Wal-Mart (WMT): No dangerous toys here

Wal-Mart (NYSE: WMT) does not want to be known as a place where there are products that could hurt little kids. It is bad for public relations and thus bad for business. So the world's largest retailer is going to set standards for toys that are much tougher that those of the U.S. government.

According to The Wall Street Journal, Wal-Mart does not just want the toys to be manufactured more safely. The paper writes, "The initiative also encourages suppliers to mark children's products with 'traceability information', including the factory in which the goods were made. About 80% of the toys sold in the U.S., including those marketed by U.S.-based toy makers, are manufactured in China."

Wal-Mart is a little late to the party. The threat of lead and other toxins has been causing trouble for retailers for over a year. Several of the company's competitors already have similar programs in place. And Wal-Mart sources a lot of inventory in China, so it may not want to be seen as leading the pack in a public relations war with the People's Republic.

The news also begs the question of why Wal-Mart was not inspecting the toys on its own. Of course, that would be expensive.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 newsletter.