The House of Representatives Commerce committee is working on a bill that would amend the CPSIA, offering relief to small online sellers and businesses impacted by the legislation. Vanessa Bertozzi of Etsy, which has been helping educate and mobilize crafters and online sellers affected by the CPSIA, said she was struck by the irony of the situation in which members find themselves. Many of the businesses adversely affected by the legislation had started in reaction to mass-produced toys that were recalled because they contained lead, she said. "It's sad to think legislation is backfiring in the way it's going," Ms. Bertozzi said.

The Consumer Product Safety Improvement Act (CPSIA) took effect on February 10, 2009 and imposes third-party testing requirements for all consumer products primarily intended for children twelve years of age or younger. It has been deemed by many as onerous for small businesses who manufacture, import or resell children's toys, books and clothing. There have been reports of small toy makers going out of business and thrift stores unnecessarily throwing away children's items - including winter coats - due to the costly requirements imposed by the CPSIA.

The CPSEA (Consumer Product Safety Enhancement Act of 2010) would offer some relief by amending the CPSIA. A recent version includes a section called "Relief for Thrift Stores and Other Retailers."

Dan Marshall of the Handmade Toy Alliance testified before the House committee on April 29, hoping it would lead to a "marking of the bill" - meaning it would move forward in committee. But Mr. Marshall fears Democrats and Republicans might not be willing to negotiate a bipartisan bill.

Dan owns Peapods Natural Toys, a toy store in Minnesota. He said he was worried that the people he bought inventory from would go out of business due to the CPSIA requirements. He is pushing for alternative testing for small batch manufacturers that would be less costly for "really small manufacturers."

Ms. Bertozzi said Etsy is using its blog and social media tools including Facebook and Twitter to help spread the word about legislation. On Tuesday, she posted a blog post urging users to call their representatives. Mr. Marshall agreed, telling AuctionBytes that the Handmade Toy Alliance (HTA) urges people to call representatives on the House Commerce committee to move it forward. He and his colleagues on the board of the HTA wrote a letter to the committee on Wednesday explaining their position.