Mattel: Third recall in less than a year

We all thought it would not happen again, after earlier this summer Mattel made two large-scale recalls that affected 18.6 million toys. Today the firm is recalling another 55,000 Chinese-made toys after lead contamination fears. So how does that affect its brand image? Does it raise concerns regarding outsourcing operations? Do companies need to re-consider their options before manufacturing overseas? Or do they have to work on quality assurance and acceptable standards first?

---------------------------------------------------------------------------------------------------------------------------------------

BBC Thursday, 25 October 2007

Toy firm Mattel is recalling 55,000 Chinese-made toys after lead contamination fears, the US has said.

The recall affects 38,000 toys in the US, 12,000 toys in the UK and the Irish Republic and 5,500 toys in Canada.

The items affected are Go Diego Go Animal Rescue Boat toys imported by Fisher Price.

The move is part of a wider recall of 665,000 by the Consumer Product Safety Commission (CPSC). Mattel recalled million of toys over the summer.

Mattel's profits have fallen slipped by 1% over the past three months, in the wake of the recalls.

Earlier in the summer the firm made two large-scale recalls that affected 18.6 million toys, including certain Diego toys.

Consumer Product Safety Commission spokesperson Julie Vallese said the recalls stemmed from the improved examination of goods announced earlier.

"The CPSC, as well as manufacturers, continue to look for products that may violate the lead paint standard," said Ms Vallese.

The Diego boats had been identified during retroactive testing on items that had been set aside after August's recalls, said Mattel spokesperson Lisa Marie Bongiovanni.

This latest recall marks the fourth in six months, prompting the EU to embark on a two-month review of its toy safety regulations, expected to be complete in November.

"There is more to be done to step up controls," said Meglena Kuneva, the EU's consumer commissioner after announcing the recall that affected the items in the UK and the Irish Republic.