Toy maker Mattel Inc. has agreed to pay millions of dollars to 39 states for not being more quality control conscious. The toy giant trusted Chinese manufacturers to make toys that, it turns out, were tainted with dangerous levels of lead or hazardous magnets. Overlooked in all this is the danger of those toys resurfacing and endangering more children.

Mattel will pay $12 million to 39 states to settle investigations launched by State Attorneys General in the United States over alleged dangerously constructed toys made in China for Mattel and shipped to the U.S. in 2007.

Mattel, through its Fisher Price branch was forced to recall more than 21 million Chinese-made toys beginning in August 2007 when it became known that many of the toys may have been poisoned with lead paint or had tiny magnets that children could accidentally swallow.

While all the affected toys were pulled off shelves by December 2007, many of the toys may still be in circulation and could possibly resurface in communities around the country through backyard and garage sales or at thrift stores that are so popular in America. Cash strapped families often turn to second hand stores and garage sales to purchase toys because the price is right and because their children may only use the toys briefly.

Why sell tainted toys? Families need the extra money so they sell the toys rather than give them to non-profit oganizations or thrift stores. Is this you? Have you checked to see if your toys are on the recall list? You can find out on line at the Consumer Product Safety Commission website.

As part of the agreement with the states, Mattel will lower the acceptable level of lead in toys shipped to the states with lead levels that are far lower than federal standards. Previously, toys that were being imported contained contaminants or parts that were outside the maximum federal guidelines.

The case has prompted federal regulators to tighten the guidelines even further and Congress is considering new laws that will demand even stricter quality control standards.

At a news conference, the spokesperson for the Attorneys General, Massachusetts Attorney General Martha Coakley told reporters: "We are pleased this agreement with Mattel and Fisher Price will result in much safer standards."

States taking part in the settlement are: Alabama, Alaska, Arkansas, Arizona, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Iowa, Kansas, Kentucky, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, West Virginia, and Wyoming.

Some of the dollar amounts are: Massachusetts will receive $625,000 as part of the settlement. The state plans to use $500,000 of the money for a grant program funding organizations that foster awareness of the dangers of lead paint and $125,000 will cover legal costs, Coakley said.

Vermont will get almost $450,000, Wisconsin will receive $234,700, New Jersey will get $259,000 and Delaware will receive $197,000.

In a written statement, Mattel officials stated: "Mattel has demonstrated its commitment to children's safety by pledging to meet standards even more stringent than those currently required. Mattel also has taken steps that go beyond current requirements to give parents greater confidence that the Mattel toys that they buy this holiday season will be the safest ever."

Mattel is not the only toy maker paying up. California also took part in negotiations, but reached a separate agreement under its Safe Drinking Water and Toxic Enforcement Act. California officials held out for a larger portion of the settlement. Nine toy companies, including Mattel, will pay California $1.8 million over lead-tainted toys.

Industry analyst Sean McGowan was quoted as saying the settlement had been anticipated because of heavy legal costs faced by the States that would have been required to continue a lawsuit and the risk to the toy companies of even greater financial damages.

McGowan told reporters: "Anything that would put to rest this question (of toy safety) is a net positive, as long as it's not terribly crippling, and $12 million is pretty good to put to rest state-level actions."

But, the settlement is not the end of potential legal and punitive damages faced by the toy companies. There are still class-action suits from consumers that are pending.

The tainted toy scandal has created fear among consumers. Toys with "Made in China" branding are being avoided by U.S. consumers, where possible, but, toys with "Made in America" branding are difficult to find as manufacturers continue to outsource to countries with cheap labor costs.

A final word to the wise - Before you buy that second hand toy, ask questions of the seller. Do they know where the toy came from? Has it been checked against the federal recall list? If you cannot get answers, don't buy the toy. Your child's safety is at stake.