On 3 February 2011, Hong Kong-based Students and Scholars Against Corporate Misbehavior (SACOM) issued a report, "Shielding Labour Rights Violations in the ICTI Certification System" [PDF], based on their investigations at three Chinese toy factories: Dongguan Heng Li Tian Tou Chuang Ying Toys Factory Co., Tang Xia Yat Hing Plastic and Metal Manufactory, and Hui Zhou Win Merchant Tour Product Co.  The report states that they "found many labour rights violations to be prevalent, including the denial of employment contracts or falsified contracts, underpayment, excessive and forced overtime, absence of social insurance, and poor health and safety measures." The report concludes that the International Council of Toy Industries' (ICTI) CARE Process, which is intended to ensure decent working conditions within the industry, "does not uphold minimum labour standards but rather shields labour violations in the certification system."

On 8 February, SACOM issued a statement, "ICTI CARE Makes Big Money While Workers Continue to Suffer" [PDF], accusing the ICTI CARE Foundation of "allow[ing] violations to take place and become sustainable, and ignor[ing] workers demand for compliance with basic labour law requirements". The statement called the ICTI CARE Process a "cover up for the 711 toy companies supporting it, to manage or shield their ethical problems from public."

In response, the ICTI CARE Foundation issued a statement on its website, "SACOM Report Ignores ICTI CARE Process Achievements and Contains Factual Errors".  On 16 Feb SACOM, sent a rejoinder [DOC] to ICTI CARE.

Business & Human Rights Resource Centre invited the three toy companies to issue a response to SACOM's 3 Feb report, and the ICTI CARE Foundation to respond to SACOM's 16 Feb rejoinder. The responses of the three factories and of ICTI CARE Foundation are below:

Dongguan Heng Li Tian Tou Chuang Ying Toys Factory Co. response [PDF]

Tang Xia Yat Hing Plastic and Metal Manufactory response [PDF]

Hui Zhou Win Merchant Tour Product Co. response [PDF]

ICTI CARE Foundation response to SACOM's 16 Feb email [PDF] and email to Business & Human Rights Resource Centre [DOC]