On August 14, 2007, the U.S. Consumer Product Safety Commission (CPSC) in cooperation with Mattel announced five different recalls of Mattel's toys. On September 4, Mattel announced three more recalls. Some were due to the use of lead paint, while others were due to small magnets coming loose. The (B) case outlines the handling of the recalls and its consequences, such as consumer outrage, media scrutiny, government intervention, and the effect on China. Further, it discusses the design flaws for which large toy companies are responsible. The (B) case raises many issues, such as who Mattel's stakeholders are, what values Mattel followed, and whether Mattel needs to revisit its China strategy. Use with Ivey product, 9B08M010, Mattel and the Toy Recalls (A).