Fellow appraiser Nancy Bosch sent me an interesting article about regulations for selling items in the secondary market. This information can apply to appraisers who consult and advise on downsizing and liquidating personal property as well as estate sale services. The content is noted as consumer products, but mostly applies to items that might hurt children. That being said, many homes have old and used consumer products which are typically sold in estate and yard sales. As the value of many of these items are nominal, the more prudent method of disposal might be to trash the item or items.The new regulations are connected to the sale of tainted manufacturing, such as items that have recently come out of China with high lead content etc. According to the article the new Consumer Product Safety Improvement act was originally thought to apply to new sales, but that is not the case and it impacts secondary market sales of consumer products as well including estate sales and even individual yard sales.
What is a Consumer Product as defined by the Consumer Product Safety Commission?
A consumer product, for the purposes of this Handbook, is any product that is found in or around the home, a school, or in a recreational setting, including furniture, appliances, rugs, curtains, bed linens, wearing apparel, jewelry, toys, sports equipment and electronics.
Exceptions include tobacco products, motor vehicles and motor vehicle equipment, pesticides, firearms and ammunition, aircraft and aircraft equipment, boats, drugs, medical devices, cosmetics and food — these products are regulated by other federal agencies.
What cant be sold according to the CPSC?
- Products that have been recalled by CPSC. (see page 4)
- Toys and other articles intended for use by children, and any furniture, with paint or other surface coatings containing lead over specified amounts. (see pages 5-6)
- Products primarily intended for children age 12 or younger with lead content over a specific amount.(see pages 5-6)
- Certain toys or child care articles that contain any one of six prohibited chemicals known as phthalates, which are primarily used as plasticizers. (see page 7)
- Other products that violate CPSC’s safety standards, bans, rules or regulations or otherwise present a substantial product hazard. (see pages 8-20)
The Fox News article states
To read the full Fox News article, click HERE.In order to comply, stores, flea markets, charities and individuals selling used goods — in person or online — are expected to consult the commission's 24-page Handbook for Resale Stores and Product Resellers (pdf) and its Web site for a breakdown of what they can't sell.
Violators caught selling anything on the enormous list face fines of up to $100,000 per infraction and up to $15 million for a related series of infractions.
CPSC spokesman Scott Wolfson says the fines are intended for large companies with serious infractions.
"CPSC is an agency that has used its penalty powers over its 30-year history against companies," Wolfson told FOXNews.com. "CPSC is not seeking to pursue penalties against individuals hosting a garage sale or yard sale, we are encouraging them to take the right steps to not resell recalled products."
But FOX News Legal Analyst Bob Massi says the law makes no distinction for families and small resellers.
"Most people having garage sales at this point don't have much anyway, so to have a fine levied against them is tantamount to harassment," Massi told FOXNews.com. "And if you or I asked 100 people about this, they would never even know the law exists."
Don Mays, senior director of product safety planning at the publisher of Consumer Reports, says the hefty penalties are necessary to have an impact.
2 comments:
Wow that was kind of scary. I just came from the CPSC PDF page. Looks like that the majority of items are recalled electronics and baby stuff. But that 1860's cradle and that primative green painted stepback cupboard from 1900 and that refinished blanket box from 1880... might be on the short end of the stick. I think that this is mainly harmless but it might be WELL worth the efforts to alert customers and clients when dealing with these things.Remember someone out there could be stupid enough to give a child an 18th century teething whistle with the dangling bells on it. "Ooops I aimed to tell you..." is a little too late. This page is well worth a look for everyone involved with reselling or appraising on any level.
I would think that as appraisers, we do need to be aware of these rules. The recalled items would have no value when appraising residential contents at the level of Fair Market Value.
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