Rep. Blackburn asks Obama to review consumer safety lawsuit

But in an Oct. 1 letter to President Obama, Blackburn said CPSC rules have already shut down 20 companies and hurt the operations of dozens of others, and that the rare CPSC lawsuit should therefore be reviewed before irreparable damage is done to Maxfield and Oberton.

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"Unfortunately, the CPSC's overreach and lack of flexibility has virtually eliminated these products and the jobs associated with their sales and distribution," she wrote. "We ask that your administration examine and review this extremely rare legal action by the CPSC and instead continue to work cooperatively to keep a successful small business from being closed.

"While child safety is everyone's primary concern, the disproportionate cost placed on small businesses and manufacturers due to burdensome regulatory overreach has been well documented."

She also said that Maxfield and Oberton were cooperating with the CPSC, until the CPSC "unilaterally" decided to sue the company.

"We ask that the CPSC work with industry to ensure that parents are aware of potential hazards and that small businesses are allowed to grow without threat of burdensome regulatory action," Blackburn wrote.

In July, the CPSC said that it was working with the company, which agreed to issue a safety alert related to the magnets. But the CPSC said injuries continued to happen even with the warning in place, and noted that eBay has agreed to stop carrying these items.