Tuesday, August 14, 2007

Mattel Toy Recall

Here's the latest from the New York Times concerning the Mattel Toy Recall.


Mattel, the world’s largest toy company, today announced its second major recall in a month of Chinese-made toys contaminated with lead paint. At the same time, it recalled millions of other toys whose small, powerful magnets could come loose and be swallowed by children.

Related
Lead Paint Prompts Mattel to Recall 967,000 Toys (August 2, 2007)

Toy Magnets Attract Sales, and Suits (July 15, 2007)
Recall Information From Mattel

Times Topics: Consumer Product Safety

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Mattel's full-page advertisement.
The latest recalls are another major embarrassment for Mattel, which began an advertising campaign today in an effort to reassure consumers about its commitment to product safety.

The company, in a statement issued from its headquarters in El Segundo, Calif., said it was recalling a total of 436,000 Chinese-made toys, more than half of them marketed in the United States, that had “impermissible levels of lead.” The toys are die-cast vehicles featuring the Sarge character from the movie “Cars.”

Mattel said the hazard in the products, made between May and July, was discovered as part of an investigation of all its toy manufacturing that began in July after it received a tip about lead-based paint. The latest move involves toys from a different Chinese contractor than the one that produced toys recalled earlier this month, it said.

The separate action today involving a design flaw in 18.2 million magnetic toys, about half of them sold in the United States, expanded a recall initiated last year after reports of deaths and injuries to children who ingested magnets that had come loose. Mattel said the recall covered 63 varieties of toys, made since 2002 and sold before January of this year, including 44 Polly Pocket toys, 11 Doggie Day Care toys, 4 Batman toys, a One Piece toy, and two Barbie toys.

Mattel’s statement about the recall did not specify where the magnetic-based toys had been manufactured, but the Consumer Product Safety Commission said today that all were from China.

The company said it was working with the safety commission and other regulatory agencies worldwide, as well as with retailers to remove the affected products from stores.

“We take this very seriously,” said Robert A. Eckert, the chairman and chief executive of Mattel, on a conference call this afternoon. “We’re reaching out to people today and, particularly parents. We’ve changed our own testing procedures, so we’ll be extra vigilant in this area.”

Mattel has a reputation for being one of the most conscientious toy makers and is known for having sophisticated inspection and testing systems at many of its China factories to guard against flawed, defective or tainted products.

But the latest recall could feed growing international worries about the quality and safety of consumer products made in China.

It would follow a series of other recalls by manufacturers this year involving a wide range of products from contaminated pet food ingredients to defective tires to tainted Chinese-made toothpaste.

Jim Walter, senior vice president for worldwide quality assurance at Mattel, said in a statement issued today that Mattel was putting in place a “strengthened three-point check system” to guard against lead-based paint. It will permit only paint from certified supplied, and require every batch to be tested; it will tighten controls throughout the production process and conduct random inspections; and it will test every production run of finished toys.

In an interview later, Mr. Walter described a visit to China and Hong Kong last week in which he met with all of Mattel’s contract manufacturers to reiterate Mattel’s quality rules. “The message was very clear,” he said. “If you cannot do these things, please let us know. No problem, but you won’t be doing business with us.”

Mr. Walter said Mattel had long had quality checks in place, but added that now “we do realize the need for increased vigilance, increased surveillance.”

The company said today that 65 percent of its toys are made in China.

Earlier this month, Mattel recalled over one million Chinese-made toys, including Sesame Street and Dora the Explorer products made by its Fisher-Price unit, because they were contaminated with excessive levels of lead paint, which if ingested could pose health hazards to children.

Mattel’s stock was down about 2 percent in trading this afternoon.

Mattel executives said that the $30 million charge announced earlier this month includes the cost of today’s recall. But costs of doing business at the toymaker will go up as the new tests are integrated into its systems, Mr. Eckert said.

“We will have costs associated with this increased testing and vigilance, but what’s important here is we do not put a price on safety,” Mr. Eckert said.

Today, before the latest recalls were announced, Mattel ran full-page ads in The New York Times, The Wall Street Journal and USA Today that featured a letter from Mr. Eckert.

“Nothing is more important than the safety of our children,” the letter begins.

“Our long record of safety at Mattel is why we’re one of the most trusted names with parents,” it says. “And I am confident that the actions we are taking now will maintain that trust.”

David Barboza reported from Shanghai, and Louise Story from New York.

Now...Here's a little irony by Bucky Covington:

Bucky Covington

A Different World
We were born to mothers who smoked and drank
Our cribs were covered in lead-based paint
No childproof lids
No seatbelts in cars
Rode bikes with no helmets
and still here we are
Still here we are


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