This holiday season is not looking so festive for local toy stores and toymakers. Changes in toy safety legislation have helped ban toxic toys imported from China, but may also be ruining the livelihood of local businesses.

Kate Glynn has worked hard to ensure the toys she sells at her Northampton store are non-toxic and made in the U.S. But she could be losing some of her best-selling products because of new toy safety legislation.

"I don't want to say its going to break my business, I don't want to be pessimistic, but I am very concerned," said Glynn, Owner of 'A Child's Garden' in Northampton.

After thousands of toys, mostly from China, were recalled in 2007, Congress passed tougher regulations. The new rules ban lead in toys and mandate third party-testing and certification. While Glynn thinks the legislation is long overdue, she says it will increase costs for small businesses that will have to pay for testing.

"My vendors are trying to figure out which lines to trim because they cant afford testing," said Glynn. "I am looking at losing lines, or having to increase costs, because if the toys are going to cost the manufacturer more money, it is going to be passed on to me."

Glynn is part of the Handmade Toy Alliance, who wants to see natural materials like wood, silk and wool be exempt from testing or financial help for small businesses. The new rules are being phased in now, and will fully take effect next summer.