Wednesday, November 7, 2007

Guangdong mulls libel suit against Mattel

A Chinese province is likely to join a planned libel suit against United States giant Mattel, accusing the toy maker of harming the region's reputation. Mattel issued a safety recall on more than 21 million Chinese-made toys recently, but late apologised saying 85% of the recall was due to its design flaws. The incident had stained the reputation of Chinese toy manufacturers and made a large number of toy factories in Guangdong lose a great deal of money.Lida Plastic Toy Co, based in Guangdong, is supporting a lawsuit due to the large losses it incurred following the recall, while Chinese lawyers expect "billions of dollars" in compensation.

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