Following a recall from 2006 (see the details from the U.S. Consumer Product Safety Commission) , Reebok has just been fined a record US$ 1 Million for their violation of the US Federal Hazardous Substances Act.
The facts are pretty well known (a 4 year old kid died of lead poisoning after swallowing a made-in-china bracelet given away by Reebok), and the manufacturer's efforts to "fix" the issue (a 500,000+ pieces recall), communicate on it and prevent it from happening again seem real.
What is interesting here is that it sets a speaking example of the cost of non-quality (US$1 M for the fine, plus the cost of the worldwide recall, plus the purchase cost of 500,000 bracelets - probably around US$ 500,000). We are talking about a financial loss for Reebok of at least US$ 2 M I believe (and I am not counting the brand image damage).
I guess it makes the relatively small investment for setting up proper quality controls in China worth it...