Wal-Mart Watch Statement on Wal-Mart’s Toy Proposals
For Immediate Release
Thursday, August 23, 2007
Wal-Mart Watch executive director David Nassar today released the following statement in response to Wal-Mart’s new toy proposals:
“Wal-Mart’s proposals are a poor substitute for the real protections that parents need regarding toys. Due to the tremendous pressure that Wal-Mart puts on its suppliers to keep costs low, manufacturers are forced to move production overseas and cut corners on safety, resulting in a myriad of unsafe products, as the recent massive recalls highlight.
“The influence that Wal-Mart exerts over the domestic toy industry is immense. As noted by the International Securities Exchange in December 2006, Wal-Mart is the single largest customer for both Hasbro and Mattel, with each receiving 21 percent and 19.6 percent, respectively, of their revenue from Wal-Mart. Hasbro and Mattel are two of the largest toy companies in the world.
“With the holiday season approaching, Wal-Mart naturally is looking for ways to improve perceptions about the safety of its toy products. But this plan does not go far enough. Wal-Mart should put every single resource necessary into an effort that demands suppliers are doing enough. And if this means the company spends more, to save lives and increase confidence in the products it sells, then it is worth it.
