I have written many times about how regulation tends to help the large and well established competitors against smaller companies and potential future market entrants. Larger companies have the size to pay compliance costs and the political muscle to sway regulation in their direction and co-opt regulatory bodies. The tobacco settlement, ostensibly aimed at "big tobacco" has done nothing but cement the market leadership of the top brands. This is why you see some large companies jumping on board cap and trade or health care reform -- for example, Waxman-Markey contains rules that give a particular advantage to certain GE lighting technologies on which it holds patents.
The CPSIA is another such law, and Overlawyered has been all over the story. Here is what a craft fabricator of handmade dolls (even say your grandma selling at a craft fair) will have to comply with:
"¦Each batch needs a unique identifying number.
However, if in the course of making the products, you have to break into a separate box of buttons that has a separate batch or lot number itself, even if the product is otherwise identical, this is a separate batch and you need a separate new label for it with its own batch number that you assign. "¦ It is conceivable [if you incorporate variations into the product] every item you produce is its own batch and each needs its own number and label. "¦
You will need to do "batch control". You need to create a separate BOM [Bill of Materials] for each batch. You can keep this electronically in a database or spreadsheet. It is my understanding you need to keep these records for three years.
Though it was originally Mattel's problem with lead from China in toys that caused the CPSIA to get passed (Congress always has to "do something" when a story makes the news) do you think it is Mattel or grandma who will be driven out of the business? In the future, when leftish hippies wail that there are no small manufacturer crafts or locally grown food at their weekend fair, you will know why.