Louise Story | The New York Times
September 10, 2007
Reacting to three separate recalls of Mattel toys found to contain unsafe levels of lead paint, The Walt Disney Co. announced that it will begin its own testing of toys featuring Disney characters, including random testing of products already on store shelves.
Executives at Disney made the decision to institute the testing Thursday and intend to inform Mattel and other toy manufacturers today.
"It sends the message that we are looking over their shoulders," said Andy Mooney, the chairman of Disney's consumer-products division.
Disney's plan represents a significant shift in the toy business. Traditionally, these companies have licensed their characters to toy companies, deposited their royalty checks and left quality control up to the manufacturers. Indeed, the toy makers are usually held liable legally for harm caused by the toys they make.
Separately, Toys "R" Us, the nation's largest toy retailer, has notified manufacturers that it no longer thinks their tests are enough. Starting this week, engineers hired by the company will visit random Toys "R" Us stores, fill their carts with branded toys and take them to independent labs for testing.
"Trust but verify," said Ron Boire, president of Toys "R" Us. "We have to be confident. I have to be able to put my head on the pillow and say, 'I've done everything I can.' "
The new testing programs underscore the scrutiny Mattel and other toy companies now face after a spate of unsafe products made in China have been discovered on American store shelves this summer.
Mattel will take the financial hit in the short term if its toy sales are down this year because, like other toy makers, the company guarantees minimum royalty payments to media companies.
Still, Disney and other marketers are clearly becoming concerned that their brands will be harmed in the long run if they do not intervene. Other marketers such as Sesame Workshop also say they intend to test products independently. Nickelodeon, which licenses characters such as Dora the Explorer and Diego to Mattel and other companies, decided to start its own double-testing program in July in response to the recall of Thomas & Friends toys made by the RC2 Corp.
Retailers and toy makers fear the recalls could put a cloud of suspicion over the entire business before the critical holiday shopping season.
"In the past, the industry may have accepted a pattern of recalling products as a way of making sure products are safe," said Gerald L. Storch, chief executive of Toys "R" Us. "That's clearly not acceptable anymore."
