Mattel to recall toy from China

— -- The expected announcement would mark the second recall involving lead paint by the world's largest toymaker this month.

The latest recall, whose details could not be immediately learned, involves a different Chinese supplier, according to three people close to the matter who spoke on condition of anonymity because of the sensitivity of the situation.

It follows a highly publicized worldwide recall, announced Aug. 1 by its Fisher-Price division, of 1.5 million preschool toys featuring characters such as Dora the Explorer, Big Bird and Elmo. That action included 967,000 toys sold in the USA from May to August.

One of the three people confirmed the latest case involves lead paint.

Scott Wolfson, a spokesman for the Consumer Product Safety Commission, declined to comment. Mattel officials did not immediately return phone calls.

On Aug. 2, Mattel apologized to customers for the preschool toy recall and said the move would cut pretax operating income by $30 million.

In that case, Fisher-Price "fast-tracked" the recall, which allowed the company to quarantine two-thirds of the tainted toys before they reached store shelves.

Those products were made by a Chinese company, Lee Der Industrial.

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Days after Mattel's announcement, Chinese officials banned the company from exporting products.

The company's co-owner was found dead in a warehouse over the weekend, apparently having hanged himself, the state-run Southern Metropolis Daily reported Monday.

A new toy recall from Mattel would mark the latest in a string of toy recalls that have rocked the toy industry just as it prepares for the critical holiday shopping season.

With more than 80% of toys sold worldwide made in China, toy sellers are nervous that shoppers will shy away from their products.

In June, toymaker RC2 recalled 1.5 million wooden railroad toys and set parts from its Thomas & Friends Wooden Railway product line. The company said that the surface paint on certain toys and parts made in China contains lead.