Creative Leisure News - Business-Wise

Mike's often irreverent, thought-provoking analysis of the industry-- with an occasional guest columnist.

A Letter from CHA's Standards and Technology Committee

You need to learn the new law or else....

Staff Report (January 19, 2009)

Dear Craft & Hobby Industry Suppliers,

On August 14, 2008, the Consumer Product Safety Improvement Act (CPSIA) was signed into law by President Bush. The scope of this new legislation, also called HR 4040, is daunting. Under the new regulation most craft products could be defined as children�s product by the CPSC. This will have a huge impact on the manufacturers, importers, distributors and retailers in the craft industry.

WHAT THIS MEANS IS THAT ON FEBRUARY 10, 2009 RETAILERS MAY NO LONGER SELL THEIR EXISTING INVENTORY OF CHILDREN�S PRODUCTS THAT DO NOT MEET CPSIA�S NEW STRICT TESTING STANDARDS! THIS MEANS A POTENTIAL LOSS OF SALES FOR YOU AND US, AND MILLIONS OF DOLLARS OF UNSALABLE INVENTORY IN OUR STORES AND DC�S.

Why should you care? Besides the loss of potential sales and inventory value, the enforcement and penalties for non-compliance can be $100,000 per violation up to $15 million for multiple violations, and imprisonment up to 5 years. CPSIA is being viewed as a major compliance challenge, especially in our industry, which spans so many product categories. How can you learn more?

If you are attending the upcoming Craft and Hobby Association Trade Show, I am personally asking you to join us at an important educational seminar regarding this new regulation. The seminar is sponsored by the Industry Standards and Technology Committee and is called The New Consumer Product Safety Improvement Act (CPSIA): What You Need to Know About Compliance Standards. This Business Seminar (S123) is scheduled from 3-5 pm on Monday, January 26, 2009 at the CHA Winter Show at the Anaheim Convention Center.

Our speaker will be Ken Walsh, Product Engineer from Bureau Veritas (a CPSC certified third party laboratory). After a one hour introduction of the CPSIA by Ken Walsh, a panel of retailers and manufacturers will field questions and explain how they are dealing with these issues. Attending this session will get you started in the right direction by helping you understand what your company is required to do and what your trading partners are required to do. This is a unique and not to be missed opportunity.

To register for the seminar you must first be registered for the show, then simply log on to www.chashow.org and click on "REGISTRATION," found under the "SHOW INFO" drop down menu. Sign-in with your e-mail that is on file with CHA (if you have not previously logged in to this web site you will be prompted for your CHA ID, which is found on your 2009 dues invoice). This will take you to your company�s registration screen. Click on your name to register your badge and/or order tickets. You can order a Complete Seminar Pass that entitles you to unlimited access to all show seminars ($50 members/$100 non-members) or order a pass for Monday, 1/26 ($35/$75). If you have any problems please notify CHA at registration@craftandhobby.org.

We hope to see you at the seminar!

CHA Standards and Technology Committee:

Vic Burwell, Executive Vice-President, Manufacturing Operations, Floracraft

Heather Corvey, CEO, Sierra Pacific Crafts

Craig Curtis, President, Petersen-Arne

Lisa Kanak, Director of Marketing & Member Relations, Crafter's Home

Mary Kuniski, Vice-President, Vendor Relation, Michaels

Mike Marriner, President, Retail Navigator

Scott Rohaley, Vice-President, Logistics & Information Technology, Coats & Clark

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