Recalls won't stunt holiday toy buying: experts

An undated handout image shows recalled packages of Aqua Dots. The latest recall of hot toy item Aqua Dots may evoke an emotional response in parents, but toy experts say it won't get in the way of fulfilling kids' holiday wish lists.

WASHINGTON (Reuters) - The latest recall of hot toy item Aqua Dots may evoke an emotional response in parents, but toy experts say it won't get in the way of fulfilling kids' holiday wish lists.

The recall on Wednesday of 4.2 million Aqua Dots craft kits, which had made Wal-Mart Stores Inc's list of top 12 Christmas toys, included the sensational aspect that the kits' beads may contain a chemical similar to a "date rape" drug. When the beads are swallowed, the chemical can cause unconsciousness, respiratory depression or seizures if swallowed.

The news injected a new dose of fear into a holiday season already wracked by recalls of millions of toys, most involving Chinese-made products containing excessive levels of lead paint. Aqua Dots is also made in China.

"It will certainly have an emotional impact for parents who have felt they were secure with the toys they were buying, but I really don't think it will have a broader impact," said toy industry analyst Chris Byrne.

"So much of the holiday buying is based on what children request."

The holidays are the most crucial time of year for toy makers and sellers. Nearly 50 percent of all toy sales are rung up in the fourth quarter alone, according to market research firm NPD Group.

This season is expected to face a trio of challenges -- the lack of a dominant toy driving shoppers into stores, an overall concern about constrained consumer spending, and the steady outpouring of recalls.

David Leibowitz, the managing director at Burnham Securities Inc, said the Aqua Dots recall had some headline-making aspects to it that will get parents sounding off about how they'll steer clear of certain types of toys.

But he doesn't believe the talk will translate into any significant change in toy-buying patterns.

"It's the same way Americans talk healthy and then eat the super-premium ice creams," he said.

The Consumer Product Safety Commission issued the Aqua Dots recall on Wednesday after suspicions that the beads contained a chemical that metabolizes when swallowed into a date-rape drug.

The agency received two reports of children swallowing the beads and becoming unconscious. They have since recovered.

Australia has also announced a nationwide ban on the toy after three children in that country became severely ill when they swallowed beads from the toy, there called "Bindeez." They toy was named Australia's 2007 Toy of the Year.

Adrienne Citrin, a spokeswoman for the Toy Industry Association, said the recalls are a reflection of the industry being more vigilant about testing the safety of products.

She said parents need to be smart and shop at reputable mass retailers or trusted local shops that will quickly pull any recalled products off the shelves.

Byrne said the recall will obviously affect Aqua Dots, a toy that he said had shown much potential with its innovative ability to have its beads mold together when sprayed with water.

He said parents will be put in the difficult position of wanting to avoid certain toys which may be made in China or which contain a lot of plastic pieces while still wanting to grant their kids' holiday wishes. He said the kids will win.

"If you're five, the country of origin that matters is the North Pole," he said.

(Editing by Gerald E. McCormick)