The Consumer Protection Safety Improvement Act, CPSIA, a law passed by Congress and signed into law by President Bush in August 2009 effects any artist or craftsman creating things that are intended for, used by, or appeal to CHILDREN under the age of 12. This law has wrecked havoc on the craft community. This law is currently in effect. The law covers everything for children that will be sold, donated to charity, or given away, with the exception of personal gifts to family or direct friends. The law is enforced by both the C.P.S.C. and each State's Attorney General. Violation is a Federal Offense punishable by very large fines and imprisonment.
To learn what you need to know about CPSIA here are some links to give you all of the information that you need -
Consumer Product Safety Commission
Guidelines for Small Businesses and Crafters
THE LAW REQUIRES SPECIAL LABELING OF ALL ITEMS - LABELS GUIDELINES
FOR RESALE SHOPS AND THRIFT STORES