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Mattel, Not China, To Blame For Toy Recall, Company Admits

But U.S. manufacturers, consumer advocates all for stronger government oversight

By Mark Huffman and Joseph S. Enoch
ConsumerAffairs.com

September 21, 2007

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Chinese manufacturers have taken plenty of heat in the U.S. over recent widespread toy recalls, but U.S. toy maker Mattel says it's mostly to blame. The company says there were flaws in some of the toys' designs.

The admission comes as reports circulate in the retail industry that additional large toy recalls are pending and may be announced today. Actions that can result in adverse publicity are often announced late Friday afternoon, in hopes they will not receive much attention over the weekend.

The issue of Chinese responsibility came up in Beijing this week where Mattel executives were meeting with their Chinese subcontractors. A top Mattel executive took the opportunity to apologize to his Chinese colleagues, saying they were being blamed for simply following flawed design plans.

“Mattel takes full responsibility for these recalls and apologizes personally to you, the Chinese people and all of our customers who received the toys,” said Thomas Debrowski, Mattel's executive vice president for worldwide operations, in meetings with Li Changjiang, head of China's product quality watchdog.

Action needed

Mattel's apology may have been crucial to the company's efforts to maintain good relations with its Chinese suppliers, but in the U.S., manufacturing interests and consumer advocates said there's plenty of room for improvement by all involved.

J.P. Fielder of the National Association of Manufacturers said, "it's clear that China has to establish some sort of safety network for its manufacturers."

He said that China should be willing to learn about the U.S. safety network and what the U.S. does to protect consumers. But regardless of what China and private companies may do, a stronger safety agency in the U.S. is a "good step toward protecting our own consumers."

Rachel Weintraub, director of product safety for the Consumer Federation of America, said Mattel's apology "must be part of a broad strategy to improve relations in China."

But she also said that the U.S. needs a stronger safety agency.

"It's certainly good to apologize, but we need regulation that is going to protect consumers," Weintraub said.

More than 20 million Chinese-made toys were recalled in the U.S., mostly because they contained excessive levels of lead paint. Coming on the heels of recalled tainted pet food and toothpaste, the recall applied increase political pressure in Washington to more closely monitor and control imports from China.

Over-reacted?

Debrowski also said he believed his company probably reacted to the crises by recalling more toys than necessary, and that some perfectly safe toys were taken off store shelves.

Mattel has responded to the recent heightened concerns about import safety by ramping up independent audits and testing of all products coming out of the region.

Other toy manufacturers and large retailers are also stepping up inspections, admitting they have done too little in the past.

Wal-Mart, on the other hand, has launched a public relations offensive to counter lab tests that found potentially harmful levels of lead, chromium and other heavy metals in pet toys sold in its stores.

Employees of Edelman, a large publicist, have attacked the lab that conducted the tests and the Web site that reported them but have not made any of their own test results or scientific authorities available.

Toy industry responds

Yesterday, companies other than Wal-Mart that make and import dog and cat toys said they will be triple-checking their products to be sure they’re tested for lead and other toxins.

That action -- according to the president of the American Pet Products Manufacturers Association (APPMA) -- is the result of a ConsumerAffairs.com story that revealed two Chinese-made pet toys sold at Wal-Mart stores contained what a forensic toxicologist said were elevated levels of lead, chromium, and cadmium.

Earlier this month, the Walt Disney Company said it will start conducting its own testing of toys featuring Disney characters. Toys 'R' Us said it has hired a corps of engineers who will test toys on its shelves.

Disney said it would inform Mattel that it will be "looking over their shoulders," Andy Mooney, Disney's consumer products chairman told the New York Times.

Toys 'R' Us, the nation's largest toy retailer, said it has engineers in the field this week, randomly selecting toys from store shelves around the country.

Mattel spokespeople say the company has stepped up efforts to examine all toys manufactured past and present.

Disney-branded toys are no strangers to the recall lists. This year alone, recalls have included magnetic puzzles, Easter baskets and footed pajamas bearing the Disney name.

For Toys 'R' Us, the problem is even more far-reaching, since its stores sell products carrying its own brand as well as those from nearly every major manufacturer.

Recalls of Toys 'R' Us-branded products this year include its Elite Operations toy set and wooden coloring cases, both containing lead-based paint.

With the holiday shopping season approaching, there is growing concern among retailers, manufacturers and companies like Disney that license their brands and characters for use on toys and children's items.

Toys at sea

While last week's recall of 800,000 Mattel toys could result in better oversight by manufacturers, one child safety expert warns that more lead-contaminated toys are likely to infest the U.S. market and that the safety agency charged with filtering unsafe toys cannot handle the load.

Allen Korn, director of public policy and general counsel for Safe Kids USA, a nonprofit that works to prevent child injury, said he expects other major toy manufacturers to do the same before the Christmas shopping season.

But while these major recalls of Chinese toys appear to have yielded some positives, Korn said many smaller foreign toy manufacturers may not care about hurting their brand image and it's possible they will continue to use the cheaper lead-based products in their toys.

He also warned that the agency charged with filtering dangerous toys is incapable of doing so.

The Consumer Product Safety Commission (CPSC) “is withering on the vine and needs a shot of water and fertilizer,” Korn said.

Among many of the agency's publicized woes, is a shrinking, demoralized staff. Nowhere is this more evident than at the ports where hundreds of millions of truckloads of products that the agency inspects are imported into the U.S.

No-Shows

Although the CPSC would not confirm it, reliable reports indicate the agency only has 15 inspectors for the entire nation. According to The New York Times, at least one of them almost never shows up to work.

“When an agency has jurisdiction over so many products, there needs to be a vigorous inspection network and clearly there isn't,” Korn said.

Korn said the agency is particularly weak because it has a very limited ability to fine companies that withhold information about a recalled product. Mattel has been accused of doing this at least twice.

According to the agency's governing statute, the Consumer Product Safety Act, a company has 24 hours to inform the CPSC if it believes one of its products could be dangerous. If it does not do so in that time frame, the most the agency can fine any company is $1.8 million, which often is far less financial damage than what most recalls would cost in consumer reimbursements, lost inventory and negative press.

“Often, that small fine is negotiated down, too,” Korn said. “It's an economic disincentive to do the right thing.”

The agency's remaining two commissioners have submitted reauthorization proposals to Congress. If Congress adopts the proposals, the agency would have greater authority to impose fines..

What to do

Until then, Korn warns that parents should take some precautions:

• Sign up for the CPSC's recall alerts, which are also published on ConsumerAffairs.com's recalls section and included in our free daily and weekly newsletters.

• Check past recalls.

• If any toys in a home have been recalled due to lead, you should consider taking your children to a pediatrician to be checked since lead poisoning symptoms are often not immediately noticeable.

• If a product comes with a recall registration card, fill it out so the manufacturer can contact you directly in the case of a recall.

• For smaller, less expensive toys, reconsider just throwing them away. Instead, get a refund or a replacement to test whether the recall works and also to hold the manufacturer responsible. If you have any problems getting a refund, file a complaint with ConsumerAffairs.com.

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