CPSC: Craig's List, eBay, garage sale sales could cost you a bundle

Sell a banned toy at a garage sale and risk fines of up to $100,000.

Repeatedly sell banned items on eBay or Craig's List and risk a fine of up to $15 million.

If you are trying to make a quick buck on an old item, you'd better know the product's safety status before you pitch it on eBay, Craig's List, at a garage sale or anywhere else.

The Consumer Product Safety Commission has a new set of very sharp teeth.

The far reaching, landmark Consumer Product Safety Improvement Act (CPSIA) now protects consumers with the largest expansion of powers for the Consumer Products Safety Commission since 1972.

The law was quickly enacted because of CPSC weaknesses at a time when a growing number of imported items, often from China, violated existing safety standards or otherwise posed health or safety hazards.

(Also see: Consumer Reports' new micro site, ConsumerReports.org/schoolsafety, which contains news and videos on the latest product recalls from the federal Consumer Product Safety Commission and Food  Drug Administration impacting children.)

Violators caught selling anything on an extensive list of banned and hazardous items, or items that don't meet strict safety standards face fines of up to $100,000 per infraction and up to $15 million for a related series of infractions. Violators may also face up to five years in prison in some cases and may have their assets forfeited as part of the punishment for violating the CPSIA.

Details

• While the new law focuses on manufacturing safety for toys and other products for children, it also covers all terrain vehicle standards, toy and game labeling, shipment tracking labels, laboratory and supply chain inspections, stockpiling in advance of the effective date of a new product safety rule.

• The new law also comes with whistleblower protections to encourage citizens to out manufacturers, suppliers and others who violate the law.

• The tough new law also targets retailers and resellers. Resellers include the vast online market place world of eBay and Craig's list -- even garage sales.

• Ignorance of the law is not a defensible position in court. "Under the new law, toy manufacturers, importers, and retailers do not need to be aware of the violations in order for criminal charges to be laid," according to the CPSC.

"Those who resell recalled children's products are not only breaking the law, they are putting children's lives at risk," said CPSC Chairman Inez Tenenbaum. "Resale stores should make safety their business and check for recalled products and hazards to children."

While some critics say threatening individual sellers is another example of the government overstepping it bounds, tough laws are often necessary to protect children from adults who see more value in a few bucks than in taking the time to see that kids are safe.

The CPSC has a litany of reports of kids chocking and dying from small parts and open-chest surgeries to remove magnets that fell out of certain toys.

Homeowners holding garage sales, flea markets, charities and individuals selling individual items on the Internet are expected to consult the 24-page "Handbook for Resale Stores and Product Resellers" to make sure what they are selling is legal.

Prohibited from sale are:

• Products that have been recalled by CPSC.

• Toys and other articles intended for use by children, and any furniture, with paint or other surface coatings containing lead over specified amounts.

• Products primarily intended for children age 12 or younger with lead content over a specific amount.

• Certain toys or child care articles that contain any one of six prohibited chemicals known as phthalates, which are primarily used as plasticizers.

• Other products that violate CPSC safety standards, bans, rules or regulations or otherwise present a substantial product hazard.

Many of the new laws provisions are in place now with a full phase in by August 14, 2011.

Provisions include:

• Those who manufacture toys and or are involved with importing toys from other countries must screen for lead and phthalates.

• All toys and shipments of products for kids must include a statement of certification that confirms legal conformity. Manufacturers, importers, and some retailers must have a reasonable testing program or must be able to prove that each product has been tested.

• Toy and product testing must be performed by an accredited third-party laboratory.

• Imported products that aren't certified won't be admitted to the country and may be destroyed.

For more information, get to know the Consumer Product Safety Improvement Act (CPSIA).