Mattel Recalls 1.5 Million China-Made Toys

EL SEGUNDO, August 2: Mattel has announced a recall of 1.5
million Fisher-Price toys made in China featuring Sesame Street and Nickelodeon characters over concerns about lead
paint, in a move that is expected to cost the toy giant $30 million.

Mattel says it has launched a fast-track recall in
cooperation with the U.S. Consumer Product Safety Commission and other
regulatory agencies worldwide. Mattel is also working with retailers worldwide
to identify affected products, have them removed from retail shelves and
intercept incoming shipments and stop them from being sold.

"We apologize to everyone affected by this recall,
especially those who bought the toys in question," Robert A. Eckert, the
chairman and CEO of Mattel, said in a statement. "We realize that parents
trust us with what is most precious to them—their children. And we also
recognize that trust is earned. Our goal is to correct this problem, improve
our systems and maintain the trust of the families that have allowed us to be
part of their lives by acting responsibly and quickly to address their concerns."

Jim Walter, Mattel's senior VP of worldwide quality
assurance, said that the company has conditions in place mandating that its
manufacturing partners use paint from “approved and certified suppliers and
have procedures in place to test and verify, but in this particular case our
procedures were not followed. We are investigating the cause to ensure such
events do not reoccur."

Mattel says it is conducting a “thorough investigation” into
the matter. The company notes that the manufacturer involved “has had a good
track record on product safety in the past… If the company concludes that
safety procedures were knowingly ignored, Mattel will take appropriate action.”

Mattel is also conducting a review of the procedures
followed with respect to all its products manufactured by vendors in China.

Of the 1.5 million recalled, 967,000 were from the U.S.
market.

Earlier this year, RC2, another leading U.S. toy
manufacturer, had to recall 1.5 million Thomas & Friends toy railway sets
manufactured in China because of lead paint.