Phthalates are a class of chemicals that pose serious reproductive and cancer threats and have been banned in the European Union, although U.S. regulators haven't acted. Six of eight toys labeled "phthalate free" contained the toxic chemicals. We also separately petitioned the Food and Drug Administration over hazardous chemicals found in children's nail polish according to their labels (we didn't test the nail polish):

Play cosmetics — cosmetics intended for children under 14 — must conform to the requirements of the Federal Food, Drug and Cosmetic Act (FD&C Act). Under the FD&C Act, a cosmetic is deemed adulterated—and therefore subject to regulatory action—if it contains any “poisonous or deleterious substance which may render it injurious to users under the conditions of use prescribed in the labeling thereof, or, under such conditions of use as are customary or usual.� We believe toluene, xylene and dibutyl phthalate meet these requirements.

Over the past 20 years, the Consumer Product Safety Commission (CPSC) has recalled or taken other corrective actions on at least 120 toys identified in PIRG reports. PIRG maintains a website for parents and toygivers at www.toysafety.net where you can download English or Spanish printable versions of PIRG's Tips for Toy Safety. Also, here's a link to a blog on our recent report on toxic chemical hazards in other children's products.