"More than four million Chinese-made toys sold in the U.S. as Aqua Dots are being recalled after reports that children became seriously ill after swallowing beads containing a chemical that causes a reaction in the body that mimics a date-rape drug’s effect," according to a report in The Wall Street Journal.
The toy’s manufacturer, Moose Enterprise, of Melbourne, Australia, yesterday said the problem had been traced to a Chinese factory.
Most major retailers like Wal-Mart (WMT) and toy companies like Mattel (MAT) obviously hoped that these problems were behind them Bad press only takes consumers back to other incidents when "China made" toys had problems. Large US manufactures and retaiilers cannot do without Chinese goods. The margins on the stuff are just too good.
But, cheap gets expensive. The entire American toy chain is now facing a holiday with little children waiting for toys they may never get. Their parents are too worried about their safety.
Douglas A. McIntyre
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