The New York Times [registration required] reports that The Walt Disney Compnay (NYSE: DIS) is changing its policy towards the Chinese toy manufacturers that license its brands. Thanks to numerous recalls of Mattel Inc. (NYSE: MAT) toys made in China, Disney will no longer cash its licensing checks from toy makers while looking the other way on quality matters.

Now, worried about the potential damage to its brands, Disney will inspect the toys made in the likeness of its characters. Disney's tests will focus on 2,000 toymakers and 65,000 products each year. Disney's Product Integrity Office, which oversees safety programs throughout the company, including in its theme parks, is deciding how often the tests will occur.

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Is China hurting Disney's (DIS) reputation? originally appeared on BloggingStocks on Mon, 10 Sep 2007 12:42:00 EST. Please see our terms for use of feeds.