Sales of Barbie fell 12 percent in the U.S. as the 49-year- old doll faced competition from Hannah Montana and Ganz's Webkinz. Mattel, which recalled more than 21 million Chinese-made products in 2007, expects Chinese manufacturing costs to rise further. The yuan has climbed 10 percent against the dollar over the past 12 months, and inflation in China is near an 11-year high.

Also mentioned were the costs that Mattel incurred due to their lead and magnet recalls:

The recalls of Sesame Street vehicles with paint containing excessive amounts of lead and Polly Pocket dolls with magnets that may detach and get swallowed by children cost Mattel $110 million in 2007 for toy returns and legal, advertising and testing expenses.

Mattel Posts Loss as Chinese Production Costs Rise (Update4) [Bloomberg]
(Photo:Dust Storm)

AT&T has managed to sully the beautiful iPhone with their customer service missteps, let the government set up shop atop internet backbones so American citizens privacies could be invaded, and seems to almost go out of its way to make it possible for customers to sign up for federally mandated dry loop/naked DSL, and otherwise experiences many of the same foibles and hijinx you would expect with any other national telephonic giant.

This is a post in our Worst Company In America 2008 series. The companies nominated for this honor were chosen by you, the readers. Keep track of all the goings on at consumerist.com/tag/worst-company-in-america/

STILL OPEN FOR VOTING: Capital One vs Video Professor, eBay/Paypal vs COX, Apple vs SallieMae, Diebold Vs Pfizer, MTV vs TransUnion
CompUSA vs DirecTV
Target vs Best Buy
Allstate vs Verizon,
DeBeers vs 1800 flowers, Starbucks vs United Airlines,
Exxon vs Crocs, Google Vs Sony, Ticketmaster vs Wachovia, Facebook vs The American Arbitration Association, Comcast vs Menu Foods

We encourage you to review your pledge and act accordingly by recalling the red blood pressure cuff. Furthermore, we challenge you to live up to your words and set a standard for the entire industry by completely eliminating the use of lead in all of the children's products manufactured by Mattel. When parents purchase a product from your company, they are not just purchasing a toy—they are putting their trust in an established brand that has historically been believed to provide merchandise that is safe for their children. We urge you to live up to this reputation.

Representative Elijah E. Cummings, Democrat of Maryland, wrote Mr. Eckert in December asking it to stop using lead in its products. He said that Mattel's reply, which arrived last week, and its action on the toy were inadequate and that the company should issue a nationwide recall.

Mr. Cummings said in an interview that if Mr. Eckert "knew his child had one of these toys with this kind of lead in it, I know he would not allow his child to be having such a toy."

Lawmakers Say Mattel Broke Word on Lead [NYT]
Cummings, DeLauro to Mattel: 'Stop Selling Toxic Toys' [Congressman Elijah Cummings]
PREVIOUSLY: Consumer Reports Finds "Troubling" Levels Of Lead In Unrecalled Fisher-Price Toy
Fisher-Price Pulls Lead Tainted Toy In Illinois Only
Fisher-Price Pulls Another Lead-Tainted Product In Illinois Only
(Photo: Getty Images)

Mattel apologized for the incident, saying:

"We apologize to the family that they found that in the toy. No matter how it got there, or what the cause of the placement of that object in the toy was. So we apologize to the family, and we'd also like to send a replacement toy to make her Christmas happy and bright."

But cadmium batteries can be hazardous to make. In southern China, Wang Fengping worked for years in plants that produced cadmium batteries for the likes of Mattel Inc., Toys "R" Us Inc. and Wal-Mart Stores Inc. Like hundreds of her colleagues, Ms. Wang regularly inhaled the toxic red cadmium dust that filled the air in the plant.

Now, at 45, Ms. Wang is often too weak to walk. Her kidneys have failed, and her doctors have identified cadmium poisoning as the likely culprit. About 400 other workers at her former employer, Hong Kong-based GP Batteries International Ltd., have been found to harbor unsafe levels of cadmium, a toxic metal like mercury and lead that can cause kidney failure, lung cancer and bone disease.

Some toy-makers, like Hasbro, have eschewed the use of cadmium in their products because of their toil on the environment and the health of the workers who manufacture the batteries. Mattel, however, still uses cadmium batteries, claiming that they have "performance advantages." Walmart says it doesn't buy or use cadmium batteries produced by the manufacturer that employed Ms. Wang, but declined to comment further.

Toxic Factories Take Toll On China's Labor Force [Wall Street Journal] (Thanks, Aaron!)
Ms. Wang's Blog [Yahoo!]

From Consumer Reports:

You may recall that the state's action with the first blood pressure cuff was prompted by Consumer Reports' December investigation "New worries over lead" in which we reported finding high lead levels when we tested samples of the red Fisher-Price toy blood pressure cuff, among other items. Our findings prompted Madigan's office to begin an independent investigation that led to Fisher-Price's decision to pull the product out of the state's stores. The reason: Illinois bans the sale of toys, clothing, jewelry or other children's products that contain lead in excess of 600 parts per million. It is one of the strongest lead laws in the country and more stringent than federal regulations, which place limits on only paint and surface coatings. There are no federal limits on lead in plastics such as PVC.

The current action with the green cuffs was initiated by Fisher-Price, which tested the product and then reported it to Illinois. Fisher-Price spokeswoman Juliette Reashor explained: "Through research, we identified a similar instance with the green cuff, which revealed levels of lead that, though fully compliant with all federal and international standards, exceeded the Illinois statute. We proactively reached out to the State of Illinois to inform them of our findings."

"I am pleased that Fisher-Price took the initiative to test its products, self-report a violation, quickly remove the affected blood pressure cuffs from store shelves, and offer replacements to consumers," Madigan said. "I continue to urge manufacturers and retailers to review and tighten up their quality control procedures so consumers can be confident that the items on store shelves are safe for their children."

Fisher-Price pulls second lead-tainted blood-pressure cuff off shelves in Illinois [Consumer Reports]

PREVIOUSLY: Fisher-Price Pulls Lead Tainted Toy In Illinois Only
Amazon Pulls Fisher-Price Medical Kit After CR Lead Report
Consumer Reports Finds "Troubling" Levels Of Lead In Unrecalled Fisher-Price Toy

Hasbro's chief executive, Alfred J. Verrecchia, said yesterday in an online chat

"We believe that our high standards and robust testing and inspection process have allowed Hasbro to avoid any of the lead paint recalls. People should feel good about buying Hasbro products this holiday season. omg lol :)"

According to the Dallas Morning News,

The ad, an open letter to consumers from Hasbro chief executive Alfred Verrecchia, is meant to look like a public-service message, said Bob Chimbel, CEO of [ad agency] Uproar.

"It looks reserved, and that's how we want the message to appear," said Mr. Chimbel, whose firm's main client is Hasbro. "Logos of all our brands will appear since a lot of people know our brands, but not Hasbro."

"Hasbro launches advertising blitz to counter consumer fears" [Providence Journal]
"With Dallas firm's help, Hasbro plans ad to emphasize its toys' safety" [Dallas Morning News]

Back in October, CR tested the Fisher-Price Medical Kit, a classic toy that has been sold for years, and found that the plastic used for the red blood pressure cuff was tainted with lead. Unfortunately, because there is no federal law regulating the amount of lead in PVC and plastic (just paint) Fisher-Price is refusing to pull the toy from the market.

Based on the levels of accessible surface lead we measured, we estimated that a child could potentially receive a dose of more than 15 micrograms of lead per day through foreseeable hand-to-mouth contact while playing with the toy. That amount could potentially increase a child's risk of accumulating a blood lead level that exceeds 10 micrograms per deciliter—the threshold established by the U.S. Centers for Disease Control and Prevention (CDC) that generally triggers some form of intervention by doctors or public health officials.

Although we discussed our test results with Fisher-Price and the U.S. Consumer Product Safety Commission (CPSC), neither took immediate action. Fisher-Price contends that the toy "is fully compliant" with all federal regulations, which CPSC confirms. But the federal regulation for lead in toys places limits on only paint and surface coatings. There are no federal limits on lead in plastics such as PVC. That's a huge gap in the regulations that can leave children at risk for lead exposure.

According to the attorney general, the tests of the blood pressure cuffs revealed lead levels of 4,500 ppm and 5,900 ppm, more than seven to nine times the limit of 600 ppm allowed by Illinois state law. "Parents and other consumers should act quickly to ensure that children do not continue to have contact with this product," Madigan said.

At the request of Madigan's office, Fisher-Price has agreed to remove the affected toy Medical Kit from store shelves in Illinois and offer a replacement part—free of lead—to families that already own the toy. When asked what kit owners in other states should do, Fisher-Price spokeswoman Juliette Reashor said, "If consumers in states other than Illinois have concerns about the red blood pressure cuff, they may contact Fisher-Price at 800-298-0638."

She added that only the red cuffs are at issue. "The other colored blood pressure cuffs are made of different materials and are unaffected," Reashor said.

Hey, Fisher-Price, the toy is supposed to help kids pretend to be a doctor, not send them to see one for chelation therapy.

Fisher-Price pulls lead-tainted toy in Illinois but not other states [Consumer Reports]
Medical Kit [Fisher-Price]

PREVIOUSLY: Amazon Pulls Fisher-Price Medical Kit After CR Lead Report

Consumer Reports Finds "Troubling" Levels Of Lead In Unrecalled Fisher-Price Toy

Survey: Global Manufacturers Staying Put in China [the smart cube blog]

Slaughter, D-Fairport, made the suggestion to Robert A. Eckert, chairman and chief executive officer of Mattel — Fisher-Price's parent company — in a Nov. 12 phone call.

Slaughter said Eckert made no commitments, other than to tell her he would think about the idea. "Obviously he's not going to rush into this," she said.

The congresswoman said she was motivated to call Eckert after watching Mattel announce recalls due to excessive lead paint in toys produced in China. Slaughter said she felt the recalls have harmed the toymaker's image.

"I told him if he wanted instant rehabilitation of his reputation, he would announce (toy manufacturing) was coming back to Western New York," she said Monday.

Would opening a plant in the U.S. repair Mattel's image? Do you plan on buying any Mattel toys in the near future?

Slaughter asks Mattel to open plant here [Buffalo Business Today]
(Photo:willc2)

November 16, 2007

Dear Valued Guest,

As we prepare to kick off the holiday shopping season, we know that the important issue of toy safety is on the minds of many parents. I wanted to take a moment today to reiterate to you our uncompromising commitment to the safety of the children and families we serve and to share with you some of the steps Toys"R"Us has taken in recent months to enhance our already high safety standards:

While we have always mandated that our manufacturers extensively test products for a variety of hazards, earlier this year, Toys"R"Us engaged Bureau Veritas, a respected world leader in independent testing, to re-test products right off our store shelves. We have alerted our manufacturers that we will report any safety violations we may find to the proper authorities. In addition, we have advised our manufacturers that they must now increase the frequency of testing for each shipment of toys sent to Toys"R"Us stores. Our message is clear: there is simply no place for unsafe toys on our store shelves. Failure to meet our safety requirements has consequences - up to and including termination of our business relationship

We believe that when a product is recalled, the most important thing is to get that product out of children's hands. To that end, we have instituted a "no quibble" policy when it comes to toy recalls. This means Toys"R"Us will take back recalled product whether it was purchased at Toys"R"Us or not - with or without a receipt.

We are working in partnership with federal legislators to advocate for more funding and staffing for the Consumer Product Safety Commission, the government regulator responsible for toys. We are also advocating for the introduction of production code stamping of products, so retailers and consumers can easily identify specific items should they be recalled.

As the toy authority, Toys"R"Us carries the broadest assortment of toys from 30 countries, including the United States. Whatever your gift needs this holiday season, our toy-trained staff can help you find the best gift for the child on your list. I encourage you to visit our Safety website, www.Toysrus.com/Safety, which we have updated to include helpful tips for safe toy shopping during the holiday season

As a company committed to children and families, we understand the trust you place in us to make sure the toys on our store shelves are safe. And, as a parent myself, I want you to know that our entire organization continues to work vigilantly on your behalf to ensure this is the safest of holiday seasons.

With Best Wishes to You and Your Loved Ones on behalf of the Toys"R"Us, Inc. Family,

Sincerely,

Gerald L. Storch
Chairman and Chief
Executive Officer
Toys"R"Us, Inc.

(Thanks, Imasuperhero!)
(Photo:HamillianActor)

The day before, Mattel and Hasbro execs met with European Union officials to discuss the repercussions of widespread toy recalls, so... Oops? We're not sure whether this is a bad thing, because it reveals more of Mattel's design-based safety issues, or a good thing, because Mattel can say, "See how responsible we are, EU? Don't ban us!"

"Mattel recalls 155,000 Mexican-made toys" [Reuters]

RELATED
Mattel Recall Notice [Mattel]
Laugh & Learn™ Kitchen Toys Recalled by Fisher-Price Due To Choking Hazard [CPSC]

Mattel maintains that the cuff is within current standards for lead and does not need to be recalled.

A spokeswoman for Mattel, Fisher-Price's parent company, cited a statement on the company's Web site which in part reads: "The toy referenced in the Consumer Reports article meets the requirements set forth in the federal regulations and international consumer product safety standards, including the existing standards for lead content. Consumer Reports has applied its own standards and opinions concerning the product."

Patty Smith, Amazon's director of corporate communications, said the retailer decided to temporarily suspend sales of the medical kit after researching the issue.

"We decided it was the right thing to do for consumers at this point," she said.

Amazon pulls Fisher-Price Medical Kit toy [Mercury News]

PREVIOUSLY: Consumer Reports Finds "Troubling" Levels Of Lead In Unrecalled Fisher-Price Toy

Mattel:

Why: Recalling 21 million toys in 5 weeks! Way to go, Mattel. Your CEO stonewalled a congressional investigation into product safety and then bragged about his company's history of flouting consumer protection laws to the Wall Street Journal. Are design flaws in your products killing children and burning down people's homes? Be like Mattel: Blame China, then apologize for it, then take back the apology. What?

Consumers International says: "This is a classic case of avoiding accountability and shifting responsibility on a global scale.Wherever the fault lies, the safety of consumers was compromised and this should be the full focus of Mattel's attention, not finger pointing and not blame dodging."

Coca-Cola:

Why: Dasani! Even though it's quite popular in the US , Dasani was laughed off the shelves in Europe (picky, picky) because it contains ordinary tap water.

Consumers International says:
"Sustainable access to essential services, such as water, is a basic consumer right. By bottling up this universal resource to sell back to us, corporations, such as Coca-Cola have created a US$100 billion industry at a time when one billion people in the world lack access to safe drinking water. Making profits out of increasingly fragile water supplies is unsustainable, irresponsible and against the basic rights of consumers everywhere."

Kellogg:

Why: Advertising junk food to kids. What, you mean huge bowls of sugar aren't healthy?

Consumers International says: "CI is committed to stopping the marketing of junk food to children. Together with our membership we are campaigning for international restrictions on marketing to under 16's, to give our children the chance of a healthy start."

Takeda Pharmaceuticals:

Why: Marketing Rozarum sleeping pills to kids for "Back to School." Takeda ran ads that showed images of children, chalkboards and school buses. The commercial said: "Rozerem would like to remind you that it's back to school season. Ask your doctor today if Rozerem is right for you."

According to Consumers International, Rozarum hasn't been approved for use by children.

Consumers International says:
"This case demonstrates the lengths to which some drug companies will go to increase sales of their products, how direct to consumer advertising can promote irrational drug use, and how weak regulation can foster irresponsible corporate behaviour. This company is our overall award winner for irresponsible behavior for 2007."

There you are, folks. Your worst products of 2007. Remember kids: Shut up, drink your expensive tap water and eat your Frosted Flakes. If you don't, Santa will bring you a poison Barbie for Christmas and mommy will drug you with sleeping pills.

Coco-cola, Kellogg's, Mattel and Takeda Pharmaceuticals top the list of international brands guilty of abusing consumer rights.[Consumers International]

Guess what they found? There are still "troubling" levels of lead to be found in toys that are still on store shelves.

Consumer Reports lab tests detected lead at widely varying levels in samples of dishware, jewelry, glue stick caps, vinyl backpacks, children's ceramic tea sets, and other toys and items not on any federal recall list. Additionally, CR found samples of a Fisher-Price blood pressure cuff that is part of a toy medical kit that had surface lead in worrisome amounts. Consumer Reports advises parents to remove this toy from use.

[Consumer Reports]

Today's hearing will feature just one panel. Labor activists from the National Labor Committee and the International Labor Rights Forum will appear beside a past president of the Toy Industry Association - formerly called the Toy Manufacturers Association, before the widespread use of Chinese sweatshops.

Storytime kicks off at 9:30 a.m., complete with heart-wrenching testimonials, pictures of sweatshops, and maybe even a surprise appearance from Senator Stevens. Cookies and apple juice, optional.
(AP Photo/Lee Celano)

09:30: The Committee has provided 20 kpbs of video link goodness.
09:40: Subcommittee Chairman Dorgan will be leading the hearing; we always enjoy the when Chairman takes the reigns and doesn't punt to a junior Senator.
09:41: 80% of our toys are manufactured in China.

09:42: Dorgan has introduced S. 367, the Decent Working Conditions and Fair Competition Act.

09:43: The Senator wants a conversation about whether we want to be the sort of country that accepts products made in sweatshops.

09:44: We know sweatshops exist, but the Senate wants to know if they are proliferating, expanding - or if moral concerns are constraining their use.

09:45: For a quick primer on the issue, the Salt Lake Tribune has an excellent article:

The Chinese Ministry of Health in 2005 noted at least 200 million of China's labor force of 700 million workers were routinely exposed to toxic chemicals and life-threatening diseases in factories. "More than 16 million enterprises in China have been subjecting workers to high, poisonous levels of toxic chemicals," the ministry said at a conference on occupational diseases in Beijing, which was reported by the state-controlled media. The ministry particularly blamed "foreign-funded" enterprises that exported goods.

China has more deaths per capita from work-related illnesses each year than any other country, according to the ILO. In 2005, the most recent year for which data are available, 386,645 Chinese workers died of occupational illnesses, according to Chinese government data compiled by the ILO and cited in the July 14, 2006, Journal of Epidemiology. Millions more live with fatal diseases caused by factory work, other epidemiologists estimated in the article.

09:47: Kernaghan claims that the average workweek is 87 hours, from 7:30 a.m. to 10 p.m.

09:48: Workers are required to stand as they are yelled at by supervisors, and if anyone speaks back they are immediately fired.

09:48: The standard salary is $0.53 per hour - overtime pay is regularly confiscated.

09:50: He's holding up a Barbie, claiming: "It doesn't have to be this way."

09:51: All of these conditions violate Chinese law, but local officials refuse to provide enforcement.

09:52: Some factories don't even bother hiring "permanent" workers, instead opting for a revolving door of temporary workers.

09:53: The toy industry claims that it needs no regulation - if the Chinese laws aren't being followed, then Kernaghan believes U.S. law, such as the one Senator Dorgan can force change.

09:54: Onto Harry Wu of the Laogai Research Foundation. The Laogai is the vast labor reform system that forces political prisoners and criminals to repent through hard labor.

09:56: China has claimed that they use a prison system just like we do, not the Laogai. The Laogai is one of the human rights concerns that Congress wanted addressed before granting China MFN (Most Favored Nation) trading status.

09:58: Many labor camps no longer work in agriculture, but manufacturing - toys, gadgets, clothes - everything.

09:59: Wu is holding up the Salt Lake Tribune article we linked to earlier.

10:00: China has one union that nobody accepts as legitimate - except Walmart, which refuses to acknowledge unions here.

10:02: Onto Bama Anthreya of the International Labor Rights Forum.

10:03: Few Chinese workers wear any sort of protective garb. There are 8,000 factories employing 3 million workers.

10:03: Mattel, Hasbro, Fischer-Price and Disney all use sweatshops, but the biggest beneficiary is Walmart.

10:04: If a worker is harmed during working hours, that's his/her problem, even after a supervisor verifies that the problem was the factory's fault.

10:05: A worker is required to work for 12 hours - but they really work for 17 hours - and if a worker misses a single shift, that's it, fired. So if a worker is maimed on the job and seeks medical attention, their job is gone, and they also waive any right to litigation.

10:06: When Lee Dur shut down because of Mattel's lead paint issues, all workers were laid off. Not a single one knew a thing about lead poisoning, or that they might have been exposed to lead. Quick, send a team of lawyers over there to advertise on their subways.

10:08: All of the companies manufacturing in China have excellent data on the Chinese labor markets. They know all about unemployment, but more importantly, they know exactly how many Chinese inspectors there are. They chose China as a destination not just because it's cheap - but specifically because there is an absence of enforcement and worker protections. That's pretty damn harsh - she's essentially calling Walmart and Mattel heartless killers.

10:11: Legal protection is urgently needed, not just from the Chinese, but from the U.S. - voluntary protections are routinely ignored.

10:11: Senator Sanders (I-VT) is here, ready to throw some socialist fire. But only after Peter Eio of the Toy Industry speaks.

10:12: Mattel was invited, but for some reason, chose not to attend. Maybe all the Barbies were having a tea party.

10:13: Eio has this wonderful English/Scottish accent, and nine chins.

10:14: He's talking up some industry association we've never heard of that vouches for the safety of toy manufacturing around the world.

10:14: Apparently, it was founded by important people - a Prime Minister, a Chamber of Commerce rep, which confers credibility on the organization.

10:15: 670 of the 8,000 factories are certified as not sweatshop death-traps. 290 toy brands representing 75% of global toy products that will require certification by 2009. Walmart, Target, Sears, K-Mart, etc, are apparently part of this group.

10:17: This sounds like a lot of talk, many meetings, but little action.

10:18: Balsy one, this Eio - he wants Congress to fund his certification effort.

10:19: Question time. Mr. Wu believes that American toys are made in Chinese prisons, an assertion backed, apparently, by evidence.

10:20: Dorgan is asking the panelists how they know their information is accurate.

10:21: Wow, Chinese prisoners are affixing labels that read "Made in America."

10:22: Kernaghan says documents are continually smuggled out of factories, but can't openly disclose sources because they'll be dismissed/shot/assigned to make Made in America toys in Chinese prisons.

10:23: Most U.S. companies have no knowledge of the manufacturing conditions in China. Mattel admitted during the toy recalls that they had no clue where many of their toys were made because contracts were recursively farmed out.

10:25: Subcontractors teach workers on their first day how to lie to Mattel auditors - but even Mattel's own audits show that some factories have an 80 hour workweek, mold on walls, etc.

10:26: Kernaghan is harping on Mattel's apology to China. Mattel was given waivers by the government in 2005 to pay workers less than legally required for overtime.

10:27: Bama Anthreya has personally toured these factories in South China to see for herself how inspections and audits are conducted.

10:29: Dorgan is asking Eio if the horror stories from the other panelists is possible, especially since his group covers only a fraction of Chinese factories.

10:30: The short answer: Yes, the testimony is accurate.

10:31: Dorgan sees three issues: 1) American workers have lost their jobs; 2) The products made are unsafe for American consumers; 3) We should not accept products made with forced or sweatshop labor.

10:32: Sanders (I-VT) is railing against "unfettered free trade agreements foisted upon us by multinationals."

10:33: "What you are telling us is that the time is long overdue for this Congress to reconsider these unfettered free trade agreements." "I want to thank you for doing that." We like free trade and all, but that's not what they said, Senator.

10:34: Particularly egregious, that the U.S. Chamber of Commerce went to a foreign government to lobby against worker rights. Dorgan points out that the same thing happened in the Philippines.

10:38: Dorgan has a story about the workers who made Huffy bicycles. When their jobs were shipped to China, workers, leaving after their last day, left their empty shoes in the parking lot. The message: you can export our job, but you can never fill our shoes.

10:41: Walmart buyers roam China like a pack of wolves. They go to factories saying 'you gave us a product for $.09 last year, we want it for $.07 this year.' One factory owner quipped that he'd have to stop paying himself to meet their price demands.

10:44: Dorgan is asking Eio to explain rumors that auditors are regularly deceived, making any certification worthless.

10:46: Eio also encounters people who have two sets of books, lying workers, etc, but he has trained auditors who know what to look for. Right, that'll work.

10:50: Mr. Wu was a political prisoner for 19 years, and was forced to work in a coal mine for 12 hours each day. Every month people would lose limbs, "it was quite normal."

10:54: Mr. Wu believes that change will happen when we Americans care about the working conditions in which their products are made.

10:55: These issues can apply to any number of countries - the hearing is focusing on China because that's who hosts the majority of jobs - and this will be part of Congress' future consideration of trade agreements.

10:57: Kernaghan is saying that there really isn't much improvement in working conditions anywhere. No progress at all - in some cases, people are significantly worse off. "The American people would be shocked."

10:58: According to Dorgan, there are many trade disagreements within the Congress, but everyone agrees that sweatshop labor is unacceptable.

10:59: Trade Promotion Authority has expired, and the Senate will block fast track authority in the future - at least until there's a new President.

11:00: Dorgan is going to push S. 367 soon - and we'll provide coverage when he does.

11:02: The hearing is adjourned.

(Photo: Getty)

From the New York Times:

The suit claims that Mattel's directors, including the chief executive, Robert A. Eckert, breached their duty to shareholders by allowing the company to delay the reporting of hazardous toys beyond the 24-hour window required by federal regulators. The suit also accuses four directors of selling $33 million shares of Mattel stock from late January to early May and profiting from insider knowledge of coming problems.

The suit, by the Sterling Heights Police and Fire Retirement System, seeks compensation from board members for the loss that shareholders may incur from the recalls. It was filed in state court in Delaware, where Mattel is incorporated.

Mattel did not respond to a request for comment on the case.

Consumers have recently filed 10 personal injury cases against Mattel in federal courts and even more in state courts, according to Grant & Eisenhofer, the law firm that filed the shareholders' suit today. The pension fund involved in the suit owns 23,600 Mattel shares, which were worth about $534,776 at Wednesday's opening price, according the firm.

From the Wall Street Journal:

Mattel Chairman and Chief Executive Robert Eckert said in an interview that the company discloses problems on its own timetable because it believes both the law and the commission's enforcement practices are unreasonable. Mattel said it should be able to evaluate hazards internally before alerting any outsiders, regardless of what the law says.

By mandating that companies immediately report any incident that could conceivably expose a hazard, the commission's "standard might apply to almost anything," Mr. Eckert said. "It's very easy for anyone to apply the word 'could' backward," he added.

Mattel is currently under investigation for its shoddy track record when it comes to reporting dangerous defects, and was fined $975,000 earlier this year for failing to report a defect with a popular toy from its Fisher-Price division.

Concerned parents had reported a defect in which a small nail fastener came loose and posed a choking hazard, but it was not until 7 months later, after a child inhaled the nail fastener and needed emergency surgery to remove it, that Fisher-Price reported the defect to the CPSC.

Mattel Faces Shareholder Suit Over Toy Recalls [New York Times]
(Photo:Dust Storm)

We can't find a copy of the commercial online (can anyone send in a link?), but according to posts all around the web, it features a little girl crying out, "And you never run out of money!"

[Update: thanks to readers Wesa and Pda_tech_guy, here's a low-quality YouTube clip of the commercial.]

We think Mattel should introduce the "Dang, I Grew Up" Barbie playset, where Barbie spends her entire paycheck on Rent-a-Center furniture while trying to make the minimum payments on her dozen or so 30% interest rate cards. But then again, since this is Barbie, once her credit score hit 300 or so the playset would probably just bump it back up to 800. Responsibility is so for nerds and foster children.

(Thanks to David!)

"Barbie Fashion Fever Shopping Boutique Playset" [Amazon]

Here's a round up of advice:

The New York Times just ran around asking parents, bloggers and toy company owners about the issue:

Ms. Nemeth [who founded Discovery Toys in 1978 and sold the company to Avon a decade ago] said that if she had a toddler,"I'd avoid anything that is painted — I'd just wait until the industry shakes itself out." Besides, she said, "by bringing home wooden blocks that are unpainted, you're probably helping your child's creativity."

But plain wooden blocks alone probably will not satisfy most toddlers. Danielle Wiley, a 33-year-old publicist in Chicago, recalls a recent tantrum that her 2-year-old son, Max, had in the bathtub.

"I knew a new toy would help," Ms. Wiley said, but the only one in the house was a Fisher-Price Diego toy that had just been recalled for lead paint. Nevertheless, "I handed him the toy and he stopped," she said. After the bath, she said, she discarded the toy.

FAO Schwartz supposedly has country of origin labels in-store, but has no stores in Chicago:

If you're concerned about where toys are made, some retailers are helping customers find the product's origin. FAO Schwarz has put up signs throughout its stores to designate the country of origin; the retailer's Web site, http://www.fao .com, allows consumers to shop for toys by country of origin.

Kansas.com quotes one mom who is avoiding plastic (that the Thomas & Friends toys were wood seems not to matter):

"Anything that's plastic, we're just kind of staying away from," said Rachael Meza, a Wichita mom.

It could be that China is beside the point. The real risk in this company is its tired product lineup, says A.G. Edwards analyst Timothy A. Conder. He contends that stagnant sales of Barbie U.S. and American Girl and the difficulty replicating the Cars- and T.M.X. Elmo-related sales pop last year will hurt prospects.

"I feel this may well wind up being the safest holiday season of all," Toy Industry Association President Carter Keithley said.

Those are pretty confident words from the president of the Toy Industry Association following the recall of millions of toys from China due to lead paint.

Keithley just testified before a senate subcommittee. He says parents need to keep the 14 recalls from 11 companies in perspective.

"My first piece of advice is don't not freak out," he said.

We think you should just buy your infant an XBOX. Ok, not really. You should hand craft all of your toys out of fallen tree branches and delicious organic free-trade coffee.

(Photo:Maulleigh)

Total Number Of Item Recalled For Lead Contamination Jan-Sep, 2007: 11,395,350

September Lead Recalls: 1,375,050

What sort of stuff was recalled this month?

Mattel recalled 675,000 Barbie accessories, as well as 98,900 additional Fisher-Price toys. Target recalled 350,000 gardening tools, and RC2 called back 200,000 more Thomas & Friends toys that it had somehow overlooked and was still selling.

As always, various junk jewelry for kids was recalled. About 24,350 pieces, in all.

CPSC

Mattel takes full responsibility for these recalls and apologises personally to you, the Chinese people and all of our customers who received the toys. It is important for everyone to understand that the vast majority of these products that we recalled were the result of a flaw in Mattel's design, not through a manufacturing flaw in Chinese manufacturers.

For months, Mattel has blamed rogue Chinese subcontractors for endangering American children by violating Mattel's strict safety standards in pursuit of profit. The truth revealed hiding in plain sight by Debrowski's apology is slightly more complex.

Time best explains the discrepancy between Debrowski's apology and Mattel's public position:

Of the 19.6 million toys that [Mattel] has recalled this year globally, 2.2 million were due to lead paint; the remaining 17.4 million (11.7 million in the U.S.) were toys recalled not because of lead paint but because they were made with super-strong magnets.

The United States bans the use of lead in children's toys. Lead contamination can be rightly and exclusively traced to foreign subcontractors. Small magnets, however, which can kill children if ingested, are the result of shoddy designs.

Mattel focused its public response primarily on the smaller issue, lead contamination, which lends itself to easy scapegoating. Irresponsible Chinese subcontractors are responsible for tainting 2 million toys destined for U.S. shelves, but they by no means shoulder full responsibility for Mattel's problems.

Slipshod Mattel designs are, as Debrowski's apology suggests, responsible for the "vast majority" of dangers faced by American children. Mattel and the toy industry have worked overtime to distract from this unsettling and inescapable fact. As Slate superbly explains, the industry's sham proposal for independent third-party testing would do nothing to address the design issues that are root cause of the vast majority of toy recalls.

Now that Debrowski has apologized to China, it seems only fair for Mattel's conniver-in-chief, Robert Eckert, to explain to American consumers why his company chose to scapegoat Chinese subcontractors while keeping the true death-peddlers on Mattel's payroll.

Why Mattel Apologized to China [Time]
(AP Photo/Lauren Victoria Burke)

Keep hitting refresh for up-to-the-minute coverage, including pictures of Members playing with lead-ridden children's toys.
(Photo: AFP/Getty Images)

9:30: Video Link - The House knows better than to use Real Player. Fun fact: before entering the Senate, Senator Maria Cantwell (D-WA) was the Vice-President of Marketing for Real Networks.
10:10: Nancy Nord just snuck in, holding up the start.
10:13: Bang a gong, we are on! Good turnout today. It looks like ten members are in their seats and ready to give opening statements.

10:17: Finally, they fixed the audio.
10:18: Oh, Dollar General refused to attend today's hearing. We haven't heard of them before, but apparently, they are one of the largest retailers in the country, or at least, Chairman Rush's district. Too bad, we would love to know how dollar stores and minor retailers - one of the weak links in the toy distribution chain - handle toy recalls.
10:21: Chris Sterns (R-FL) is giving his opening statement. The Subcommittee sent letters to twenty retailers asking for comment, and most responded. Read the responses: here.
10:23: Sterns gets it: "If Mattel was the leader, what quality controls do the smaller retailers and importers have?"
10:23: He also gets points for linking the toy safety issue to tainted food. Seemingly basic, but nobody yet has made the link. Important because next week, Energy and Commerce Chair Dingell (D-MI) is holding a hearing on his plan to revamp the FDA. Some elements of the Dingell plan (inspections, labeling, certification) could be applied to toy safety.
10:26: Onto Jan Schakowsky, or to Stephen Colbert, Jane. She's coming out swinging: "Mattel chose to gamble with our children's health." And she's accusing Mattel of obstructing the Subcommittee's investigation for refusing to allow Subcommittee staff to tour their plants or meet with their staff.
10:28: She's really going after Mattel CEO Robert Eckert, and by extension, the CPSC, for allowing him to get away with such a disastrous failure of quality control. "I believe Mattel's management has forfeited the right for any American parent to trust them."
10:30: Wow, Joe Barton (R-TX) is talking. This is pretty big because Barton is Ranking Member of the full committee, and thus, an ex-officio member of the Subcommittee. Chairs and Ranking Members only appear before Subcommittees when they truly care about the issue at hand.
10:32: "If you're going to manufacture [toys] in China, or Taiwan, or Timbuktu, then better meet American safety standards."
10:34: Damn, break out the firepower. Chairman Dingell has arrived.
10:35: Dingell also thinks the CPSC is underfunded, and that they should be embarrassed by their testing facilities. Questions for the CPSC:

• How has their dwindling resources affected their ability to inspect products at ports?
• How has reliance on voluntary standards affected recalls?
• Yes! He's picking up on Durbin's point last week that China's agreement to ban lead might not mean anything because it's something they've promised before.
• 10:38: Eckert is probably kicking himself for telling the WSJ that he didn't really need to follow recall notification regulations. That one comment has turned him into an anti-government piñata.
  10:40: He's going wide angel on us and wants to know how our broader trade agreements might be used to prod China into enforcing standards.
  10:41: Dingell is promising legislation akin to his food safety act that will kick the CPSC back into shape. Excellent.
  10:43: John Barrow (D-GA) is also picking up on the tainted food/toy safety connection. Barrow is the only Member to serve on both the Energy and Commerce Committee and the Agriculture Committee. He's talking about the different inspection regimes, how the USDA proactively sends inspectors abroad, as compared to the FDA, which simply monitors food here for dangers. Nancy Nord last week made it clear to Senator Brownback that she didn't want to send inspectors abroad.
  10:50: Terry looks like that guy from the high school debate team that you always wanted to kick, except he's not, because nobody on our high school debate team spoke in a mind-numbing monotone. Apparently, in unrelated news, Terry says that 1/3 of Omaha, NE is a superfund site.
  10:54: Charles Gonzalez (D-TX) blames a breakdown of both regulation and the private sector: "There's no doubt this was going to happen. It just so happened that it was toys, and it was Mattel." And, like some advocacy groups, he's blaming toy designers that rely on potentially dangerous small magnets.
  10:57: Uh oh, Michael Burgess (R-TX) is mad. He's calling China by its full name, the People's Republic of China. He has a rule for his family: if it's made in China, it doesn't come into the house. Is his house empty?
  11:01: Burgess has some interesting ideas for recalled products, possibly even a new government-sponsored enterprise: 'Do we burn it, bury it, or resell it on eBay?'
  11:02: Another Republican that wants to give the CPSC more money. Yet the one that matters, the President, is willing to veto just about any spending bill that in any way exceeds his spending requests. For our part, we're willing to shutdown the government to give the CPSC more money, you know, if it comes to that.
  11:07: Marsha Blackburn (R-TN) holding the conservative line. We shouldn't blame the private sector, and we shouldn't ask for new regulations, because that would just result in more "bureaucratic" inspectors, and millions in big government spending, which by itself is obviously bad.
  11:11: Her proof: there's this company in her district that tests above the federal standards, and thus, all private industry should be trusted. Not like Mattel was an industry leader in testing or anything.
  11:15: A mystery has been solved. While giving her opening statement, Darlene Hooley (D-OR) spoke about a friend's child who was using a teething ring that was recalled for lead poisoning. We hadn't heard of any teething rings recalled for lead, but Meghann thinks it's: this. Her friend's baby wasn't threatened by lead poisoning, but by botulism.
  11:19: G. K. Butterfield (D-NC) is talking about how lead causes mental retardation. This is one downside of the House. We love their enthusiasm and that everyone took the time to show up, but let's get to the inquisition phase of the hearing. The witnesses are waiting to be addressed. Let's have everyone submit their statement for the record, and hurl some questions at the witnesses.
  11:22: Ed Towns (D-NY): "The blame game is not the solution," then blames the CPSC. The Brooklyn rep wants to know if the recalls are actually successful, or if they're are just announced. We don't expect him to know that Walmart couldn't recall a product if their quarterly profits depended on it, because there are no Walmarts in Brooklyn. Hey, and rather than read his whole statement, he took our advice and submitted it to the record. Way to lead, Congressman.
  11:30: Well it took an hour and half, but we have a Congressman holding up toys. Thanks, Mike Ferguson (R-NJ)
  11:32: He's co-sponsoring legislation that would require independent testing, but we haven't yet seen the legislation and don't know if actually contains specifics, or just punts to a third party like ANSI.
  11:34: Aww, Jane Harman (D-CA) Chair of the Intelligence Subcommittee of the Committee on Homeland Security has a Barbie collection. "This mother is on the case."
  11:36: We hear buzzers in the background, which means it's time for everyone to clear out and go vote. The witnesses must be happy and antsy.
  11:39: Finally, Nancy Nord is up.
  11:41: Same old song: the CPSC has successfully reduced lead poisoning, lead paint is banned, etc.
  11:43: "This year's recalls are not unique." Um, what? Yes they are. Sure, there are always a handful of lead recalls, but let's not pretend that the sheer scope of this year's recalls doesn't make them special.
  11:44: "These recalls have served their intended purpose." "They have caused the entire toy industry to change their practices in the future." No, they haven't. The recalls have merely highlighted an ongoing problem, one that nobody has a solution to yet.
  11:45: Nord may want to change her tune. Here's what we recommend: stop downplaying the problem and talking up your MOUs with China. Instead, give us the moon. What's the dream-world regulatory scheme? Is it a $2 billion budget, 1,000 inspectors on the ground?
  11:47: Moore again. His teeth don't look noticeably whiter.
  11:49: Moore is more willing to discuss the CPSC's needs, but these requests need to come from the Chair, not just one Commissioner. Moore, in part, blames the requirement to reduce staff for draining needed talent, but the Commission would have reasonably been considered underfunded before the non-targeted cuts were implemented.
  11:50: He took a nice backhanded slap at our MOU with China, warning that we can't rely on foreign governments to follow safety guidelines.
  11:52: That was fast. Moore is done. Rush will bring the committee back as soon as votes on the floor are done.
  11:53: Break out the lead-ridden toys, children, it's recess!

  12:26: And we're back!
  12:27: Nord is back to selling the MOU. We apparently asked them to ban the use of lead paint in toys, something we thought they were doing before.
  12:30: Rush rightly points out that the Chinese standards for lead paint are more stringent than our own, but that decrees do not equal enforcement.
  12:33: Nord blames a schism between European and American regulations. The Europeans allow a certain amount of lead based on accessibility of the lead to the consumer, while we have an outright ban.
  12:34: Rush wants Nord to state clearly whether or not we need more inspectors.
  12:35: The CPSC doesn't want to have inspectors in Chinese factories. Nord is warning that foreign inspections require a "very, very, very different agency," one that is orders of magnitude larger than the current CPSC. Why does she say that like it's a bad thing?
  12:38: Ranking Member Stearns: "Do you have enough people to enforce your mission." Nord: "I would prefer to have more.
  12:41: Jan Schakowsky: "Aggressive is the last word I would use to describe the CPSC."
  12:44: 'If Mattel thinks they can flout the law, why should we think China will follow the law?'
  12:45: Nord called Eckert's statement: "extremely reckless." The CPSC occasionally kicks companies that fail to follow reporting requirements, like when they fined Fisher-Price $975,000 last year. As they say, a few hundred thousand here, a few million there, pretty soon you're talking about real money.
  12:49: Oh the fantastic disdain Jan has when talking about the one CPSC toy tester, "Bob."
  12:50: Nord: "With respect to Bob," he does drop tests. According to Nord, if the Agency Director says they need another person to do drop tests, they'll hire him. Aww, Rush cut off Jan, but Ranking Member Barton yielded her time to ask for a full breakdown of the CPSC's toy testing department.
  12:54: Bob needs to be invited to testify.
  12:55: Barton is trying to figure out how China can be held to honor their agreements. Nord again mentioned that she wants importers to certify that the products they import are safe. That sort of thing should have made it into her opening statement.
  12:56: We're all for certification, but we think it will be attacked by importers as onerous, and do little more than establish culpability. An effective inspection regime plus a few more Bobs would be vastly more effective.
  12:58: Nord finally didn't say "Bob," opting for "one individual." Good work, Chairwoman. Barton: "I think this Committee and this Congress would scrounge for a few more dollars to beef up" toy inspections. There are apparently less than a hundred field inspectors that visit ports.
  12:59: Nord: "The CPSC has never stationed people at the ports." Nancy, clearly the same old model isn't working anymore, which means it's time to adapt. Barton: "Well it's time to get creative then." Exactly.
  1:02: Dingell is diving straight into the resources issue. Nord doesn't know how many people they requested funding for from OMB. Dingell wants that figure and is sending a letter demanding it.
  1:03: How many people do they need to enforce the MOU with GAQSIQ? None. Nord is asking for none. Dingell: I understand you're not asking for any, but how many do you need?
  1:04: Dingell isn't taking any guff: Do you have agreements with other agencies?
  Nord: Yes, we have...
  Dingell: Please submit them to the Committee.
  1:05: Dingell is just beating up Nord. He has reduced her to yes or no answers given in a meek, defeated voice.
  1:06: Dingell: "Promises are wonderful. We have a fistful of promises from China."
  1:07: "What steps are being taken to honor the agreement?" He doesn't even want an answer, he just wants the CPSC to send back a written answer. He looks like he's having fun. Nord, not so much.
  1:11: Lee Terry wants to know if independent inspections are any more effective than companies that do their own inspections. Nord thinks third party independent testing is the best way to ensure safety. Of course, we still haven't seen a concrete proposal. She even thinks it's good for small businesses that would probably be financially harmed by a such a proposal. Nord also stressed that she doesn't support government inspections, but independent ones - which is great and all, so long as the government provides strict regulations to make sure that the inspections are worth something.
  1:17: Charlie Gonzalez wants to know what the consequence is to China if they fail? Market forces alone, according to Nord, will drive people away from China. Yeah, that'll work. How about some muscle behind the agreement? How about tying bills to require China to float their currency to product safety.
  1:20: Michael Burgess wants to know what the difference is between voluntary and mandatory recalls. We have no comment on this question.
  1:25: Way to drop the ball, Commissioner Moore. Burgess asked how much more money he wanted for the CPSC, and he just sat there staring blankly. All funding requests come from the Chair, who thinks all is hunky-dory.
  1:26: Moore got back on the horse and thinks the Senate's goal of $70 million would be appreciated. ASK FOR MORE! We all know you need it, just ask for more !@$% money! Even Consumers Union last week floated the 1972 figure of $125 million.
  1:30: Nord is claiming that it takes an awful long time to train an employee. What's awful long? "A number of months."
  1:31: Nord just can't answer the question: 'How many people do you need to fulfill your mission.' She'll accept Congress' proposal for 420, which is 20 whole people more than the 400 they have now, but she won't say how many she needs.
  1:31: China has 210,000 people devoted to product safety? Nord: "I have no reason to think [the figures] are inaccurate. That's what the Chinese told us."
  1:38: Ed Markey (D-MA) is contrasting the Little Engine That Could with the CPSC, the agency that can't. Parents are playing "toy box roulette."
  1:41: Markey is shilling for a handheld analyzer, a device (conveniently made in his district) that can instantly tell whether there a product contains lead. They cost $25,000 each, so the CPSC might get two (2).
  1:42: Markey's suggestion is that if the CPSC can't afford more, why not promulgate regulations that require importers to purchase them.
  1:44: Time for the lightning round. Each member gets one more question for the Commissioners, followed by a recess for four votes (~30 minutes.) After that, Robert Eckert will face the horde of angry Members.
  1:47: Burgess is asking about the flip-flops. The CPSC is trying to test the product, but haven't been able to get a pair? What? We couldn't possibly have heard that right.
  1:52: Jan is asking about preemption from the states. States can pass tighter rules, but they need to ask the CPSC for permission.
  1:55: Markey asks Moore how many staff he would like, and is answered without hesitation: 500 or more. Step in the right direction.
  1:56: Recess the second. Back with Mattel CEO Robert Eckert shortly.

  3:09: Well that took a while. We're back! Hope they got all that legislating out of their system. For what it's worth, Robert Eckert has been sitting in the Committee room for five hours. He now has five minutes to make his opening statement.
  3:13: Nothing new here. He's the guy responsible, he's sorry, Mattel test for lead, etc etc.
  3:17: Rush is getting right to asking about Eckert's comment to the WSJ. Eckert chose not to defend his comment, saying that it wasn't in quotes, and that Mattel's actions speak otherwise.
  3:19: Eckert is blaming regulations that give companies 10 days to determine where potentially recalled products are in the supply chain before notifying the CPSC, thus escaping the requirements of the 24 hour notification rule.
  3:20: The Committee room is troublingly empty.
  3:24: Ranking Member Stearns is engaging in a back in forth with Eckert over plant ownership. All the recalled products came from plants not owned by Mattel, so-called primary vendors. Stearns wants Eckert to say that products made from plants owned by Mattel are safer, but Bob won't budge.
  3:25: Clever word play. Question: Why don't you manufacture toys in the United States. Answer: We manufacture goods in several markets outside of China.
  3:27: Recalled toys are quarantined and burned in co-generation plants. Sorry, anyone looking for cheap presents to kids you dislike.
  3:29: Dammit Michael Burgess, it's not "Tommy The Tank." It's Thomas The Poison Train.
  3:35: Stearns wants to know why the Committee staff was obstructed from visiting Mattel's plants.
  3:37: "I'm not here to quibble about that."
  3:38: Burgess is comparing the Republican downfall to a toy recall. Their brand suffered.
  3:39: Since none of the other fire-throwers from this morning bothered to attend (we're looking at you, Jan Schakowsky,) the meeting is adjourned.

The Subcommittee will haul not one, but two Consumer Product Safety Commissioners to testify, along with the heads of Toys R Us and Mattel, who recently agreed to start testing their products for lead paint contamination. Representatives from Consumers Union and the official-sounding American National Standards Institute will round out the motley crew of pedoprotectionists.

Keep hitting refresh for hot, steamy, liveblogging action!
(AP Photo/M. Spencer Green)

10:35: Video Link - Today's hearing will be carried live on C-SPAN. If you can't wait until 11, hit the link now for coverage of the U.S.-China Consumer Product Safety Summit.
11:00: Right on time! Looks like this will be a family affair; members from the Senate Commerce Committee will be stopping in. Expect to see Senators Pryor (D-AR), Nelson (D-FL), and Klobuchar (D-MN) soon.

11:03: This is personal for Durbin. He came to the issue after reading a series of articles in the Chicago Tribune about Magnetix, which he had bought for his grandson.
11:04: The CPSC is underfunded. Let's see if the CPSC is willing today to admit that they are underfunded.
11:05: A chart! Hot! It's a bar graph showing the level of imports rising compared to the declining budget of the CPSC. Good work, staffers.
11:06: The CPSC is up for reauthorization, which will be managed by Senator Pryor. Durbin wants to actually empower the CPSC by reducing the time companies have to respond down to 15 days from 30, and by boosting fines to a level that companies will get the attention of companies.
11:09: You little government folks will like this: "There is little government can do to restore confidence."
11:11: Onto Senator Brownback. He, too, is packing a chart showing the country of origin for most recalls.
11:12: He's vehemently attacking China: "Made in China has become a warning label."
11:13: He agrees, the CPSC needs more power, and believes in an independent testing regime similar to Underwriters Labs for the toy industry.
11:14: Umm, way to rush off topic, Senator. He's got this thesis that open democratic governments will catch defective products (apparently not!), unlike the closed totalitarian governments that produce them - which is why the Chinese need to fairly value the Yuan.
11:15: He has another two charts that show that the Yuan is overvalued and that China supports terrorist regimes. What?
11:15: Oh, ratchet it up, Senator: Chinese weapons have made it to Iran, Afghanistan and Iraq.
11:16: Ok, this is too good - way to go Stevens on us, Brownback!
11:17: Brownback: "American consumers have been hit over the head by a 2x4. We can't allow this to continue to take place." He actually did have a point before going off the rails: the undervalued Yuan provides the economic basis that empowers production in China - but defective products and terrorism really aren't the same thing.

11:19: Senator Pryor is testifying.
11:20: He and Commerce Chair Innoye (D-HI) introduced legislation this morning that will do four things:
11:21: Resources: The CPSC will get the money they need to hire adequate inspection staff and afford testing facilities.
11:21: Lead: The legislation would ban lead in children's toys - wait, that hasn't been done?
11:22: Inspection: The bill would provide for independent testing, but they don't have a definite proposal yet. Look to Senator Nelson (D-FL) for that.
11:23: Penalties: There will be pain for people who break the law.
11:24: Onto Senator Nelson (D-FL) - he caught the catch in China's announcement yesterday banning the use of lead paint in toys meant for export to the US: "What about the toys exported elsewhere in the world?" "That's not the only problem with the toys!"
11:25: Statements from Senators we did not expect to hear today: "The Laugh And Learn Bunny has a nose that comes off." Nelson is worried that the lead announcement does nothing to address magnets and small parts that children can ingest.
11:26: The only way to address those shortcomings is with independent testing.
11:27: Maybe Nelson didn't read Slate's piece yesterday, which called the toy industry's independent testing request an over-hyped batch of self-serving hogwash.
11:28: Klobuchar has arrived.
11:29: Aww, her daughter was embarrassed when the recalls only affected SpongeBob, but when they reached Barbie, she came into the kitchen and said: "This is getting serious."
11:29: Catchy saying: "They shouldn't be on our shores, they shouldn't be in our stores."
11:32: Oh, C-SPAN cameras. They panned out as the second panel was being seated, missing Senator Durbin holding up the small Magnetix magnet.
11:34: Example of the CPSC's misplaced priorities: Commissioner Moore must leave early to make a dentist's appointment. Dude, seriously, you're testifying to Congress. Reschedule the @!#$ dentist's appointment!
11:35: Acting CPSC Chair Nord is pulling rank and talking first, despite Moore's appointment.
11:36: Nord just came from the U.S.-China Product Safety Hearing and she has big news: GAQSIQ has agreed to stop using lead paint in products destined for the US. Wait, that's not new.
11:37: They will continue to work with the Chinese as part of four working groups: Electrical Products, Toys, Cigarette Lighters, and Fireworks. That's not new, either. We wrote about it during a past hearing.
11:38: She wants "organic changes to the CPSC," such as engaging China and other producer nations. They have signed Memoranda of Understanding with 10 nations and the EU. Um, they had a MOU with China before the Chinese Poison Train hit the tracks. Clearly, they are not the solution.
11:40: Nancy is going to China to tour production factories. Great.
11:40: Onto Moore, who is definitely reading from a statement.

11:42: He's throwing fire: the first step is to reject the President's budget request. He wants instead, an additional 10%-15% increase.
11:43: He wants inspectors at the ports, in the markets - all over the place. He's using his pre-dental work speech to talk more about CPSC reauthorization than toy safety.
11:45: Durbin points out that China told him they already had a "zero-tolerance policy." "So what's new?" Way to pick up on our point, Senator!
11:46: Nord: "That's something you'd need to ask the Chinese."
11:46: Durbin: "But you entered into the agreement with them!"
11:48: Things are getting heated, so Moore leaves.
Nord: "Can I come with you?!"
Brownback: "You're facing your own dentist here."
11:50: Jewelry with lead is still coming into the country, but the CPSC doesn't have the authority to do anything about it, such as propose a new rule. Just another example of how the CPSC's lack of a quorum hurts American consumers. How many products have they recalled? They don't know, so Durbin meekly asks: "any?"
11:53: Durbin wants to know why the CPSC toy testing facility looks like this:

11:54: According to Nord, that facility is an old missile test site. Some sites aren't even up to code. They're talking to the GSA about fixing the situation. "I am frankly not happy with the progress that is being made."
11:55: Nord on the single toy tester: he spends his time doing small parts testing, toy-drop testing. "Bob's our small parts guy." Remember, this government gets $2 trillion per year, but don't worry because Bob is our small parts guy.
11:57: Brownback is asking questions and wants to know why lead is still landing on our shores. (Maybe it's the terrorists!)
11:58: Nord is again punting to China, insisting that it is illegal to import products with lead and that they are working to enforce the law.
11:59: Brownback just meandered onto intellectual property, complaining that he was offered a DVD in Beijing in the 90s before the movie came out in the US: "We need to pull the club out and start shutting things down."
12:00: Brownback wants to put US inspectors in China, but isn't quite understanding Nord's insistence that our Constitution doesn't empower us to enforce US law from within other countries.
12:04: Importers don't need to certify that there is no lead paint in their toys because lead is covered by the Hazardous Substances Act, not the Consumer Product Safety Act. Commissioner Moore might have been able to expand on that, but he went to the dentist.
12:06: Durbin is getting angry and wants to again know if there is a new agreement with the Chinese to prevent lead from coming into the country.
12:07: Nord keeps sticking to the claim that there is a US ban on lead paint.
12:08: Durbin, yet again, wants to know if the new MOU sets a new standard for lead: "Is there or isn't there?"
12:09: This is a critical question that Nord should be able to answer. China, with the help of Madison Ave PR firms has stepped up its damage control operation with several grandiose statements, but nobody knows if they are resulting in changes on the ground.
12:09: Durbin wants Nord to explain her comment in today's WSJ, stating that we must now ask questions about the state of Chinese factories. Does that mean we weren't asking questions? Nord is clearly getting angry.
12:10: Back to lead jewelry. Beyond the proposed rule, he wants to know what action the CPSC has taken.
12:11: The CPSC doesn't have a quorum, so they're just reading comments about the proposed rule. They have tried recalling the few products they catch, but that isn't good enough for Durbin.
12:14: Brownback's 9-year-old daughter asked him: "Why is everything made in China?" Get ready for a rant...
12:15: "There's this huge frustration, we've lost jobs, they manipulate their currency, and now their products aren't safe." "We gotta actually do something, that's why I'm talking about bringing the club out. Maybe it's shutting factories down, we just won't accept products from that factory." For some reason, we don't think Senator Brownback has a complete grasp of the problem - or the global economy.
12:19: /rant
12:20: Nord: "I so appreciate hearing your sentiments."
12:22: Klobuchar wants to know how we're going to enforce our ban on lead in toys. According to Nord, we're going to explain the law to manufacturers. Well, that should fix everything. What would help, is clear legislative language allowing the CPSC to demand a statement from importers that their products are free of lead. We imagine that this would help further establish culpability, but are importers really the ones that can make such a statement, or are they merely the first US-based entity that can be punished under our laws?
12:26: Nord can't even say how many companies currently test for lead, or at what frequency.
12:27: She needs to stop referring to "Bob the small parts guy." Bob, the small parts guy, suggested that Senators go out to Long Beach and see just how many acres of products are being imported, and then look out to the Pacific and see how many more are on the way. According to Nord, that's why 3 or 4 inspectors won't help, and a systemic change is required.
12:28: Onto the third panel, featuring Toys R Us, Mattel, Consumers Union, the Toy Industry Association, and the American National Standards Institute.

12:30: Toys R Us immediately takes recalled toys out of their system and institutes a point-of-sale ban, which as we know, is not the most effective way of handling a recall. They do, however, accept any recalled toy back without question, even if it wasn't sold by Toys R Us. That's nice.
12:36: Mattel's CEO is talking now, and like the head of Toys R Us, he starts off by mentioning that he's not just a CEO, but a parent, too.
12:37: Taking a cue from former Jetblue CEO David "Mortified" Neeleman, Eckert is again apologizing sincerely to all parents. "We were let down, and we let you down, too"
12:40: Ah, he mentioned being ready for the holiday season, the elephant in the room that nobody else has yet addressed.
12:41: Onto Consumers Union, attacking the President's budget request for the CPSC right out of the gate.
12:42: And now she's attacking the CPSC for their unwillingness to accept new funds or new regulatory authority.
12:43: Geeze, Sally, slow down! She talks faster than we do, which is quite the accomplishment. "Inspections cannot be left to the Chinese factory owners."
12:44: She wants the CPSC budget set at $125 million, the modern-day equivalent of its 1974 budget, and for Congress to eliminate the cap on fines.
12:45: Onto the Toy Industry Association.
12:45: This is why CEOs should run their testimony by a communications department: "The Toy Industry Association is the leading toy industry association in the world."
12:47: Tsk, tsk, Mr. President, don't try to downplay the recalls by saying that they only affect a small percentage of total sales. How would you feel if a small percentage of your family, say one of your five kids, died due to lead poisoning?
12:49: He's talking up the American National Standards Institute, which will testify next, contrasting their approach to a "top-down government-driven approach." We will again recommend Slate's criticism of the toy industry proposal.
12:50: Onto Joe Bhatia representing ANSI, who thanked Chariman Durbin for properly pronouncing his name.
12:51: We want only one thing from this guy: a clear outline of the toy industry's proposed independent testing regime.
12:52 Here's what he's got: The first step is to make sure people are adhering to standards. The second step is to help the CPSC and the industry evaluate the competence of people conducting tests. We are underwhelmed - but on September 26 they are having conference that might better flesh out a real proposal.
12:57: Durbin hit on one of our first thoughts, and asked the heads of Toys R Us and Mattel when their kids realized they could brag to their peers: "My dad runs a toy company!"
12:58: Durbin, unlike Brownback, clearly gets it. He wants to know why we should be surprised that there are problems when the industry decided where to manufacture their goods based solely on cost considerations.
1:00: Durbin wants to know about the testing plans, since (see picture above,) it's clear that we won't do the testing.
1:01: According to Mattel, it doesn't matter where the testing is done, since the labs always catch the problem. He's breaking out the cookie analogy: If we watch the ingredients going into the cookie, and we watch it bake, we still need to test the cookie (thus destroying it,) but we'll know that's it's mostly safe.
1:02: Durbin mentioned the holiday