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Mattel again recalls millions of China-made toys

New York, August 14, 2007

Mattel Inc., the largest US toy company, recalled millions more Chinese-made toys on Tuesday due to hazards from small, powerful magnets and lead paint, sending its shares down as much as 6 percent.

The toymaker's second recall this month involved about 18 million toys and came as Mattel launched a national advertising campaign to assure consumers it is on top of product safety.

The new recall includes 7.3 million Polly Pocket dolls and accessories with magnets.

The US Consumer Product Safety Commission said there had been reports of three children swallowing more than one magnet and suffering intestinal perforations that required surgery. When more than one magnet is swallowed, the magnets can attract each other and cause intestinal perforation or blockage, which can be fatal.

Also recalled on Tuesday due to magnet dangers were 1 million Doggie Day Care, 683,000 Barbie and Tanner play sets, and 345,000 Batman and One Piece play sets. No injuries were reported from those items.

About 253,000 Pixar Sarge die-cast toy cars with lead paint were also recalled. No injuries were reported in connection with the toys.

Lead has been linked to health problems in children, including brain damage.

Earlier this month Mattel's Fisher-Price unit recalled about 1.5 million preschool toys made by China-based contract manufacturer Lida Toy Co. because the paint on the toys might contain excessive amounts of lead. The global recall included products based on popular preschool characters from 'Sesame Street' and 'Dora the Explorer.'

'The safety of children is our primary concern, and we are deeply apologetic to everyone affected,' Mattel Chief Executive Robert Eckert said in a statement on Tuesday. 'Mattel has rigorous procedures, and we will continue to be vigilant and unforgiving in enforcing quality and safety.'

The earlier recall was Mattel's largest since 1998, when it recalled 10 million Power Wheels vehicles made by Fisher-Price, and the company said it expected to take a $30 million charge from the action.

News of the second recall came as an owner of the Chinese toy factory at the center of the first recall was reported to have committed suicide.

Mattel took out a full-page ad in Tuesday's Wall Street Journal, New York Times and USA Today, featuring a picture of three children playing together and a letter to 'Fellow Parents' from Eckert.

'Nothing is more important than the safety of our children,' the Mattel CEO wrote.

'Our long record of safety at Mattel is why we're one of the most trusted names with parents. And I am confident that the actions we are taking now will maintain that trust.'  - Reuters




Tags: China | Mattel | toys |

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