When a product is recalled, the company usually does it on its own, either based on research or reports it has received. But the Consumer Products Safety Commission (CPSC) can institute recalls and punish companies that brought to market or failed to respond to dangerous products. Mattel's massive recall was particularly shocking because of its high profile and status as a leading toy company. The recall led industry analysts to remark that if a major company like Mattel had a problem with dangerous toys, then numerous other companies' products could pose hazards as well.
Many companies, Mattel included, do not own or manage the factories that produce their toys. Instead they contract out to Chinese companies, where labor is cheap. Some of these Chinese companies in turn contract to smaller manufacturers. For example, Mattel has contracts with up to 50 Chinese companies, many of whom sub-contract out to other Chinese companies. Such a process, combined with a tangled Chinese government bureaucracy, leaves little accountability. Analysts have also commented that small profit margins motivate companies and the manufacturers they contract with to cut costs whenever possible.
Although manufacturers sometimes make mistakes, cut corners or use dangerous materials like lead paint, a product recall is usually the fault of the designer of the product. In fact, a Canadian study published in September 2007 showed that while 95 percent of product recalls since 1988 were for Chinese-made products, 76 percent of the recalls were due to design flaws. Only 10 percent of product recalls were the fault of the manufacturer [source: NY Times]. Companies have a responsibility to ensure that they not only work with reputable, accountable manufacturers but that they also design safe products.
As of now, toy companies aren't required by law to test their products before putting them on sale, though various laws do regulate what can and can't be used in a product. Many companies also abide by acknowledged industry standards, some of them set by ASTM International, an organization that sets international standards for numerous types of products. Companies who do test their toys before bringing them to market do so voluntarily. Still, it's in a company's best interests to test its products to avoid the expense and bad publicity of a product recall and because some retailers demand that products are tested. These tests, run by independent labs, look at issues of safety, durability and quality.
The numerous issues with lead paint, toxic dog food and other Chinese-made products have led to calls for the Chinese government to better regulate manufacturers. China has started cracking down on some flagrant violators, but tight regulation is difficult in a country with more than one billion people and thousands of manufacturers, some of whom disappear one day only to reappear later under a different name or in a different location.
In the U.S., consumer rights advocates and politicians called for more funding for the Consumer Products Safety Commission and stricter standards for imports. Concerns were also raised that the CPSC is understaffed. However, in August 2007, the New York Times reported that the CPSC was working with manufacturers to institute stricter testing guidelines.
For more information about product recalls and lead paint, and to see lists of recalled products, please check out the links on the next page.