Many toys are produced in factories operating under sweatshop-like conditions. Despite protests, the industry continues to source toys from factories with documented labour and human rights violations.

Three-quarters of the world's toys are made in China. Working conditions have been improving, but serious labour violations continue. Toy workers have to work long days in the peak season without appropriate pay ' often for more than 80 hours a week ' well above China's legal limit. Many factories impose fines for refusing and other 'misdemeanours', such as missing a day's work or spending too long on a toilet break. The ICTI CARE Process is the toy industry's ethical manufacturing program aimed at ensuring safe and humane workplace environments for toy factory workers worldwide. However, this process has been criticised by labour rights organisations.