This will affect most Etsy Crafters in the US. I was amazed when I first joined Etsy that so many of you make handmade articles for children - because the rules that Cynjonnoah has posted below (Please stop over and read this), are already the norm in the UK. In fact, right across Europe because of EU rulings. It is against the law to make OOAK or small batch dolls or soft toys, clothing, etc, for children, unless every component is sent away for testing and has a certificate. Testing costs A LOT.
Also if you make any object that might APPEAL to a child or looks as if it is meant to be played with. The only exception that I know of is "Collectors Dolls" or Art Dolls as they are sometimes known. Here you must clearly state that the article contains wire, etc, is not meant for children... AND IS NOT A TOY!!!! I was told by someone at my local Tradings Standards Office, that it is better to have wire and obvious dangerous components as then you are very obvious about not wanting a child to play with your handmade items.
It is insane and has decimated the craft scene here, the only people who are still making dolls and toys for children are those that don't realise they are breaking the law. The fines are REALLY heavy.
Fight for your rights and good luck!