compliance

CPSC Compliance for Handmade Sellers — What Small Makers Actually Need to Know

If you make children's products, clothing, toys, or accessories, CPSC compliance applies to your handmade business — even if you sell on Etsy. Here's exactly what small makers need to do.

Nobody tells you, when you open an Etsy shop, that the US government classifies you as a manufacturer.

But that’s exactly what the Consumer Product Safety Commission (CPSC) does. The moment you make a product for sale (even one doll, one baby blanket, one pair of children’s earrings), you’re a manufacturer in the eyes of the law. And manufacturers have compliance obligations.

The good news? Most small makers qualify for significant relief through the Small Batch Manufacturer exemption. You don’t need a compliance team, a legal department, or a big budget. You just need to know the three things small makers are actually responsible for and then do them consistently.

Note: This post covers US CPSC requirements. If you’re based outside the US but sell to US customers, these rules apply to you too. This information is for educational purposes and doesn’t constitute legal advice. When in doubt, consult a compliance professional.

Need to get your raw material and product inventory under control?

Try Craftybase - the inventory and manufacturing solution for DTC sellers. Track raw materials and product stock levels (in real time!), COGS, shop floor assignment and much more.
It's your new production central.

What is the CPSC and why does it apply to small makers?

The Consumer Product Safety Commission is the federal agency that sets safety standards for consumer products sold in the United States. Their job is to reduce injuries and deaths from unsafe products: everything from cribs to toy chests to children’s jewellery.

The CPSIA (Consumer Product Safety Improvement Act), passed by Congress in 2008, is the key law. It requires manufacturers to test products for children, label them accurately, and certify that they meet safety standards. And “manufacturers” includes you, even as a one-person Etsy shop.

If you make any of the following for children aged 12 and under, CPSC compliance applies to your business:

• Clothing and textiles: baby clothes, toddler tops, kids’ pyjamas, cloth bibs
• Toys: stuffed animals, soft toys, wooden toys, plush dolls
• Jewellery and accessories: earrings, bracelets, hair clips, headbands
• Nursery and sleep items: blankets, sleep sacks, cot bumpers (note: some nursery items have stricter requirements; see Group A below)
• Bags and carriers: backpacks, pouches, slings

If your products are for adults only, CPSC rules don’t apply in the same way. But if there’s any chance children could use them, it’s worth checking.

What products require CPSC compliance?

CPSC compliance is required for any children’s product, broadly defined as a consumer product designed or intended primarily for children 12 years of age or younger.

“Designed or intended primarily for children” is interpreted broadly. If you market something as a baby gift, list it in a children’s category on Etsy, or describe it as suitable for kids, the CPSC will likely consider it a children’s product.

There are two categories of products under the small batch framework: Group A and Group B.

Group A products must be third-party tested by a CPSC-accepted lab regardless of your business size. No exemptions apply. These include:

• Lead in paint and similar surface coatings (16 CFR Part 1303)
• Cribs, play yards, strollers, and other durable infant/toddler products listed at 16 CFR § 1130.2(a)
• Lead in children’s metal jewellery

If you make metal jewellery for children, you fall into Group A. You will need lab testing. Full stop.

Group B products are where the small batch exemption kicks in. Qualifying makers can rely on supplier testing rather than conducting their own third-party tests. This covers the majority of children’s textile and soft goods.

What is the CPSC Small Batch Manufacturer exemption?

The Small Batch Manufacturer exemption means qualifying small makers can rely on supplier lab tests rather than paying for their own third-party product testing, as long as those materials meet CPSC guidelines.

To qualify for the current year, your business must meet both of these criteria based on the prior calendar year:

• Total gross revenue from all consumer product sales must be $1,480,296 or less
• No more than 7,500 units of the specific product under CPSC jurisdiction were manufactured

If you meet both thresholds, you can register as a Small Batch Manufacturer and skip the cost of independent lab testing for Group B products.

Important: The revenue threshold is adjusted periodically. The 2018 figure was $1,123,530. As of 2026, it’s $1,480,296. Check the CPSC website each year to confirm the current figure before relying on it.

How to register as a Small Batch Manufacturer

Register on the CPSC’s Small Batch Manufacturers Registry to get your registration number. This is free and takes minutes.

Two important things to know:

1. You must re-register every year. Your registration number changes annually, which is why you should never print it on labels.
2. Registration doesn’t mean you’re off the hook for documentation. Small Batch Manufacturers still need to document compliance for every product (more on that below).

How to document compliance as a small maker

Even with the Small Batch Manufacturer exemption, you’re still required to document that the materials you use comply with CPSC standards. This is where most makers get caught out: the exemption reduces your testing burden, but it doesn’t eliminate your documentation burden.

Here’s the practical workflow:

Step 1: Contact your material suppliers. Ask every supplier for their CPSC-approved lab test certificates for each material you use. Key things to verify: lead content, phthalate levels, and BPA compliance. If a supplier can’t provide CPSC-approved tests, find one who can.

One important caveat: some international testing standards (like EN European standards or OEKO-Tex) don’t automatically satisfy CPSC requirements. Ask specifically for CPSC-approved tests, not just any safety documentation.

Step 2: Keep records by batch. For each production batch, record which materials you used and which supplier tests cover those materials. If there’s ever a recall or safety complaint, you need to be able to trace exactly what went into a specific product.

Step 3: Create a Children’s Product Certificate for each product. See the next section for what a CPC must include.

Step 4: Store everything. Keep supplier test certificates, your CPCs, and batch records somewhere you can retrieve them quickly. Digital is fine; just make sure it’s backed up.

This record-keeping isn’t bureaucratic busywork. It’s your protection. If a customer reports a safety issue, your records prove due diligence. If you ever scale to the point of working with wholesale buyers or retail stockists, they’ll ask for this documentation before they’ll carry your products.

Using inventory software for CPSC traceability

The part most makers overlook is the connection between their inventory system and their compliance records.

CPSC compliance depends on traceability. You need to be able to answer: “Which batch did this product come from, and what materials were in it?” That question is easy to answer if you’re tracking manufacture dates, lot numbers, and material sources per batch. It’s nearly impossible if you’re relying on memory or scattered spreadsheets.

A tool like Craftybase handles this naturally. When you log a manufacturing run, you record which materials you used, when you made it, and how many units were produced. Those records map directly to your compliance documentation:

• Batch records show which materials went into each production run, which is critical if you need to trace a recalled material back to specific products
• Lot numbers let you identify exactly which units are affected by a safety issue, so you can respond quickly and accurately
• Manufacture dates appear on labels and compliance certificates; your software records back them up

If you’ve had to pull a product from sale due to a supplier issue, you already understand how important this is. Without batch-level records, you’d have to recall everything. With them, you can pinpoint exactly which units are affected.

Read more about how batch manufacturing records and lot number tracking work in practice. Both are directly relevant to CPSC compliance documentation.

Children’s Product Certificates (CPC)

A Children’s Product Certificate (CPC) is a document you create for each of your children’s products. It certifies that the product meets applicable CPSC safety rules, based on the testing documentation you’ve collected.

See our detailed post on how to create a Children’s Product Certificate (CPC) for the full requirements and a sample certificate.

Every CPC must include:

• The product name and description
• The applicable CPSC rules and standards
• The identity of the manufacturer (you) and any importers
• Contact information
• The date and place of manufacture
• The testing documentation it’s based on (your supplier test certificates)

CPCs aren’t submitted to the CPSC. You keep them on file and provide them to retailers or importers who ask. They’re essentially your compliance proof of work.

CPSC labelling requirements

In addition to your CPC, every children’s product needs a permanently attached label meeting CPSC standards. The specific requirements vary by product type, but all children’s products need a label with at minimum:

• Your business name and contact information (email, phone, or website)
• Where the product was manufactured (city, state, and country if you ship internationally)
• When the product was finished (month and year)
• A batch identifier for recall traceability
• Fibre content (if applicable to textiles)
• Care instructions

The batch identifier on your label is what connects a customer’s product back to your batch records. That’s why your batch tracking needs to be accurate and accessible.

For very small items where a permanent label isn’t practical, or certain reversible garments, a hang-tag may be acceptable. Check the CPSC guidelines for your specific product type.

How to register for the CPSC Business Portal

Beyond the Small Batch Manufacturer registry, you should also register for the CPSC Business Portal. This lets you receive safety complaint reports about products and materials similar to yours, and fulfils your obligation to report safety issues raised by customers.

If a customer ever contacts you about a safety concern with one of your products, you’re legally required to report it if it could result in serious injury or death. The Business Portal is how you do that.

Frequently Asked Questions

Does CPSC compliance apply to small Etsy sellers?

Yes. CPSC compliance applies to all US manufacturers of children's products, regardless of business size or sales channel. If you sell children's clothing, toys, jewellery, or accessories on Etsy (even a single item), you are classified as a manufacturer under CPSIA. The Small Batch Manufacturer exemption reduces your testing burden significantly, but it doesn't eliminate your compliance obligations. You still need to document that your materials meet CPSC standards and create Children's Product Certificates for each product.

What is the Small Batch Manufacturer exemption and who qualifies?

The Small Batch Manufacturer exemption lets qualifying makers rely on supplier lab tests rather than paying for independent third-party product testing. To qualify, your business must have earned $1,480,296 or less in total gross revenue from all consumer product sales in the prior calendar year, and produced no more than 7,500 units of any specific children's product. You must register on the CPSC's Small Batch Manufacturers Registry each year to maintain this status. Note: the revenue threshold is adjusted periodically, so check cpsc.gov for the current figure.

What is a Children's Product Certificate and do I need one?

A Children's Product Certificate (CPC) is a document you create for each children's product certifying it complies with applicable CPSC safety rules. Every maker of children's products needs one, including small batch makers. You don't submit CPCs to the CPSC; you keep them on file and provide them when retailers or importers request them. A CPC identifies the product, the safety rules it complies with, the manufacturer's contact details, and the testing documentation (typically your supplier's lab test certificates) the certification is based on.

Do I need to test my handmade products for CPSC compliance?

It depends on your products. If you qualify as a Small Batch Manufacturer, you generally don't need to pay for independent lab testing for most children's textile and soft goods (Group B products). You can rely on your suppliers' existing CPSC-approved test certificates instead. However, Group A products always require third-party testing, regardless of business size. Group A includes items with lead in paint or coatings, lead in metal jewellery for children, and durable infant/toddler products like cribs and play yards. If you make children's metal jewellery, you need independent lab testing.

How does batch tracking help with CPSC compliance?

CPSC compliance depends on being able to trace which materials went into a specific product at a specific time. Batch tracking records the exact materials used in each production run, along with manufacture dates and lot numbers: the information your labels need and your compliance records must contain. If a supplier recalls a material, batch records tell you exactly which products are affected, so you can respond quickly without recalling your entire inventory. Craftybase tracks this automatically as part of your manufacturing workflow, making compliance documentation a by-product of normal record-keeping rather than extra work.

Where to start

If you make children’s products and haven’t looked at CPSC compliance before, start here:

1. Register for the CPSC’s Small Batch Manufacturers Registry: confirm you qualify, then register. Free and fast.
2. Contact your material suppliers and ask for their CPSC-approved test certificates for everything you use.
3. Set up batch tracking so every production run records which materials you used. This is your compliance paper trail.
4. Create CPCs for each product, linking back to the supplier test certificates.
5. Check your labels: make sure they include your business name, contact info, manufacture date, and batch identifier.

It looks like a lot laid out as a list. In practice, once you’ve done it once, maintaining compliance is mostly about staying consistent with your record-keeping. A good system makes that easy, especially one that tracks your materials and manufacturing runs automatically.

Craftybase connects your production records to your compliance documentation without adding separate admin work. When you log a manufacturing batch, you’re automatically building the traceability record that CPSC compliance requires. Start a free trial to see how it works for your shop.

Regulations change. Always verify current thresholds and requirements at cpsc.gov before making compliance decisions for your business.