I don't believe your statement is quite correct. Let me explain. Supposing I went with a mom and her child to a craft store, such as Jo Ann's, and she purchased fabric and supplies (buttons, zipper, thread, trim) to make her child an outfit. They cut her fabric. I am standing right next to her at the cutting table. I purchase fabric from the same bolt to make a ragdoll to sell. She goes home, creates the item, the kid loves it, and all is well. If I go home and create my ragdoll, I now fall under the CPSIA and dance through hoops. Her CHILD is no safer. It is just that the parent is ignorant of this law. It is the items that are continuing to be sold where the problem lies in my thinking. I could be a grandmother and make a grandchild an outfit. If I don't know the law, I could have dangerous fabric, harmful buttons on it. Go into a fabric store and start reading labels and contents. Look at items for kids.
This law has also affected charities. And put limits on thrift stores. Go way back - as far as you can - through old Forum threads. Start way back and come forward. Spend time researching this. Etsy shops making kids items fought hard to keep this law reasonable. We did TV interviews, we wrote letters. Dig into this. So many great shops went out of business or have switched to other items. I am one of those.
The part that really breaks my heart is that all through history, mothers and grandmothers, dads have created kids' toys. Ragdolls, teddy bears, all kinds of things - way back through history. Over the last years and going forward, a lot of this history will vanish, because we can't create what we want to. How long will it be before ALL artists are restricted under this law? They will be required to test everything.
Look into children's books, school items, games. They fall under this law also. Again, read the CPSIA. Study it.
The CPSIA has been difficult to understand and the CPSC is constantly changing it. That in itself has been a tough one to swallow. They have it planned to include new dangers as time goes along.