Mattel To Pay $12 Million To Resolve Lead-Paint Toy Probe
December 15 2008 - 10:56AM
Dow Jones News
DOW JONES NEWSWIRES
Mattel Inc. (MAT) and its Fisher Price toy unit will pay $12
million as part of a multistate settlement to resolve charges it
shipped toys with lead paint to the U.S. last year.
The settlement follows the recall of millions of Chinese-made
toys last year because of concerns that their lead paint didn't
meet U.S. standards. Dozens of U.S. lawmakers later urged Mattel -
the world's largest toy maker - to stop selling toys that contain
any amount of lead, claiming the company wasn't doing enough to
address safety concerns.
Under Monday's pact, Mattel will follow tougher standards for
accessible lead in toys manufactured after Nov. 30 and also agreed
to maintain at least four years of records for subcontractors that
manufacture parts for its toys, including records of lead
screenings and results.
Between August and October of last year, the Consumer Product
Safety Commission recalled about 2 million Mattel and Fisher Price
toys manufactured in China because of concerns that the toys
contained excessive lead
The toys that sparked investigations included Barbie
accessories, a toy train and a bath toy, among other things. All
were pulled from store shelves last September.
In a separate action Monday, New York Attorney General Andrew
Cuomo reached settlements with five "dollar" stores and a supplier
that were found to be selling children's jewelry with high levels
of lead. Those businesses will also adopt more stringent limits for
lead in children's products.
Mattel shares were recently down 3% at $14.17.
-By Lauren Pollock, Dow Jones Newswires; 201-938-5964;
lauren.pollock@dowjones.com
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