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Guangdong govt may help toymakers sue Mattel
[ 2007-11-06 10:51 ]

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The government of South China's Guangdong Province is likely to help local toy manufacturers file a lawsuit against the world's biggest toy company, Mattel, for destroying their reputation.

Mattel recalled more than 21 million China-made toys from the market this summer. But an investigation later showed 85 percent of the products were recalled because of design flaws, for which the US-based company apologized in September.

"The incident has stained the reputation of Chinese toy manufacturers and made a large number toy factories in Guangdong lose a great deal of money, even though Mattel has apologized to China," Guangdong fair trade bureau director Chen Lipeng said.

"A simple apology cannot compensate for our losses," he said.

Chen is now in talks with American and Chinese lawyers on how to file a suit against Mattel in a US court.

If a Guangdong toy company wants to sue Mattel, the bureau will provide it legal assistance.

Hao Junbo, a lawyer with Beijing-based Lehman law firm, urged domestic toy manufacturers to file a complaint against Mattel in a US court because only by doing so can they redeem their losses.

Mr Xie, a manager at Lida Plastic Toy Company said: "A lawsuit may help us reclaim part of our loss resulting from Mattel's actions. But it will be a long-term process. We prefer to resume our business before filing any such case."

The Foshan-based company has been making toys for Mattel for years and is the biggest victim of the recalls because it has been forced to suspend production.

Since Mattel has already apologized, a lawsuit may necessarily have to seek financial compensation.

Chen Beiyuan, a senior lawyer at Bohao Law Firm in Guangzhou said. “The cumulative amount of compensation will probably run into billions of dollars. Hence, the preparations have to be foolproof.”

Questions:

1. How many China-made toys did Mattel recall last summer?

2. According to the story, which toy company has been affected the most by the recall?

3. How will the Guangdong fair trade bureau assist Chinese toy makers?

Answers:

1. More than 21 million.

2. Lida Plastic Toy Company.

3. Provide legal assistance to sue Mattel in the US.

(英语点津 Celene 编辑)

About the broadcaster:

Marc Checkley is a freelance journalist and media producer from Auckland, New Zealand. Marc has an eclectic career in the media/arts, most recently working as a radio journalist for NewstalkZB, New Zealand’s leading news radio network, as a feature writer for Travel Inc, New Nutrition Business (UK) and contributor for Mana Magazine and the Sunday Star Times. Marc is also a passionate arts educator and is involved in various media/theatre projects in his native New Zealand and Singapore where he is currently based. Marc joins the China Daily with support from the Asia New Zealand Foundation.



 

 
 
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