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August 31, 2007

Reputation Update

Another day, another lead paint recall...

Both toy manufacturers that announced recalls this summer - MAT and RCRC - have been down significantly, both in absolute terms and vs. the market (green line is S&P 500, red line RCRC, blue line MAT):

Mattel Inc. (MAT)

If you are a business student looking for an interesting paper topic, this situation has plenty of material to work with.

A brief but good backgrounder from Forbes.

News today:  China Issues Food, Toy Recall Rules to Tighten Safety, from Bloomberg.