After facing recall after recall of millions of Chinese-made items, the US' biggest toy sellers are imposing stricter measures on their suppliers -- including tougher standards for lead content -- to get ahead of expected new federal legislation.
Wal-Mart Stores Inc and Toys "R" Us Inc, the top two US toy sellers, are setting a much tighter standard for the amount of lead allowed on surface paint for toys shipped to their chains on or after March 1. The companies are also phasing out chemicals found in polyvinyl chloride (PVC) that have raised safety concerns in products for infants and young children.
The measures are meant to meet or exceed new federal standards expected from Congress in the wake of last year's highly publicized recalls of millions of toys because they contained excessive amounts of lead or other hazards.
PHOTO: AP
"We made a commitment to the world that we would push forward toy safety as a top priority," said Gerald Storch, chairman and CEO of Toys "R" Us, which announced the measures on Friday. "This is not the last improvement that we will put in place."
Laura Phillips, vice president and chief toy officer for Wal-Mart, said the company was "in the season of writing orders" and needed to make the appropriate changes.
The moves come as the industry gears up for the annual American International Toy Fair, which begins today. While stores say that parents' anxiety about toy safety has subsided, retailers and toy makers can't afford another major recall and said they need to become extra vigilant.
Target Corp, the nation's No. 2 discounter, said it was working with its "vendors, industry leaders and the Consumer Product Safety Commission," but did not give specifics.
Ed Schmults, chief executive of FAO Schwarz, said on Friday that the upscale toy merchant was forcing suppliers to meet more stringent requirements but would not offer details.
The toy industry has a lot at stake. A challenging economy and the fallout from the recalls hurt toy sales last year. Market research firm NPD Group Inc says traditional toy sales fell 2 percent to US$22.1 billion last year from a year earlier and 5 percent in the last quarter.
Sean McGowan, a retail analyst at Needham & Co, said he expected industry sales this year to be at best unchanged as toy retailers face an overall slowdown in consumer spending.
A top priority is dramatically reducing the lead content in toys, since lead can be toxic if children ingest it. The current federal standard is 600 parts per million (ppm) in surface coatings, but new legislation being considered would dramatically lower that to 90ppm.
Both Wal-Mart and Toys "R" Us are requiring their suppliers to conform to the 90ppm standard for products shipped on or after next month.
Meanwhile, Toys "R" Us is requiring materials inside of the toys to meet a standard of 250ppm for lead for all products made exclusively for the retailer, compared with the current standard of 600ppm.
Wal-Mart spokeswoman Melissa O'Brien said that the company had not set a deadline for suppliers on that issue but was encouraging them to cut back given the pending legislation.
Another issue is phthalates, chemicals that are used to soften PVC.
Toys "R" Us said it has notified suppliers that by the end of this year, all children's and baby products sold in its stores must be produced without any phthalates. The goal is to eliminate the chemicals in its products either by using another ingredient to soften vinyl or eliminating vinyl completely.
Wal-Mart is forcing suppliers to reduce the amount of phthalates to 0.1 percent in its products, beginning in August. Those standards are in line with rules being enacted in California, while the new federal legislation on the table does not address phthalates.
Toys "R" Us also hopes to eliminate nickel-cadmium batteries from its products by the end of the year in a move meant to help the environment. The company has instructed suppliers to take steps to abolish the use of such batteries in all items for Toys "R" Us.
It is also forcing stores to have products that are shipped on or after March 1 coded with the manufacturing date, to help identify toys that have been recalled.
Both Toys "R" Us and Wal-Mart are also requiring suppliers to have independent labs test the toys they make more frequently.
O'Brien said Wal-Mart was encouraging its suppliers to stamp date codes on their products.
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