Posted on Sun, Feb. 07, 2010

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Single law on chemicals could lower toy prices

By Wing-Gar Cheng and Kyunghee Park

Bloomberg News

HONG KONG — Asian toymakers supplying most of the world's dolls and games say their costs may drop 15 percent if U.S. and European Union watchdogs streamline regulations on chemicals in children's playthings.

American and European Union laws contain different measurements for acceptable amounts of compounds in toys, so Barbie dolls and Thomas the Tank Engine trains undergo different tests tailored to their destinations. Some states have different restrictions than the federal government, and some European nations set different limits than the EU.

A test conducted for one jurisdiction often isn't accepted by another, so it has to be done repeatedly, according to manufacturers in Asia. That duplication costs millions of extra dollars, they said.

"The idea of these multiple standards is crazy," said William Fung, managing director of Li & Fung, the world's biggest supplier of toys to retailers including Wal-Mart and Toys R Us. "If you look at all these compliances, it's like the U.N. flag. It's higher prices for everyone."

Eric Levin, president of Techno Source, a closely held Hong Kong company, said he doubled his budget last year for testing the Animal Yakkers and Eggs he made in China to ensure they met federal and state laws. His costs were "in the millions."

"If we have to test them six, eight, 10, 12 times — the same toy, the same test — how are we going to make money?" said Levin, whose company makes board games, electronic toys and key chains. "It's very burdensome for the plants and a lot of factories had to pull out of the business because they can't keep up."

Asian manufacturers are being scrutinized after Chinese factories used cadmium, a carcinogenic heavy metal, in charm bracelets and shiny pendants sold in the U.S. Wal-Mart, the world's biggest retailer, and Claire's Stores, the largest U.S. retailer of costume jewelry for teenagers, pulled bracelets and pendants from shelves.

The Consumer Product Safety Commission on Jan. 29 announced a voluntary recall of about 55,000 children's necklaces because they contained high levels of cadmium. The $5 items were sold exclusively by Wal-Mart as a tie-in with Walt Disney's "The Princess and the Frog" movie.

Cadmium is subject to different standards in the U.S. and the EU. The U.S. has no restrictions on its presence in jewelry, while the EU says cadmium levels must not exceed 1.9 milligrams per kilogram of dry, brittle or pliable toy material.

The metal usually exists in paints and helps make products more durable, manufacturers said. Brief inhalation of high concentrations of cadmium may cause lung disease, according to the Agency for Toxic Substances and Disease Registry Web site.

Sen. Charles Schumer, D-N.Y., last month proposed a federal law banning cadmium and other heavy metals in children's jewelry. The safety commission in Washington said it will develop regulations for toxic metals in children's products.

"International coordination in establishing and communicating new requirements can help the toy industry stay competitive," Inez Tenenbaum, chairman of the commission, said Jan. 12 to the APEC Toy Safety Initiative in Hong Kong.

"Consumers will gain from expertise drawn from around the world and from closer harmonization of requirements in all marketplaces."

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