Recalls dampen the joy of toys

The Sacramento Bee

By Jon Ortiz

Published:  August 16, 2007

Troy Carlson should have been setting up the massive toy exhibit that he's opening Friday at the California State Fair. Instead, he spent a recent morning searching for tainted toys.

Carlson, who owns G. Willikers Toy Emporium in Old Sacramento, started his inventory inspection Tuesday after the world's biggest toymaker, Mattel Inc., announced its second worldwide recall of toys in as many weeks, bringing the total since November to 18.2 million toys.

The recall, launched amid concerns over lead paint and tiny metal parts that can be swallowed, includes such toy icons as Barbies, Polly Pocket dolls, Batman, Elmo and "Cars" die-cast vehicles.

Carlson's painstaking tally turned up only two recalled Mattel toy Jeeps in his inventory, but he posted signs about the recall anyway.

"(The recall) didn't really affect us since we're a specialty store," he said. "A lot of what we carry is made in the U.S."

Still, Mattel's announcement delivered another public relations blow to the U.S. toy industry just when things had been looking up. After several down years, toy sales grew slightly in 2006 and are up another 3 percent through June this year, according to market researcher NPD Group. The industry is on pace to hit $23 billion this year.

The recall news is the latest in a string of recalled Chinese-made products, from tires to toothpaste. With more than 80 percent of the toys sold worldwide manufactured in China, toy sellers have reason to worry that shoppers will shift some spending to things like electronics, experts say.

"We will probably see a backlash against Chinese goods for the next year," said Irma Zandl, a consumer trends consultant based in New York City. "That will be true until China straightens out its production and raw materials issues."

Mattel did not return calls from The Bee, but the company took out ads in some of the nation's biggest newspapers for its latest recall.

It also set up a new Web site, www.mattel.com/safety, with a video of Chief Executive Robert Eckert assuring parents: "As a parent of four children myself, I know that nothing is more important than the safety of our children."

Industry advocates point out that the U.S. toy industry sells millions of items each year with relatively few reported injuries caused by its products.

Mattel and others perform safety tests on their products and report problems to the federal government. The U.S. Department of Consumer Safety posts all toy recalls on its Web site: www.cpsc.gov/.

"With Mattel, we're talking about a company that makes literally millions of products with millions of pieces," said Camarillo-based toy industry consultant Len Simonian. "The recalls cover very specific components in a very narrow band of items. It's a small percentage in the overall number of products that Mattel manages and sells."

Knowing the amount of tiny toy pieces scattered throughout her house, Lodi resident Jolie Ruiz, 38, said the continuing recalls are tough on parents who want their kids to be safe.

"The thought of sifting through all that Polly Pocket stuff -- it's just going to be a huge hassle," said Ruiz, in Sacramento for a day at Fairytale Town with daughter Jenna, 9.

And it's a hassle not only for parents.

Three-year-old Caden Weaver of Granite Bay already felt the pain last June when his favorite "James" toy train was recalled by RC2 Corp., makers of the popular Thomas & Friends wooden train toys.

Caden's mother, Jane Weaver, said there was no screaming, no tantrum from her son, who matter-of-factly told his grandmother: "James had to go away because he had bad paint."

Zhe Chen, chairman of the human and community development department at the University of California, Davis, said it is critical that parents heed the warnings about dangerous toys. A researcher on lead poisoning among Chinese children, Chen said the negative effect on a child's behavior and intellectual development is well documented.

Losing a favorite toy can be heartbreaking to a child, Chen said, but parents can help diminish the loss by finding a similar replacement.

Despite the upset a child might feel, Chen said, "These toys need to be taken away."

Shoppers like John and Nicolle Aduna, browsing recently at the Elk Grove Toys "R" Us store, are only too aware of the massive recall. While their three kids bounced balls and cuddled dolls, the couple checked manufacturing labels for country of origin.

"You go into a store and you wonder, 'How do I know what they're selling is OK for my kids?' " Nicolle Aduna said. "It seems like everything's made in China."

When shoppers start asking questions like that, retailers get the jitters, said Bob Gordman, president of the Gordman Group retail consulting firm in Breckenridge, Colo.

"The perception is far worse than reality," Gordman said. "This creates uncertainty, and uncertainty typically doesn't benefit sales."

Carlson's $250,000 "Toytopia" aims to be a bright counterpoint to this week's recall news. Like his Old Sacramento toy store, the State Fair exhibit celebrates the history of toys, starting with replicas of an ancient Babylonian chess set and a Chinese kite.

The 8,000-square-foot "Toytopia" exhibit will also showcase specialty displays from Lego, Thomas the Tank Engine, Duncan Yo-Yo, Lincoln Logs and Crayola. There'll be a 20-foot-tall Mentos Geyser, as recently seen on "Live with Regis & Kelly," along with science demonstrations, a princess party and a California golden bear made with 30,000 Legos.

"We've got about $70,000 worth of giveaways, too," Carlson said, including a State Fair edition of a Thomas cargo car -- for the first 1,000 kids on Tuesday.

After months of intense negotiations, Carlson considers it a coup getting Mattel, which is donating a life-size "Hot Wheels" car. Other sponsors include Breyer, which makes detailed model animals, and Schleich, a German figurine manufacturer.

Last year, Carlson's "Superstars and Superheroes" exhibit drew about 300,000 State Fair visitors. He expects at least that many this year. And despite all the recent recall news, he's confident that the toy industry overall will thrive.

"Kids will always have presents under the tree on Christmas. They'll always want gifts for their birthday," he said. "And they'll always want toys."