2007 is not the year for Mattel. They just posted their third recall on some products made in China. The latest involves mostly the Barbie doll and some units of GeoTrax. For more on the recall, read the MSNBC article. For Mattel's part they have "completed its testing program for the majority of its toys and spent more than 50,000 hours investigating vendors and testing toys over the past four-week period." Needless to say some vendors or subcontractors have been fired.
For detailed information, go to Mattel's Recall Information pages. It was just updated on September 4th and there is a new video message from the CEO.