Mattel, the world's biggest toymaker, has agreed to pay $12 million to 39 U.S. states to settle claims that it shipped toys tainted with lead paint. The settlement ends a 15-month probe of Mattel's Chinese-made toys headed by Massachusetts Attorney General Martha Coakley.
As the world's largest toy manufacturer, Mattel has $6 billion in revenues -- the Barbie line alone accounts for 80 percent of the company's profits. The company's third-quarter 2008 profits were $238 million. So, how come the settlement with 39 states totals a mere $12 million? Remember, lead exposure can cause cancer and birth defects and sometimes results in death. Last year Mattel and its subsidiary Fisher Price recalled more than 21 million Chinese-made toys. That's a lot of toys to be played with by millions of our children.
It probably wasn't money that the states really wanted -- although it is a powerful motivator for greedy manufacturers who would disregard public safety for money.(Imagine that.) It sounds like getting toys safer, faster may have been key for the states agreeing to the low-ball settlement.
LESS LEAD IMMEDIATELY
Ell Segundo, California-based Mattel did agree under the settlement to immediately implement new federal guidelines reducing lead content in toys in advance of the August 2009 effective date. These new standards reduce the permissible lead content to 90 parts per million from the current 600 parts per million.
Massachusetts began the probe in August 2007 following the U.S. Consumer Product Safety Commission's recall of 2 million toys made by Mattel and Fisher-Price.
The toys, made by third-party contractors in China, contained lead levels of as much as 100,000 parts per million, when the acceptable level was 600 ppm. It was the Big Big World 6-in-1 Bongo Band Toy which had the most lead content. Other Mattel toys had as much as 50,000 ppm lead content.
A TSUNAMI OF TOXIC TOYS
"This settlement should help stem the Tsunami of toxic toys threatening to swamp playrooms and playpens, poisoning children," said Connecticut Attorney General Richard Blumenthal, reported by Bloomberg.com.
Needham & Co. analyst Sean McGowan told the Associated Press that the settlement had been anticipated, and $12 million is probably less than the legal costs the company would have incurred if the company had not reached a settlement with the states.There remain class-action suits from consumers that are still pending, he noted.
Corporate Accountability International has inducted Mattel into its Corporate Hall of Shame for "toying with our kids' health."
"The background here is one of a stunningly wealthy corporation that ships its jobs to China in order to avoid America's taxes, minimum wage and tougher environmental and workforce rules. And to protect its healthy profits, Mattel's trade association is lobbying to kill U.S. legislation that could better prevent highly toxic toys from hitting the shelves again in the future," states Corporate Accountability Intl. on its website.
Mattel has been manufacturing its toys in China for 25 years. Currently 65 percent of its products are made there. In fact, China accounts for nearly 80 percent of the $22 billion annual toy market.
There have been many different kinds of Mattel and Fischer Price toys with dangerous levels of lead. Parents who still have concerns can check products' SKU numbers at Mattel's web site or call its toll-free recall hotline at 1-800-916-4498.
CLICK AND READ "MATTEL'S FISHER-PRICE MASSIVE RECALL -- AGAIN: OVER 11 MILLIION TOYS THIS TIME"
TO READ "MATTEL SECRETLY EXEMPT FROM SAFETY LAW TOY TESTING" CLICK HERE.
CLICK AND READ "TOYMAKER MATTEL FINED $23 MILLION FOR VIOLATING LEAD PAINT BAN"
CLICK AND READ: "WHERE ARE MATTEL'S ETHICS: UNDERCOVER LIKE BURKA BARBIE"
By Sharon McEachern
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