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Home Businesses Operating without Permits
This topic contains 3 replies, has 2 voices, and was last updated by 
David Crabill 9 years, 10 months ago.
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I started up my baking CFO last September and have been using Etsy to sell my products for delivery and pick up only. I’ve been posting my site all over Facebook, Instagram, etc., trying to get my business name out there and I’ve continually run into other businesses that clearly state they are baking in a home kitchen, but they are shipping their products. Or, they are baking in a home kitchen and selling cakes and cupcakes with buttercream frosting, and other products that are on the prohibited list. In other words, I feel like I’m restricting myself and losing business by not being able to ship, but meanwhile there are so many other home baking businesses out there that very obviously don’t have a permit, or they are not abiding by the rules of the permit. It’s incredibly frustrating and I’m wondering how this sort of thing is regulated? Does it take someone reporting them before they get shut down? How is the state staying on top of something like this? It feels like all the work that goes into getting your permit, etc., is in vain when there are so many businesses operating without it and getting more business because they’re unrestricted.
Bridget R Doyle (aka The Fudge Lady)Hi Jess my name is Bridget and I make fudge here in Oceanside/San Diego . I totally agree with you. Where are you located?
If you dont mind I loved to hear what your product is and how your promoting your product thru Instagram and Etsy.I’m located in Agoura Hills and delivering to all of LA and Ventura Counties. Nice to meet you Bridget!
My product is homemade desserts- pies and cookies for now, but I sell some custom orders of scones and muffins as well. I’m not sure that Etsy is the right place for me, as no matter how much you stress on each listing and the home page that the product is for delivery and pick up only, it still does not allow for you to remove the “shipping” option at check out. I have, unfortunately, had to cancel some orders from people who were confused and thought I could ship. At the time, I just don’t have the means to build a web site from scratch with the ordering option, so I will stick with Etsy for the time being.
Go ahead and check out my store, it’s Hello Sweetie Pies (https://www.etsy.com/shop/HelloSweetiePies). I also have a hashtag that I use on Instagram (#hellosweetiepies) and I’m on Facebook as well (https://www.facebook.com/hellosweetiepies).
I hope that helps! And I hope we get some answers about all of these businesses operating outside of the law. It’s so frustrating!!
Jess, I understand your concerns and I know it’s frustrating. You can imagine how all of the small local bakeries felt when the cottage food law got passed… what was the point of them going thru all the setup effort a year or two ago?
In addition to the CFOs that are bending the cottage food law, there are many many more that are ignoring the law altogether. They sell PHFs without any attempt to get licensed, and that practice is common throughout the US.
I think you can see that going after a few CFOs to get them shut down won’t change much and won’t help your business. And it probably wouldn’t work anyway, since the health dept is usually super busy. In fact, if you started operating illegally, it’s very very likely that the health dept would never catch you unless pressured to do so. When Mark Stambler (who helped start the law) got a writeup in the newspaper and got shut down, I don’t think it was because the health dept thought his business was unsafe or should be shut down — it was because if they didn’t shut him down, then they would be publicly seen as not doing their job correctly.
So is it worth it to follow the law and restrict your business in doing so? It’s your business and you need to be the judge, but I’ll say that by following the law, you protect yourself. If you find yourself in court someday (and I hope you never do), you’ll be standing on much firmer ground as a legal business rather than an illegal one. Do you want the one sale that goes wrong be one that happens via shipping? But while it’s true that most people adhere to laws only due to fears of loss, the primary reason I would choose to follow the law is based on principle, not fear. I know that there will never be enough policemen to micromanage people into doing what’s expected of them.
By the way, it’s interesting to see how you’re using Etsy while still following the cottage food law. Would you mind sharing what percentage of new customers you get from people finding you on Etsy?
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