The company will phase out the use of the chemicals called phthalates even though it still believes them to be perfectly safe.

"We just wanted to remove ourselves from the discussion," said Sean Fitzgerald, a spokesman for Mattel.

Mattel said it will begin shipping phthalate-free teethers and other toys intended for the mouths of children under 36 months in the first quarter of 1999.

New toys

Environmental groups such as Greenpeace have campaigned for a ban on all plastic toys made with the softeners. They claim laboratory studies on animals show that phthalates are highly toxic.

They believe the additives can leak out of the toys and cause cancer, kidney damage, reproductive disorders and affect children's later development.

"We believe that Mattel has taken only the smallest step possible toward protecting children from these potentially harmful chemicals, while leaving millions of children still exposed," said Philip Clapp, President of the US National Environmental Trust, a non-profit environmental group based in Washington.

"As every parent knows, children of that age put everything in their mouths, often for extended periods of time," he said.

Consumer interests

Rich Molyneux, senior vice president of quality and technology at Mattel, said, "this initiative reflects our ongoing commitment to providing consumers with the highest quality standards and the most innovative products."

Under pressure from the environmental lobby, the European Commission has told its Consumer Affairs Commissioner Emma Bonino to advise member states of the potential risks of the plastics with a view to them taking action on them.