Christensen, who makes everything by hand, says the only things his products contain are wood and beeswax, and he's bitter about being forced to test them for lead.
Other manufacturers say they've been quoted testing prices of $24,000 for a telescope, $1,100 for a wooden wagon and $400 for cloth diapers, according to the toy alliance.
Christensen and Mestyanek say they've never been forced to recall a toy and believe they are being punished for other companies' lax standards abroad.
Last year's recalls were for toys manufactured overseas for big companies such as El Segundo-based Mattel Inc.
"We are steadfast believers in U.S. manufacturing," Mestyanek said. "So why should we have to suffer because Mattel wants to do work in China?"
Many of the businesses affected by the law were created to make better, safer toys than those available at chain retailers such as Wal-Mart Stores Inc., said Dan Marshall, who owns a toy store in St. Paul, Minn., and founded the Handmade Toy Alliance.
The new testing rules are being phased in. By Feb. 10, children's products must be accompanied by a manufacturer's certificate that says they do not contain lead or phthalates, which are chemicals used to soften plastic.
On Feb. 15, children's products will have to be tested by a third party to ensure that they don't have small parts that could be easily broken off and swallowed. In March, children's jewelry will be required to submit to third-party tests. Bouncers and walkers will have to be tested starting in June.
Retailers could also be hurt by the new law. Julie Vallese, a spokeswoman for the Consumer Product Safety Commission, said stores would not be allowed to sell inventory after Feb. 10 that had not been tested for lead content. That means if the products are made out of natural materials but have not been tested, they'll have to be pulled from the shelves.
It's a blow to retailers who are confused by the law and already hurting in a slow economy.
"It's going to be illegal for me to sell a lot of the stuff I have in my store," said Stacy Scott, the owner of Treehouse in the Glen, an eco-friendly San Jose store that opened four months ago and sells toys made out of natural materials.
Scott says her suppliers are going to raise their toy prices, which are already high compared with the costs of toys made in factories overseas. She fears she'll have to close the shop down, her dreams of selling locally made handcrafted toys thwarted by the mistakes of overseas companies.
The toy alliance is hoping to get Congress to revise the law to exempt manufacturers who make children's items exclusively using natural products such as wood and cotton, or to allow them to test those raw materials instead of the finished products.
Don't count on that, said Sharon Jenkins, a spokeswoman for Rush, the congressman.
"Nobody likes to tighten up," she said. "But the law is the law, and the standards aren't going to be changed."
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alana.semuels@latimes.com
