy businesses at least $2 billion and could cost the industry 10 percent of its overall retail value in 2009.
In mid-February, TIA surveyed manufacturers/importers and retailers to collect information about the impact CPSIA legislation is having on the toy industry. Nearly 400 manufacturers and importers and more than 220 retailers responded, according to TIA’s Toy News email newsletter. Those survey's findings include:
• CPSIA requirements have resulted in “an estimated $2 billion negative impact (estimated retail value)” just on the toy companies that responded to the survey.
• In excess of $1 billion worth of inventory has already been returned to manufacturers from retailers or is currently sitting in warehouses as non-salable or is being withheld for CPSIA verification before sale.
• $800 million in previously compliant inventory is in jeopardy of being returned by retailers to manufacturers.
• More than 40 percent of respondents indicated they plan to eliminate jobs as a direct result of CPSIA requirements. Of those manufacturers, in excess of 1,200 jobs are in jeopardy of being cut.
TIA says a more comprehensive analysis of survey results is underway. The trade association plans to report additional information from the survey in at a later date.
There''''s only one problem with all of this CPSIA stuff -- the CDC (as in -- an arm of the Government) decided 20 years ago that lead poisoning (a) comes from ingestion (most of the things that have been banned by this law would never have been eaten) and (b) that the most common cause of lead poisoning is lead based paint -- in buildings....This law is not needed, does not solve the real problem, and is causing real financial pain to families as well as businesses. I guess Congress would call those "unintended consequences" -- starting with the families who can no longer find reasonably priced used clothes, books, or toys, because the Thrift stores can no longer safely sell them....And that''''s just the beginning
Catherine Jaime - 2009-03-13 22:48:00 EDT
There''s a food chain here and somebody is always getting fat.
The only people making money here are the testing services...and the people in the shadows. I only wonder what politicians are connected to this debacle.
The toy testing that cost me $600. about 5 years ago now cost over $2,000.!
Just like there is time to push an agenda through during a time of crisis. This is sick stuff!
Jay Donavan - 2009-03-11 18:25:00 EDT
The only people making money here are the testing services...and the people in the shadows. I only wonder what politicians are connected to this debacle.
The toy testing that cost me $600. about 5 years ago now cost over $2,000.!
Just like there is time to push an agenda through during a time of crisis. This is sick stuff!
I don''t want to hear them complaining. If they were taking measures to
ensure kids safety before then all of these new regulations wouldn''t be in
place. They are acting like little kids caught with their hand in the candy
jar... momma puts them in time out and they cry.
Kate Miller - 2009-03-11 15:22:00 EDT
ensure kids safety before then all of these new regulations wouldn''t be in
place. They are acting like little kids caught with their hand in the candy
jar... momma puts them in time out and they cry.
I'm concerned about where all the unsaleables are going to end up, in a land fill? I believe they should have put a sell through date into affect.
amy - 2009-03-11 15:19:00 EDT
Oh, right, CreativeGreenius, it was those greedy money-grubbing black-mustachio-twirling top-hat-wearing Toy Magnates getting rich that caused all this.
Well how about this: maybe it had something to do with those greedy, penny-pinching moms and dads wanting to needlessly buy more toys creating demand for toys that didn't cost a lot of money. What did their kids need toys for anyway? The good, green earth is full of sticks and rocks and bugs for them to play with, or at least it would be if half of them didn't live in cities where you can be sure the cops will knock on your door if you let your children play outside.
CPSIA is "for the children" all right... just not THOSE children.
Sarah Natividad - 2009-03-11 15:07:00 EDT
Well how about this: maybe it had something to do with those greedy, penny-pinching moms and dads wanting to needlessly buy more toys creating demand for toys that didn't cost a lot of money. What did their kids need toys for anyway? The good, green earth is full of sticks and rocks and bugs for them to play with, or at least it would be if half of them didn't live in cities where you can be sure the cops will knock on your door if you let your children play outside.
CPSIA is "for the children" all right... just not THOSE children.
Featured Company
Most Recent Resources
- Mattress Buying 101 - Connecting with Consumers
- Designing Your Brand’s Website for eCommerce
- Global Sourcing in 2010: Doing More With Less
- Comparing Four Options for Turning Web Site Traffic into...
- Design, Develop, Deliver: The Three D's to Digitally...
- Are You Prepared for the 2009 Holiday Season? A Branded...
