ICTI Strives for Code of Compliance
ICTI strives for Code of Compliance
By Tom Sosnowski
Playthings -- 2/28/2005 8:48:00 AM

NEW YORK — The International Council of Toy Industries (ICTI) held an update on the last day of the American International Toy Fair on its progress in establishing a uniform Code of Compliance for toy manufacturing around the world. At this point, the organization said it was ahead of schedule but still not to a final code.

"None of us want a toy that is made in a sweatshop, and as usual Christmas time was the time to bash toy manufacturers' [operations overseas]," explained Alan Hassenfeld, chairman of Hasbro, who read news report after news report of foul manufacturing process around the world "What we have to do is implement our own legislation for factory audits . . . standards and compliance before the NGOs (non-government organizations) implement legislation for us. Setting global standards will save us time and money."

Hassenfeld explained that in China the code of compliance for factories differ from province to province. Thus, "in order to have a level playing field" a standard Code of Compliance developed by the ICTI is a must.

"It's our business … if we do nothing, we are going to be hamstrung by regulations that are enacted for us without our input," said Hassenfeld.

There are eight key elements to a standardized Code of Compliance:

Child Labor
Prison/Forced Labor
Working Hours
Compensation
Discrimination
Working Conditions
Work Place Safety
Evironment, Health and Safety

Christian Ewert, European vice president of the ICTI, noted "these key factors, when audited by the six accredited audit companies, will ensure that factories are [producing toys] in the best, safest way possible."

Eventually, a seal of approval will adorn packaging made in compliant factories and, further down the road, toys that do not have the seal will not be accepted in the United States, according to Hassenfeld.

He also noted that the ICTI is also has plans to make the seal virtually impossible to counterfeit.

Also, one audit per factory would make all products produced at that factory compliant. Therefore, there won't be a Toys R Us audit, a Wal-Mat audit, etc.

Factory audit costs will start at a very low end of about $1,000 and range upward. "What I should say is that it's the factory that will cover the cost of this, not us," said Hassenfeld. "The clock is ticking; if we don't do something, something is going to happen that we aren't going to like."

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