Mattel to pay $12 million in fines to states
Settling a 15-month investigation, Mattel agreed to pay $12 million in fines to 39 states for events that resulted in the recall of millions of lead-tainted toys distributed by the company and its Fisher-Price subsidiary in 2007. Mattel, the world's largest toymaker, also agreed to meet more stringent standards for accessible lead for toys manufactured after November 30, 2008.
From August 2, 2007 through October 25, 2007, the Consumer Product Safety Commission recalled about 18 million Mattel and Fisher-Price toys, all manufactured by contractors in China. Soon after the first recall, Martha Coakley, the Massachusetts Attorney General, began a probe of Mattel that was later joined by the other states. “Lead is highly toxic, particularly to young children. Higher exposures to lead, such as the levels found in these toys, can cause grave health problems,” said Coakley in announcing the settlement this week.
The consent judgment requires Mattel to make a payment of $12 million by January 30, 2009, to be divided among the participating states. As the leader of the multi-state group investigation and settlement, Massachusetts will receive $625,000.
As part of the agreement, Mattel agreed to lower the acceptable level of lead in toys shipped to the states to 90 parts per million down from 600 parts per million, which is currently the federal standard. When new regulations go into place next year, however, the federal standard for lead in paint and surface coatings will also fall to 90 parts per million.
We reported on the steady stream of recalls for lead-tainted toys last year (see links below), which shook consumer confidence in the safety of toys on the market. We were left wondering, however, if other companies that issued multiple recalls for lead, such as RC2, would be subject to penalties similar to Mattel's. RC2 was responsible for recalls of toys from the Thomas the Tank Engine series.
We also wonder why the CPSC hasn't flexed its muscle in levying civil penalties against any company that repeatedly violated the agency's lead paint standard. Without strong enforcement and adequate deterrents, wrongdoers will continue to flout the laws.
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