The thing is CJs....compliance with this law and safe children's items are not one and the same. My items are all made of yarn, therefore they are all below the lead and phthalates limits and are therefore safe. However because they are not tested (XRF or 3rd party) the law as written would consider them noncompliant. There are importers who will continue to get faked certifications (if I remember right that's how the lead charm that killed that boy got through), so their products will be compliant but not necessarily safe.
This law was totally unnecessary, what CPSC needed was more funding to better enforce the existing laws, not new stricter rules. (Yeah, I know, it's been said before....preaching to the choir I guess.)
As far as the craft fair thing, from what I've heard there are still a lot of people who don't know about CPSIA yet or understand how it affects them and their businesses. Maybe some craft fairs just don't know about it--or maybe they're using a "don't ask, don't tell" policy, who knows? Now I'm wondering though, might craft fairs fall under the same exemption as consignment shops? No testing required but be confident your items are under the limits (contacting suppliers, etc)?