Mattel recalled 18 million toys in 2007 for lead paint and loose magnets

In August 2007, Mattel and its Fisher-Price subsidiary began a series of recalls that eventually covered about 18 million toys worldwide. The first wave involved Chinese-made products with lead paint above U.S. limits; later recalls covered small, powerful magnets that could detach and injure children if swallowed.

The recalls hit iconic brands including Sesame Street, Dora the Explorer, Barbie and Polly Pocket. Mattel initially blamed Chinese subcontractors, but internal documents showed the company had discovered some problems months earlier and had delayed reporting them to the CPSC.

In June 2009, Mattel and Fisher-Price agreed to pay a $2.3 million civil penalty — then the largest ever for a lead-paint violation involving children's toys. The case intensified scrutiny of Chinese manufacturing and led to tighter U.S. product-safety laws.

Mattel rebuilt its supplier-audit system and expanded testing. The recalls became a defining example of how outsourcing without sufficient oversight can turn a supplier's failure into a brand's crisis.