Procurement Safety. When is $2,000,000.00 not enough?

March 4th, 2010

The United States Government fined U.S. subsidiaries of the Japanese company Daiso $2M following accusations that they imported led-tainted toys.

This author believes that $2,000,000.00 is not enough when any of our citizens in particular children are put at risk. If you were to ask any parent what the loss or severe illness of a child would be worth, there really is no satisfactory answer.

This author also does not believe the fine is severe enough when there were five separate recalls of (hold your breath) 698 toys and other children’s products. These toys were not expensive which means more people will buy them. The products were sold in California and Washington based Daiso stores and consisted of toys, purses, stuffed animals and other products. I can see a product or a couple of products having a problem, but 698. It appears as though none of the right questions were being asked during the manufacturing process.

Senior management of the company has indicated that they want to make sure that their products are safe. They will have to because they will not be allowed to import any more children’s products until they are proven to be safe. How they plan to do this is unclear at this point. Evidently the Consumer Product Safety Commission will be monitoring the issue.

Clearly $2M is a significant number to most of us. In addition the lost sales on non imported products that were part of the sales plan are a much higher number.

We appreciate and look forward to your comments.

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