What is the CPSIA?

Due to the complexity of the CPSIA, many people are still wondering which parts of the testing and certification, if any, apply to them.
The Handmade Toy Alliance has therefore pulled together the flow chart below in order to provide businesses with straightforward information on what does or does not have to be tested under the [...]

Yes, with a couple of caveats.

In 2007, a string of recalls of children’s toys for lead in paint hit the news.  Lead paint had been illegal since 1978, so these toys violated existing laws.  Although no children were poisoned by the lead in these toys, many people thought that action was needed to prevent recalls like these from ever happening.
In [...]

There are many reasons why a story like CPSIA would not be considered newsworthy or would not be covered adequately.

No, if your product is still intended for use primarily for children under 12 your product still falls under the CPSIA. In addition, by marketing and selling the clothes as a toy, what once may have only needed lead testing would now need phthalate testing as well.
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Because CPSIA affects a decentralized network of businesses, no organization or government office can keep track of all of them.  However, there is a list being compiled here of known losses definitely attributable to CPSIA, based on media reports and businesses’ self-reports.  At the time of this writing, the amount is over $4 billion.
The list [...]