There is a new law that goes into effect in February that essentially requires anyone selling products that will end up in the hands of children to be end-tested (not component tested) and labelled as safe.
While I support laws regulating foreign-made potentially unsafe products, this affects businesses of ALL sizes, and even when the components are safe, the end product still has to be tested and comply with regulations.
Testing is prohibitively expensive for most small crafters.
There has been a lot of discussion about it lately on etsy. In a nutshell, this is what the law says (I cut and pasted from one of the discussions):
Not just toys and jewelry, but CLOTHING, ROOM DECOR, SCHOOL SUPPLIES, EDUCATIONAL AIDS, ART WORK, ART SUPPLIES, PILLOWS, HAIR BOWS so on & etc. if it is made for someone 12 & under to use it will be subject to the certified testing. Even HAND-ME-DOWNS as resales or vintage items will be subject to the testing. To read the whole "brief", 67 pages long, requires some basic law education but you can get the gist of it in the CPSIA's FAQ section http://www.cpsc.gov/about/cpsia/faq/faq.html#educational
All of the etsy discussions are here, including some letter-writing and protest ideas: http://www.etsy.com/forums_search.php?search_type=forum_title&s...
And it's also being discussed on the Handmade Toys Alliance site.
And on Craftster