McDonald’s Corp. (NYSE: MCD) has effectively conducted dozens of so-called movie tie-ins where the store offers a branded item, like a drinking glass, that links the restaurants with a currently popular movie. These promotions are aimed at children, who then drag their hapless parents into the stores for burgers and fries and tchotchkes. That process just came to a grinding halt today, as McDonald’s recalled 12 million drinking glasses tied to the latest Shrek movie from Dreamworks (DWA).
The Consumer Product Safety Commission told consumers to stop using the glasses immediately. McDonald’s sold the glasses for $2 apiece and has promised to post instructions next week on how consumers can get a refund. MCD stock and DWA stock seem largely unaffected in the investment world so far.
The recall stems from the use of cadmium in the painted design on the glasses. Cadmium is known carcinogen that is toxic and that can cause other dangerous effects from long-term contact, especially in children. The heavy metal is used to make red and yellow paint, and the amount of cadmium used in the McDonald’s glasses is “slightly above the protective level currently being developed by the [Consumer Product Safety Commission],” according to
The New York Times.
Why any amount of cadmium is permitted is a mystery, although a good guess would be that the stuff is cheaper than other, non-toxic pigments that could be used. A spokesman for McDonald’s told the NYT that the company believes that “the Shrek glassware is safe for consumer use. However, again to ensure that our customers receive safe products from us, we made the decision to stop selling them and voluntarily recall these products effective immediately.”
So, McDonald’s knew the glasses were painted with cadmium pigments and it made and sold them anyway, even though the effects of cadmium are well-known. That’s a story that should really go down well with customers.
