The Toy Industry Association has reported the initial results of a survey of manufacturers, importers, and retailers that it conducted in February on the impact of the regulations in the Consumer Product Safety Improvement Act (see “CPSC Grants One Year Reprieve”).  According to the association, the regulations have had a $2 billion retail impact on the responding companies, with over $1 billion worth of inventory returned from retailers or withheld from retailers as unsalable or awaiting testing.  Another $800 million worth of product may be returned to manufacturers, although it met safety standards at the time of production. 

And 40% of the responding companies said they would be cutting jobs as a result of the new reg, with 1,200 jobs at stake among the responding companies.

The TIA supports a national approach to toy safety, but argues that a lack of clarity in the regs and in the way they’re being implemented have “caused widespread confusion and expense.” 

Concerns about the cost of testing, the delays in product release the testing causes, uncertainty about which products fall under the requirements, the handling of collectable toys for adults, and how the rules will apply to used products have all been raised as issues with the new regulations.