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A vivid personal narrative illustrates the complications regulations can impose. The Consumer Product Safety Commission responded to past safety crises by tightening regulations around children's products. This had unintended consequences, notably for smaller businesses.
Small businesses faced insurmountable costs and bureaucracy when attempting to comply with regulations designed for larger corporations. For instance, firms producing natural products, like cloth diapers, found it incredibly challenging to meet new standards, while larger companies, such as Mattel, secured exemptions or accommodations that further entrenched their market position.