McDonald's is offering $3 refunds for the $2 Shrek drinking glasses sold at its restaurants that were tainted with cadmium. Restaurants will begin giving the refunds today.
The "Shrek Forever After 3D" glasses were recalled last week when the U.S. Consumer Product Safety Commission announced that low-levels of the heavy metal were found in
the paint of the characters on the glasses. The levels were just above the threshold for what would be considered acceptable under new federal standards that are being developed and are not considered toxic, the CPSC said.
McDonald's has been credited with moving rapidly to stop selling the glasses after learning of the discovery of cadmium in the paint. In all, 12 million of the American-made glasses were recalled in the U.S. and another 1.3 million in Canada.
To get the refund, consumers with the glasses do not need to have a receipt. They will be asked to fill out a refund form. It is unusual for companies to offer a premium on the value of a product to encourage a return. The rate of return of recalled products, particularly of inexpensive items and those that are not seen as life-threatening, tend to be very low.
No other McDonald's products are involved in this recall.
Cadmium has become the new lead. Like lead, which has long been targeted for elimination because of its long-term health effects on children, cadmium has been found in the pigments used in the manufacture of many children's products -- particularly children's jewelry manufactured in China.
Introduction to Value Investing
Are you the next Warren Buffett?View Course »