Why are some small businesses closing because of CPSIA while others seem to be just fine?
In the absence of clear guidance from CPSC on many important issues, each business will have to decide for itself how to deal with CPSIA. Many businesses are taking a wait-and-see approach. Others are closing because the possible consequences should they guess wrong are too great. Still others are trying to comply as best they can with the provisions of CPSIA in spirit, even if they can’t comply to the letter of the law.
Some businesses will close or already have, some will stay open and do business as usual, and others will change their product line. It depends on how each individual business is run and how comfortable its owners are with the risk of litigation. For example, a crafter who sells only in her hometown might be more comfortable staying in business than someone who sells her products wholesale internationally. A business that can afford to hire an attorney might be comfortable taking the attorney’s advice, while a business that can’t afford an attorney might not be comfortable taking a risk of litigation. An apparel manufacturer might figure he’s less at risk than a manufacturer of jewelry.
