Please read this clarification
http://www.cpsc.gov/cpscpub/prerel/prhtml09/09086.html and the Snopes article dacjohns posted
http://www.snopes.com/inboxer/pending/cpsia.asp before going off the deep end.
If you are very sure of what you are using, paint etc... don't worry! They are going after people who are intentionally buying 'junk' from china that is dangerous and then reselling it, there's lots of that stuff in the Dollar Stores out there, and I for one won't be sorry to see them gone from their shelves. Yes, it's all cheap, but I've seen moms buy some little toy, unwrap it and watched the kid stuff it right in their mouth!! China and other third world countries don't care if there's lead or other chemicals on our baby's toys!!
I make beaded jewelry and never sell ANYone anything without telling them to keep it out of children's reach at all times. I don't know where every bead I get comes from, and if it breaks (not likely because I do good work, but who knows!) a child could choke. Common sense ain't always so common!!!
If you craft, be very sure where your basic products come from, be very sure of the ingredients in paint, and be ready to prove your facts. I AM NOT A LAWYER, but govt agencies don't have time to go after every little person.