Mattel is recalling 967,000 toys--covering 83 products--that were covered with lead paint by a contract manufacturer in China from April 19 to July 6. Many of the toys feature Sesame Street and Nickelodeon characters, including the Elmo Tub Sub, the Dora the Explorer Backpack, and the Giggle Gabber, a toy that toddlers shake to hear giggles and funny noises. Mattel says it prevented more than two-thirds of the affected toys from reaching consumers by stopping the products in its distribution centers and contacting retailers late last week. But consumers in the U.S have bought more than 300,000 of …

Although a Food & Drug Administration advisory panel voted overwhelmingly to keep GlaxoSmithKline's diabetes treatment Avandia on the U.S. market, despite data that suggests it may raise the risk of heart attack, the marketer faces a stiff battle to regain market share if the FDA follows the recommendation. The question remains whether doctors will continue to prescribe the drug, and whether patients will still want to take it. The controversy surrounding Avandia--the world's best-selling oral medicine for the treatment of type 2 diabetes with 2006 sales of $3.4 billion--began in May. An article in The New England Journal of …

Kohl's advertising campaign for its new "Simply Vera Vera Wang" line of clothing, accessories and home products highlights a gamble for both the retailer and Wang. Loosely based on "The Wizard of Oz," the eight-page print ad follows a well-dressed woman and her small dog traipsing through the forest before three fashionable women help her find her way home to Manhattan. Thirty-second broadcast versions of the ad--along with an additional 30-second spot featuring Wang talking about her design philosophy--are slated to run in September. Kohl's will be promoting some of the most expensive merchandise on its racks. That …

Alan M. Pottasch--whose youth-targeted "Pepsi Generation" ad theme became one of the longest-running TV campaigns in history--died July 27 at age 79 in Los Angeles, where he was working on a new Pepsi TV spot. He was "doing what he loved best," according to a statement from the marketer. As a creative guru at Pepsi-Cola for nearly 50 years, Pottasch was the force behind countless campaigns, including the Pepsi Challenge and star-studded efforts featuring Michael J. Fox and Michael Jackson. His commercials won more than 60 major industry awards, including the Grand Prix at Cannes. Pottasch joined …

Avon's second-quarter net income dropped 25% from a year earlier to $112.7 million--a figure lower than analysts expected due to increased marketing expenses. Avon spent $82 million before taxes to cut jobs, shed product lines and other initiatives. Savings will be used to boost advertising by 50% this year to $375 million, following an 83% surge in 2006. Avon previously had said ad spending would rise 35% in 2007. Sales were unchanged in North America after two quarters of gains, as Avon tried to win customers from Procter & Gamble's Cover Girl and Revlon. The number of …

After a 12-year absence in the United States, the $200,000-plus Alfa Romeo will be imported and distributed to select Maserati dealers here next year, according to James Selwa, Maserati's North American president. Fewer than 100 vehicles will be sold in the U.S., he says. Alfa Romeo, which has a rich racing history, stopped selling cars in the United States in 1995 because of low sales. However, rumors of the brand's return have been circulating in recent years. The announcement came as the company debuted a 2008 Alfa Romeo 8C Competizione at a preview of the Concours d'Elegance, …