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$30 Million Settlement in Thomas & Friends Suit

Company says it has instituted new safety procedures

January 26, 2008

• Toy Importer to Pay Penalty for Violating Lead Paint Ban • CPSC Outlines Revamped Crib Recall Policy • Mississippi Warns Residents on Unsafe Toys • CPSC Delays Enforcement Of Testing on Kids' Products • Popular Zhu Zhu Pet May Contain Dangerous Chemicals • Report: Fewer Toys Contain Lead but Toxins Still Common • California Warns Retailers On Lead • Mattel Settles Suits Over Dangerous Toys • Target To Pay $600,000 For Violating Lead Paint Ban • Tougher Safety Requirements For Children's Products Now In Effect • Toys 'R' Us Launches Unsafe Baby Products Awareness Program • New Safety Agency Chief Pledges Greater Openness • Obama Names New Consumer Product Safety Chair, Boosts Budget • Toymaker Fined $1.1 Million For Consumer Violations • Maryland Stores Stop Selling Toys With Lead Paint • Toymakers, Craftspeople Up In Arms Over New Safety Law • Thrift Stores Protest Ban on Lead Toys • Target Launches In-Store Recall System • Do's and Don'ts of Holiday Decorating • New Jersey Finds Recalled Toys in Four Stores • Mattel Agrees to Lower Lead Paint Levels in Toys • Consumers Cautioned About Dangerous Toys • Soon-To-Be-Banned Plastic Toys Flooding the Market • Safety Agency Warns of Safety Hazards in Cribs --- • More Consumer Safety News • Recall Notices

A Chicago judge has given preliminary approval to a $30 million settlement in a class action lawsuit filed after the recall of lead-contaminated Thomas & Friends wooden railroad toys.

The company agreed to provide reimbursements to hundreds of thousands of consumers and institute stricter safety controls.

Consumers would be either reimbursed in cash for recalled toys or, if they prefer, offered a replacement plus a bonus toy. Customers without toys and proof of purchase can receive $15 coupons.

The manufacturer RC2 said it has imposed new safety regulations on its overseas suppliers and will require all contract manufacturers to meet safety standards. The company faces at least 17 lawsuits stemming from the recall.

The company recalled 1.5 million toys in June, then recalled another 200,000 in September. Although lead-tainted toys have been the subjects of recall campaigns for years, the recall of the expensive Thomas & Friends toys caught the attention of affluent consumers and the press, setting off a wave of recriminations among federal safety regulators, politicians and toy manufacturers.

In the 12-month period ending September 30th, 19 of 61 U.S. toy recalls were a result of lead paint, according to the Consumer Product Safety Commission (CPSC). “The trend has continued in 2008,” as companies increasingly test for and find more lead paint, said CPSC spokesman Scott Wolfson.

Legislation is pending in both the House and Senate to beef up the Consumer Product Safety Commission, which has operated without a chairman since July 2006 when Hal Stratton resigned abruptly.

RC2 says it has dropped the Chinese manufacturer responsible for the lead-tainted paint and now tests every batch of paint used on its toys.

Lead is known to cause cancer and reproductive harm and can cause mental and physical retardation and behavioral and other health problems in children. In adults, lead can damage the nervous system.

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