PHILADELPHIA, PA — For generations, holiday shoppers worried about toys that might break apart, contain small pieces, or hide dangerous levels of lead. But the landscape of toy safety has shifted dramatically, and according to the Pennsylvania Public Interest Research Group Education Fund’s 40th annual Trouble in Toyland report, the dangers facing children in 2025 are more complex, more hidden, and in many cases, far more alarming than ever before.
The new report, released this week, paints a troubling picture of a toy market transformed by artificial intelligence, global online marketplaces, and counterfeit products that too easily evade regulation. Traditional hazards such as choking threats, toxic metals, and unsafe magnets have not disappeared. Instead, they now coexist with AI-powered toys capable of inappropriate conversations, toys that collect children’s sensitive biometric data, and overseas products that bypass safety testing.
“If a toy breaks, we know it right away. But if a toy contains toxins such as lead or phthalates, or if a chatbot interacts with our child in a way we don’t approve of, we don’t necessarily know,” said PennPIRG Education Fund Associate Kari Schmidt in the report. “The scariest part is that we can’t actually see all the dangers a toy might pose. That’s deeply troubling.”
Parents, researchers, and policymakers now face a fast-moving front: toys equipped with fluctuating artificial intelligence models that can update in real time, respond unpredictably, and gather data invisibly. And as the 2025 holiday season unfolds, the stakes for consumer awareness have never been higher.
The Trouble in Toyland report, published annually since the 1980s, has long served as a national benchmark for identifying dangerous toys and pushing for stronger protections. This year’s edition reflects an entirely new era of risk—one in which a child’s toy can become both a physical threat and a hidden digital one.
UNDERSTANDING THE NEW RISKS
According to the report, technological “advances” have expanded dangers in unexpected directions. Toys powered by AI chatbots can speak freely with children, often without adequate filters or parental controls. PennPIRG Education Fund researchers tested four such toys and found they could veer into inappropriate or disturbing topics, direct children to dangerous household objects, and even exhibit behaviors that discourage the child from walking away.
One toy continued initiating conversation even after the user indicated they needed to leave, while another toy offered detailed commentary about sexually explicit topics—a result of inadequate guardrails around the model powering the voice assistant. In several cases, the toys recorded voice data or scanned children’s faces, often without transparent disclosures about how that data would be stored or used.
“It’s one thing to rush AI products to market to find cures for pediatric cancer,” said R.J. Cross, campaign director for U.S. PIRG Education Fund and co-author of the report. “It’s another thing to rush to sell toy robots and teddy bears with chatbots in them. We don’t know what the impacts of these products will be on the first generation of kids to use them. But we do know the companies making them haven’t even gotten the basics right.”
The report argues that toy manufacturers have been too eager to adopt off-the-shelf AI tools—some of which are designed for adults—without implementing basic child protections. Many companies do not disclose which AI models they use, what guardrails exist, or how often the models update. As a result, caregivers have little insight into what their children’s toys may say or collect.
In addition to AI-specific risks, long-standing dangers persist. Toys imported from overseas frequently contain unsafe levels of toxic metals or banned chemicals like phthalates. Counterfeit toys flood online marketplaces through anonymous sellers, making it nearly impossible for consumers to verify what the products contain or whether they were tested.
Moreover, PennPIRG investigators were once again able to purchase recalled toys online, even though federal law prohibits selling them. And while high-powered magnets and button cell batteries are subject to strict safety rules, millions of older toys remain in circulation, especially in homes with multiple children or secondhand purchases.
LAWMAKERS SOUND THE ALARM
Pennsylvania State Representative Jennifer O’Mara said the findings should serve as a wake-up call.
“Giving a toy to any child should be a fun memory for families. Tragically, this report shows that we have more work to do when it comes to the safety of our children,” O’Mara said. “I’m grateful to PIRG for educating parents and giving them the tools necessary to protect their children from things that should give them joy.”
The report’s authors note that without swift action, both state and federal regulators risk falling behind a rapidly evolving toy market. The Consumer Product Safety Commission (CPSC) remains responsible for policing physical toy hazards, but AI-powered toys introduce privacy and developmental challenges that fall into regulatory gray zones.
With the 2025 federal administration under President Donald Trump signaling interest in limiting regulatory burdens on tech companies, consumer advocates fear that toy manufacturers may face too little oversight at the precise moment when AI-enabled toys are flooding the market.
DANGERS HIDDEN IN PLAIN SIGHT
The Trouble in Toyland report identifies several categories of major concern.
AI-POWERED TOYS
Researchers found toys that:
- discussed sexually explicit content
- directed children toward dangerous objects
- became upset if a child tried to end a conversation
- lacked meaningful parental control tools
- collected voice recordings and facial recognition data
- offered vague or incomplete privacy policies
This is especially concerning for parents who may assume a seemingly educational robot or plush toy is safe simply because it appears child-friendly.
TOXIC TOYS
Foreign-made toys often evade U.S. regulations, containing:
- lead
- phthalates
- cadmium
- other toxic heavy metals
Without proper testing, these toys can make it directly into children’s hands—especially when purchased through online sellers with limited accountability.
COUNTERFEIT TOYS
A surge in counterfeit toys—including fake Mr. Labubu dolls, seized by the thousands this year—means many products may not comply with any safety standards at all.
WATER BEADS
Long known for causing intestinal blockages when swallowed, water beads continue to injure children. Although new restrictions take effect this year, many water bead products remain available.
RECALLED PRODUCTS
Troublingly, investigators were able to buy numerous recalled toys online. Sellers simply relisted items through different accounts or platforms.
BUTTON BATTERIES AND MAGNETS
These hazards have remained deadly for decades. A swallowed button battery can burn through a child’s throat or digestive tract in hours. High-powered magnets, when swallowed in pairs, can attract each other through tissue, causing internal punctures.
The report warns that even with enhanced regulations, the threat persists because older toys remain in homes and online marketplaces continue to distribute unsafe products.
NAVIGATING THE TOY SAFETY LANDSCAPE
To help families navigate these risks, PennPIRG outlines a detailed set of safety tips—many of which reflect how dramatically toy-buying behavior has changed.
Among the most important advice:
- Understand that online purchases carry significantly higher risk.
- Verify sellers and buy only from authorized retailers.
- Inspect labels for country of origin, UPC codes, and unusual packaging.
- Avoid toys that smell strange, break easily, or arrive without documentation.
- Regularly check recall lists at cpsc.gov and saferproducts.gov.
- Be wary of toys with chipped paint, loose parts, or fragile pieces.
- Avoid vintage toys made before 2008 unless they have been verified safe.
For parents considering AI-powered toys, the report offers extensive guidance:
- Research the manufacturer’s history on privacy issues.
- Look for clear disclosures about which AI models the toy uses.
- Evaluate whether interactions can be monitored or limited.
- Ensure the toy has meaningful parental controls.
- Consider whether the toy includes cameras, microphones, or sensors.
- Determine whether the toy uses always-on listening or a physical push-to-talk feature.
- Be aware of subscription fees required to unlock features or parental controls.
- Read privacy policies closely—especially sections on data retention or sharing.
- Test the toy yourself for at least an hour before giving it to a child.
- Supervise playtime and turn the toy off after use.
Schmidt emphasized that even with thorough vetting, AI toys remain unpredictable.
“Even if a toy passes every test we outline, it doesn’t mean it’s harmless,” she said. “This is new technology, and we don’t yet understand the long-term impacts of children forming emotional bonds with AI-driven toys.”
THE HIGH-STAKES HOLIDAY SEASON
The timing of the report is no accident. Trouble in Toyland is traditionally released just as holiday shopping peaks, and this year’s findings carry particular weight. With inflation easing but still affecting household budgets, many families are turning to cheaper online options—including marketplaces saturated with unregulated overseas products.
PennPIRG warns that bargain-priced toys often come with hidden risks.
Online sellers may:
- misrepresent safety testing
- use stolen product photos
- list toys under altered brand names
- hide or falsify origin information
- ship items directly from overseas factories to bypass U.S. screening
In this environment, price-conscious families face a difficult tradeoff between affordability and safety.
Meanwhile, AI-enabled toys—some marketed as “interactive learning companions”—have exploded in popularity, driven by novelty and heavy advertising on social media platforms popular with young parents. Many buyers may feel pressure to provide children with high-tech toys touted as developmental boosters.
The Trouble in Toyland report argues that without proper oversight, these toys may create new psychological and privacy risks at ages where children are least able to understand or consent.
REGULATORY CHALLENGES UNDER THE 2025 TRUMP ADMINISTRATION
The report arrives at a moment of regulatory uncertainty. With President Donald Trump back in office as of January 2025, federal consumer protection priorities have shifted. While the administration has not announced any major toy-specific policy changes, Trump has signaled interest in reducing regulatory burdens on businesses and streamlining approval pathways for emerging technologies.
Consumer watchdogs fear that weakened oversight could create gaps in protection, especially in areas where AI, children’s data, and international e-commerce intersect.
State-level action may become increasingly important. In Pennsylvania and elsewhere, lawmakers have begun exploring stricter standards for online sellers, mandatory verification processes for AI-enabled products, and enhanced reporting requirements for manufacturers.
THE FUTURE OF TOY SAFETY
As families prepare for the holiday season, the Trouble in Toyland report serves as both a warning and a roadmap. Many dangers can be mitigated with greater awareness, more careful purchasing, and deliberate supervision. Yet the report also underscores a broader need for updated safety frameworks that reflect the realities of AI-driven, globally sourced products.
“Toys shouldn’t harm our children,” Schmidt said. “Yet too often, toys that threaten kids’ mental or physical safety can still be found on store shelves. By making sure families know about dangerous toys, both low-tech and high-tech, we can help minimize the trouble in toyland.”
For parents, the message is clear: this year, staying safe requires more than checking age labels or avoiding small pieces. It requires understanding the hidden conversations, the invisible data collection, and the global supply chains behind the toys that children unwrap.
And as the toy market evolves, so too must the vigilance of those who protect the youngest consumers — one gift, one purchase, one playtime at a time.
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