Chinese firms may get govt aid to sue Mattel

A Chinese provincial government is planning to help local toy manufacturers file a lawsuit against the world's biggest toy maker, Mattel, on grounds of damaging their reputation by recalling more than 21 million China-made toys from the market this summer.

After the withdrawal of toys over safety issue, Mattel tendered an apology saying 85% of the recall was due to its own design flaws.

"A simple apology cannot compensate for the losses," Guangdong Fair Trade Bureau director Chen Lipeng said.

The recall had "strained" the reputation of Chinese toy manufacturers and "made a large number of toy factories in Guangdong province lose a great deal of money,"  Chen, who is now in talks with American and Chinese lawyers on filing the suit against Mattel in a US court, was quoted as saying by the official China Daily.

He said the bureau would provide legal assistance if any toy maker wants to sue Mattel.

Chen said the plan was, however, still under discussion because "a lot of preparatory work has to be done if we really need to file charges against Mattel following the US procedures."

According to China Daily, since Mattel has already apologised, a lawsuit might necessarily have to seek financial compensation.