Mattel Recalls 9 Million Chinese-Made Toys in US

Mattel, Inc., the largest toy company in the world, has a problem with its sourcing. As a result of lead paint on toys and powerful magnets that can be easily swallowed by kids, the toy maker is recalling millions of toys. The company CEO Robert Eckert issued a statement that read in part, “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.” The problem isn’t with Mattel but with some of its Chinese suppliers.

China produces 80% of the toys made in the world. Chinese companies operate according to the laws and regulations of China, not those of its export markets. This is where the problem lies. Either some of the companies providing inputs to the toy factories or the toy factories themselves are cheating or Chinese standards for safety vary from American standards. Whichever case applies, products manufactured in China don’t always live up to what is required of them.

Part of the blame must go to the export markets. It really isn’t up to Chinese authorities to ensure that exports meet foreign standards. Indeed, one can make the case that they are having enough trouble making sure that Chinese regulations get enforced. It is up to the American authorities to ensure that products arriving in the US do so according to US regulations. That is clearly not being done.

Mattel also bears some of the responsibility for its sourcing decisions. Mattel, however, is paying the price by bearing the expense and exasperation of the recall, and its stock is off 6% on the news. No one is holding the feet of US regulators to the fire. If they were, one could smell the roasting flesh for miles because very little is being done.

No one wants to admit it, but almost 6 years have passed since the Al-Qaeda murders in New York and Washington, and US ports are still not well inspected. If the government has to let 95% of all containers go through customs without searching them for bombs, what are the odds the government has the resources to check the toys in those containers for lead paint? If there is a solution to this problem, it won’t be cheap.

© Copyright 2007 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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