US congress hears toy testimony

Mattel CEO Bob Eckert tells US Congress of "disappointment" at recent events.
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Acknowledging that "we are by no means perfect," the Mattel CEO said the company could have done a better job overseeing sub-contractors in China that produced more than 21 million recalled toys.

The Consumer Product Safety Commission embraced Democrats' calls for more money after years of cutbacks to the beleaguered agency. "This situation cannot continue," said Nancy Nord, the CPSC's acting chief.

Testimony to Congress on Wednesday by both federal regulators and toy manufacturers detailed loose Chinese standards and US enforcement that have contributed to a spate of recalls of Chinese-made toys, food and other products as health threats.

Eckert told a Senate Appropriations subcommittee that the company would now test the safety of Chinese-made products with its own laboratories or with laboratories certified by the company.

He disputed reports that public warnings about the dangerous products were delayed because of disagreements with federal regulators or that Mattel might be motivated by saving money at the expense of safety when it chose to do business in China.

"I, like you, am deeply disturbed and disappointed by recent events. We were let down, and so we let you down," Eckert said. "But we have tackled difficult issues before and demonstrated an ability to make change for the better."

Under federal rules, manufacturers with a few exceptions must report all claims of potentially hazardous product defects within 24 hours.

On Wednesday, Eckert said Mattel has been working with the CPSC to "develop a new set of reporting protocols" but denied any suggestions of a feud.

In recent days, the Toy Industry Association has expressed support for congressional efforts to impose mandatory safety-testing standards. Companies such as Disney and Wal-Mart have announced their own measures, with toy maker Step2 saying it intends to expand its labeling next week to make sure consumers know a product's foreign origins.

The CPSC, too, has come under fire. Its staff has steadily dropped from almost 800 employees in 1974 to an all-time low of about 400 employees now.

Displaying a photo of a CPSC laboratory strewn with boxes and piles of uninspected toys, Sen. Richard Durbin, D-Ill., called U.S. enforcement practices unacceptable and said he would work to boost funding to roughly $70 million.

"After discovering that a toy I purchased for my grandson was recalled in May, I asked myself the same question parents across the country are asking today — who is in charge?" Durbin said. "The answer is that there is one employee at the Consumer Product Safety Commission responsible for testing toys and ensuring toy safety throughout the country."

Nord and CPSC commissioner Thomas Moore said the extra money would be helpful as the agency faces record imports from China.

"'Made in China' has now become a warning label," Brownback said. "We're seeing this in the charts and we're seeing it in the products and it's got to stop."

"We know consumers are asking how they can be sure the toys they buy for their families are safe," Jerry Storch, chairman of Toys "R" Us told the Senate panel. He said the company would announce new measures this week to directly notify consumers of recalls with an e-mail notification system as well as bilingual notices.

"We support legislation shortening the time frames during the period between identification of a problem and the eventual recall of that product," he said. "We are troubled by the possibility that we could be continuing to sell toys that someone knows may have a problem, while we remain unaware until we receive word that a recall is coming."

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