Thursday, October 15, 2009

Mattel settles consumer lawsuit over lead toys

Mattel settles consumer lawsuit over lead toys
By MAE ANDERSON AP Retail Writer
SAN DIEGO (AP) - Mattel Inc. and its Fisher-Price subsidiary have agreed to settle a consumer lawsuit for tens of millions of dollars over the 2007 recall of millions of toys made in China that were found to contain high levels of lead.
The proposed class action settlement will resolve 22 suits filed against Mattel and Fisher-Price and major retailers on behalf of millions of families who bought defective toys as gifts before they were taken off the market.
In the settlement, Mattel and Fisher-Price agree to provide refunds or other reimbursement to those who purchased the Chinese-made toys. The reimbursement varies by the circumstances of purchase and return of the toys.

5 comments:

  1. I wonder why they never seem to catch the lead levels in these toys before they are distributed. As many recalls that are broadcasted through commercials, you would think that toy companies would have alead detector process and learn from other companies' mistakes. This is not a foreign subject matter and I am glad they are being sued.

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  2. More importantly...were any children actually sickened by the Chinese-made toys? If any of the 22 suits filed involve children who were seriously sickened, settlement in the form of "refunds or other reimbursement" doesn't seem enough; depending, of course, on what "other reimbursement" actually refers to.

    This is just one more reason why major U.S.-owned corporations should reconsider moving manufacturing to foreign countries. Are the labor and production costs saved actually worth the possibility of harming or worse, killing US residents?

    I realize the vast majority of companies are for profit, however, not everything should be about the dollar when it thwarts life.

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  3. I agree with you Nadera. American companies have a tremendous amount of quality control checks and monitoring agencies that audit the manufacturing process. Human error is bound to occur, but it’s baffling to think that a company, with so many regulations in place, would let such a gross error to transpire.

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  4. Obviously it is frightening to think of the millions of children who could potentially have been sickened by the lead painted toys but for toy companies to screen every toy the cost would be astronomical. I also don’t think cases like this will do much to deter American companies from going overseas for manufacturing. First, it would be incredibly expensive to both the companies and the consumers for production to move back to the United States. Second, when you outsource work (either abroad or within the confines of the United States) you give up some degree of quality control. It is to be hoped that all companies will abide by the standards and expectations you would follow when producing your product; however, we all know that is not that case. Companies across the world cut corners to make a greater profit. I think the real answer is to create stronger international standards and controls to ensure that products being produced anywhere in the world all meet the same safety specifications. That being said, the fact that Mattel and Fisher Price are settling this case for such a large amount of money sends a message to companies and international regulators that changes do need to be made because otherwise companies will continue to suffer greater and greater losses to settle similar claims.

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  5. That's good that the lawsuit has been settled for a "reasonable" amount but if the consumers are just getting refunds for the toys that's great but did any children actually get sick after chewing or biting these lead paint made toys? If so than they deserve more than just a refund on the toy purchase.

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