Thursday, August 02, 2007

Mattel recalls $30 million worth of toys

Can't feel too sorry for Mattel since the brought it on themselves. Manufactures who are looking to save money by dealing with China might want to keep in mind that China is doesn't hold to the same standards that we do.

Mattel Inc. said on Thursday it expects the recall of Chinese-made toys, such as popular preschool characters like Sesame Street's Elmo and Big Bird, to result in a charge of $30 million.

The estimate comes a day after the No. 1 toymaker recalled 1.5 million toys that were made by a contract manufacturer in China for the company's Fisher-Price unit. Shares fell 8.7 percent in early electronic trading.

They were recalled because their non-approved paint may contain too much lead -- linked to health problems, including brain damage, in children.

Representatives from Mattel were not immediately available for further comment.

Of the 1 million products recalled from the U.S. market, Mattel said about 30 percent reached store shelves.


Mattel is also expanding its testing programs to ensure that painted toys from third-party manufacturers are safe before being sent to customers.
What makes this worse is that as toddler toys you know they'll be put in the mouth.