Mattel Apologizes to China Over Recalls
Mattel Inc. tried to save face Friday with Chinese officials, taking the blame for the recent recalls of millions of Chinese-made toys as it strives to mend a strained relationship with the nation that makes most of its toys and fattens its profit.
The world's largest toy maker sent a top executive to personally apologize to China's product safety chief, Li Changjang, as reporters and company lawyers looked on.
"Mattel takes full responsibility for these recalls and apologizes personally to you, the Chinese people, and all of our customers who received the toys," Thomas A. Debrowski, Mattel's executive vice president for worldwide operations, told Li.
The unusual move reflects how invested El Segundo-based Mattel has become in China.
"Mattel certainly must have been facing some pressure to do that, because you can't imagine why they would be trying to push this story along any further," said Eric Johnson, a professor of operations management at Tuck School of Business at Dartmouth College.
"Mattel is worried that the Chinese government is going to make it difficult for them to produce, put their costs up and hurt their stock price," Navarro said.
(I totally believe, me SANDY ANTON this was all on purpose to hurt our children!!! look at the rise of ADD/ADHD in past 20 years!!! the company Matel and others could care less about us..its all about their greedy selves and profit. I for one will buy NOTHING from china any more. America needs to wake up!)
Company stock has fallen from the mid-$23 level following the first recall in early August to a low of $20.97 on Sept. 10. Shares have since rebounded, increasing 38 cents, or 1.6 percent, to $23.94 on Friday.
Manufacturing toys in China has helped Mattel and other U.S. companies lower manufacturing and labor costs, helping boost profits.
"It's unfortunate China got the bad rap, but I also think China needs to pay attention a little more carefully to their standards so they comply with American standards," McRoberts said.
More than 500,000 Toys Recalled for High Lead Levels
Among the recalled toys, all made in China, were key chains with words like "truth" or "believe" engraved on them that have "high levels" of lead, the commission said in a statement.
Dollar General Merchandising Inc (DG) sold 192,000 of the key chains for $1, the CPSC said.
Lead is toxic in large amounts. A 4-year-old Minneapolis boy died of lead poisoning in 2006 when he swallowed a small charm. In smaller amounts, lead can cause developmental delays and behavioral problems.
This latest round of recalls follows a summer in which millions of toys from Mattel Inc (MAT), RC2 Corp (RCRC) and others were pulled from shelves worldwide due to lead paint.
The latest recalls were announced as the acting head of the CPSC, Nancy Nord, was to testify at a Senate subcommittee hearing on a bill to reform the agency and require it to take tougher measures to protect children.
The recall also affects about 35,000 Baby Einstein Discover and Play Color Blocks, which had excessive lead in the paint.
Also recalled were about 150,000 journals, bookmarks and bracelets made by Antioch Publishing. The bracelets contain high levels of lead, while the paint used on the journal bindings and bookmark clips has excessive lead.
There was also lead in the paint on portions of 79,000 Pirates of the Caribbean Medallion Squeeze Lights imported by Energizer Holdings' Eveready Battery Co. and 63,000 plastic Frankenstein tumblers sold by Dollar General.
Paint on mirrors in about 15,000 children's room decorating sets made by CKI Toys had excessive levels of lead, as did wooden alphabet and math block wagons sold by KB Toys Inc, the safety commission said.
Boy Scout Badges Pulled Over Lead Paint Concerns
DALLAS — The Boy Scouts of America said Thursday that a painted, plastic badge commonly worn by some of its youngest scouts is being voluntary recalled after a test revealed high levels of lead in the paint.
As many as 1.6 million of the badges, which are made in China, may be affected by the recall.
"We're doing everything we can," Boy Scouts spokesman Gregg Shields said.
The plastic totem badge is given to Cub Scouts, who are usually between the ages of 7 and 8. The badge has a yellow and blue border, includes a picture of a bear and wolf and reads "Progress Toward Ranks."
No illnesses have been reported, Shields said.
The unacceptable amounts of lead were discovered during a testing of Boy Scouts products, Shields said. He did not know the level of lead the test revealed.
The recall came the same day that the Consumer Product Safety Commission announced recalls of more than a half-million other Chinese-made products because they contain dangerous levels of lead.
The badges are supplied by Kahoot Products Inc., based in Roswell, Ga. The company is calling for a voluntary recall of the badge and asking parents to take them away from their children.
A phone message left with the company Thursday was not immediately returned.
Kahoot has supplied the badge to the Boy Scouts, based in Irving, Texas, for about eight years, Shields said. About 20,000 kits containing the badges have been sold each year since, he said.
The Boys Scouts are continuing to use Kahoot, which supplies 39 products to the organization. Shields said Kahoot has "acted responsibly in initiating this voluntary recall."
Shields said the badge was the first of 94 Boy Scouts products tested to come back positive for lead. More products are being tested, he said.
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