Spitzer: Recalled toys found in stores

NEW YORK (CNNMoney.com) -- New York Governor Eliot Spitzer vowed Friday to take legislative action on the recent federal recall of lead-contaminated and hazardous toys because it does not require retailers to take the products off store shelves.

In the past two weeks, Mattel (Charts, Fortune 500) has recalled millions of Chinese-made toys, including Dora the Explorer playsets and Barbie dolls, because their paint contained excessive levels of lead. This week Mattel announced a new recall over loose magnets found in Polly Pocket dolls and other toys that, if swallowed, could cause internal damage.

Video More video

Spitzer said he was acting after the recalled toys were found on store shelves throughout New York this week. Spitzer, noting that the recalls were voluntary, said he wants the toys pulled, returned to their manufacturers and destroyed.

"The federal government's limited powers of enforcement and voluntary recalls are not enough to protect our children from the dangers of lead poisoning and other hazards," Spitzer said in a statement.

The toy recall by the federal Consumer Product Safety Commission is on a voluntary basis. Spitzer's office is proposing a law that would impose civil and criminal fines against those who sell recalled products.

Spitzer wants to ensure that the recalled products are in no way redistributed and plans to require manufacturers to establish a notification system when recalling products and mandating that retailers post recall notices in readily visible areas.

The legislative push comes amid two new developments Friday in the recall scandal.

Mattel released guidelines on how to return toys affected by the recall. The company said consumers should not return products to the retailers that sold them, contradicting reports that have said shoppers should go back to the stores where they purchased the items.

The toy maker said consumers should first determine if they have an affected toy by visiting www.service.mattel.com. If the toy is a part of the recall, consumers are prompted to provide their address to receive a catalog with photos and serial numbers of affected toys, as well as a pre-paid mailing label for returning the toy.

Mattel said that, after it received a recalled toy, it would send vouchers to consumers for the amount of the toy's original value or a replacement part, if applicable.

In a related development, China appointed its Vice Premier, Wu Yi, to head a new cabinet panel to examine ways to improve the country's food and product safety oversight, according to news reports Friday.

The 19-member government panel will bring together officials from several agencies that have jurisdiction over food and product supervision after a series of recalls, including toothpaste tainted with toxic chemicals and contaminated food, have raised questions about the quality of Chinese goods, the Wall Street Journal reported.