January 8, 2009

National Bankruptcy Day is Near (And Don’t Blame Ron Paul!)

Remember when congress passed HR 4040?

Congress passed the Consumer Product Safety Improvement Act of 2008, or HR 4040, a retroactive rule mandating that all items sold for use by children under 12 must be tested by an independent party for lead and phthalates, which are chemicals used to make plastics more pliable.

All untested items, regardless of lead content, are to be declared “banned hazardous products.” The CPSC has already determined the law applies to every children’s item on shelves, not just to items made beginning Feb. 10.

The regulations could force thousands of businesses – especially smaller ones that cannot afford the cost of lead testing – to throw away truckloads of children’s clothing, books, toys, furniture and other children’s items and even force them to close their doors.

This has been referred to as National Bankruptcy Day. Resale shops will no longer be able to sell older toys (at a substantial discount), depriving the poor and middle class, once again, of the things they can afford.

This bill passed the House with a vote total of 424-1. Who cast the one “nay?” Ron Paul (last paragraph). Read the government’s FAQ sheet if you can stand it. Thanks to Gregg J. Farrier for the reminder.