Mattel steps up safety rules
Testifying to a Congressional panel, Mattel Inc. Chief Executive Robert Eckert said Wednesday that the toy company had upgraded its methods to keep toys safe from excess lead and pointed to overseas contractors as the source of problems that triggered recent recalls affecting more than 20 million toys.
“We were let down, and we let you down,” Eckert told the Senate Appropriations Subcommittee on Financial Services and General Government. “We are doing everything we can to prevent this from happening again.”
At the hearing, the head of the U.S. Consumer Product Safety Commission said Chinese regulators had agreed to stop exports to the U.S. of all toys containing lead.
But lawmakers expressed skepticism about Chinese declarations, and a consumer advocate maintained that stricter enforcement policies were necessary to protect children.
Concerns over toy safety have soared recently amid three Mattel recalls of Chinese-made toys believed to have excessive levels of lead paint and other problems. The recalls involved certain accessories for Barbie dolls and certain products sold under the Fisher-Price brand, such as a “It’s a Big Big World” bongo band set, and certain GeoTrax locomotive toys.
Mattel also has recalled certain toys featuring preschool characters, including Dora the Explorer, Big Bird and Elmo.
The flurry of recalls has prompted a political outcry along with scrutiny of Mattel’s safety oversight procedures and questions about the effectiveness of U.S. regulators.
Lawmakers said weak regulation, caused in part by a sharp reduction in the size of the Consumer Product Safety Commission, was an important factor that allowed foreign suppliers to make products of inferior quality.
“The events of the last four months have shown us the dangers lax authority and limited resources pose to our children,” said Sen. Richard Durbin (D-Ill.), chairman of the Senate subcommittee. “We’re here today to address the problem.”
In his testimony, Eckert said El Segundo-based Mattel was buttressing its safety checks by ensuring from now on that all paint used by its producers was purchased from a certified supplier and retested before its use, as well as requiring further testing of finished products and increased use of unannounced inspections.
He also said vendors and subcontractors would be expected to store Mattel products separately from those of other companies.
“I think that kind of system will be effective,” Eckert said.
He also testified that Mattel chose to be “over-inclusive” in its recalls “out of an abundance of caution,” and he noted that the product recalls amounted to half of 1% of Mattel’s production over the last 12 months. “I’d rather that number was zero,” he added.
Mattel shares gained 92 cents, to $22.82.
The Senate hearing comes at a sensitive time for the toy industry as parents begin thinking about holiday purchases.
Jerry Storch, chief executive of retailer Toys R Us Inc., told the panel that he supported legislative proposals to strengthen the Consumer Product Safety Commission. He said his company favored requirements for product testing by independent third parties and speedier recalls when problems are discovered.
“Ultimately, more change is needed,” Storch said in written testimony. “And the federal government is a welcome and crucial partner in this effort.”
This year, Durbin introduced a bill to improve toy safety regulation, and Sen. Mark Pryor (D-Ark.) also introduced such a measure Wednesday. Among other things, the legislation calls for increasing the size of the commission and stiffer penalties for producers of unsafe products.
Although lawmakers Wednesday treated Mattel gently, they were less warm toward U.S. regulators and were openly dubious about news that China would prevent exports to this country of toys with lead paint.
Nancy A. Nord, acting chairwoman of the Consumer Product Safety Commission, told members that China’s General Administration of Quality Supervision, Inspection and Quarantine had agreed on such a ban after two days of negotiations with U.S. regulators.
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