There will always be conflict between governmentsÂ’ efforts to enact legislation both necessary and proper and the individual's right to liberty; and for the most part this is a desirable aspect of a free society.
It is incumbent upon government to enact legislation it believes in good faith to be Constitutional, and it is presumed to be such until determined otherwise in a court of law.
It is likewise incumbent upon each citizen to push back against government excess and compel the state to justify a given measure, that an actual and legitimate governmental interest exists, and require the state to objectively document its rationale.
The legislation passed concerning military funerals, for example, was as much political pandering as ‘feel good legislation,’ if not more so.
How are those regulations working out? The company followed them, but somehow it's OK for the government to seize the business?
The emperor/government not only has no clothes, it is shitting on the Constitution.
The government isn’t ‘seizing the business,’ the CPSC, part of the Executive Branch, filed an administrative complaint seeking the product not be sold because of possible health risks:
http://www.cpsc.gov/cpscpub/prerel/prhtml12/12234.pdf
Nor is the CPSC violating the Constitution, as the complaint was filed pursuant to Federal law, as cited. The company in question will have ample opportunity to defend its position during the complaint process.