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Posted at 12:05 p.m., Monday, August 6, 2007

Fisher-Price under investigation over toy recall

By ANNE D’INNOCENZIO
Associated Press Business Writer

NEW YORK — The Consumer Product Safety Commission is looking into whether Fisher-Price let the agency know as quickly as it should have about lead paint found in 1.5 million Chinese-made toys that were recalled worldwide last week.

Scott Wolfson, a spokesman for the commission, told The Associated Press on Monday that it was conducting "an active and open" investigation into the timing of Fisher-Price's disclosure. He declined to provide details, including when Fisher-Price notified authorities of the problem.

Fisher-Price, a division of Mattel Inc., has cultivated an image as role model for careful control of its manufacturing in China. However, the company's record in timely reporting of defects is checkered: Fisher-Price was fined $975,000 in March for not notifying authorities quickly enough about a choking hazard in a toy from its popular Little People product line. In 2001, it paid $1.1 million for a similar infraction regarding safety defects in its Power Wheels toy vehicles.

Federal law requires companies to alert the safety commission within 24 hours when they discover information about a dangerous defect in a product. The information need only be enough to reasonably conclude that the defect could pose a risk of serious injury or death, or violates a federal safety standard.

On Wednesday, Fisher-Price announced the recall of the painted toys, including the popular Big Bird, Elmo, Dora and Diego characters, because of excessive amounts of lead.

According to officials at Mattel, a European retailer discovered the lead in some products in early July. On July 6, the company halted operations at the factory in China that produced the toys and launched an investigation.

The company has not said precisely when it told the safety commission about the problem. However, Brenda Andolina, a Fisher-Price spokeswoman, said Fisher-Price informed its retailers July 26, one week before the recall was publicly announced, so that they could prepare. Routinely, that step would be taken only after the commission was notified.

The recall was the latest in a string of hazards discovered in products from China.