Devoted to small businesses and those who run them

The Chinese manufacturer of the toxic Aqua Dots beads (known as Bindeez beads in Australia) has apologized.

Hong Kong based JSSY Ltd Co used a toxic softening chemical which resulted in children being hospitalized with symptoms of the date rape drug, Fantasy.

Who Is Responsible When Outsourcing Goes Wrong?
While JSSY Ltd Co has to take responsibility, the actual manufacturing was contracted to a toy factory in Shenzen, China.

It was this company that decided to use the toxic chemical, presumably without the knowledge of JSSY. 

JSSY issued a written apology

We apologize to the children who have fallen ill after swallowing the beads, and their families.

We also apologize to other Chinese toymakers who have been affected by the damage to the made in China label.

We'll tighten risk analysis and management of chemicals to ensure product safety in future production.

Outsourcing Cautions
There's pause for thought here for anyone who outsources products to others. Outsourcing can be a great small business strategy, but be sure to do your research first. I would sound some cautions before outsourcing.

Does the company you outsource to have a reputable and solid track record? Are you involved in quality control? Do you have a sound contract in case things go wrong? Their mistakes could impact adversely on your business, your brand, your reputation and ulitmately on your customers. Choose your business partnerships carefully.

How Bad Eggs In Your Industry Impact On You
There's also pause for thought with the impact on your business when others in the industry fall into disrepute. It's easy for the general public to tar everyone with the same brush.