'Thomas' Toy Maker Fined $1.25M For Lead Content

Remember the recall of certain Thomas & Friends railroad-themed toys more than two and-a-half years ago because of alarmingly high lead content in the paint (CPSC)? If you had young children at the time of the Thomas phenomenon, you're probably rolling your eyes right now.

The list of recalled products detailed in the above link reads like a kindergartener's Christmas wish list.

But did you know the toys were made by Oak Brook-based RC2 Corp.? More recently, RC2 agreed to a $1.25 million civil penalty (Tribune) -- the second-biggest ever for a toymaker -- for knowingly importing and distributing Thomas-branded toys with lead levels exceeding 600 parts per million. The federally imposed limit is 90 parts per million.

Now, before getting all bent out of shape about the dangers of Chinese-made toys, consider the fact that the US has relatively lax standards with respect to toxins in toys. Standards were tightened after the flurry of recalls (Truth Dig), but Chinese manufacturers make what their customers ask them to make, for the most part.

Many European toys also are made in China, but with much higher safety standards. Let's leave the politics aside, though; the point is that China is an easy scapegoat for lax US standards that only recently have been strenghtened and still have a ways to go.

The fact that RC2 knew about the high lead levels but imported the products anyhow should take the heat of the Chinese manufacturer, which was probably cutting corners to meet its customer's cost targets.

To put the RC2 fine into perspective, the company had revenues of $437 million in 2008, so the $1.25 million fine is about three-tenths of one percent of that. It's not insignificant, but not a company-crushing amount by any means.

The company also settled a $30 million class-action lawsuit in January of 2008 in the form of cash refunds or replacements for families who purchased the recalled toys.

But sticking with European toys (Child Trek), although a little more costly, is one way to err on the side of caution (German toys in particular are very smart and well-made, FYI).